Office of the Revisor of Statutes
Minnesota Session Laws - 1997, Regular Session
Key: (1) language to be deleted (2) new language
CHAPTER 66-S.F.No. 145
An act relating to reemployment insurance; making
technical and administrative changes; providing civil
and criminal penalties; providing for a waiver from
certain waiting periods for certain individuals;
amending Minnesota Statutes 1996, sections 268.0111,
by adding a subdivision; 268.022, subdivision 1;
268.04, subdivisions 5, 15, 17, 25, and by adding
subdivisions; 268.06, subdivisions 1, 3a, 6, 8, 8a,
18, 19, 20, 21, 22, 24, 25, 26, 27, 28, 29, and 31;
268.07, subdivisions 2, 3, 3a, and 3b; 268.071,
subdivisions 3, 6, and 9; 268.08, subdivisions 1, 2,
3, 3a, 3b, 10, and by adding a subdivision; 268.09,
subdivision 3, and by adding subdivisions; 268.101,
subdivisions 2, 3, 4, and by adding a subdivision;
268.105; 268.11, subdivision 3; 268.12, subdivisions 8
and 9a; 268.121; 268.14, subdivision 1; 268.16,
subdivision 2; 268.161, subdivisions 4, 6, and 7;
268.167; 268.18, subdivisions 1, 2, 3, 4, 6, and by
adding a subdivision; and 268.21; proposing coding for
new law in Minnesota Statutes, chapter 268; repealing
Minnesota Statutes 1996, sections 268.026; 268.04,
subdivisions 8, 13, 14, 20, 21, 32, and 35; 268.06,
subdivisions 2, 4, 5, 30, and 33; 268.073, subdivision
7; 268.09, subdivisions 1, 2, 4, 5, 6, 7, and 8;
268.12, subdivisions 2, 4, 5, 7, and 11; 268.14,
subdivisions 3 and 4; 268.16, subdivision 8; 268.161,
subdivision 3; 268.165; and 268.18, subdivision 5.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. Minnesota Statutes 1996, section 268.0111, is
amended by adding a subdivision to read:
Subd. 3a. [DEPARTMENT.] "Department" means the department
of economic security.
Sec. 2. Minnesota Statutes 1996, section 268.022,
subdivision 1, is amended to read:
Subdivision 1. [DETERMINATION AND COLLECTION OF SPECIAL
ASSESSMENT.] (a) In addition to all other contributions,
assessments, and payment obligations under chapter 268, each
employer, except an employer making payments in lieu of
contributions under section 268.06, subdivision 25, 26, 27, or
28, is liable for a special assessment levied at the rate of
one-tenth of one percent per year on all taxable wages for
purposes of the contribution payable under section 268.06,
subdivision 2, as defined in section 268.04, subdivision 25
25b. Such The assessment shall become due and be paid by each
employer to the department of economic security on the same
schedule and in the same manner as other contributions required
by section 268.06.
(b) The special assessment levied under this section shall
not affect the computation of any other contributions,
assessments, or payment obligations due under this chapter.
(c) Notwithstanding any provision to the contrary, if on
June 30 of any year the unobligated balance of the special
assessment fund under this section is greater than $30,000,000,
the special assessment for the following year only shall be
levied at a rate of 1/20th of one percent on all taxable wages
identified for this purpose under this subdivision.
Sec. 3. Minnesota Statutes 1996, section 268.04,
subdivision 5, is amended to read:
Subd. 5. [CALENDAR QUARTER.] "Calendar quarter" means the
period of three consecutive calendar months ending on March 31,
June 30, September 30, or December 31, excluding any calendar
quarter or portion thereof which occurs prior to January 1,
1937, or the equivalent thereof, as the commissioner may by rule
prescribe.
Sec. 4. Minnesota Statutes 1996, section 268.04, is
amended by adding a subdivision to read:
Subd. 12a. [INDEPENDENT CONTRACTOR/CONSTRUCTION.] A worker
doing commercial or residential building construction or
improvement, in the public or private sector, performing
services in the course of the trade, business, profession, or
occupation of the employing unit, shall be considered an
employee under the law of master and servant and not an
"independent contractor" under subdivision 12, clause (1)(d)
unless the worker meets all the following conditions:
(1) maintains a separate business with the independent
contractor's own office, equipment, materials, and other
facilities;
(2) holds or has applied for a federal employer
identification number;
(3) operates under contracts to perform specific services
or work for specific amounts of money under which the
independent contractor controls the means of performing the
services or work;
(4) incurs the main expenses related to the service or work
that the independent contractor performs under contract;
(5) is responsible for the satisfactory completion of work
or services that the independent contractor contracts to perform
and is liable for a failure to complete the work or service;
(6) receives compensation for work or service performed
under a contract on a commission or per job or competitive bid
basis and not on any other basis;
(7) may realize a profit or suffer a loss under contracts
to perform work or service;
(8) has continuing or recurring business liabilities or
obligations; and
(9) the success or failure of the independent contractor's
business depends on the relationship of business receipts to
expenditures.
Sec. 5. Minnesota Statutes 1996, section 268.04,
subdivision 15, is amended to read:
Subd. 15. [FILING; FILED.] "Filing" or "filed" means the
delivery of any document to the commissioner or any of the
commissioner's agents or representatives, or the depositing of
the same document in the United States mail properly addressed
to the department with postage prepaid thereon, in which case
the same document shall have been be considered filed on the day
indicated by the cancellation mark of the United States Post
Office Department Postal Service.
If, where allowed, an application, protest, appeal, or
other required action is made by telephone or electronic
transmission, it shall be considered filed on the day received
by the department.
Sec. 6. Minnesota Statutes 1996, section 268.04,
subdivision 17, is amended to read:
Subd. 17. [INSURED WORK.] "Insured work" means employment
for employers as defined in this section, except that for the
purposes of interstate reciprocal benefit payment arrangements
and the clearing satisfying of disqualifications under this law,
the term "insured work" shall mean employment in include insured
work under this law or a similar law of any other state or
employment covered under the Railroad Unemployment Compensation
Act, and United States Code, title 5, chapter 85. Periods for
which an individual receives back pay are periods of insured
work for benefit purposes, except for the clearing satisfying of
disqualifications under this chapter.
Sec. 7. Minnesota Statutes 1996, section 268.04, is
amended by adding a subdivision to read:
Subd. 22a. [STATE'S AVERAGE ANNUAL AND AVERAGE WEEKLY
WAGE.] (a) On or before June 30 of each year, the commissioner
shall calculate the state's average annual wage and the state's
average weekly wage in the following manner:
(1) The sum of the total monthly employment reported by all
employers subject to this law for the previous calendar year
shall be divided by 12 to calculate the average monthly
employment.
(2) The sum of the total wages reported by all employers
subject to this law for the previous calendar year shall be
divided by the average monthly employment to calculate the
state's average annual wage.
(3) The state's average annual wage shall be divided by 52
to calculate the state's average weekly wage.
(b) For purposes of contributions under section 268.06,
subdivision 1, the state's average annual wage shall apply to
the calendar year succeeding the calculation.
(c) For purposes of calculating the maximum weekly benefit
amount payable on any reemployment insurance account under
section 268.07, subdivision 2, paragraph (c), the state's
average weekly wage shall apply to the 12-month period beginning
July 1 of the calendar year of the calculation.
Sec. 8. Minnesota Statutes 1996, section 268.04,
subdivision 25, is amended to read:
Subd. 25. [WAGES.] "Wages" means all remuneration for
services, including commissions; bonuses; back pay as of the
date of payment; tips and gratuities paid to an employee by a
customer of an employer and accounted for by the employee to the
employer; sickness and accident disability payments, except as
otherwise provided in this subdivision; and the cash value of
all remuneration in any medium other than cash, except that such
the term shall not include:
(a) For the purpose of determining contributions payable
under section 268.06, subdivision 2, that part of the
remuneration which exceeds, for each calendar year, the greater
of $7,000 or that part of the remuneration which exceeds 60
percent of the average annual wage rounded to the nearest $100
computed in accordance with the provisions of clause (j), paid
to an individual by an employer or the employer's predecessor
with respect to covered employment in this state or under the
reemployment insurance law of any other state. Credit for
remuneration reported under the reemployment insurance law of
another state is limited to that state's taxable wage base. If
the term "wages" as contained in the Federal Unemployment Tax
Act is amended to include remuneration in excess of the amount
required to be paid hereunder to an individual by an employer
under the federal act for any calendar year, wages for the
purposes of sections 268.03 to 268.23 shall include remuneration
paid in a calendar year up to an amount equal to the dollar
limitation specified in the Federal Unemployment Tax Act. For
the purposes of this clause, the term "employment" shall include
service constituting employment under any employment security
law of another state or of the federal government;
(b) The amount of any payment made to, or on behalf of, an
employee under a plan or system established by an employer which
that makes provision for employees generally or for a class or
classes of employees (including any amount paid by an employer
for insurance or annuities, or into a fund, to provide for any
such a payment), on account of (1) retirement or (2) medical and
hospitalization expenses in connection with sickness or accident
disability, or (3) death, provided the employee has not the
option to receive, instead of provision for such a death
benefit, any part of such the payment, or if such the death
benefit is insured, any part of the insurance premium (or
contributions to premiums) paid by the employer and has not the
no right, under the provisions of the plan or system or policy
of insurance providing for such death benefit, to assign such
the benefit, or to receive a cash consideration in lieu of such
a benefit either upon withdrawal from the plan or
system providing for such benefit or upon termination of such
the plan or system or policy of insurance or of employment
with such the employer;
(c) (b) The payment by an employer (without deduction from
the remuneration of the employee) (1) of the tax imposed upon an
employee under section 3101 of the federal Internal Revenue
Code, or (2) of any payment required from an employee under a
state reemployment insurance law, with respect to remuneration
paid to an employee for domestic service in a private home of
the employer or for agricultural labor;
(d) (c) Any payments made to a former employee during the
period of active military service in the armed forces of the
United States by such the employer, whether legally required or
not;
(e) (d) Any payment made to, or on behalf of, an employee
or beneficiary (1) from or to a trust described in section 401(a)
of the federal Internal Revenue Code which that is exempt from
tax under section 501(a) of such the code at the time of such
the payment unless such the payment is made to an employee of
the trust as remuneration for services rendered as an employee
and not as a beneficiary of the trust, or (2) under or to an
annuity plan which that, at the time of such the payment is a
plan described in section 403(a) of the federal Internal Revenue
Code;
(f) (e) Sickness or accident disability payments made by
the employer after the expiration of six calendar months
following the last calendar month in which the individual worked
for the employer;
(g) (f) Disability payments made under the provisions of
any workers' compensation law;
(h) (g) Sickness or accident disability payments made by a
third party payer such as an insurance company;
(i) (h) Payments made into a fund, or for the purchase of
insurance or an annuity, to provide for sickness or accident
disability payments to employees pursuant to a plan or system
established by the employer which that provides for the
employer's employees generally or for a class or classes of
employees;
(j) On or before July 1 of each year the commissioner shall
determine the average annual wage paid by employers subject to
sections 268.03 to 268.23 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.
The average annual wage determined shall be effective for
the calendar year next succeeding the determination;
(k) (i) Nothing in this subdivision, other than clause (a),
shall exclude from the term "wages" any payment made under any
type of salary reduction agreement, including payments made
under a cash or deferred arrangement and cafeteria plan, as
defined in sections 401(k) and 125, respectively, of the federal
Internal Revenue Code, to the extent that the employee has the
option to receive the payment in cash.
Sec. 9. Minnesota Statutes 1996, section 268.04, is
amended by adding a subdivision to read:
Subd. 25b. [TAXABLE WAGES.] (a) "Taxable wages" means
those wages paid to an employee each calendar year up to an
amount equal to 60 percent of the state's average annual wage,
rounded to the nearest $100.
(b) Taxable wages includes the amount of wages paid by the
employer's predecessor in this state or under the reemployment
insurance law of any other state. Any credit given for amounts
reported under the reemployment insurance law of another state
shall be limited to that state's taxable wage base.
Sec. 10. [268.047] [BENEFITS CHARGED TO EMPLOYER.]
Subdivision 1. [GENERAL RULE.] Benefits paid to a claimant
pursuant to a reemployment insurance account, including
extended, additional, and shared work benefits, shall be charged
to the account of the claimant's base period employer as and
when paid except as provided in subdivisions 2 and 3. The
amount of benefits chargeable to each base period employer's
account shall bear the same ratio to the total benefits paid to
a claimant as the wage credits the claimant was paid by the
employer bear to the total amount of wage credits the claimant
was paid by all the claimant's base period employers.
In making computations under this subdivision, the amount
of wage credits, if not a multiple of $1, shall be computed to
the nearest multiple of $1.
Subd. 2. [EXCEPTIONS TO CHARGES FOR ALL
EMPLOYERS.] Benefits paid to a claimant shall not be charged to
the account of a contributing base period employer or to the
account of a base period employer that is liable for payments in
lieu of contributions under the following conditions:
(a) the claimant was discharged from the employment because
of gross misconduct as determined under section 268.09,
subdivision 10, clause (2). This paragraph shall apply only to
benefits paid for weeks occurring subsequent to the claimant's
discharge from employment;
(b) a claimant's discharge from that employment was
required by a law mandating a background check, or the
claimant's discharge from that employment was required by law
because of a criminal conviction;
(c) the employer:
(1) provided regularly scheduled part-time employment to
the claimant during the claimant's base period;
(2) during the claimant's benefit year, continues to
provide the claimant with regularly scheduled employment
approximating 90 percent of the employment provided the claimant
by that employer in the base period, or, for a fire department
or firefighting corporation or operator of a life-support
transportation service, continues to provide employment for a
volunteer firefighter or a volunteer ambulance service personnel
on the same basis that employment was provided in the base
period; and
(3) is an involved employer because of the claimant's loss
of other employment. The exception to charges shall terminate
effective the first week in the claimant's benefit year that the
employer fails to meet the provisions of clause (2);
(d) the claimant's unemployment:
(1) was directly caused by a major natural disaster
declared by the president pursuant to Section 102(2) of the
Disaster Relief Act of 1974, United States Code, title 42,
section 5122(2), if the claimant would have been eligible for
disaster unemployment assistance with respect to that
unemployment but for the claimant's receipt of reemployment
insurance benefits; or
(2) was directly caused by the condemnation of property by
a governmental agency, a fire, flood, or act of God where 70
percent or more of the employees employed in the affected
location became unemployed as a result and the employer
substantially reopens its operations in that same area within 18
months. Benefits shall be charged to the employer where the
unemployment is caused by the willful act of the employer or a
person acting on behalf of the employer;
(e) the benefits were paid by another state as a result of
the transferring of wage credits under a federally combined wage
agreement provided for in section 268.13;
(f) on a second reemployment insurance account established
pursuant to section 268.07, subdivision 3, where the employer
provided 90 percent or more of the wage credits in the
claimant's preceding base period and the claimant did not
perform services for the employer during the subsequent base
period;
(g) the claimant left or partially or totally lost
employment because of a strike or other labor dispute at the
claimant's primary place of employment if the employer was not a
party to the particular strike or labor dispute; or
(h) the benefits were determined overpaid benefits under
section 268.18.
Subd. 3. [EXCEPTIONS TO CHARGES FOR CONTRIBUTING
EMPLOYERS.] Benefits paid to a claimant shall not be charged to
the account of a contributing base period employer under the
following conditions:
(a) the claimant's wage credits from that employer are less
than $500;
(b) the claimant quit the employment, unless it was
determined under section 268.09, subdivisions 1a and 9, to have
been because of a good reason caused by the employer. This
paragraph shall apply only to benefits paid for periods
occurring subsequent to the claimant's quitting the employment;
(c) the employer discharged the claimant from employment
because of misconduct as determined pursuant to section 268.09,
subdivisions 10 and 12. This paragraph shall apply only to
benefits paid for periods occurring subsequent to the claimant's
discharge from employment;
(d) the employer discharged the claimant from employment
because of reasons resulting directly from the claimant's
serious illness provided the employer made a reasonable effort
to retain the claimant in employment in spite of the claimant's
serious illness; or
(e) the claimant avoided or failed to accept an offer of
suitable reemployment, or reemployment that offered
substantially the same or better hourly wages or conditions of
employment, or both, as were previously provided by that
employer. This paragraph shall apply to benefits paid for weeks
occurring after the claimant's refusal or avoidance.
Subd. 4. [FEDERAL REIMBURSED BENEFITS NOT
CHARGED.] Notwithstanding subdivision 1, no employer's account
shall be charged for benefits for which the reemployment
insurance fund is reimbursed by the federal government.
Sec. 11. Minnesota Statutes 1996, section 268.06,
subdivision 1, is amended to read:
Subdivision 1. [PAYMENTS.] (1) (a) Contributions shall
accrue and become payable by each employer for each calendar
year in which that the employer is subject to sections 268.03 to
268.23 with respect to wages paid (as defined in section 268.04,
subdivision 25a) for employment this chapter, except for: (1)
nonprofit corporations as provided in section 268.053, and (2)
the state and political subdivisions as provided in section
268.052. Each employer shall pay contributions quarterly, at
the employer's assigned contribution rate, on the taxable wages
paid to each employee. Such The contributions shall become due
and be paid by each employer to the department of economic
security for the fund in accordance with such rules as the
commissioner may prescribe, and shall not be deducted, in whole
or in part, from the wages of individuals in such employer's
employ Minnesota reemployment insurance fund on or before the
last day of the month following the end of the calendar quarter.
No rule of the commissioner shall be put in force which will
permit the payment of such contributions at a time or under
conditions which will not allow the employer to take credit for
such contribution against the tax imposed by section 3301 of the
Internal Revenue Code.
(2) In (b) The payment of any contribution, a fractional
part of a cent shall may be disregarded unless it amounts to
one-half cent or more in which case it shall be increased to one
cent paid in an amount to the nearest whole dollar.
(3) (c) When the contribution rate applied to an employer's
taxable payroll for any given calendar quarter results in a
computed contribution of for any calendar quarter is less than
$1, the contribution shall be disregarded.
Sec. 12. Minnesota Statutes 1996, section 268.06,
subdivision 3a, is amended to read:
Subd. 3a. [RATE FOR NEW EMPLOYERS.] Notwithstanding the
provisions of subdivision 2, (a) Each employer, who becomes
subject to this law, that does not qualify for an experience
rating, except employers in the construction industry, shall pay
contributions at a be assigned a contribution rate: (a) Not
exceeding 5-4/10 percent, that is the higher of (1) one
percent and or (2) the state's five-year benefit cost rate for
the 60 consecutive month period immediately preceding July 1 of
each year for each employer, except employers in the
construction industry; to a maximum of 5-4/10 percent. For
purposes of this clause paragraph, the state's five-year benefit
cost rate shall be computed annually and shall be derived by
dividing the total dollar amount of benefits paid to claimants
under this law during the 60 consecutive calendar months
immediately preceding July 1 of each year by the total dollar
amount of taxable wages subject to contributions under this law
of all contributing employers during the same period. The This
rate so determined shall be applicable for the calendar year
next succeeding each the computation date.
(b) Each employer in the construction industry who becomes
subject to this chapter that does not qualify for an experience
rating shall pay contributions at a be assigned a contribution
rate, not exceeding the maximum contribution rate for all
employers as provided under subdivision 8, that is the higher of
(1) one percent, or (2) the state's five-year benefit cost rate
for construction employers for the 60 consecutive month period
immediately preceding July 1 of each year to a maximum of 9.0
percent. For purposes of this clause paragraph, the
state's five-year benefit cost rate shall be computed annually
and shall be derived by dividing the total dollar amount of
benefits paid to claimants of construction industry employers
during the 60 consecutive calendar months immediately preceding
July 1 of each year by the total dollar amount of taxable wages
of construction industry employers subject to contributions
during the same period. The This rate so determined shall be
applicable for the calendar year next succeeding each the
computation date.
For purposes of this subdivision an employer is in the
construction industry if assigned an industrial classification
the employer is within division C of the Standard Industrial
Classification Manual issued by the United States Office of
Management and Budget as determined by the tax branch of the
department, except as excluded by rules adopted by the
commissioner.
Sec. 13. Minnesota Statutes 1996, section 268.06,
subdivision 6, is amended to read:
Subd. 6. [COMPUTATION OF EACH EMPLOYER'S EXPERIENCE
RATIO RATING.] The commissioner shall compute an
experience ratio rating for each employer whose account has been
chargeable with benefits during the 60 consecutive calendar
months immediately preceding July 1 of the preceding calendar
year except that, for any employer who has not been subject to
the Minnesota economic security law this chapter for a period of
time sufficient to meet the 60 consecutive months requirement,
the commissioner shall compute an experience ratio if the
employer's account has been chargeable with benefits during at
least the 12 15 consecutive calendar months immediately
preceding July 1 of the preceding calendar year. Such The
experience ratio rating shall be the quotient ratio obtained by
dividing 1-1/4 times the total benefits charged to the
employer's account during the period the account has been
chargeable employer has been subject to this chapter but not
less than the 12 15 or more than the 60 consecutive calendar
months ending on June 30 of the preceding calendar year by the
employer's total taxable payroll for the same period on which
all contributions due have been paid to the department of
economic security on or before October 31 of the preceding
calendar year. Such The experience ratio rating shall be
computed to the nearest one-tenth of a percent.
Sec. 14. Minnesota Statutes 1996, section 268.06,
subdivision 8, is amended to read:
Subd. 8. [DETERMINATION COMPUTATION OF CONTRIBUTION
RATES.] (a) For each calendar year the commissioner
shall determine compute the contribution rate of each employer
by adding the minimum contribution rate to the employer's
experience ratio rating.
(b) The minimum rate for all employers shall be
eight-tenths of one percent for 1988; seven-tenths of one
percent for 1989; and six-tenths of one percent for 1990. The
minimum contribution rate for all employers in 1991 and
thereafter shall be six-tenths of one percent if the amount in
the reemployment insurance fund is less than $200,000,000 on
June 30 of the preceding calendar year; or five-tenths of one
percent if the fund is more than $200,000,000 but less than
$225,000,000; or four-tenths of one percent if the fund is more
than $225,000,000 but less than $250,000,000; or three-tenths of
one percent if the fund is more than $250,000,000 but less than
$275,000,000; or two-tenths of one percent if the fund is
$275,000,000 but less than $300,000,000; or one-tenth of one
percent if the fund is $300,000,000 or more.
(c) The maximum contribution rate for all employers shall
be 8.0 percent in 1988; 8.5 percent in 1989; 9.0 percent in 1990
and thereafter.
(d) For the purposes of this section subdivision the
reemployment insurance fund shall not include any money advanced
from the federal Unemployment Account in the unemployment trust
fund in accordance with Title XII of the Social Security Act, as
amended.
Sec. 15. Minnesota Statutes 1996, section 268.06,
subdivision 8a, is amended to read:
Subd. 8a. [SOLVENCY ASSESSMENT.] (a) If the fund balance
is greater than $75,000,000 but less than $150,000,000 on June
30 of any year, a solvency assessment will be in effect for the
following calendar year. Each employer, except those making
payments in lieu of contributions under subdivisions 25, 26, 27,
and 28, shall pay a quarterly solvency assessment of ten percent
multiplied by the contributions paid or due and payable for each
calendar quarter in that year. Quarterly contributions and the
solvency assessment payments shall be combined and will be
computed notwithstanding the maximum contribution rate
established in subdivision 3a or 8, by multiplying the quarterly
taxable payroll by the assigned contribution rate multiplied by
1.10.
(b) If the fund balance is less than $75,000,000 on June 30
of any year, a solvency assessment will be in effect for the
following calendar year. Each employer, except those making
payments in lieu of contributions under subdivisions 25, 26, 27,
and 28, shall pay a quarterly solvency assessment of 15 percent
multiplied by the contributions paid or due and payable for each
calendar quarter in that year. Quarterly contributions and the
solvency assessment payments shall be combined and will be
computed notwithstanding the maximum contribution rate
established in subdivision 3a or 8, by multiplying the quarterly
taxable payroll by the assigned contribution rate multiplied by
1.15 rounded to the nearest one-hundredth of a percent.
Sec. 16. Minnesota Statutes 1996, section 268.06,
subdivision 18, is amended to read:
Subd. 18. [NOTICE TO EMPLOYER OF BENEFITS CHARGED.] (a)
The commissioner shall mail to the last known address of each
employer a quarterly notice of the benefits which that have been
charged to the employer's account, as determined by the
department. Unless reviewed in the manner hereinafter provided,
a written protest is filed within 30 calendar days from the date
of mailing of the notice, the charges set forth in such the
notice, or as modified by a redetermination, a decision of a
reemployment insurance judge, or the commissioner, shall be
final and shall be used in determining the contribution rates
for all years in which the charges occur within the employer's
experience period and shall not be subject to collateral attack
by way of review of a contribution rate determination notice,
application for adjustment or refund, or otherwise.
(b) Upon receipt of a protest, the commissioner shall
review the charges on the notice and determine whether there has
been an error in the charging of the employer's account. The
commissioner shall either affirm or make a redetermination of
the charges, and a notice of affirmation or redetermination
shall be mailed to the employer.
(c) The affirmation or redetermination shall be final
unless the employer files a written appeal within 30 calendar
days after the date of mailing. Proceedings on the appeal shall
be conducted in accordance with section 268.105.
(d) An employer may not collaterally attack, by way of a
protest to a notice of benefits charged, any prior determination
or decision holding that benefits shall be charged to the
employer's account, that has become final.
(e) The commissioner may at any time upon the
commissioner's own motion correct a clerical error that resulted
in charges to an employer's account.
Sec. 17. Minnesota Statutes 1996, section 268.06,
subdivision 19, is amended to read:
Subd. 19. [NOTICE OF CONTRIBUTION RATE.] (a) The
commissioner shall mail to the last known address of each
employer notice of the employer's contribution rate as
determined for any calendar year pursuant to this section. Such
The notice shall contain the contribution rate, and the factors
used in determining the individual employer's experience rating,
and such other information as the commissioner may prescribe.
Unless changed by the procedure provided in this subdivision a
protest of the rate is made, the assigned rate as initially
determined or as changed by a redetermination by the tax branch
of this department, a decision of a reemployment insurance
judge, or the commissioner shall be final except for fraud and
shall be the rate upon which contributions shall be computed
paid for the calendar year for which such the rate was assigned,
and. The contribution rate shall not be subject to collateral
attack for any errors, clerical or otherwise, whether by way of
claim for adjustment or refund, or otherwise.
(b) If the legislature, subsequent to the mailing of the
contribution rate, changes any of the factors used to determine
the contribution rate of any employer for any year subsequent to
the original mailing of such notice for the year, the earlier
notice shall be void. The notice A new contribution rate based
on the new factors shall be deemed to be the only notice of rate
of contributions for that year and shall be subject to the same
finality, redetermination, and review procedures as provided
above computed and mailed to the employer.
Sec. 18. Minnesota Statutes 1996, section 268.06,
subdivision 20, is amended to read:
Subd. 20. [PROTEST, REVIEW, REDETERMINATION, APPEAL.] A
review of the charges made to an employer's account as set forth
in the notice of charges referred to in subdivision 18 and (a) A
review of an employer's contribution rate as set forth in the
notice of the employer's rate for any calendar year as provided
in subdivision 19, may be had obtained by the employer by filing
with the commissioner a written protest setting forth reasons
therefor within 30 calendar days from the date of the mailing of
the notice of charges or contribution rate notice to the
employer. The date shall appear on the notice. Upon receipt of
the protest, the commissioner shall refer the matter to an
official designated by the commissioner to review the charges
appearing on the notice appealed from or the computations of the
protesting employer's contribution rate, as the case may be, to
determine whether or not there has been any clerical error or
error in computation in either case. The official commissioner
shall either affirm or make a redetermination rectifying the
charges or of the rate as the case may be, and a notice of the
affirmation or redetermination shall immediately be mailed to
the employer. If the employer is not satisfied with The
affirmation or redetermination, shall be final unless the
employer may files a written appeal by filing a written notice
with the department within 30 calendar days after the date of
mailing appearing upon the redetermination. Proceedings on the
appeal shall be conducted in accordance with section 268.105.
(b) The commissioner may at any time upon the
commissioner's own motion correct any clerical error of the
department resulting in charges against an employer's account or
any error in the computation or the assignment of an employer's
contribution rate.
Sec. 19. Minnesota Statutes 1996, section 268.06,
subdivision 21, is amended to read:
Subd. 21. [SEPARATE ACCOUNT FOR EACH EMPLOYER
ACCOUNTS.] (1) (a) The commissioner shall maintain a separate
account for each employer, except as provided in clause (2) this
section, and shall charge the account for any benefits
determined chargeable to the employer under section 268.047 and
shall credit an the account with all the contributions paid by
an employer. Nothing in sections 268.03 to 268.23 shall be
construed to grant any employer or individuals in the employer's
service prior claims or rights to the amounts paid by the
employer into the fund, or if the employer is liable for
payments in lieu of contributions, the payments made.
(2) (b) Two or more related corporations concurrently
employing the same individual employees and compensating the
individual those employees through a common paymaster which is
one of the corporations may apply to the commissioner to
establish a joint common paymaster account or to merge their
several individual accounts into a joint account that shall be
the account of the common paymaster corporation. Upon approval
of the application If approved, a joint account shall be
maintained as if it constituted a single employer's account the
separate accounts shall be maintained, but the employees
compensated through the common paymaster shall be reported as
employees of the common paymaster corporation. The corporations
using the common paymaster account shall be jointly and
severally liable for any unpaid contributions, penalties, and
interest owing from the common paymaster account. The
commissioner may prescribe rules as to for the establishment,
maintenance and termination of joint common paymaster accounts.
(c) Two or more employing units having 50 percent or more
common ownership and compensating employees through a single
payee that is one of the employing units may apply to the
commissioner for a merging of the experience rating records of
the employing units into a single joint account.
If approved, the joint account shall be effective on that
date assigned by the commissioner and shall remain in effect for
not less than two calendar years, and continuing unless written
notice terminating the joint account is filed with the
commissioner. The termination shall be effective on January 1
next following the filing of the written notice of termination.
The employing units in the joint account shall be jointly
and severally liable for any unpaid contributions, penalties,
and interest owing from the joint account.
Sec. 20. Minnesota Statutes 1996, section 268.06,
subdivision 22, is amended to read:
Subd. 22. [EMPLOYMENT EXPERIENCE RATING RECORD TRANSFER.]
(a) When an employing unit succeeds to or acquires the
organization, trade or business or substantially all the assets
of another employing unit which that at the time of the
acquisition was an employer subject to this law, and
continues such the organization, trade or business, the
experience rating record of the predecessor employer shall be
transferred as of the date of acquisition to the successor
employer for the purpose of computation of a contribution rate
determination.
(b) When an employing unit succeeds to or acquires a
distinct severable portion of the organization, trade, business,
or assets which that is less than substantially all of the
employing enterprises of another employing unit, the successor
employing unit shall acquire the experience rating record
attributable to the portion to which it has succeeded, and the
predecessor employing unit shall retain the experience rating
record attributable to the portion which that it has retained,
if (1) the successor continues the organization, trade, or
business of the portion acquired, (2) the successor makes a
written request to file an application for the transfer of the
experience rating record for the severable portion acquired from
the predecessor (3) and within 90 days from the date of mailing
the application is mailed to the last known address of the
successor the successor and predecessor employing units jointly
sign and file a properly completed, written an application as
prescribed by the commissioner that furnishes the commissioner
with sufficient information to substantiate the severable
portion and to assign the appropriate total and taxable wages
and benefit charges to the successor for experience rating
purposes. Previously assigned contribution rates that have
become final in accordance with subdivision 19 prior to the
filing of the written request to file an application shall not
be affected by the transfer.
(c) If the successor employer under paragraphs (a) and (b)
had an experience rating record at the time of the acquisition,
the transferred record of the predecessor shall be combined with
the successor's record for purposes of computation of a
contribution rate.
(d) If there has been a transfer of an experience rating
record under paragraph (a) or (b), employment with a predecessor
employer shall not be deemed to have been terminated if similar
employment is offered by the successor employer and accepted by
the employee.
(d) An official, designated by (e) The commissioner, upon
the official's commissioner's own motion or upon application of
an employing unit shall determine if an employing unit is a
successor within the meaning of this subdivision and shall
mail notice of such the determination to the last known address
of the employing unit. The determination shall be final unless
a written appeal is filed by the employing unit within
30 calendar days after mailing of the notice of determination.
Proceedings on the appeal shall be conducted in accordance with
section 268.105.
(e) Notwithstanding subdivision 19, (f) The commissioner
may shall, as the result of any determination or decision
regarding succession or nonsuccession, recompute
the contribution rate of all employers affected by the
determination or decision for any year, including the year of
the acquisition or succession and subsequent years, that is
affected by the transfer or nontransfer of part or all of the
experience rating record under this subdivision. This paragraph
does not apply to rates that have become final in accordance
with subdivision 19 prior to the filing of a written request to
file an application for the transfer of a severable portion of
the experience rating record as provided in paragraph (b).
(g) The experience rating record for purposes of this
subdivision shall consist of those factors which make up an
experience rating, without the 15-month minimum.
Sec. 21. Minnesota Statutes 1996, section 268.06,
subdivision 24, is amended to read:
Subd. 24. [VOLUNTARY CONTRIBUTIONS CONTRIBUTION RATE
BUYDOWN.] Notwithstanding any inconsistent provisions of law (a)
Any employer who has been assigned a contribution rate pursuant
to subdivisions 4, 6, and 8 based upon an experience rating may,
for the calendar year 1967, or any calendar year thereafter,
upon the voluntary payment of an amount equivalent to any
portion or all of the benefits charged to the employer's account
during the period ending June 30 of the preceding year used for
the purpose of computing an employer's experience ratio as
authorized by said subdivisions 4, 6, and 8, plus a surcharge of
25 percent, obtain a cancellation of benefits charged to the
account during such period equal to such the payment so
voluntarily made, less the surcharge. Upon the payment of such
voluntary contribution, plus a surcharge of 25 percent of such
benefit charged, within the applicable period prescribed by the
provisions of this subdivision, the commissioner shall cancel
the benefits equal to such payment, excluding the 25 percent
surcharge, so voluntarily made and compute a new experience
ratio rating for such the employer, and determine a new
contribution rate. The employer then shall be assigned the
contribution rate applicable to the category within which the
recomputed experience ratio is included.
Such (b) Voluntary payments may be made only during the
30-day 30 calendar day period immediately following the date of
mailing to the employer of the notice of contribution rate. as
prescribed in this section; provided that the commissioner may
extend this period if the commissioner finds that the employer's
failure to make such payment within such 30-day period was for
good cause; and provided further that notwithstanding any of the
foregoing provisions of this subdivision, in no event shall any
new experience ratio be computed for any employer or a
contribution rate be reduced as a result of any such voluntary
payment which is made after the expiration of the 120-day period
commencing with the first day of the calendar year for which
such rate is effective. This period may be extended, upon a
showing of good cause, but in no event shall a voluntary payment
be allowed after 120 calendar days immediately following the
beginning of the calendar year for which the contribution rate
is effective.
(c) Voluntary contributions payments made within the time
required time limits will not be refunded unless a request is
made in writing at the time of payment that the department
refund the voluntary contribution if it does not result in a
lower rate within 30 calendar days after mailing of the notice
of the new contribution rate.
When all or a part of the benefits charged to an employer's
account are for the unemployment of 75 percent or more of the
employees in an employing unit and the unemployment is caused by
closure of the business by the condemnation of property by a
governmental agency, or damages to the unit by fire, flood, wind
or other act of God, the employer may obtain a cancellation of
benefits incurred because of that unemployment in the manner
provided by this subdivision without being subject to the
surcharge of 25 percent otherwise required.
Sec. 22. Minnesota Statutes 1996, section 268.06,
subdivision 25, is amended to read:
Subd. 25. [PAYMENTS TO FUND BY STATE AND POLITICAL
SUBDIVISIONS IN LIEU OF CONTRIBUTIONS.] In lieu of contributions
required of employers under this law, the state of Minnesota or
its political subdivisions governed by this law shall pay into
the reemployment insurance fund an amount equivalent to the
amount of benefits charged, and as to weeks of unemployment
beginning after January 1, 1979, all of the extended benefits
paid based on wages paid by the state of Minnesota or such
political subdivisions. If benefits paid an individual are
based on wages paid by both the state of Minnesota or such
political subdivisions and one or more other employers, the
amount payable by the state of Minnesota or such political
subdivisions to the fund shall bear the same ratio to total
benefits paid to the individual as the base-period wages paid to
the individual by the state of Minnesota or such political
subdivisions bear to the total amount of base-period wages paid
to the individual by all base-period employers. The amount of
payment required under this subdivision shall be ascertained by
the commissioner at least four times per year to its account.
Payments in the amount of benefits charged to the account during
a calendar quarter shall be made and become due on or before the
last day of the month next following the month in which the
notice of benefits charged is mailed to the employer. Past due
payments of amounts determined due under this subdivision shall
be subject to the same interest charges and collection
procedures that apply to past due contributions under sections
268.16 and 268.161.
Sec. 23. Minnesota Statutes 1996, section 268.06,
subdivision 26, is amended to read:
Subd. 26. [REIMBURSEMENT OF FUND BY STATE METHOD OF
PAYMENT BY STATE TO FUND.] To facilitate the discharge by the
state of Minnesota and its wholly owned instrumentalities of
their obligations under subdivision 25 of this section, the
state and its wholly owned instrumentalities shall reimburse pay
the reemployment insurance fund as provided in the following
clauses follows:
(1) (a) Every self-sustaining department, institution and
wholly owned instrumentality of the state shall pay into the
reemployment insurance fund such the amounts as the department
of economic security commissioner shall certify has been paid
from the fund to eligible individuals that were charged to its
account. For the purposes of this clause a "self-sustaining
department, institution or wholly owned instrumentality" is one
in which the dedicated income and revenue substantially offsets
its cost of operation.
(2) (b) Every partially self-sustaining department,
institution and wholly owned instrumentality of the state shall
pay into the reemployment insurance fund such the proportion of
the sum which that the department of economic security
commissioner certifies has been paid from the fund to eligible
individuals as the total of its income and revenue bears to its
annual cost of operation.
(3) (c) Every department, institution or wholly owned
instrumentality of the state which is not self-sustaining shall
pay to the reemployment insurance fund such sums as the
department of economic security amount the commissioner
certifies have has been paid from the fund to eligible
individuals which were charged to their accounts to the extent
funds are available from appropriated funds.
(4) (d) The departments, institutions and wholly owned
instrumentalities of the state, including the University of
Minnesota, which have money available shall immediately
reimburse pay the reemployment insurance fund for benefits paid
which were charged to their accounts upon receiving notification
from the department of economic security commissioner of such
the charges. If an individual to whom benefits were paid a
claimant was paid by a department, institution or wholly owned
instrumentality during the individual's claimant's base period
from a special or administrative account or fund provided by
law, the payment into the reemployment insurance fund shall be
made from such the special or administrative account or fund
with the approval of the department of administration and such
the amounts are hereby appropriated.
(5) (e) For those departments, institutions and wholly
owned instrumentalities of the state which cannot immediately
reimburse pay the reemployment insurance fund for benefits that
were charged to their accounts, the commissioner of economic
security shall certify on November 1 of each calendar year to
the department of finance as to the unpaid balances due and
owing. Upon receipt of the certification the commissioner of
the department of finance shall include such the unpaid balances
in the biennial budget to be submitted to the legislature.
Sec. 24. Minnesota Statutes 1996, section 268.06,
subdivision 27, is amended to read:
Subd. 27. [METHOD OF PAYMENT BY POLITICAL SUBDIVISION TO
FUND.] Effective January 1, 1974, A political subdivision or
instrumentality thereof is hereby authorized and directed to pay
its obligations under subdivision 25 this chapter by moneys
collected from taxes or other revenues. Each and Every
political subdivision authorized to levy taxes may include in
its tax levy the amount necessary to pay such its obligations.
If the taxes authorized to be levied under this subdivision
cause the total amount of taxes levied to exceed any
limitation whatsoever upon the power of a political subdivision
to levy taxes, such the political subdivision may levy taxes in
excess of the limitations in such the amounts as is necessary to
meet its obligation under subdivision 25 this chapter. The
expenditures authorized to be made under subdivision 25 shall
not be included in computing the cost of government as defined
in any home rule charter of any city affected thereby. The
governing body of a municipality, for the purpose of meeting its
liabilities under subdivision 25 this chapter, in the event of a
deficit, may issue its obligations payable in not more than two
years, in an amount which that may cause its indebtedness to
exceed any statutory or charter limitations, without an
election, and may levy taxes to pay therefor in the manner
provided in section 475.61.
Sec. 25. Minnesota Statutes 1996, section 268.06,
subdivision 28, is amended to read:
Subd. 28. [PAYMENT TO FUND BY NONPROFIT CORPORATION AND
ALLOCATION OF BENEFIT COSTS BY BASE PERIOD REIMBURSERS
CORPORATIONS.] (1) Benefits paid to employees of nonprofit
organizations shall be financed in accordance with the
provisions of this subdivision. For the purpose of this
subdivision, a nonprofit organization is an organization (or
group of organizations) described in section 501(c)(3) of the
United States Internal Revenue Code which is exempt from income
tax under section 501(a) of such code. (a) Any nonprofit
organization which, pursuant to section 268.04, subdivision 10,
clause (9) is, or becomes, subject to this law on or after
January 1, 1972, that is determined to be an employer shall pay
contributions under the provisions of subdivision 1, unless it
elects, in accordance with this paragraph, to pay make payments
in lieu of contributions to the commissioner for the
unemployment reemployment insurance fund an amount equal to the
amount of regular benefits and the state share of the extended
benefits charged, that is attributable to service in the employ
of such nonprofit organization, to individuals for weeks of
unemployment which begin during the effective period of such
election charged to the employer's account.
(a) (1) Any nonprofit organization which becomes subject to
this law after January 1, 1972, may elect to become liable for
payments in lieu of contributions for a period of not less than
two calendar years beginning with the date on which such
subjectivity begins that the organization was determined to be
an employer by filing a written notice of its election with the
commissioner not later than 30 calendar days immediately
following the date of the determination of such subjectivity.
(b) (2) Any nonprofit organization which that makes an
election in accordance with clause (a) will continue to be
liable for payments in lieu of contributions until it files with
the commissioner a written notice terminating its election not
later than 30 calendar days prior to the beginning of the
calendar year for which such the termination shall first be
effective.
(c) (3) Any nonprofit organization which that has been
paying contributions under this law for a period subsequent to
January 1, 1972, may change to a reimbursable basis making
payments in lieu of contributions by filing with the
commissioner not later than 30 calendar days prior to the
beginning January 1 of any calendar year a written notice of
election to become liable for payments in lieu of
contributions. Such The election shall not be terminable by the
organization for that and the next calendar year.
(d) (4) The commissioner may for good cause extend the
period within which that a notice of election, or a notice of
termination, must be filed and may permit an election to be
retroactive but not any earlier than with respect to benefits
paid after December 31, 1971.
(e) (5) The commissioner, in accordance with such rules as
the commissioner may prescribe, shall notify each nonprofit
organization of any determination which the commissioner may
make of its status as an employer and of the effective date of
any election which it makes and of any or termination of such
election. Such The determinations shall be final unless
reviewed in accordance with the provisions of section 268.12,
subdivision 13 a written appeal is filed within 30 calendar days
after mailing of the determination. Proceedings on the appeal
shall be conducted in accordance with section 268.105.
(2) (b) Payments in lieu of contributions, in the amount of
benefits charged to the employer's account, during a calendar
quarter, shall be made at the end of each calendar quarter, or
at the end of any other period as determined by the commissioner
and become due on or before the last day of the month next
following the month in which the notice of benefits charged is
mailed to the employer. The commissioner shall bill each
nonprofit organization (or group of such organizations) which
has elected to make payments in lieu of contributions for an
amount equal to the full amount of regular benefits plus
one-half of the amount of extended benefits charged during such
quarter or other prescribed period that is attributable to
service in the employ of such organization.
(3) (c) Past due payments of amounts in lieu of
contributions shall be subject to the same interest charges and
collection procedures that apply to past due contributions under
sections 268.16 and 268.161.
(4) (d) If any nonprofit organization is delinquent in
making payments in lieu of contributions as required under this
subdivision, the commissioner may terminate such the
organization's election to make payments in lieu of
contributions as of the beginning of the next taxable calendar
year, and such the termination shall be effective for that and
the following taxable calendar year.
(e) For purposes of this subdivision, a nonprofit
organization is an organization, or group of organizations,
described in section 501(c)(3) of the Internal Revenue Code that
is exempt from income tax under section 501(a) of the code.
Sec. 26. Minnesota Statutes 1996, section 268.06,
subdivision 29, is amended to read:
Subd. 29. [GROUP ACCOUNTS.] Two or more employers that
have become are liable for payments in lieu of contributions may
file a joint application apply to the commissioner for the
establishment of a group account for the purpose of sharing the
cost of benefits paid that are attributable to service in the
employ of such charged based upon wage credits from all
employers in the group. Each such The application shall
identify and authorize a group representative to act as the
group's agent for the purposes of this subdivision the account.
Upon the commissioner's approval of the application If approved,
the commissioner shall establish a group account for such the
employers effective as of the beginning of the calendar year in
which that the application is received by the commissioner and
shall notify the group's representative of the effective date of
the account. Such The account shall remain in effect for not
less than two calendar years and thereafter until terminated at
the discretion of the commissioner or upon application by the
group at least 30 calendar days prior to the end of such the two
year period or 30 calendar days prior to January 1 of any
calendar year subsequent to such two calendar years.
Each member of employer in the group shall be jointly and
severally liable for payments in lieu of contributions for all
benefits paid based upon wage credits earned with a from all
employers in the group member during the period the group
account was in effect. The commissioner shall may prescribe
such rules as the commissioner deems necessary with respect to
applications for the establishment, maintenance and termination
of group accounts that are authorized by this subdivision, for
addition of new members to, and withdrawal of active members
from, such account, and for the determination of the amounts
that are payable under this subdivision by members of the group
and the time and manner of such payments.
Sec. 27. Minnesota Statutes 1996, section 268.06,
subdivision 31, is amended to read:
Subd. 31. [ELECTION BY STATE OR POLITICAL SUBDIVISION TO
BE A CONTRIBUTING EMPLOYER.] (1) Notwithstanding the provisions
of section 268.06, subdivisions 25 and 26, after December 31,
1977 an employer as defined in section 268.04, subdivision 10,
clauses (14) and (15) (a) The state or political subdivision may:
(a) elect to be a contributing employer subject to the
provisions of subdivisions 1, 2, 3a, 4, 5, 6, 8, 18, 19, 20 and
24 and section 268.16 beginning with January 1, 1978 for any
calendar year if it files with the commissioner a written notice
of its election is filed with the commissioner within 30
calendar days immediately following January 1, 1978; or of that
calendar year.
(b) Elect for a subsequent calendar year, not having
elected to be a contributing employer beginning with January 1,
1978, to be a contributing employer subject to the provisions of
subdivisions 1, 2, 3a, 4, 5, 6, 8, 18, 19, 20 and 24 and section
268.16 if it files with the commissioner a written notice of its
election within 30 days immediately following the first day of
the subsequent calendar year.
An election shall continue be for a minimum period of two
calendar years immediately following the effective date of the
election and thereafter continue unless a written notice
terminating the election is filed with the commissioner not
later than 30 calendar days prior to the beginning of the
calendar year for which. The termination shall first be
effective at the beginning of the next calendar year.
(2) (b) The provisions of subdivisions 25, 26, and 27 as to
the method of payments to the reemployment insurance fund shall
apply to all contributions paid by or due from employers
electing the state or political subdivision that elects to be
contributing employers under clause (1) of this subdivision.
Sec. 28. [268.069] [PAYMENT OF BENEFITS.]
(a) The commissioner shall pay reemployment insurance
benefits from the Minnesota reemployment insurance fund to a
claimant who has met each of the following requirements:
(1) the claimant has established a reemployment insurance
account in accordance with section 268.07;
(2) the claimant is not subject to a disqualification from
benefits under section 268.09;
(3) the claimant has met all of the eligibility
requirements under section 268.08; and
(4) the claimant does not have an outstanding overpayment
of benefits under section 268.18;
(b) Benefits shall not be considered as paid by an employer.
The commissioner shall determine a claimant's entitlement to
benefits based upon that information available and any agreement
between a claimant and an employer shall not be binding on the
commissioner in determining a claimant's entitlement. Any
obligation on an employer as a result of benefits charged to the
employer is to the fund only.
Sec. 29. Minnesota Statutes 1996, section 268.07,
subdivision 2, is amended to read:
Subd. 2. [WEEKLY BENEFIT AMOUNT AND DURATION.] (a) To
establish a reemployment insurance account, a claimant must have:
(1) wage credits in two or more calendar quarters of the
claimant's base period;
(2) minimum total base period wage credits equal to or
greater than the high quarter wages wage credits 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 a claimant has
sufficient wage credits and weeks worked within the base period
to establish established a reemployment insurance account, the
weekly benefit amount payable to the claimant during the
claimant's benefit year shall be equal to 1/26 of the claimant's
high quarter wage credits, rounded to the next lower whole
dollar.
(c) Notwithstanding paragraph (b), the maximum weekly
benefit amount 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
268.23 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 reemployment
insurance account established during the 12-month period
subsequent to June 30 of any year shall be determined on the
basis of the unemployment reemployment insurance 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 state's 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 state's 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 state's 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 state's 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 state's 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 state's 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 state's 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 shall be computed to
the nearest whole dollar shall apply to reemployment insurance
accounts established subsequent to June 30 of each year.
(f) (d) The maximum benefit amount payable for on any
benefit year reemployment insurance account shall equal
one-third of the claimant's total base period wage credits
rounded to the next lower dollar, not to exceed 26 times the
claimant's weekly benefit amount.
Sec. 30. Minnesota Statutes 1996, section 268.07,
subdivision 3, is amended to read:
Subd. 3. [SECOND ACCOUNT PROHIBITED REQUIREMENTS.] (a) To
establish a second reemployment insurance account following the
expiration of a benefit year on a preceding reemployment
insurance account, a claimant must have sufficient wage
credits and weeks of employment to establish a reemployment
insurance account under the provisions of subdivision 2 and must
have performed services in covered employment after the
establishment of the preceding reemployment insurance account.
The services performed must have been in insured work and The
wages paid for those services must equal not less than ten eight
times the weekly benefit amount of the second preceding
reemployment insurance account. A reemployment insurance
account established sufficiently in advance of anticipated
unemployment to make the limitations of this paragraph
ineffective shall not be allowed. It is the purpose of this
provision that to prevent a claimant cannot establish from
establishing more than one reemployment insurance account as a
result of one separation from employment.
(b) No employer who provided 90 percent or more of the wage
credits in a claimant's base period shall be charged for
benefits based upon wages paid during a subsequent base period
unless the claimant performed services for the employer in any
part of the subsequent base period.
Sec. 31. Minnesota Statutes 1996, section 268.07,
subdivision 3a, is amended to read:
Subd. 3a. [RIGHT OF APPEAL.] (a) A determination or
redetermination of a reemployment insurance account shall be
final unless a claimant or base period employer within
15 calendar days after the mailing of the determination or
redetermination to the last known address files a written
appeal. Every determination or redetermination of a
reemployment insurance account shall contain a prominent
statement indicating in clear language the method of appealing,
the time within which the appeal must be made, and the
consequences of not appealing. Proceedings on the appeal shall
be conducted in accordance with section 268.105.
(b) Any claimant or base period employer may appeal from a
determination or redetermination of a reemployment insurance
account on the issue of whether an employing unit is an employer
within the meaning of this chapter or whether services performed
constitute employment within the meaning of this chapter.
Proceedings on the appeal shall be conducted in accordance with
section 268.105.
Sec. 32. Minnesota Statutes 1996, section 268.07,
subdivision 3b, is amended to read:
Subd. 3b. [LIMITATIONS.] (a) A reemployment insurance
account shall be established the Sunday of the calendar week in
which the application for reemployment insurance benefits was
made. If an individual attempted to make an application for a
reemployment insurance account, but was prevented from making an
application by the department of economic security, the
reemployment insurance account shall be established the Sunday
of the calendar week the individual first attempted to make an
application.
(b) A reemployment insurance account, once established, may
be withdrawn if benefits have not been paid, and benefit credit
has not been claimed and a new account established only if the
claimant has not been credited with a waiting week under section
268.08, subdivision 1, clause (3). A determination or amended
determination pursuant to section 268.101, that was issued
before the withdrawal of the reemployment insurance account,
shall remain in effect and shall not be voided by the withdrawal
of the reemployment insurance account. A determination of
disqualification requiring subsequent earnings to satisfy the
disqualification shall apply to the weekly benefit amount on the
new account.
(c) A reemployment insurance account shall not be
established prior to the Sunday following the expiration of the
benefit year on a prior preceding reemployment insurance account.
(d) All benefits shall be payable from the Minnesota
reemployment insurance fund only for weeks occurring during the
benefit year.
Sec. 33. Minnesota Statutes 1996, section 268.071,
subdivision 3, is amended to read:
Subd. 3. [ELIGIBILITY REQUIREMENTS FOR EXTENDED BENEFITS.]
An individual A claimant shall be eligible to receive extended
benefits with respect to any week of unemployment in the
individual's claimant's eligibility period only if the
commissioner finds that with respect to such that week the
individual claimant:
(1) is an "exhaustee" as defined in subdivision 1, clause
paragraph (9);
(2) has satisfied the requirements of this law for the
receipt of regular benefits that are applicable to individuals
claimants claiming extended benefits, including not being
subject to a disqualification for the receipt of benefits,
except that an individual disqualified for benefits pursuant to
section 268.09, subdivision 1, clause (g) is not eligible for
extended benefits unless the individual has, subsequent to the
disciplinary suspension, earned at least four times the
individual's weekly extended benefit amount; and
(3) has, during the individual's claimant's base period
earned wage credits available for benefit purposes of not less
than 40 times the individual's claimant's weekly benefit amount
as determined pursuant to section 268.07, subdivision 2.
Sec. 34. Minnesota Statutes 1996, section 268.071,
subdivision 6, is amended to read:
Subd. 6. [BEGINNING AND TERMINATION OF EXTENDED BENEFIT
PERIOD.] (1) (a) Whenever an extended benefit period is to
become effective in this state as a result of a state "on"
indicator, or an extended benefit period is to be terminated in
this state as a result of a state "off" indicator the
commissioner shall make an appropriate public announcement.
(2) (b) Computations required by the provisions of
subdivision 1, clause paragraph (4) shall be made by the
commissioner, in accordance with regulations prescribed by the
United States Secretary of Labor.
(3) Except as otherwise provided, the state share of the
benefits paid to an individual under this section shall be
charged to the employment experience record of the base period
employer of the individual to the extent regular benefits were
charged to the base period employer under sections 268.06,
subdivision 5, and 268.09, subdivision 1, clause (e).
(4) With respect to an employer which has elected to be a
contributing employer under the provisions of section 268.06,
subdivision 31, all benefits paid under this section which are
based upon services for such contributing employer shall be
charged to such contributing employer's account as to weeks of
unemployment beginning after January 1, 1979.
Sec. 35. Minnesota Statutes 1996, section 268.071,
subdivision 9, is amended to read:
Subd. 9. [ELIGIBILITY REQUIREMENTS.] Notwithstanding the
provisions of subdivision 2, an individual a claimant shall be
ineligible for the payment of extended benefits for any week of
unemployment in the individual's claimant's eligibility period
if the commissioner finds that during that week the individual
claimant failed to accept any offer of suitable work employment,
failed to apply for any suitable work employment to which
referred by the commissioner or failed to actively engage in
seeking work seek employment.
Any individual claimant who has been found ineligible for
extended benefits for any week by reason of this subdivision
shall also be denied benefits for the week following the week in
which the failure occurred and until the individual claimant has
been employed in each of four subsequent weeks, whether or not
consecutive, and has earned remuneration of not less than four
times the individual's claimant's extended weekly benefit amount.
For the purpose of this subdivision "suitable work
employment" means, with respect to any individual, any work
employment which is within that individual's the claimant's
capabilities and which has a gross average weekly remuneration
payable which exceeds the sum of the individual's claimant's
weekly benefit amount as determined under subdivision 4 plus the
amount, if any, of supplemental unemployment reemployment
insurance benefits, as defined in section 501(c) (17) (D) of the
Internal Revenue Code of 1954, as amended, payable to
the individual claimant for that week. The work employment must
pay wages not less than the higher of the federal minimum wage
provided by section 6(a) (1) of the Fair Labor Standards Act of
1938, as amended, without regard to any exemption, or the
applicable state or local minimum wage.
No individual claimant shall be denied extended benefits
for failure to accept an offer of or apply for any suitable work
employment if: (a) the position was not offered to the
individual claimant in writing or was not listed with employment
service; (b) the failure could not result in a denial of
benefits under the definition of suitable work employment for
regular benefit claimants in section 268.09, subdivision 2 to
the extent that the criteria of suitability therein are is not
inconsistent with this subdivision; or (c) the
individual claimant furnishes satisfactory evidence to the
commissioner that prospects for obtaining work employment in the
individual's claimant's customary occupation within a reasonably
short period are good. If the evidence furnished is found to be
satisfactory for this purpose, the determination of whether
any work employment is suitable for the individual claimant
shall be made in accordance with the definition of suitable work
for regular benefit claimants employment in section 268.09,
subdivision 2, clause 15, paragraph (a), without regard to the
definition or special disqualification specified in this
subdivision.
No work employment shall be found to be suitable work
employment for an individual a claimant which does would not
accord with the labor standard provisions required by section
3304(a) (5) of the Internal Revenue Code of 1954, as amended,
and set forth in be suitable employment under section 268.09,
subdivision 2 15, clauses paragraph (b) (1) (2) and (3).
For the purpose of this subdivision an individual a
claimant is "actively seeking work employment" during any week
if the individual claimant has engaged in a systematic and
sustained effort to obtain work employment during the week, and
the individual claimant furnishes tangible evidence of engaging
in that effort during the week.
The employment service shall refer any claimant entitled to
extended benefits under this section to any work employment
which is suitable work employment for that individual claimant
under this subdivision.
Sec. 36. Minnesota Statutes 1996, section 268.08,
subdivision 1, is amended to read:
Subdivision 1. [ELIGIBILITY CONDITIONS.] A claimant shall
be eligible to receive benefits with respect to for any week of
unemployment in the claimant's benefit year only if the
commissioner finds that the claimant:
(1) has registered for work at and thereafter has continued
to report to an employment office, or agent of the office, in
accordance with rules the commissioner may adopt; except that
the commissioner may by rule waive or alter either or both of
the requirements of this clause as to types of cases or
situations with respect to which the commissioner finds that
compliance with the requirements would be oppressive or would be
inconsistent with the purposes of sections 268.03 to 268.23;
(2) (1) the claimant has made a continued claim for
benefits in person, by mail, by telephone, or by electronic
transmission as the commissioner shall require. The
commissioner may by rule adopt other requirements for a
continued claim;
(3) (2) the claimant was able to work and was available for
work employment, and was actively seeking work employment. The
claimant's weekly benefit amount shall be reduced one-fifth for
each day the claimant is unable to work or is unavailable
for work employment.
Benefits shall not be denied by application of this clause
to a claimant who is in training with the approval of the
commissioner, is a dislocated worker as defined in section
268.975, subdivision 3, who is in training approved by the
commissioner, or in training approved pursuant to section 236 of
the Trade Act of 1974, as amended.
A claimant is deemed unavailable for work with respect to
any week which occurs in a period when the claimant is a
full-time student in attendance at, or on vacation from an
established school, college, or university unless a majority of
the claimant's wages paid during the 52 weeks preceding the
establishment of a reemployment insurance account were for
services performed during weeks in which the student was
attending school as a full-time student.
A claimant serving as a juror shall be considered as
available for work employment and actively seeking
work employment on each day the claimant is on jury duty;
(4) (3) the claimant has been unemployed for a waiting
period of one week during which the claimant is otherwise
entitled to benefits under sections 268.03 to 268.23; and
(5) (4) the claimant has been participating in reemployment
services, such as job search assistance services, if the
claimant has been determined to be likely to exhaust regular
benefits and in need of reemployment services pursuant to a
profiling system established by the commissioner, unless there
is justifiable cause for the claimant's failure to participate.
Sec. 37. Minnesota Statutes 1996, section 268.08,
subdivision 2, is amended to read:
Subd. 2. [WEEK OF UNEMPLOYMENT NOT ELIGIBLE.] No week
shall be counted as A claimant shall not be eligible to receive
benefits for any week of unemployment for the purposes of this
section:
(1) unless it occurs subsequent to the establishment of a
reemployment insurance account;
(2) Unless it occurs after benefits first could become
payable to any claimant under sections 268.03 to 268.23; which
occurs in a period when the claimant is a full-time student in
attendance at, or on vacation from an established school,
college, or university unless a majority of the claimant's wages
paid during the 52 weeks preceding the establishment of a
reemployment insurance account were for services performed
during weeks that the claimant was attending school as a
full-time student;
(3) in which the claimant is incarcerated. The claimant's
weekly benefit amount shall be reduced by one-fifth for each day
the claimant is incarcerated;
(4) in which the claimant is on a voluntary leave of
absence;
(5) in which the claimant is performing services on a
full-time basis, in covered employment, noncovered employment,
self-employment, or volunteer work regardless of the amount of
any earnings; or
(3) (6) with respect to which the claimant is receiving,
has received, or has filed a claim for reemployment insurance
benefits under any other law of this state, or of any other
state, or the federal government, including readjustment
allowances under Title V, Servicemen's Readjustment Act, 1944,
but not including benefits under the Veterans Readjustment
Assistance Act of 1952 or any other federal or state benefits
which that are merely supplementary to those provided for under
sections 268.03 to 268.23 this chapter; provided that if the
appropriate agency of such other state or the federal government
finally determines that the claimant is not entitled to such the
benefits, this provision clause shall not apply.
Sec. 38. Minnesota Statutes 1996, section 268.08, is
amended by adding a subdivision to read:
Subd. 2a. [SUSPENSION FROM EMPLOYMENT.] (a) A claimant who
has been suspended from employment for 30 calendar days or less,
as a result of misconduct as defined under section 268.09,
subdivision 12, shall be ineligible for benefits commencing the
Sunday of the week in which the claimant was suspended and
continuing for the duration of the suspension.
(b) A suspension from employment for more than 30 calendar
days shall be considered a discharge from employment under
section 268.09, subdivision 11.
Sec. 39. Minnesota Statutes 1996, section 268.08,
subdivision 3, is amended to read:
Subd. 3. [NOT ELIGIBLE DEDUCTIBLE PAYMENTS.] A claimant
shall not be eligible to receive benefits for any week with
respect to which the claimant is receiving, has received, or has
filed a claim for remuneration payment in an amount equal to or
in excess of the claimant'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, such lump sum payment shall be allocated over a period
equal to the lump sum divided by the claimant's regular pay
while employed by such employer; provided such payment shall be
applied for a period immediately following the last day of
employment but not to exceed 28 calendar days provided that 50
percent of the total of any such payments in excess of eight
weeks shall be similarly allocated to the period immediately
following the 28 days; or. This clause shall apply to the first
four weeks of payment and to one-half of the total number of any
additional weeks of payment. This clause shall be applied to
the period immediately following the last day of employment.
The number of weeks of payment shall be determined as follows:
(i) if the payments are made periodically, the total of the
payments to be received shall be divided by the claimant's last
level of regular weekly pay from the employer; or
(ii) if the payment is made in a lump sum, that sum shall
be divided by the claimant's last level of regular weekly pay
from the employer;
(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; 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 claimant contributed to the fund, annuity or
insurance and all of the pension payments if the claimant 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.
Provided, that if such remuneration the payment is less
than the benefits which would otherwise be due under sections
268.03 to 268.23 claimant's weekly benefit amount, the claimant
shall be entitled to receive for such that week, if otherwise
eligible, benefits reduced by the amount of such
remuneration the payment; provided, further, that if the
appropriate agency of such this state or any other state or the
federal government finally determines that the claimant is not
entitled to such benefits payments, this provision subdivision
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. 40. Minnesota Statutes 1996, section 268.08,
subdivision 3a, is amended to read:
Subd. 3a. [DEDUCTIBLE EARNINGS.] Each eligible claimant
who is unemployed in any week shall be paid with respect to such
week a benefit in an amount equal to the claimant's weekly
benefit amount less that part of the claimant's earnings,
including holiday pay, payable to the claimant 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 $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. The resulting benefit, if not a whole dollar
amount, shall be rounded down to the next lower dollar
amount. (a) If the claimant has earnings, including holiday
pay, with respect to any week, from covered employment,
noncovered employment, self-employment, or volunteer work, equal
to or in excess of the claimant's weekly benefit amount, the
claimant shall be ineligible for benefits for that week.
(b) If the claimant has earnings, including holiday pay,
with respect to any week, from covered employment, noncovered
employment, self-employment, or volunteer work, that is less
than the claimant's weekly benefit amount, the following shall
be deducted from the claimant's weekly benefit amount:
(1) that amount in excess of $50 if the claimant's earnings
were $200 or less, and that amount in excess of 25 percent of
the claimant's earnings if those earnings were more than $200;
and
(2) that amount in excess of $200 for earnings from service
in the National Guard or a United States military reserve unit.
The resulting benefit, if not a whole dollar, shall be
rounded to the next lower dollar.
(c) No deduction shall be made from a claimant's weekly
benefit amount for earnings from service as a volunteer
firefighter or volunteer ambulance service personnel. No
deduction shall be made for jury duty pay.
Sec. 41. Minnesota Statutes 1996, section 268.08,
subdivision 3b, is amended to read:
Subd. 3b. [RECEIPT OF BACK PAY.] Back pay received by a
claimant with respect to any weeks of unemployment occurring in
the 104 weeks immediately preceding the payment of the back pay
shall be deducted from benefits paid for those weeks.
The amount deducted shall not reduce the benefits for which
that the claimant is otherwise eligible for that week below
zero. If the amount of benefits after the deduction of back pay
is not a whole dollar amount, it shall be rounded to the next
lower dollar.
If the back pay awarded the claimant is reduced by benefits
paid, the amounts withheld shall be: (a) paid by the employer
into the fund within 30 days of the award and are subject to the
same collection procedures that apply to past due contributions
under this chapter; (b) applied to benefit overpayments
resulting from the payment of the back pay; (c) credited to the
claimant's maximum amount of benefits payable in a benefit year
which that includes the weeks of unemployment for which back pay
was deducted. Benefit charges for those weeks shall be removed
from the employer's account as of the calendar quarter in which
the fund receives payment.
Payments to the fund under this subdivision are shall be
considered as made by the employer on behalf of the claimant and
are not voluntary contributions under section 268.06,
subdivision 24.
Sec. 42. Minnesota Statutes 1996, section 268.08,
subdivision 10, is amended to read:
Subd. 10. [SEASONAL EMPLOYMENT.] (a) If the commissioner
finds that a claimant has earned wage credits in from seasonal
employment, benefits shall be payable only if the commissioner
finds that the claimant has earned wage credits in 15 or more
calendar weeks equal to or in excess of 30 times the claimant's
weekly benefit amount, in employment which is not seasonal, in
addition to any can establish a reemployment insurance account
under section 268.07, subdivision 2, excluding the wage credits
in from seasonal employment. For purposes of this subdivision,
"seasonal employment" means employment with a single employer in
the recreation or tourist industry which that is available with
the employer for 15 consecutive weeks or less each calendar year.
(b) Wages paid in Wage credits from seasonal employment are
may not available be used for benefit purposes during weeks in
which there is no seasonal employment available with the
employer outside the normal season.
Sec. 43. Minnesota Statutes 1996, section 268.09, is
amended by adding a subdivision to read:
Subd. 1a. [QUIT.] A claimant who quits employment shall be
disqualified from benefits:
(1) unless the claimant quit the employment because of a
good reason caused by the employer;
(2) unless the claimant quit the employment to accept other
covered employment that provided substantially higher wages or
substantially better conditions of employment or both, but the
claimant did not work long enough at the other employment to
have sufficient subsequent earnings to satisfy the
disqualification that would otherwise be imposed;
(3) unless the claimant quit the employment within 30
calendar days of commencing the employment because the
employment was unsuitable for the claimant;
(4) unless the employment was unsuitable for the claimant
and the claimant quit to enter approved training;
(5) unless the employment was part time and the claimant
had full-time employment in the base period, that the claimant
separated from because of nondisqualifying reasons, sufficient
to meet the minimum requirements to establish a reemployment
insurance account under section 268.07, subdivision 2; or
(6) unless the claimant quit the employment because of the
claimant's serious illness, provided that the claimant made
reasonable efforts to retain that employment in spite of the
serious illness.
A claimant who quit employment because of the claimant's
serious illness of chemical dependency, has not made reasonable
efforts to retain the employment if the claimant has previously
been professionally diagnosed as chemically dependent, or has
previously voluntarily submitted to treatment for chemical
dependency, and has failed to make consistent efforts to
maintain the treatment the claimant knows or has been
professionally advised is necessary to control the chemical
dependency.
Sec. 44. Minnesota Statutes 1996, section 268.09, is
amended by adding a subdivision to read:
Subd. 2a. [QUIT DEFINED.] A quit from employment occurs
when the decision to end the employment was, at the time the
employment ended, the employee's. An employee who seeks to
withdraw a previously submitted notice of quitting shall be
considered to have quit the employment if the employer does not
agree that the notice may be withdrawn.
Sec. 45. Minnesota Statutes 1996, section 268.09,
subdivision 3, is amended to read:
Subd. 3. [LABOR DISPUTE.] (a) An individual A claimant who
has left or partially or totally lost employment with an
employer because of a strike or other labor dispute at the
establishment in which where the individual claimant is or was
employed shall be disqualified for from benefits:
(1) for each until the end of the calendar week during
which that the strike or labor dispute is was in active
progress if the claimant is participating in or directly
interested in the strike or labor dispute; or
(2) for one week following the commencement of until the
end of the calendar week that the strike or labor
dispute commenced if the individual claimant is not
participating in or directly interested in the strike or labor
dispute.
Participation includes the failure or refusal of an
individual by a claimant to accept and perform available and
customary work at the establishment.
(b) An individual A claimant who has left or partially or
totally lost employment with an employer because of a
jurisdictional controversy between two or more labor
organizations at the establishment in which where the individual
claimant is or was employed shall be disqualified for benefits
for each until the end of the calendar week during which that
the jurisdictional controversy is was in progress.
(c) For the purpose of this subdivision the term "labor
dispute" shall have the same definition as provided in the
Minnesota labor relations act. Nothing in this subdivision
shall be deemed to deny benefits to any employee A claimant
shall not be disqualified from benefits under this subdivision
if:
(1) who the claimant becomes unemployed because of a strike
or lockout caused by an employer's willful failure to observe
the terms of the safety and health section of a union contract
or failure to comply with an official citation for a violation
of federal and state laws involving occupational safety and
health; provided, however, that benefits paid in accordance with
this provision shall not be charged to the employer's experience
rating account if, following official appeal proceedings, it is
held that there was no willful failure on the part of the
employer; or
(2) who the claimant becomes unemployed because of a
lockout; or
(3) who the claimant is dismissed discharged during the
period of negotiation in any labor dispute and prior to the
commencement of a strike or other labor dispute.
(d) A voluntary separation quit from employment by the
claimant during the time that the strike or other labor dispute
is in active progress at the establishment shall not be deemed
to terminate the individual's claimant's participation in or
direct interest in such the strike or other labor dispute for
purposes of this subdivision.
(e) Benefits paid to an employee who has left or partially
or totally lost employment because of a strike or other labor
dispute at the employee's primary place of employment shall not
be charged to the employer's account unless the employer was a
party to the particular strike or labor dispute For the purpose
of this subdivision, the term "labor dispute" shall have the
same definition as provided in section 179.01, subdivision 7.
(f) Notwithstanding any other provision of this section, an
individual whose last separation from employment with an
employer occurred prior to the commencement of the strike or
other labor dispute and was permanent or for an indefinite
period, shall not be denied benefits or waiting week credit
solely by reason of failure to apply for or to accept recall to
work or reemployment with the employer during any week in which
the strike or other labor dispute is in progress at the
establishment in which the individual was employed.
Sec. 46. Minnesota Statutes 1996, section 268.09, is
amended by adding a subdivision to read:
Subd. 9. [GOOD REASON CAUSED BY THE EMPLOYER DEFINED.] (a)
A good reason caused by the employer for quitting is a reason:
(1) that is directly related to the employment and for
which the employer is responsible; and
(2) that is significant and would compel an average,
reasonable worker to quit.
(b) A claimant has a good reason caused by the employer for
quitting if it results from sexual harassment. Sexual
harassment means unwelcome sexual advances, requests for sexual
favors, sexually motivated physical contact or other conduct or
communication of a sexual nature when:
(1) the claimant's submission to the conduct or
communication is made a term or condition of the employment;
(2) the claimant's submission to or rejection of the
conduct or communication is the basis for decisions affecting
employment; or
(3) the conduct or communication has the purpose or effect
of substantially interfering with a claimant's work performance
or creating an intimidating, hostile, or offensive working
environment and the employer knows or should know of the
existence of the harassment and fails to take timely and
appropriate action.
Sec. 47. Minnesota Statutes 1996, section 268.09, is
amended by adding a subdivision to read:
Subd. 10. [DISCHARGE.] A claimant who is discharged from
employment by an employer shall not be disqualified from
benefits:
(1) unless the claimant was discharged because of
misconduct that interfered with and adversely affected that
employment. This clause shall not apply if:
(i) the misconduct was a direct result of the claimant's
serious illness provided that the claimant made reasonable
efforts to retain the employment in spite of the serious
illness. If the misconduct was a direct result of the
claimant's chemical dependency, the claimant has not made
reasonable efforts to retain employment if the claimant has
previously been professionally diagnosed chemically dependent or
the claimant has previously voluntarily submitted to treatment
for chemical dependency and has failed to make consistent
efforts to maintain the treatment the claimant knows or has been
professionally advised is necessary to control the chemical
dependency; or
(ii) the employment was part time and the claimant had
full-time employment in the base period, that the claimant
separated from because of nondisqualifying reasons, sufficient
to meet the minimum requirements to establish a reemployment
insurance account under section 268.07, subdivision 2;
(2) unless the claimant was discharged because of gross
misconduct that interfered with and adversely affected that
employment. For the purpose of this clause, "gross misconduct"
means:
(i) the commission of any act that amounts to a gross
misdemeanor or felony; or
(ii) for an employee of a facility as defined in section
626.5572, gross 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.
If a claimant is convicted of a gross misdemeanor or felony
for the same act or acts for which the claimant was discharged,
it is conclusively presumed to be gross misconduct; or
(3) if the claimant was discharged because the claimant
gave notice of intention to quit the employment within 30
calendar days. This clause shall be effective only through the
end of the calendar week that includes the intended date of
quitting. Thereafter the separation from employment shall be
considered a quit of employment by the claimant, and a
disqualification, if any, shall commence with the Sunday of the
week following the week that includes the intended date of
quitting.
Sec. 48. Minnesota Statutes 1996, section 268.09, is
amended by adding a subdivision to read:
Subd. 11. [DISCHARGE DEFINED.] A discharge from employment
occurs when any words or actions by an employer would lead a
reasonable employee to believe that the employee's services are
no longer desired by the employer. A layoff due to lack of work
shall be considered a discharge. A suspension from employment
of more than 30 calendar days shall be considered a discharge.
Sec. 49. Minnesota Statutes 1996, section 268.09, is
amended by adding a subdivision to read:
Subd. 12. [MISCONDUCT DEFINED.] Misconduct is intentional
conduct showing a disregard of:
(1) the employer's interest;
(2) the standards of behavior that an employer has the
right to expect of the employee; or
(3) the employee's duties and obligations to the employer.
Misconduct also includes negligent conduct by an employee
demonstrating a substantial lack of concern for the employment.
Inefficiency, inadvertence, simple unsatisfactory conduct, or
poor performance as a result of inability or incapacity are not
misconduct.
Sec. 50. Minnesota Statutes 1996, section 268.09, is
amended by adding a subdivision to read:
Subd. 13. [ACT OR OMISSIONS AFTER SEPARATION.] Except as
provided for under subdivision 14, a claimant shall not be
disqualified from benefits for any acts or omissions occurring
after the claimant's separation from employment with the
employer.
Sec. 51. Minnesota Statutes 1996, section 268.09, is
amended by adding a subdivision to read:
Subd. 14. [OFFERS OF EMPLOYMENT.] (a) A claimant shall be
disqualified from benefits if the claimant, without good cause:
(1) failed to apply for available, suitable employment of
which the claimant was advised by the commissioner or an
employer;
(2) failed to accept suitable employment when offered; or
(3) avoided an offer of suitable employment.
(b) The claimant shall not be disqualified from benefits
under paragraph (a) if the claimant:
(1) was in approved training; or
(2) formerly worked for the employer and the claimant's
last separation from employment with the employer occurred prior
to the commencement of a strike or other labor dispute, was
permanent or for an indefinite period, and the claimant failed
to apply for or accept reemployment because a strike or other
labor dispute was in progress at the establishment where the
claimant was previously employed by that employer.
Sec. 52. Minnesota Statutes 1996, section 268.09, is
amended by adding a subdivision to read:
Subd. 15. [SUITABLE EMPLOYMENT DEFINED.] (a) Suitable
employment is employment in the claimant's labor market area
that is reasonably related to the claimant's qualifications. In
determining whether any employment is suitable for a claimant,
the degree of risk involved to the health and safety, physical
fitness, prior training, experience, length of unemployment,
prospects for securing local employment in the claimant's
customary occupation, and the distance of the employment from
the claimant's residence shall be considered.
(b) No employment shall be considered suitable if:
(1) the position offered is vacant due directly to a
strike, lockout, or other labor dispute;
(2) the wages, hours, or other conditions of employment are
substantially less favorable than those prevailing for similar
employment in the locality; or
(3) as a condition of becoming employed, the claimant would
be required to join a company union or to resign from or refrain
from joining any bona fide labor organization.
Sec. 53. Minnesota Statutes 1996, section 268.09, is
amended by adding a subdivision to read:
Subd. 16. [DISQUALIFICATION DURATION.] (a) A
disqualification from the payment of benefits under subdivisions
1a, 10, and 14 shall be for the duration of the claimant's
unemployment and until the end of the calendar week in which the
claimant had total earnings in subsequent covered employment of
eight times the claimant's weekly benefit amount.
(b) Any disqualification imposed under subdivisions 1a and
10 shall commence on the Sunday of the week in which the
claimant became separated from employment. Any disqualification
imposed under subdivision 14 shall commence on the Sunday of the
week the claimant failed to apply for, accept, or avoided
employment.
(c) Notwithstanding paragraph (a), if the claimant was
discharged from employment because of gross misconduct that
interfered with and adversely affected that employment the
disqualification shall be for the duration of the claimant's
unemployment and until the end of the calendar week in which the
claimant had total earnings in subsequent covered employment of
12 times the claimant's weekly benefit amount. In addition,
wage credits from that employment shall be canceled and the
claimant's reemployment insurance account redetermined pursuant
to section 268.07, subdivision 1, paragraph (d).
Sec. 54. Minnesota Statutes 1996, section 268.09, is
amended by adding a subdivision to read:
Subd. 17. [APPLICATION.] This section shall apply to:
(1) all covered employment, full time or part time,
temporary or limited duration, permanent or indefinite duration,
that occurred during the base period, the period between the end
of the base period and the effective date of the reemployment
insurance account, or the benefit year, except as provided for
in subdivisions 1a, clause (5); and 10, clause (1)(ii); or
(2) all covered employment occurring in this state, any
other state, federal employment, or employment covered under the
Railroad Unemployment Compensation Act.
Sec. 55. Minnesota Statutes 1996, section 268.101,
subdivision 2, is amended to read:
Subd. 2. [DISQUALIFICATION DETERMINATION.] (a) The
commissioner shall promptly determine any issue of
disqualification raised by a timely protest made by an employer,
and mail to the claimant and that employer at the last known
address a determination of disqualification or a determination
of nondisqualification, as is appropriate. The determination
shall set forth the effect on employer charges.
(b) The commissioner shall promptly determine any issue of
disqualification raised by information obtained from a claimant
pursuant to subdivision 1, paragraph (a) or (c), and mail to the
claimant and employer at the last known address a determination
of disqualification or a determination of nondisqualification,
as is appropriate.
(c) The commissioner shall promptly determine any issue of
disqualification raised by an untimely protest made by an
employer and mail to the claimant and that employer at the last
known address a determination of disqualification or a
determination of nondisqualification as is appropriate.
Notwithstanding section 268.09, any disqualification imposed as
a result of determination issued pursuant to this paragraph
shall commence the Sunday two weeks following the week in which
the untimely protest was made. Notwithstanding any provisions
to the contrary, any relief of employer charges as a result of a
determination issued pursuant to this paragraph shall commence
the Sunday two weeks following the week in which the untimely
protest was made.
(d) If any time within 24 months from the establishment of
a reemployment insurance account the commissioner finds that a
claimant failed to report any employment, loss of employment, or
offers of employment received which that were required to be
provided by the claimant under this section, the commissioner
shall promptly determine any issue of disqualification on that
loss of employment or offer of employment and mail to the
claimant and involved employer at the last known address a
determination of disqualification or a determination of
nondisqualification, as is appropriate. The determination shall
set forth the effect on employer charges.
This paragraph shall not apply if the involved employer was
notified and given the opportunity to protest pursuant to
subdivision 1, paragraph (b) or (c).
(e) A determination of disqualification or a determination
of nondisqualification shall be final unless a written an appeal
is filed by the claimant or notified employer within 15 calendar
days after mailing of the determination to the last known
address. The determination shall contain a prominent statement
indicating in clear language the method of appealing, the time
within which an appeal must be made, and the consequences of not
appealing. Proceedings on the appeal shall be conducted in
accordance with section 268.105.
(f) An issue of disqualification for purposes of this
section shall include any question of denial of benefits under
section 268.09, any question of an exception to disqualification
under section 268.09, subdivision 1, paragraph (c), any question
of benefit charge to an employer, and any question of an
otherwise imposed disqualification for which a claimant has had
requalifying subsequent earnings sufficient to satisfy the
disqualification.
(g) Notwithstanding the requirements of this subdivision,
the commissioner is not required to mail to a claimant a
determination of nondisqualification where the claimant has had
requalifying subsequent earnings sufficient to satisfy any
otherwise potential disqualification.
Sec. 56. Minnesota Statutes 1996, section 268.101,
subdivision 3, is amended to read:
Subd. 3. [ELIGIBILITY DETERMINATION.] (a) The commissioner
shall promptly determine any issue of eligibility raised by a
timely protest made by an employer and mail to the claimant and
that employer at the last known address a determination of
eligibility or a determination of ineligibility, as is
appropriate.
(b) The commissioner shall promptly determine any issue of
eligibility raised by information obtained from a claimant and
mail to the claimant and any involved employer at the last known
address a determination of eligibility or a determination of
ineligibility, as is appropriate.
(c) The commissioner shall promptly determine any issue of
eligibility raised by an untimely protest made by an employer
and mail to the claimant and that employer at the last known
address a determination of eligibility or a determination of
ineligibility, as is appropriate. Any denial of benefits
imposed as a result of determination issued pursuant to this
paragraph shall commence the Sunday two weeks following the week
in which the untimely protest was made.
(d) If any time within 24 months from the establishment of
a reemployment insurance account the commissioner finds the
claimant failed to provide requested information regarding the
claimant's eligibility for benefits, the commissioner shall
determine the issue of eligibility and mail to the claimant and
any involved employer at the last known address a determination
of eligibility or a determination of ineligibility, as is
appropriate.
This paragraph shall not apply if the involved employer was
notified, was aware, or should have been aware of the issue of
eligibility at the time of notification, and was given the
opportunity to protest pursuant to subdivision 1, paragraph (b)
or (c).
(e) A determination of eligibility or determination of
ineligibility shall be final unless a written an appeal is filed
by the claimant or notified employer within 15 calendar days
after mailing of the determination to the last known address.
The determination shall contain a prominent statement indicating
in clear language the method of appealing, the time within which
an appeal must be made, and the consequences of not appealing.
Proceedings on the appeal shall be conducted in accordance with
section 268.105.
(f) An issue of eligibility for purposes of this section
shall include any question of denial of benefits under sections
268.071, 268.072, 268.073, 268.074, and 268.08, 268.115,
268.125, 268.135, and 268.155.
Sec. 57. Minnesota Statutes 1996, section 268.101, is
amended by adding a subdivision to read:
Subd. 3a. [DIRECT HEARING.] Notwithstanding subdivision 2
or 3, the commissioner may refer any issue of disqualification
or any issue of eligibility directly for hearing in accordance
with section 268.105, subdivision 1. The status of the issue
shall be the same as if a determination had been made and an
appeal filed.
Sec. 58. Minnesota Statutes 1996, section 268.101,
subdivision 4, is amended to read:
Subd. 4. [AMENDED DETERMINATION.] Unless an appeal has
been filed, the commissioner, on the commissioner's own motion,
upon finding that an error has occurred in the issuing of a
determination of disqualification or nondisqualification or a
determination of eligibility or ineligibility, may issue an
amended determination. Any amended determination shall be
mailed to the claimant and any involved employer at the last
known address. Any amended determination shall be final unless
a written an appeal is filed by the claimant or notified
employer within 15 calendar days after mailing of the amended
determination to the last known address. Proceedings on the
appeal shall be conducted in accordance with section 268.105.
Sec. 59. [268.103] [APPEALS BY TELEPHONE; ELECTRONIC
TRANSMISSION.]
Subdivision 1. [IN COMMISSIONER'S DISCRETION.] (a) Unless
the statutory provision providing for an appeal requires that
the appeal be in writing, the commissioner shall have the
discretion to allow an appeal to be made by telephone or by
electronic transmission. If the commissioner allows an appeal
to be made by telephone or by electronic transmission, that
shall be clearly set out on the determination or decision
subject to appeal.
(b) The commissioner may restrict the conditions under
which an appeal by telephone or electronic transmission may be
made. Any restrictions as to days, hours, telephone number,
electronic transmission address, or other conditions, shall be
clearly set out on the determination or decision subject to
appeal.
(c) All information requested by the commissioner when an
appeal is made by telephone or by electronic transmission must
be supplied or the communication will not constitute an appeal.
Subd. 2. [APPEAL IN WRITING.] An appeal may be made in
writing even if an appeal by telephone or by electronic
transmission is allowed.
Subd. 3. [EXCLUSIVE MEANS OF APPEAL.] A written appeal, or
if allowed an appeal by telephone or electronic transmission,
shall be the only manner of appeal.
Sec. 60. Minnesota Statutes 1996, section 268.105, is
amended to read:
268.105 [REEMPLOYMENT INSURANCE HEARINGS; APPEALS.]
Subdivision 1. [HEARING.] (a) Upon appeal the department
shall set a time and place for a de novo hearing and give the
interested parties any involved claimant and any involved
employer written notice of it, by mail, not less than
ten calendar days prior to the time date of the hearing.
(b) The commissioner shall by rule adopt a procedure by
which reemployment insurance judges hear and decide appeals,
subject to further appeal to the commissioner. The rules need
not conform to common law or statutory rules of evidence and
other technical rules of procedure. The written report of any
employee of the department of economic security, except a
determination, made in the regular course of the performance of
the employee's duties, shall be competent evidence of the facts
contained in it.
(c) After the conclusion of the hearing, upon the evidence
presented, the reemployment insurance judge shall mail findings
of fact and decision to all interested involved parties. The
reemployment insurance judge's decision is final unless a
further appeal is filed pursuant to subdivision 3.
Subd. 2. [REEMPLOYMENT INSURANCE JUDGES.] The commissioner
shall designate one or more regular salaried employees of the
department as impartial reemployment insurance judges to conduct
hearings on appeals. The commissioner or authorized
representative may personally hear or transfer to another
reemployment insurance judge any proceedings pending before a
reemployment insurance judge. Any proceedings removed to the
commissioner or authorized representative shall be heard in
accordance with subdivision 1.
Subd. 3. [COMMISSIONER REVIEW.] (a) Within 30 calendar
days after mailing of the reemployment insurance judge's
decision, an interested any involved party may appeal in writing
and obtain a review by the commissioner or an authorized
representative. The commissioner within the same period of time
may on the commissioner's own motion order a review of a
decision.
(b) Upon review, the commissioner or authorized
representative shall, on the basis of the evidence submitted at
the hearing before the reemployment insurance judge, make
findings of fact and decision, or remand the matter back to the
a reemployment insurance judge for the taking of additional
evidence and new findings and decision based on all the
evidence. The commissioner may disregard the findings of fact
of the reemployment insurance judge and examine the evidence and
make any findings of fact as the evidence may, in the judgment
of the commissioner require, and make any decision as the facts
found by the commissioner require.
(c) The commissioner shall mail to all interested
parties any involved party the findings of fact and decision.
The decision of the commissioner is final unless judicial review
is sought as provided by subdivision 7.
Subd. 3a. [DECISIONS.] (a) If a reemployment insurance
judge's decision or the commissioner's decision awards benefits,
the benefits shall be promptly paid regardless of any appeal
period or any appeal having been filed.
(b) If a reemployment insurance judge's decision modifies
or reverses a determination awarding benefits, any benefits paid
pursuant to the determination is an overpayment of those
benefits subject to section 268.18.
(c) Except as provided in paragraph (d), if a
commissioner's decision modifies or reverses a reemployment
insurance judge's decision awarding benefits, any benefits paid
pursuant to the reemployment insurance judge's decision is an
overpayment of those benefits subject to section 268.18.
(d) If a reemployment insurance judge's decision affirms a
determination on an issue of disqualification awarding benefits
or the commissioner affirms a reemployment insurance judge's
decision on an issue of disqualification awarding benefits, the
decision, if finally reversed, shall result in a
disqualification from benefits only for weeks following the week
in which the decision reversing the award of benefits was issued
and benefits paid for that week and previous weeks shall neither
not be deemed overpaid nor shall and the benefits paid shall not
be considered in determining the employer's future contribution
rate under section 268.06 charged to a contributing employer's
account.
(e) If the commissioner, pursuant to subdivision 3, remands
a matter to a reemployment insurance judge for the taking of
additional evidence, the prior reemployment insurance judge's
decision shall continue to be enforced until new findings of
fact and decision are made by a reemployment insurance judge.
Subd. 4. [TESTIMONIAL POWERS.] In the discharge of the
duties imposed by this section, the reemployment insurance
judge, the commissioner, or authorized representative, 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
subpoenas shall be enforceable through the district court in the
district in which the subpoena is issued. Witnesses, other than
an interested party involved claimant or involved employer or
officers and employees of an interested party involved employer,
subpoenaed pursuant to this section shall be allowed fees the
same as witness fees in a civil action in district court. These
fees shall be deemed a part of the expense of administering
sections 268.03 to 268.23 this chapter.
Subd. 5. [USE OF INFORMATION.] (a) All testimony at any
hearing conducted pursuant to subdivision 1 shall be recorded,
but shall be transcribed only if the disputed claim is appealed
further and is requested by a party, or as directed by the
commissioner or an authorized representative. A copy of any
recorded testimony and exhibits received into evidence at the
hearing shall, upon request, or upon directive of the
commissioner, be furnished to a party at no cost. If requested,
the representative of a commissioner shall make available a
device for listening to the recording.
(b) Testimony obtained under subdivision 1, may not be used
or considered in any civil, administrative, or contractual
proceeding, except by a local, state, or federal human
rights group agency with enforcement powers, unless the
proceeding is initiated by the department.
(c) No findings of fact or decision issued by a
reemployment insurance judge or the commissioner or authorized
representative may be held conclusive or binding or used as
evidence in any separate or subsequent action in any other
forum, except proceedings provided for under this chapter,
regardless of whether the action involves the same or related
parties or involves the same facts.
Subd. 6. [REPRESENTATION; FEES.] In any proceeding under
these sections, a party may be represented by any agent. Except
for services provided by an attorney-at-law, a claimant for
benefits shall not be charged fees or costs of any kind in a
proceeding before a reemployment insurance judge, the
commissioner or authorized representative, or by any court or
any of its officers.
Subd. 7. [COURT OF APPEALS; ATTORNEY FOR COMMISSIONER.] (a)
The court of appeals may, by writ of certiorari to the
commissioner, review any decision of the commissioner provided a
petition for the writ is filed and served upon the commissioner
and the adverse any other involved party within 30 calendar days
of the mailing of the commissioner's decision.
(b) Any interested party, except a claimant for
benefits involved employer, upon the service of the writ shall
furnish a cost bond to the commissioner in accordance with rule
107 of the rules of civil appellate procedure. Upon review
before the court of appeals, the commissioner shall, if
requested, furnish to the claimant at no cost a written
transcript of the testimony received at the hearing conducted
pursuant to subdivision 1.
(c) The commissioner shall be deemed to be a party to any
judicial action involving any decision and shall be represented
by any qualified attorney who is a regular salaried employee of
the department of economic security and has been designated by
the commissioner for that purpose or, at the commissioner's
request, by the attorney general.
Sec. 61. Minnesota Statutes 1996, section 268.11,
subdivision 3, is amended to read:
Subd. 3. [ELECTION AGREEMENTS; TERMINATION POWERS OF
COMMISSIONER.] (1) An employing unit, not otherwise subject to
sections 268.03 to 268.23 defined as an employer under this
chapter, which that files with the commissioner its a written
election to become an employer subject thereto for not less than
two calendar years, shall, with the written approval of such
election by the commissioner, become an employer subject hereto
for not less than two calendar years to the same extent as all
other employers, as of the date stated in such the approval and.
The employing unit shall cease to be subject hereto an employer
as of the first day of January of any calendar year subsequent
to such two calendar years, only, if at least 30 calendar days
prior to such the first day of January, it the employing unit
has filed with the commissioner a written notice to that effect.
(2) Any employing unit for which that has services
performed for it that do not constitute employment are
performed, may file with the commissioner a written election
that all such service performed by individuals in its employ, in
one or more distinct establishments or places of business, shall
be deemed to constitute employment for all the purposes of
sections 268.03 to 268.23 this chapter for not less than two
calendar years. Upon the written approval of such election by
the commissioner, such the services shall be deemed to
constitute employment subject to these sections from and after
the date stated in such the approval. Such The services shall
cease to be deemed employment subject hereto as of the first day
of January of any calendar year subsequent to such two calendar
years only if at least 30 calendar days prior to such the first
day of January such the employing unit has filed with the
commissioner a written notice to that effect.
(3) The commissioner must terminate any election agreement
under this subdivision upon 30 calendar days notice to the
employer employing unit, if the employer employing unit fails to
pay all contributions due under section 268.06, subdivision 1,
or reimburse payments in lieu of contributions due the
unemployment reemployment insurance fund in accordance with
section 268.06, subdivisions 25, 26, 27, and 28.
Sec. 62. Minnesota Statutes 1996, section 268.12,
subdivision 8, is amended to read:
Subd. 8. [RECORDS; REPORTS.] (1) (a) Each employing unit
shall keep true and accurate records for such the periods of
time and containing such the information as the commissioner may
prescribe require. For the purpose of determining compliance
with this chapter, or for the purpose of collection of any
amounts due under this chapter, the commissioner or
any authorized delegated representative of the commissioner has
the power to examine, or cause to be examined or copied, any
books, correspondence, papers, records, or memoranda which are
relevant to making these determinations, whether the books,
correspondence, papers, records, or memoranda are the property
of or in the possession of the employing unit or any other
person or corporation at any reasonable time and as often as may
be necessary.
(2) (b) The commissioner or any other duly authorized
delegated representative of the commissioner may cause to be
made such make summaries, compilations, photographs,
duplications, or reproductions of any records, or reports, or
transcripts thereof as that the commissioner may deem considers
advisable for the effective and economical preservation of the
information contained therein, and such any summaries,
compilations, photographs, duplications or reproductions, duly
authenticated, shall be admissible in any proceeding under this
chapter, if the original record or records would have been
admissible therein. Notwithstanding any restrictions contained
in section 16B.50, except restrictions as to quantity, the
commissioner is hereby authorized to duplicate, on equipment
furnished by the federal government or purchased with funds
furnished for that purpose by the federal government, records,
reports, summaries, compilations, instructions, determinations,
or any other written matter pertaining to the administration of
the Minnesota economic security law.
(3) (c) Notwithstanding any inconsistent provisions
elsewhere, the commissioner may provide for the destruction or
disposition of any records, reports, transcripts, or
reproductions thereof, or other papers in the commissioner's
custody, which that are more than two years old, the
preservation of which is no longer necessary for the
establishment of contribution determining employer liability
or a claimant's benefit rights or for any purpose necessary to
the proper administration of this chapter, including any
required audit thereof, provided, that the commissioner may
provide for the destruction or disposition of any record,
report, or transcript, or other paper in the commissioner's
custody which has been photographed, duplicated, or reproduced.
(4) Notwithstanding the provisions of the Minnesota State
Archives Act the commissioner shall with the approval of the
legislative auditor destroy all benefit checks and benefit check
authorization cards that are more than two years old and no
person shall make any demand, bring any suit or other proceeding
to recover from the state of Minnesota any sum alleged to be due
on any claim for benefits after the expiration of two years from
the date of filing such claim.
Sec. 63. Minnesota Statutes 1996, section 268.12,
subdivision 9a, is amended to read:
Subd. 9a. [TESTIMONIAL POWERS SUBPOENAS; OATHS.] (1) (a)
In the discharge of the duties imposed by sections 268.03 to
268.23, the commissioner, appeal referee, or any duly authorized
delegated representative of the commissioner, shall have power
to administer oaths and affirmations, take depositions, certify
to official acts, and issue subpoenas to compel the attendance
of witnesses persons and the production of books, papers,
correspondence, memoranda, and other records deemed necessary as
evidence in connection with a disputed claim or the
administration of these sections.
(2) Witnesses (b) Persons, other than interested
parties claimants or officers and employees of an employing unit
which that is an interested party the subject of the inquiry,
subpoenaed pursuant to this subdivision or sections 268.03 to
268.23, shall be allowed fees the same as witness fees in civil
actions in district court, which. The fees need not be paid in
advance of the time of giving of testimony, and such fees of
witnesses so subpoenaed shall be deemed part of the expense of
administering these sections.
(3) In case of contumacy by, or refusal to obey, a subpoena
issued to any person, any court of this state within the
jurisdiction of which the inquiry is carried on or within the
jurisdiction of which such person guilty of contumacy or refusal
to obey is found or resides or transacts business, upon
application by the commissioner, or referee, or any duly
authorized representative of the commissioner, shall have
jurisdiction to issue to such person an order requiring such
person to appear before the commissioner, the chair of an appeal
tribunal, referee, or any duly authorized representative of the
commissioner, there to produce evidence if so ordered or there
to give testimony relative to the matter under investigation or
in question; and any failure to obey such order of the court may
be punished by the court as a contempt thereof.
(c) The subpoena shall be enforceable through the district
court in the district in which the subpoena is issued.
Sec. 64. Minnesota Statutes 1996, section 268.121, is
amended to read:
268.121 [WAGE REPORTING.]
Beginning on April 1, 1984, Subdivision 1. [WAGE DETAIL
REPORT.] (a) Each employer subject to this chapter shall provide
the commissioner with a quarterly report of the wages paid to
each employee of that employer covered by this chapter. The
report must known as the wage detail report, that shall include,
for each employee covered by this chapter, the employee's name,
social security number, and the total wages paid to the employee
, and the number of weeks in which work was performed. The
report is due and must be filed at the same time as the
contribution report in accordance with rules established by the
commissioner for filing of quarterly contribution reports. For
the purpose of this section, "wages paid" includes wages
actually or constructively paid and wages overdue and delayed
beyond the usual time of payment on or before the last day of
the month following the end of the calendar quarter.
(b) An employer need not include the name of the employee
or other required information on the wage detail report if
disclosure is specifically exempted by federal law.
Subd. 2. [FAILURE TO FILE REPORT.] Any employer who fails
to file the wage detail report shall pay to the department, for
each month the report is delinquent, a penalty of one-half of
one percent of total wages paid that quarter. The penalty shall
not be assessed if the wage detail report is properly made and
filed within 30 calendar days after a demand for the report is
mailed to the employer's address of record. In no case shall
the amount of the penalty, if assessed, be less than $25.
Penalties due under this subdivision may be waived where good
cause for late filing is found by the commissioner.
Subd. 3. [MISSING OR ERRONEOUS INFORMATION.] Any employer
who files the wage detail report, but knowingly fails to include
any of the required information or knowingly enters erroneous
information, shall be subject to a penalty of $25 for each
employee for whom the information is missing or erroneous.
Subd. 4. [PENALTIES.] The penalties provided for in
subdivisions 2 and 3 are in addition to interest and other
penalties imposed by this chapter and shall be collected in the
same manner as delinquent contributions and shall be credited to
the contingent account.
Sec. 65. Minnesota Statutes 1996, section 268.14,
subdivision 1, is amended to read:
Subdivision 1. [ACCEPTANCE OF FEDERAL ACT.] A state
employment service is hereby established in the department of
economic security. The commissioner in the conduct of such
service shall establish and maintain free public employment
offices, in such that number and in such those places as may be
necessary for the proper administration of sections 268.03 to
268.23 and for the purpose of performing such the functions as
are within the purview of the act of Congress entitled "An act
to provide for the establishment of a national employment system
for the cooperation with the states in the promotion of such
system and for other purposes," approved June 6, 1933, as
amended. The provisions of such act of Congress are hereby
accepted by this state and the department of economic security
is hereby designated and constituted the agency of this state
for the purposes of such act. The commissioner, pending the
return of the employment service, its facilities, property, and
personnel, to state control after the war emergency, may loan to
the United States employment service facilities, property and
personnel Wagner-Peyser Act, United States Code, title 29,
chapter 4B.
Sec. 66. Minnesota Statutes 1996, section 268.16,
subdivision 2, is amended to read:
Subd. 2. [REPORTS; DELINQUENCIES; PENALTIES.] (a) Any
employer who knowingly fails to make and submit to the
department commissioner any contribution report at the time the
report is required by rules prescribed by the commissioner shall
pay to the department a penalty in the of up to $25 or an amount
of 1-1/2 percent of contributions accrued during the period for
which the report is required, for each month from and after the
due date until the report is properly made and submitted to the
department. In no case shall the amount of the penalty imposed
hereby be less than $5 per month. The maximum penalty imposed
hereby shall be $25 or the amount determined at the rate of
1-1/2 percent per month, whichever is greater.
(b) If any employing unit employer required by sections
268.03 to 268.23 to make and submit contribution reports shall
fail fails to do so within the time prescribed by these sections
or by rules under the authority thereof required, or shall make
makes, willfully or otherwise, an incorrect, false or fraudulent
contribution report, it the employer shall, on the written
demand of the commissioner, make such the contribution report,
or corrected report, within ten days after the mailing of such
the written demand and at the same time pay the whole
contribution, or any additional contribution, due on the basis
thereof. If such the employer shall fail fails within that
time to make such the report, or corrected report, the
commissioner shall make a report, or corrected report, from the
commissioner's own knowledge and from such information as the
commissioner can may obtain through testimony, or otherwise, and
assess a contribution on the that basis thereof, which
contribution, plus any penalties and interest which thereafter
accrued (less any payments theretofore made) shall be paid
within ten days after the commissioner has mailed to such the
employer a written notice of the amount thereof due and demand
for its payment. Any such contribution report or assessment
made by the commissioner on account of the failure of the
employer to make a report or corrected report shall be prima
facie correct and valid, and the employer shall have the burden
of establishing its incorrectness or invalidity in
any subsequent action or proceeding in respect thereto.
Whenever such the delinquent employer shall file files a report
or corrected report, the commissioner may, on finding it
substantially correct, substitute it for the commissioner's
report.
(c) Any employer who fails to file the wage detail report
required by section 268.121 shall pay to the department for the
contingent account for each month the report is delinquent a
penalty of one-half of one percent of total wages paid and wages
due but not paid during the period for each month the report is
delinquent. The penalty shall not be assessed if the wage
detail report is properly made and filed within 30 days after a
demand for the report is mailed to the employer's address of
record. In no case shall the amount of the penalty, if
assessed, be less than $25. Penalties due under this
subdivision may be waived where good cause for late filing is
found by the commissioner.
(d) Any employer who files the wage detail report required
by section 268.121, but knowingly fails to include any of the
required information or knowingly enters erroneous information,
shall be subject to a penalty of $25 for each individual for
whom the information is missing or erroneous.
(c) If the commissioner finds that any part of any
employer's contribution deficiency is due to fraud with intent
to avoid payment of contributions to the fund, 50 percent of the
total amount of the deficiency or $500, whichever is greater,
shall be assessed as a penalty against the employer and
collected in addition to the deficiency.
(e) (d) Any employing unit which that fails to make and
submit to the commissioner any report, other than a contribution
report or wage detail report, as and when required by rule,
shall be subject to a penalty in the sum of $50 payable to the
department for the contingent account.
(f) (e) The penalties provided for in paragraphs (a), (c),
(d), and (e) (d) are in addition to interest and any other
penalties imposed by sections 268.03 to 268.23 and shall be
collected as provided by section 268.161 and shall be paid to
the department and credited to the contingent account.
(f) An employer or officer or agent of an employer is
guilty of a gross misdemeanor, unless the contribution or other
payment involved exceeds $500, in which case the person is
guilty of a felony, if the individual:
(1) in order to avoid becoming or remaining a subject
employer or to avoid or reduce any contribution or other payment
required under this chapter:
(i) makes a false statement or representation knowing it to
be false; or
(ii) knowingly fails to disclose a material fact; or
(2) willfully fails or refuses to make any contributions or
other payment at the time required.
Sec. 67. Minnesota Statutes 1996, section 268.161,
subdivision 4, is amended to read:
Subd. 4. [COLLECTION BY CIVIL ACTION.] (1) (a) In addition
to all other collection methods authorized, if, after due
notice, any employer defaults in is delinquent on any payment of
contributions or interest due thereon or penalties for failure
to file returns a contribution report and other reports as
required by sections 268.03 to 268.23 this chapter or by any
rule of the commissioner, the amount due may be collected by
civil action in the name of the state of Minnesota, and any
money recovered shall be credited to the funds provided for
under those sections. Any employer adjudged in default
delinquent shall pay the costs of the action. Civil actions
brought under this section to collect contributions, interest
due thereon, or penalties from an employer subdivision shall be
heard by the court at the earliest possible date as provided
under section 16D.14. No action for the collection of
contributions or, interest thereon, or penalties shall be
commenced more than six years after the contributions have been
reported by the employer or determined by the commissioner to be
due and payable. In any action, judgment shall be entered
against any defendant employer in default for the relief
demanded in the complaint without proof, together with costs and
disbursements, upon the filing of an affidavit of default.
(2) (b) Any employing unit which employer that is not a
resident of this state and which exercises the privilege of
having one or more individuals perform service for it within
this state, and any resident employing unit which exercises that
privilege and thereafter removes employer removed from this
state, shall be deemed thereby to appoint the secretary of state
as its agent and attorney for the acceptance of process in any
civil action under this subdivision. In instituting an action
against any employing unit employer, the commissioner
shall cause file process or notice to be filed with the
secretary of state, together with a payment of a fee of $15 and
that service shall be considered sufficient service upon the
employing unit employer, and shall be of have the same force and
validity as if served upon it the employer personally within
this state. The commissioner shall forthwith send notice of the
service of process or notice, together with a copy thereof of
the process, by certified mail, return receipt requested, to the
employing unit employer at its last known address. The return
receipt, The commissioner's affidavit of compliance with the
provisions of this section, and a copy of the notice of service
shall be appended to the original of the process and filed in
the court in which the civil action is pending.
(c) No court filing fees, docketing fees, or release of
judgment fees may be assessed against the state for actions
pursuant to this subdivision.
Sec. 68. Minnesota Statutes 1996, section 268.161,
subdivision 6, is amended to read:
Subd. 6. [CONTRIBUTION OR REIMBURSEMENT PAYMENT IN LIEU OF
CONTRIBUTION PRESUMED VALID.] The contribution and reimbursement
payment in lieu of contribution, as assessed by the
commissioner, including any penalties, shall be presumed to be
valid and correctly determined and assessed, and the burden
shall be upon the employer to show its incorrectness or
invalidity. The A statement filed by the commissioner with the
court administrator, as provided in subdivision 3, or any other
certificate by the commissioner of the amount of the
contribution, reimbursement payment in lieu of contribution,
interest and penalties as determined or assessed by the
commissioner, shall be admissible in evidence in any court or
administrative proceeding and shall establish be prima facie
evidence of the facts set forth therein in the statement.
Sec. 69. Minnesota Statutes 1996, section 268.161,
subdivision 7, is amended to read:
Subd. 7. [CONFESSION OF JUDGMENT.] (a) Any contribution
report or other form that is required to be filed with the
commissioner concerning contributions or reimbursements payments
in lieu of contributions due, shall contain a written
declaration that it is made under the penalties of section
268.18, subdivision 3 for willfully making a false report and
shall contain a confession of judgment for the amount of the
contribution or reimbursement payments in lieu of contributions
shown due thereon to the extent not timely paid together with
any interest and penalty due under this chapter.
(b) The commissioner may, within six years after a the
report or other form is filed, notwithstanding section 541.09,
enter judgment on any confession of judgment contained in the
contribution report or form after 20 days calendar days' notice
served upon the employer by mail at the address shown in the
employer's report. The judgment shall be entered by the court
administrator of any county upon the filing of a photocopy or
similar reproduction of that part of the contribution report or
form containing of the confession of judgment along with a
statement of the commissioner or agent that the contribution or
reimbursement payment in lieu of contribution has not been paid.
Sec. 70. Minnesota Statutes 1996, section 268.167, is
amended to read:
268.167 [GARNISHMENT FOR DELINQUENT TAXES AND BENEFIT
OVERPAYMENTS.]
(a) The commissioner or an authorized a delegated
representative may, within six years after the date of
assessment of the tax, or payment in lieu of contribution, or
determination of benefit overpayment, or if a lien has been
filed under section 268.161, within the statutory period for
enforcement of the lien, give notice to any employer that an
employee of that employer owes delinquent unemployment
reemployment insurance taxes or reimbursements payments in lieu
of contributions including penalties, interest, and costs, or
has an unpaid benefit overpayment. The commissioner can proceed
under this subdivision section only if the tax, payment in lieu
of contributions, or benefit overpayment is uncontested or if
the time for any appeal has expired. The commissioner shall not
proceed under this subdivision section until the expiration of
30 calendar days after mailing to the debtor employee, at the
debtor's last known address, a written notice of garnishment.
The notice shall list:
(1) the amount of taxes, reimbursements payments in lieu of
contributions, interest, penalties, costs, or benefit
overpayment due from the debtor;
(2) demand for immediate payment; and
(3) the commissioner's intention to serve a garnishment on
the debtor's employer pursuant to this subdivision section.
The effect of the notice shall expire 180 calendar days
after it has been mailed to the debtor provided that the notice
may be renewed by mailing a new notice which is in accordance
with this subdivision section. The renewed notice shall have
the effect of reinstating the priority of the original claim.
The notice to the debtor shall be in substantially the same form
as that provided in section 571.72. The notice shall further
inform the debtor of the wage exemptions contained in section
550.37, subdivision 14. If no statement of exemption is
received by the commissioner within 30 calendar days from the
mailing of the notice, the commissioner may proceed under
this subdivision section. The notice to the debtor's employer
may be served by mail or by delivery by an employee of the
commissioner and shall be in substantially the same form as
provided in section 571.75. Upon receipt of the notice, the
employer shall retain the earnings due or to become due to the
employee, the total amount shown by the notice, subject to the
provisions of section 571.922. The employer shall continue to
retain each pay period until the notice is released by the
commissioner under section 268.161, subdivision 8. Upon receipt
of notice by the employer, the claim of the commissioner shall
have priority over any subsequent garnishments or wage
assignments. The commissioner may arrange between the employer
and employee for retaining a portion of the total amount due the
employee each pay period, until the total amount shown by the
notice plus accrued interest has been retained.
The "earnings due" any employee is defined in accordance
with section 571.921. The maximum garnishment allowed under
this subdivision section for any one pay period shall be
decreased by any amounts payable pursuant to a garnishment
action with respect to which the employer was served prior to
being served with the notice of delinquency, and any amounts
covered by any irrevocable and previously effective assignment
of wages; the employer shall give notice to the commissioner of
the amounts and the facts relating to such the assignment within
ten days after the service of the notice of delinquency on the
form provided by the commissioner as noted in this subdivision
section.
(b) If the employee ceases to be employed by the employer
before the full amount set forth in a notice of garnishment plus
accrued interest has been retained, the employer shall
immediately notify the commissioner in writing of the
termination date of the employee and the total amount retained.
No employer may discharge or otherwise discipline any employee
by the reason of the fact that the commissioner has proceeded
under this subdivision section. If an employer discharges an
employee in violation of this provision, the employee shall have
the same remedy as provided in section 571.927, subdivision 2.
(c) Within ten calendar days after the expiration of such
the pay period, the employer shall remit to the commissioner, on
a form and in the manner prescribed by the commissioner, the
amount retained during each pay period under this subdivision
section.
(d) Paragraphs (a) to (c), except provisions imposing a
liability on the employer for failure to retain or remit, shall
apply to cases in which the employer is the United States or any
instrumentality thereof or this state or any political
subdivision thereof.
(e) The commissioner shall refund to the employee excess
amounts retained from the employee under this subdivision
section. If any excess results from payments by the employer
because of willful failure to retain or remit as prescribed in
paragraph (c), the excess attributable to the employer's payment
shall be refunded to the employer.
(f) Employers required to retain delinquent amounts under
this subdivision section shall not be required to compute any
additional interest, costs, or other charges to be retained.
(g) The collection remedy provided to the commissioner by
this subdivision shall have the same legal effect as if it were
a levy made pursuant to section 268.161 An employer that fails
or refuses to comply with the requirements of this section shall
be liable as provided in section 268.058, subdivision 3,
paragraph (i).
Sec. 71. Minnesota Statutes 1996, section 268.18,
subdivision 1, is amended to read:
Subdivision 1. [ERRONEOUS PAYMENTS.] (a) Any claimant for
benefits who, by reason of the claimant's own mistake or through
the error of any individual engaged in the administration
of sections 268.03 to 268.23 this chapter or because of a
determination, redetermination, or amended determination issued
pursuant to section 268.07 or 268.101, has received any sum as
benefits to which that the claimant was not entitled under these
sections to, shall promptly return those repay the benefits in
cash to the nearest office of the Minnesota department of
economic security. If the claimant fails to return repay the
benefits, the department of economic security shall, as soon as
it discovers the erroneous payment is discovered, determine the
amount due and notify the individual claimant in writing to
return it repay the benefits.
(b) Unless the claimant files a written an appeal with the
department of economic security within 15 calendar days after
the mailing of the notice of determination of overpayment to the
claimant's last known address or personal delivery of the
notice, the determination shall become final. Proceedings on
the appeal shall be conducted in accordance with section
268.105. A claimant may not collaterally attack, by way of an
appeal to an overpayment determination, any prior determination
issued pursuant to section 268.07 or 268.101, or decision issued
pursuant to section 268.105, that has become final.
(c) If the claimant fails to repay the benefits, the
commissioner of the department of economic security is
authorized to may deduct from any future benefits payable to the
claimant under these sections in either the current or any
subsequent benefit year an amount equivalent to the overpayment
determined, except that no single deduction under this
subdivision shall exceed 50 percent of the amount of the payment
from which the deduction is made, or the overpayment may be
collected the same as delinquent contributions or reimbursements
under section 268.161. A determination of overpayment shall
state the methods of collection the commissioner will use to
recover the overpayment. If a claimant has been overpaid
benefits under the law of another state due to because of an
error and that state certifies to the department the facts
involved and that the individual claimant is liable under its
law to repay the benefits and requests the department to recover
the overpayment, the commissioner is authorized to may deduct
from future benefits payable to the claimant in either the
current or any subsequent benefit year an amount equivalent to
the amount of overpayment determined by that state, except that
no single deduction under this subdivision shall exceed 50
percent of the amount of the payment from which the deduction is
made.
(d) Benefits paid for weeks more than three years prior to
the discovery of error are not erroneous payments.
(d) (e) Notwithstanding paragraph (a), the commissioner
shall waive recovery of an overpayment if a reemployment
insurance judge or the commissioner's authorized representative
under section 268.105, subdivision 3, determines the overpayment
resulted from an administrative failure to identify that a
claimant's wage credits were not earned in covered
employment. This paragraph shall not apply to misidentification
of an employee-employer relationship.
Sec. 72. Minnesota Statutes 1996, section 268.18,
subdivision 2, is amended to read:
Subd. 2. [FRAUD.] (a) Any claimant who files a claim for
or receives benefits by knowingly and willfully misrepresenting
or, misstating any material fact or by knowingly and willfully,
or failing to disclose any material fact which that would
make have made the claimant ineligible for not entitled to those
benefits under sections 268.03 to 268.23 is guilty of has
committed fraud. After the discovery of facts by the
commissioner indicating fraud in claiming or obtaining benefits
under sections 268.03 to 268.23, the commissioner is hereby
authorized to shall make a written determination that the
claimant was ineligible for each week with reference to which
not entitled to benefits that were claimed or obtained by fraud
for the amount as was in excess of what the claimant would have
been entitled to had the claimant not made the fraudulent
statements or failed to disclose any material facts. and that
the claimant must promptly repay the benefits to the
department. In addition, the commissioner also may disqualify
an individual from deny benefits to a claimant for one to 52
weeks in for which the claimant is otherwise eligible for
entitled to benefits following the week in which the fraud was
determined. A disqualification denial imposed for fraud shall
not be removed by subsequent insured work or the expiration of a
benefit year but shall not apply to any week more than 104 weeks
after the week in which the fraud was determined. The claimant
shall promptly repay in cash to the department of economic
security any benefits fraudulently obtained.
(b) Unless the claimant files a written an appeal with the
department of economic security within 15 calendar days after
the mailing of the notice of determination of overpayment by
fraud to the claimant's last known address or personal delivery
of the notice, the determination shall become final.
Proceedings on the appeal shall be conducted in accordance with
section 268.105.
(c) If the claimant fails to repay the benefits, the
commissioner is hereby authorized to may deduct from future
benefits payable to the claimant in either the current or any
subsequent benefit year an amount equivalent to the amount of
overpayment determined disregarding the 50 percent limitation
provided for in subdivision 1 or the overpayment may be
collected the same as delinquent contributions or reimbursements
under section 268.161. A determination of overpayment by fraud
shall state the methods of collection the commissioner may use
to recover the overpayment. If a claimant has been overpaid
benefits under the law of another state due to because of fraud
and that state certifies to the department the facts involved
and that the individual claimant is liable to repay the benefits
and requests the department to recover the overpayment, the
commissioner is authorized to may deduct from future benefits
payable to the claimant in either the current or any subsequent
benefit year an amount equivalent to the amount of overpayment
determined by that state disregarding the 50 percent limitation
provided for in subdivision 1.
(d) A determination of fraud may be made at any time.
Sec. 73. Minnesota Statutes 1996, section 268.18, is
amended by adding a subdivision to read:
Subd. 2b. [INTEREST.] (a) On any benefits fraudulently
obtained, as determined under subdivision 2, the commissioner
shall have the discretion to assess interest at the rate of
1-1/2 percent per month on any overpaid amount which remains
unpaid 30 calendar days after the date of the determination of
overpayment by fraud. A determination of overpayment by fraud
shall state that interest may be assessed.
(b) Any money received in repayment of fraudulently
obtained benefits and interest thereon shall be first applied to
the overpayment balance.
(c) Unpaid interest may be collected the same as delinquent
contributions.
Sec. 74. Minnesota Statutes 1996, section 268.18,
subdivision 3, is amended to read:
Subd. 3. [FALSE REPRESENTATIONS; CONCEALMENT OF FACTS;
PENALTY.] (a) Whoever obtains, or attempts to obtain, or aids or
abets any person to obtain by means of a willfully an
intentional false statement or representation, by intentional
concealment of a material fact, or by impersonation or other
fraudulent device means, benefits to which that the person is
not entitled or benefits greater than that to which the person
is entitled under this chapter, or under the employment security
law of any state or of the federal government or of a foreign
government, either personally or for any other person, shall be
is guilty of theft and shall be sentenced pursuant to section
609.52, subdivision 3, clauses (2), (3)(a), (c), and (d), (4),
and (5). The amount of the benefits incorrectly paid shall be
the difference between the amount of benefits actually received
paid and the amount which that the person claimant would have
been entitled under state and federal law had the department
been informed of all material facts.
(b) Any employing unit or any officer or agent of an
employing unit or any other person who makes a false statement
or representation knowing it to be false, or who knowingly fails
to disclose a material fact, to prevent or reduce the payment of
benefits to any individual entitled thereto, or to avoid
becoming or remaining a subject employer or to avoid or reduce
any contribution or other payment required from an employing
unit under this chapter or under the employment security law of
any state or of the federal government, or who willfully fails
or refuses to make any such contributions or other payment at
the time required shall be claimant, is guilty of a gross
misdemeanor unless the benefit underpayment, contribution, or
other payment involved exceeds $250 $500, in which event that
case the person is guilty of a felony.
(c) Any person who willfully fails to produce or permit the
inspection or copying of books, papers, records, or memoranda as
required or when requested under section 268.12, subdivision 8,
or to furnish any required reports other than contribution
reports shall be guilty of a gross misdemeanor.
Sec. 75. Minnesota Statutes 1996, section 268.18,
subdivision 4, is amended to read:
Subd. 4. [CANCELLATION OF BENEFITS PAID THROUGH ERROR OR
FRAUD.] When (a) If benefits paid through error or fraud are not
repaid or deducted from subsequent benefit amounts as provided
for in subdivisions subdivision 1 and 2 within six years after
the date of the determination that benefits were paid through
error or fraud irrespective of subsequent partial recovery dates
of overpayment, the commissioner shall cancel the overpayment
balance, and no administrative or legal proceedings shall
be instituted under the Minnesota economic security law used to
enforce collection of those amounts.
(b) If benefits paid as a result of fraud are not repaid or
deducted from subsequent benefits as provided for in subdivision
2 within ten years after the date of the determination of
overpayment by fraud, the commissioner shall cancel the
overpayment balance and any interest due, and no administrative
or legal proceeding shall be used to enforce collection of those
amounts.
(c) The commissioner may cancel at any time benefits paid
through error or fraud which that the commissioner determines
are uncollectible due to death or bankruptcy.
Sec. 76. Minnesota Statutes 1996, section 268.18,
subdivision 6, is amended to read:
Subd. 6. [EMPLOYER MISCONDUCT; PENALTY.] If the
commissioner finds that any employing unit or any employee,
officer, or agent of any employing unit, is in collusion with
any employee claimant for the purpose of assisting the claimant
to receive benefits illegally, the employing unit shall be
penalized $500 or an amount equal to the amount of benefits
determined to be overpaid, whichever is greater.
If the commissioner finds that any part of any employer's
contribution deficiency is due to fraud with intent to avoid
payment of contributions to the fund, 50 percent of the total
amount of the deficiency or $500, whichever is greater, shall be
assessed as a penalty against the employer and collected in
addition to the deficiency.
Penalties assessed under this section shall be in addition
to any other penalties provided for by sections 268.03 to 268.23
and be subject to the same collection procedures that apply to
past due contributions under this chapter. Penalties under this
section shall be paid to the department and credited to the
contingent fund.
The assessment of the penalty shall be final unless the
employer employing unit files a written appeal with the
department within 15 30 calendar days after the mailing of the
notice of determination penalty to the employer's last known
address. Proceedings on the appeal shall be conducted in
accordance with section 268.105.
Sec. 77. Minnesota Statutes 1996, section 268.21, is
amended to read:
268.21 [NONLIABILITY OF STATE.]
(a) Benefits shall be deemed to be due and payable under
sections 268.03 to 268.23 only to the extent provided therein in
this chapter and to the extent that moneys are money is
available therefor to the credit of in the reemployment
insurance fund and neither the state nor the commissioner shall
be liable for any amount in excess of such sums.
(b) No person shall make any demand, bring any suit, or
other proceeding to recover from the state any sum alleged to be
due on a reemployment insurance account after the expiration of
two years from the effective date of the reemployment insurance
account.
Sec. 78. [WAITING PERIOD WAIVER.]
Subdivision 1. [WAIVER OF WAITING PERIOD.] The waiting
period requirement under Minnesota Statutes, section 268.08,
subdivision 1, clause (4), is waived for a claimant who would
have been eligible for federal disaster unemployment assistance
but for the claimant's establishment of a reemployment insurance
account. The waiver applies to accounts established effective
March 23, 1997, through May 31, 1997.
Subd. 2. [EFFECTIVE DATE.] Subdivision 1 is effective the
day following final enactment.
Sec. 79. [INSTRUCTION TO REVISOR.]
The revisor of statutes shall renumber each section of
Minnesota Statutes specified in column A with the number set
forth in column B. The revisor shall also make necessary
cross-reference changes consistent with the renumbering.
Column A Column B
268.041 268.043
268.05 268.194
268.06, subd. 1 268.051, subd. 1
268.06, subd. 3a 268.051, subd. 5
268.06, subd. 6 268.051, subd. 3
268.06, subd. 8 268.051, subd. 2
268.06, subd. 8a 268.051, subd. 8
268.06, subd. 18 268.047, subd. 5
268.06, subd. 19 268.051, subd. 6
268.06, subd. 20, 268.051, subd. 6,
paragraph (a) paragraph (c)
268.06, subd. 20, 268.051, subd. 6,
paragraph (b) paragraph (d)
268.06, subd. 21 268.045
268.06, subd. 22 268.051, subd. 4
268.06, subd. 24 268.051, subd. 7
268.06, subd. 25 268.052, subd. 1
268.06, subd. 26 268.052, subd. 3
268.06, subd. 27 268.052, subd. 4
268.06, subd. 28 268.053
268.06, subd. 29 268.045 (d)
268.06, subd. 31 268.052, subd. 2
268.06, subd. 34 268.054
268.061 268.068
268.071 268.115
268.072 268.155
268.073 268.125
268.074 268.135
268.075 268.145
268.09, subd. 3 268.09, subd. 18
268.11 268.042
268.12, subd. 8 268.186
268.12, subd. 9a 268.188
268.12, subd. 12 268.19
268.121 268.044
268.14, subd. 1 268.198, subd. 1
268.14, subd. 2 268.198, subd. 2
268.14, subd. 5 268.198, subd. 3
268.15 268.196
268.16, subd. 1 268.057, subd. 5
268.16, subd. 1a 268.057, subd. 6
268.16, subd. 2 268.057, subd. 1
268.16, subd. 3a 268.057, subd. 4
268.16, subd. 4 268.067
268.16, subd. 5 268.057, subd. 10
268.16, subd. 6 268.057, subd. 7
268.16, subd. 7 268.057, subd. 8
268.16, subd. 9 268.057, subd. 9
268.161, subd. 1 268.058, subd. 1
268.161, subd. 1a 268.058, subd. 2
268.161, subd. 2 268.058, subd. 6
268.161, subd. 4 268.058, subd. 5
268.161, subd. 5 268.058, subd. 4
268.161, subd. 6 268.057, subd. 2
268.161, subd. 7 268.057, subd. 3
268.161, subd. 8 268.058, subd. 3
268.161, subd. 9 268.063
268.162 268.064
268.163 268.065
268.164 268.062
268.166 268.066
268.167 268.059
268.17 268.192
268.18, subd. 3 268.182
268.18, subd. 6 268.184
Sec. 80. [INSTRUCTION TO REVISOR.]
The revisor of statutes shall change the words
"unemployment insurance," "unemployment insurance benefits," and
"unemployment benefits" whenever they appear in Minnesota
Statutes to "reemployment insurance benefits" in Minnesota
Statutes 1998 and subsequent editions of the statutes.
The revisor of statutes shall change the words
"unemployment fund" whenever they appear in Minnesota Statutes
to "reemployment insurance fund" in Minnesota Statutes 1998 and
subsequent editions of the statutes.
The revisor of statutes shall change the words "insured
work" whenever they appear in Minnesota Statutes, sections
268.03 to 268.23 to "covered employment" in Minnesota Statutes
1998 and subsequent editions of the statutes.
The revisor of statutes shall change the word "contribution"
whenever it appears in Minnesota Statutes, sections 268.022 to
268.23 to "tax" in Minnesota Statutes 1998 and subsequent
editions of the statutes.
The revisor of statutes shall change the word
"contributions" whenever it appears in Minnesota Statutes,
sections 268.022 to 268.23, except in section 268.196,
subdivision 3, to "taxes" in Minnesota Statutes 1998 and
subsequent editions of the statutes.
The revisor of statutes shall change the word "contributing"
whenever it appears in Minnesota Statutes, sections 268.03 to
268.23 to "taxpaying" in Minnesota Statutes 1998 and subsequent
editions of the statutes.
The revisor of statutes shall change the words
"unemployment tax" whenever they appear in Minnesota Statutes,
sections 268.03 to 268.23 to "reemployment insurance tax" in
Minnesota Statutes 1998 and subsequent editions of the statutes.
The revisor of statutes shall change the words
"unemployment taxes" whenever they appear in Minnesota Statutes,
sections 268.03 to 268.23 to "reemployment insurance taxes" in
Minnesota Statutes 1998 and subsequent editions of the statutes.
The revisor of statutes shall change the word
"reimbursement" whenever it appears in Minnesota Statutes,
sections 268.057, 268.058, 268.059, 268.062, 268.063, 268.066,
and 268.067 to "payment in lieu of taxes" in Minnesota Statutes
1998 and subsequent editions of the statutes.
The revisor of statutes shall change the term
"reimbursements" whenever it appears in Minnesota Statutes,
sections 268.057, 268.058, 268.059, 268.062, 268.063, 268.066,
and 268.067 to "payments in lieu of taxes" in Minnesota Statutes
1998 and subsequent editions of the statutes.
The revisor of statutes shall change the term "reimbursable
account" whenever it appears in Minnesota Statutes, sections
268.03 to 268.23, to "payment in lieu of taxes account."
Sec. 81. [REPEALER.]
Minnesota Statutes 1996, sections 268.026; 268.04,
subdivisions 8, 13, 14, 20, 21, 32, and 35; 268.06, subdivisions
2, 4, 5, 30, and 33; 268.073, subdivision 7; 268.09,
subdivisions 1, 2, 4, 5, 6, 7, and 8; 268.12, subdivisions 2, 4,
5, 7, and 11; 268.14, subdivisions 3 and 4; 268.16, subdivision
8; 268.161, subdivision 3; 268.165; and 268.18, subdivision 5,
are repealed.
Sec. 82. [EFFECTIVE DATE.]
Sections 1 to 59, 61 to 77, and 79 to 81 are effective July
1, 1997. Section 60 is effective the day following final
enactment.
Presented to the governor April 23, 1997
Signed by the governor April 23, 1997, 2:03 p.m.
Official Publication of the State of Minnesota
Revisor of Statutes