1.1                          A bill for an act 
  1.2             relating to unemployment insurance; modifying 
  1.3             definitions; making technical, housekeeping, and 
  1.4             policy changes; modifying penalty provisions; amending 
  1.5             Minnesota Statutes 2002, sections 176.011, subdivision 
  1.6             20; 268.035, subdivisions 3, 8a, 12a, 17, 20, 23a, 28, 
  1.7             by adding a subdivision; 268.043; 268.044, 
  1.8             subdivisions 2, 3, 4; 268.051, subdivisions 4, 7; 
  1.9             268.0511; 268.053, subdivision 2; 268.057, as amended; 
  1.10            268.058, as amended; 268.059, subdivision 3; 268.0625, 
  1.11            as amended; 268.064, subdivisions 1, 3; 268.065, 
  1.12            subdivisions 1, 2; 268.07, subdivisions 1, 3; 268.085, 
  1.13            subdivisions 2, 12, 13a, 14; 268.095, subdivisions 4, 
  1.14            6a; 268.101, subdivisions 2, 4; 268.103; 268.105, as 
  1.15            amended; 268.115, subdivision 5; 268.125, subdivision 
  1.16            5; 268.135, subdivisions 1, 2, 4; 268.145, subdivision 
  1.17            1; 268.18, subdivisions 2b, 6; 268.182; 268.184; 
  1.18            Minnesota Statutes 2003 Supplement, sections 268.035, 
  1.19            subdivision 15; 268.042, subdivisions 1, 3; 268.044, 
  1.20            subdivisions 1, 1a; 268.045; 268.047, subdivision 5; 
  1.21            268.051, subdivisions 1, 1a, 3, 5, 6; 268.052, 
  1.22            subdivisions 1, 2; 268.053, subdivisions 1, 3; 
  1.23            268.059, subdivision 1; 268.063; 268.066; 268.067; 
  1.24            268.0675; 268.07, subdivision 2; 268.085, subdivisions 
  1.25            1, 3, 4, 5, 6; 268.095, subdivisions 1, 3; 268.101, 
  1.26            subdivisions 3, 3a; 268.18, subdivisions 1, 2; 
  1.27            268.186; 268.19, subdivision 2; proposing coding for 
  1.28            new law in Minnesota Statutes, chapter 268. 
  1.29  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.30     Section 1.  Minnesota Statutes 2002, section 176.011, 
  1.31  subdivision 20, is amended to read: 
  1.32     Subd. 20.  [AVERAGE WEEKLY WAGE.] The statewide average 
  1.33  weekly wage for any year means that wage determined by the 
  1.34  commissioner in the following manner:  On or before July 1 
  1.35  preceding the year in which the wage is to be applicable, the 
  1.36  total wages reported on tax wage detail reports to the 
  1.37  Department of Employment and Economic Security Development for 
  2.1   the preceding 12 months ending on December 31 of that year shall 
  2.2   be divided by the average monthly number of covered workers 
  2.3   (determined by dividing the total covered workers reported for 
  2.4   the year ending December 31 by 12).  The average annual wage 
  2.5   thus obtained shall be divided by 52 and the average weekly wage 
  2.6   thus determined rounded to the next highest dollar. 
  2.7      Sec. 2.  [268.032] [ELECTRONIC TRANSMISSION; WHEN ALLOWED; 
  2.8   SENDING TO LAST KNOWN ADDRESS REQUIRED.] 
  2.9      (a) If any required notice, determination, or decision 
  2.10  issued under this chapter provides that the commissioner may 
  2.11  send the notice, determination, or decision by mail or 
  2.12  electronic transmission, the commissioner may send the notice, 
  2.13  determination, or decision to an applicant or employer by 
  2.14  electronic transmission only if the applicant or employer has 
  2.15  affirmatively indicated that the applicant or employer would 
  2.16  prefer required notices, determinations, or decisions be sent by 
  2.17  electronic transmission rather than by mail.  An applicant or 
  2.18  employer may withdraw an indicated preference for electronic 
  2.19  transmission. 
  2.20     (b) If any required notice, determination, or decision 
  2.21  issued under this chapter is sent by mail to an applicant or an 
  2.22  employer, the notice, determination, or decision must be sent to 
  2.23  the last known address.  If any required notice, determination, 
  2.24  or decision issued under this chapter is sent by electronic 
  2.25  transmission, the notice, determination, or decision must be 
  2.26  sent to the last known electronic address of the applicant or 
  2.27  employer.  If any required notice, determination, or decision 
  2.28  issued under this chapter is sent by electronic transmission and 
  2.29  the commissioner is notified that the electronic address of the 
  2.30  applicant or employer is no longer in service, the commissioner 
  2.31  must then send the required notice, determination, or decision 
  2.32  by mail to the last known address. 
  2.33     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2005. 
  2.34     Sec. 3.  [268.033] [COMPUTATION OF TIME.] 
  2.35     The computation of time provisions of section 645.151 apply 
  2.36  to this chapter. 
  3.1      Sec. 4.  Minnesota Statutes 2002, section 268.035, 
  3.2   subdivision 3, is amended to read: 
  3.3      Subd. 3.  [BACK PAY.] "Back pay" means a retroactive 
  3.4   payment of money by an employer to an employee or former 
  3.5   employee for lost wages as determined by an arbitration award, 
  3.6   administrative or judicial decision, or negotiated settlement.  
  3.7      Sec. 5.  Minnesota Statutes 2002, section 268.035, 
  3.8   subdivision 8a, is amended to read: 
  3.9      Subd. 8a.  [COMMISSIONER.] "Commissioner" means the 
  3.10  commissioner of employment and economic security development. 
  3.11     Sec. 6.  Minnesota Statutes 2002, section 268.035, 
  3.12  subdivision 12a, is amended to read: 
  3.13     Subd. 12a.  [DEPARTMENT.] "Department" means the Department 
  3.14  of Employment and Economic Security Development. 
  3.15     Sec. 7.  Minnesota Statutes 2002, section 268.035, is 
  3.16  amended by adding a subdivision to read: 
  3.17     Subd. 12b.  [ELECTRONIC TRANSMISSION.] "Electronic 
  3.18  transmission" means a communication sent by electronic, digital, 
  3.19  magnetic, wireless, optical, electromagnetic or similar 
  3.20  capabilities, and, when permitted by the commissioner, a 
  3.21  telephone communication. 
  3.22     Sec. 8.  Minnesota Statutes 2003 Supplement, section 
  3.23  268.035, subdivision 15, is amended to read: 
  3.24     Subd. 15.  [EMPLOYMENT.] "Employment" means service 
  3.25  performed by: 
  3.26     (1) an individual who is considered an employee under the 
  3.27  common law of employer-employee and not considered an 
  3.28  independent contractor; 
  3.29     (2) an officer of a corporation; 
  3.30     (3) a member of a limited liability company who has less 
  3.31  than a 25 percent ownership share and is considered an employee 
  3.32  under the common law of employer-employee; or 
  3.33     (4) an individual who performs services for a person for 
  3.34  compensation, as: 
  3.35     (i) an agent-driver or commission-driver engaged in 
  3.36  distributing meat products, vegetable products, fruit products, 
  4.1   beverages, or laundry or dry cleaning services; or 
  4.2      (ii) a traveling or city salesperson, other than as an 
  4.3   agent-driver or commission-driver, engaged full-time in the 
  4.4   solicitation on behalf of the person, of orders from 
  4.5   wholesalers, retailers, contractors, or operators of hotels, 
  4.6   restaurants, or other similar establishments for merchandise for 
  4.7   resale or supplies for use in their business operations. 
  4.8      This clause shall apply only if the contract of service 
  4.9   provides that substantially all of the services are to be 
  4.10  performed personally by the individual, and the services are 
  4.11  part of a continuing relationship with the person for whom the 
  4.12  services are performed, and the individual does not have a 
  4.13  substantial investment in facilities used in connection with the 
  4.14  performance of the services, other than facilities for 
  4.15  transportation. 
  4.16     <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 2005.
  4.17     Sec. 9.  Minnesota Statutes 2002, section 268.035, 
  4.18  subdivision 17, is amended to read: 
  4.19     Subd. 17.  [FILING; FILED.] "Filing" or "filed" means the 
  4.20  delivery of any document to the commissioner or any of the 
  4.21  commissioner's agents, or the depositing of the document in the 
  4.22  United States mail properly addressed to the department with 
  4.23  postage prepaid, in which case the document shall be considered 
  4.24  filed on the day indicated by the cancellation mark of the 
  4.25  United States Postal Service. 
  4.26     If, where allowed, an application, protest, appeal, or 
  4.27  other required action is made by telephone or electronic 
  4.28  transmission, it shall be considered filed on the day received 
  4.29  by the department. 
  4.30     Sec. 10.  Minnesota Statutes 2002, section 268.035, 
  4.31  subdivision 20, is amended to read: 
  4.32     Subd. 20.  [NONCOVERED EMPLOYMENT.] "Noncovered employment" 
  4.33  means: 
  4.34     (1) employment for the United States government or an 
  4.35  instrumentality thereof, including military service; 
  4.36     (2) employment for a state, other than Minnesota, or a 
  5.1   political subdivision or instrumentality thereof; 
  5.2      (3) employment for a foreign government; 
  5.3      (4) employment for an instrumentality wholly owned by a 
  5.4   foreign government, if the employment is of a character similar 
  5.5   to that performed in foreign countries by employees of the 
  5.6   United States government or an instrumentality thereof and the 
  5.7   United States Secretary of State has certified that the foreign 
  5.8   government grants an equivalent exemption to similar employment 
  5.9   performed in the foreign country by employees of the United 
  5.10  States government and instrumentalities thereof; 
  5.11     (5) employment covered under United States Code, title 45, 
  5.12  section 351, the Railroad Unemployment Insurance Act; 
  5.13     (6) employment covered by a reciprocal arrangement between 
  5.14  the commissioner and another state or the federal government 
  5.15  which provides that all employment performed by an individual 
  5.16  for an employer during the period covered by the reciprocal 
  5.17  arrangement is considered performed entirely within another 
  5.18  state; 
  5.19     (7) employment for a church or convention or association of 
  5.20  churches, or an organization operated primarily for religious 
  5.21  purposes that is operated, supervised, controlled, or 
  5.22  principally supported by a church or convention or association 
  5.23  of churches described in United States Code, title 26, section 
  5.24  501(c)(3) of the federal Internal Revenue Code and exempt from 
  5.25  income tax under section 501(a); 
  5.26     (8) employment of a duly ordained or licensed minister of a 
  5.27  church in the exercise of a ministry or by a member of a 
  5.28  religious order in the exercise of duties required by the order, 
  5.29  for Minnesota or a political subdivision or an organization 
  5.30  described in United States Code, title 26, section 501(c)(3) of 
  5.31  the federal Internal Revenue Code and exempt from income tax 
  5.32  under section 501(a); 
  5.33     (9) employment of an individual receiving rehabilitation of 
  5.34  "sheltered" work in a facility conducted for the purpose of 
  5.35  carrying out a program of rehabilitation for individuals whose 
  5.36  earning capacity is impaired by age or physical or mental 
  6.1   deficiency or injury or a program providing "sheltered" work for 
  6.2   individuals who because of an impaired physical or mental 
  6.3   capacity cannot be readily absorbed in the competitive labor 
  6.4   market.  This clause applies only to services performed for 
  6.5   Minnesota or a political subdivision or an organization 
  6.6   described in United States Code, title 26, section 501(c)(3) of 
  6.7   the federal Internal Revenue Code and exempt from income tax 
  6.8   under section 501(a) in a facility certified by the 
  6.9   Rehabilitation Services Branch of the department or in a day 
  6.10  training or habilitation program licensed by the Department of 
  6.11  Human Services; 
  6.12     (10) employment of an individual receiving work relief or 
  6.13  work training as part of an unemployment work relief or work 
  6.14  training program assisted or financed in whole or in part by any 
  6.15  federal agency or an agency of a state or political subdivision 
  6.16  thereof.  This clause applies only to employment for Minnesota 
  6.17  or a political subdivision or an organization described in 
  6.18  United States Code, title 26, section 501(c)(3) of the federal 
  6.19  Internal Revenue Code and exempt from income tax under section 
  6.20  501(a).  This clause shall not apply to programs that require 
  6.21  unemployment benefit coverage for the participants; 
  6.22     (11) employment for Minnesota or a political subdivision as 
  6.23  an elected official, a member of a legislative body, or a member 
  6.24  of the judiciary; 
  6.25     (12) employment as a member of the Minnesota National Guard 
  6.26  or Air National Guard; 
  6.27     (13) employment for Minnesota, a political subdivision, or 
  6.28  instrumentality thereof, as an employee serving only on a 
  6.29  temporary basis in case of fire, flood, tornado, or similar 
  6.30  emergency; 
  6.31     (14) employment as an election official or election worker 
  6.32  for Minnesota or a political subdivision, but only if the 
  6.33  compensation for that employment was less than $1,000 in a 
  6.34  calendar year; 
  6.35     (15) employment for Minnesota that is a major policy making 
  6.36  or advisory position in the unclassified service, including 
  7.1   those positions established pursuant to section 43A.08, 
  7.2   subdivision 1a; 
  7.3      (16) employment for a political subdivision of Minnesota 
  7.4   that is a nontenured major policy making or advisory position; 
  7.5      (17) domestic employment in a private household, local 
  7.6   college club, or local chapter of a college fraternity or 
  7.7   sorority performed for a person, only if the wages paid in any 
  7.8   calendar quarter in either the current or preceding calendar 
  7.9   year to all individuals in domestic employment totaled less than 
  7.10  $1,000. 
  7.11     "Domestic employment" includes all service in the operation 
  7.12  and maintenance of a private household, for a local college 
  7.13  club, or local chapter of a college fraternity or sorority as 
  7.14  distinguished from service as an employee in the pursuit of an 
  7.15  employer's trade or business; 
  7.16     (18) employment of an individual by a son, daughter, or 
  7.17  spouse, and employment of a child under the age of 18 by the 
  7.18  child's father or mother; 
  7.19     (19) employment of an inmate of a custodial or penal 
  7.20  institution; 
  7.21     (20) employment for a school, college, or university by a 
  7.22  student who is enrolled and is regularly attending classes at 
  7.23  the school, college, or university; 
  7.24     (21) employment of an individual who is enrolled as a 
  7.25  student in a full-time program at a nonprofit or public 
  7.26  educational institution that maintains a regular faculty and 
  7.27  curriculum and has a regularly organized body of students in 
  7.28  attendance at the place where its educational activities are 
  7.29  carried on, taken for credit at the institution, that combines 
  7.30  academic instruction with work experience, if the employment is 
  7.31  an integral part of the program, and the institution has so 
  7.32  certified to the employer, except that this clause shall not 
  7.33  apply to employment in a program established for or on behalf of 
  7.34  an employer or group of employers; 
  7.35     (22) employment of university, college, or professional 
  7.36  school students in an internship or other training program with 
  8.1   the city of St. Paul or the city of Minneapolis pursuant to Laws 
  8.2   1990, chapter 570, article 6, section 3; 
  8.3      (23) employment for a hospital by a patient of the 
  8.4   hospital.  "Hospital" means an institution that has been 
  8.5   licensed by the Department of Health as a hospital; 
  8.6      (24) employment as a student nurse for a hospital or a 
  8.7   nurses' training school by an individual who is enrolled and is 
  8.8   regularly attending classes in an accredited nurses' training 
  8.9   school; 
  8.10     (25) employment as an intern for a hospital by an 
  8.11  individual who has completed a four-year course in an accredited 
  8.12  medical school; 
  8.13     (26) employment as an insurance salesperson, by other than 
  8.14  a corporate officer, if all the compensation for the employment 
  8.15  is solely by way of commission.  The word "insurance" shall 
  8.16  include an annuity and an optional annuity; 
  8.17     (27) employment as an officer of a township mutual 
  8.18  insurance company or farmer's mutual insurance company operating 
  8.19  pursuant to chapter 67A; 
  8.20     (28) employment of a corporate officer, if the officer owns 
  8.21  25 percent or more of the employer corporation, and employment 
  8.22  of a member of a limited liability company, if the member owns 
  8.23  25 percent or more of the employer limited liability company; 
  8.24     (29) employment as a real estate salesperson, by other than 
  8.25  a corporate officer, if all the compensation for the employment 
  8.26  is solely by way of commission; 
  8.27     (29) (30) employment as a direct seller as defined in 
  8.28  United States Code, title 26, section 3508; 
  8.29     (30) (31) employment of an individual under the age of 18 
  8.30  in the delivery or distribution of newspapers or shopping news, 
  8.31  not including delivery or distribution to any point for 
  8.32  subsequent delivery or distribution; 
  8.33     (31) (32) casual employment performed for an individual, 
  8.34  other than domestic employment under clause (17), that does not 
  8.35  promote or advance that employer's trade or business; 
  8.36     (32) (33) employment in "agricultural employment" unless 
  9.1   considered "covered agricultural employment" under subdivision 
  9.2   11; or 
  9.3      (33) (34) if employment during one-half or more of any pay 
  9.4   period was covered employment, all the employment for the pay 
  9.5   period shall be considered covered employment; but if during 
  9.6   more than one-half of any pay period the employment was 
  9.7   noncovered employment, then all of the employment for the pay 
  9.8   period shall be considered noncovered employment.  "Pay period" 
  9.9   means a period of not more than a calendar month for which a 
  9.10  payment or compensation is ordinarily made to the employee by 
  9.11  the employer. 
  9.12     <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 2005.
  9.13     Sec. 11.  Minnesota Statutes 2002, section 268.035, 
  9.14  subdivision 23a, is amended to read: 
  9.15     Subd. 23a.  [SUITABLE EMPLOYMENT.] (a) Suitable employment 
  9.16  means employment in the applicant's labor market area that is 
  9.17  reasonably related to the applicant's qualifications.  In 
  9.18  determining whether any employment is suitable for an applicant, 
  9.19  the degree of risk involved to the health and safety, physical 
  9.20  fitness, prior training, experience, length of unemployment, 
  9.21  prospects for securing employment in the applicant's customary 
  9.22  occupation, and the distance of the employment from the 
  9.23  applicant's residence shall be considered.  
  9.24     (b) In determining what is suitable employment, primary 
  9.25  consideration shall be given to the temporary or permanent 
  9.26  nature of the applicant's separation from employment and whether 
  9.27  the applicant has favorable prospects of finding employment in 
  9.28  the applicant's usual or customary occupation at the applicant's 
  9.29  past wage level within a reasonable period of time. 
  9.30     If prospects are unfavorable, employment at lower skill or 
  9.31  wage levels is suitable if the applicant is reasonably suited 
  9.32  for the employment because of considering the applicant's 
  9.33  education, training, work experience, or and current physical 
  9.34  and mental ability.  
  9.35     The total compensation must be considered, including the 
  9.36  wage rate, hours of employment, method of payment, overtime 
 10.1   practices, bonuses, incentive payments, and fringe benefits. 
 10.2      (c) When potential employment is at a rate of pay lower 
 10.3   than the applicant's former rate, consideration must be given to 
 10.4   the length of the applicant's unemployment and the proportion of 
 10.5   difference in the rates.  Employment that may not be suitable 
 10.6   because of lower wages during the early weeks of the applicant's 
 10.7   unemployment may become suitable as the duration of unemployment 
 10.8   lengthens. 
 10.9      (d) For an applicant seasonally unemployed, suitable 
 10.10  employment includes temporary work in a lower skilled occupation 
 10.11  that pays average gross weekly wages equal to or more than 150 
 10.12  percent of the applicant's weekly unemployment benefit amount.  
 10.13     (e) If a majority of the applicant's wage credits were 
 10.14  earned from part-time employment, part-time employment in a 
 10.15  position with comparable skills and comparable hours that pays 
 10.16  average gross weekly wages equal to or more than 150 percent of 
 10.17  the applicant's weekly unemployment benefit amount shall be 
 10.18  considered suitable employment. 
 10.19     (f) To determine suitability of employment in terms of 
 10.20  shifts, the arrangement of hours in addition to the total number 
 10.21  of hours is to be considered.  Employment on a second, third, 
 10.22  rotating, or split shift is suitable employment if it is 
 10.23  customary in the occupation in the labor market area. 
 10.24     (g) Employment shall not be considered suitable if: 
 10.25     (1) the position offered is vacant because of a labor 
 10.26  dispute; 
 10.27     (2) the wages, hours, or other conditions of employment are 
 10.28  substantially less favorable than those prevailing for similar 
 10.29  employment in the labor market area; or 
 10.30     (3) as a condition of becoming employed, the applicant 
 10.31  would be required to join a company union or to resign from or 
 10.32  refrain from joining any bona fide labor organization. 
 10.33     <b>[EFFECTIVE DATE.]</b> This section is effective August 1, 2004, 
 10.34  and applies to all determinations and decisions issued by the 
 10.35  department on or after August 1, 2004. 
 10.36     Sec. 12.  Minnesota Statutes 2002, section 268.035, 
 11.1   subdivision 28, is amended to read: 
 11.2      Subd. 28.  [WAGE DETAIL REPORT.] "Wage detail report" means 
 11.3   the report of wages paid and hours worked by on each employee in 
 11.4   covered employment required from an employer on a calendar 
 11.5   quarter basis under section 268.044.  An auxiliary report broken 
 11.6   down by business locations, when required by the commissioner, 
 11.7   shall contain the number of employees in covered employment for 
 11.8   each month, and the quarterly total wages for each location.  
 11.9   The auxiliary report may be made part of the wage detail report, 
 11.10  the tax report, or filed separately, as required by the 
 11.11  commissioner. 
 11.12     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2005. 
 11.13     Sec. 13.  Minnesota Statutes 2003 Supplement, section 
 11.14  268.042, subdivision 1, is amended to read: 
 11.15     Subdivision 1.  [EMPLOYER FOR PART OF YEAR 
 11.16  REGISTRATION.] (a) Each employer shall, upon or before the 
 11.17  submission of its first wage detail report under section 
 11.18  268.044, register with the commissioner for a tax account or a 
 11.19  reimbursable account, by electronic transmission in a format 
 11.20  prescribed by the commissioner.  The employer must provide all 
 11.21  required information for registration. 
 11.22     (b) Except as provided in subdivision 3, any organization 
 11.23  or person that is or becomes an employer subject to the 
 11.24  Minnesota Unemployment Insurance Law within any calendar year 
 11.25  shall be considered to be subject to these sections this chapter 
 11.26  the entire calendar year.  
 11.27     (c) Upon the termination of business, an employer that has 
 11.28  been assigned a tax account or reimbursable account shall notify 
 11.29  the commissioner by electronic transmission, in a format 
 11.30  prescribed by the commissioner, that the employer no longer has 
 11.31  employees and does not intend or expect to pay wages to any 
 11.32  employees in the next calendar year and into the foreseeable 
 11.33  future.  Upon such notification, the commissioner shall not 
 11.34  require the employer to file wage detail reports under section 
 11.35  268.044, subdivision 1, paragraph (d), commencing the calendar 
 11.36  quarter after the notice of termination was received by the 
 12.1   commissioner. 
 12.2      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2005. 
 12.3      Sec. 14.  Minnesota Statutes 2003 Supplement, section 
 12.4   268.042, subdivision 3, is amended to read: 
 12.5      Subd. 3.  [ELECTION AGREEMENTS; TERMINATION TO HAVE 
 12.6   NONCOVERED EMPLOYMENT CONSIDERED COVERED EMPLOYMENT.] (a) Any 
 12.7   employer that has employment performed for it that does not 
 12.8   constitute covered is noncovered employment under section 
 12.9   268.035, subdivision 20, may file with the commissioner a 
 12.10  written, by electronic transmission in a format prescribed by 
 12.11  the commissioner, an election that all such employment, in one 
 12.12  or more distinct establishments or places of business, shall be 
 12.13  considered covered employment for not less than two calendar 
 12.14  years.  The commissioner shall have discretion on the approval 
 12.15  of any election.  Upon the written approval of the commissioner, 
 12.16  sent by mail or electronic transmission, the employment shall 
 12.17  constitute covered employment from and beginning the calendar 
 12.18  quarter after the date stated in the of approval or beginning a 
 12.19  later calendar quarter if requested by the employer.  The 
 12.20  employment shall cease to be considered covered employment as of 
 12.21  the first day of January of any calendar year only if at least 
 12.22  30 calendar days prior to the first day of January the employer 
 12.23  has filed with the commissioner, by electronic transmission in a 
 12.24  format prescribed by the commissioner, a written notice to that 
 12.25  effect.  
 12.26     (b) The commissioner must terminate any election agreement 
 12.27  under this subdivision upon 30 calendar days' notice sent by 
 12.28  mail or electronic transmission, if the employer fails to pay 
 12.29  all is delinquent on any taxes due or reimbursements due the 
 12.30  trust fund. 
 12.31     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2005. 
 12.32     Sec. 15.  [268.0425] [ELECTRONIC TRANSACTION PRESUMPTION.] 
 12.33     If any electronic transaction is done under this chapter 
 12.34  using an identification number or code assigned an employer by 
 12.35  the commissioner, the transaction is presumed as done by that 
 12.36  employer unless a preponderance of the available evidence 
 13.1   demonstrates that it was not done by that employer. 
 13.2      Sec. 16.  Minnesota Statutes 2002, section 268.043, is 
 13.3   amended to read: 
 13.4      268.043 [DETERMINATIONS OF COVERAGE.] 
 13.5      (a) The commissioner, upon the commissioner's own motion or 
 13.6   upon application of an organization or person, shall determine 
 13.7   if that organization or person is an employer or whether 
 13.8   services performed for it constitute employment and covered 
 13.9   employment, or whether the compensation for services constitutes 
 13.10  wages, and shall notify the organization or person of the 
 13.11  determination.  The determination shall be final unless the 
 13.12  organization or person, within 30 calendar days after sending of 
 13.13  the determination by mail or electronic transmission, files an 
 13.14  appeal.  Proceedings on the appeal shall be conducted in 
 13.15  accordance with section 268.105. 
 13.16     (b) The commissioner may at any time upon the 
 13.17  commissioner's own motion correct any error of the department 
 13.18  resulting in an erroneous determination under this section.  A 
 13.19  corrected determination a protest.  Upon receipt of a protest, 
 13.20  the commissioner shall review all available evidence and 
 13.21  determine whether an error has been made.  The commissioner 
 13.22  shall send to the organization or person, by mail or electronic 
 13.23  transmission, an affirmation or redetermination.  The 
 13.24  affirmation or redetermination shall be final unless, within 30 
 13.25  calendar days after sending of the corrected determination 
 13.26  affirmation or redetermination to the organization or person by 
 13.27  mail or electronic transmission, an appeal is filed.  
 13.28  Proceedings on the appeal shall be conducted in accordance with 
 13.29  section 268.105. 
 13.30     (c) (b) No organization or person shall be initially 
 13.31  determined an employer, or that services performed for it were 
 13.32  in employment or covered employment, for periods more than four 
 13.33  years prior to the year in which the determination is made, 
 13.34  unless the commissioner finds that there was fraudulent action 
 13.35  to avoid liability under this chapter. 
 13.36     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2005. 
 14.1      Sec. 17.  Minnesota Statutes 2003 Supplement, section 
 14.2   268.044, subdivision 1, is amended to read: 
 14.3      Subdivision 1.  [WAGE DETAIL REPORT.] (a) Each employer 
 14.4   that has employees in covered employment shall file submit a 
 14.5   quarterly wage detail report by electronic transmission, in a 
 14.6   manner and format prescribed by the commissioner.  The report 
 14.7   shall include for each employee in covered employment, the 
 14.8   employee's name, Social Security number, the total wages paid to 
 14.9   the employee, and total number of paid hours worked.  For 
 14.10  employees exempt from the definition of employee in section 
 14.11  177.23, subdivision 7, clause (6), the employer shall report 40 
 14.12  hours worked for each week any duties were performed by a 
 14.13  full-time employee and shall report a reasonable estimate of the 
 14.14  hours worked for each week duties were performed by a part-time 
 14.15  employee.  In addition, the wage detail report shall include the 
 14.16  number of employees employed on the 12th day of each calendar 
 14.17  month and, if required by the commissioner, the report shall be 
 14.18  broken down by business location and type of employment.  If the 
 14.19  information required is not filed submitted in a manner and 
 14.20  format prescribed by the commissioner, it shall not be 
 14.21  considered a wage detail report.  The report is due and must 
 14.22  be filed received by the commissioner on or before the last day 
 14.23  of the month following the end of the calendar quarter.  The 
 14.24  commissioner may delay the due date on a specific calendar 
 14.25  quarter in the event the department is unable to accept wage 
 14.26  detail reports electronically. 
 14.27     (b) The employer may report the wages paid to the nearest 
 14.28  next lower whole dollar amount. 
 14.29     (c) An employer need not include the name of the employee 
 14.30  or other required information on the wage detail report if 
 14.31  disclosure is specifically exempted from being reported by 
 14.32  federal law. 
 14.33     (d) A wage detail report must be submitted for each 
 14.34  calendar quarter even though no wages were paid, unless the 
 14.35  employer has notified the commissioner, under section 268.042, 
 14.36  subdivision 1, paragraph (c), of termination of business. 
 15.1      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2005. 
 15.2      Sec. 18.  Minnesota Statutes 2003 Supplement, section 
 15.3   268.044, subdivision 1a, is amended to read: 
 15.4      Subd. 1a.  [ELECTRONIC TRANSMISSION OF REPORT REQUIRED.] 
 15.5   Each employer that has 50 or more employees to report for a 
 15.6   calendar quarter under subdivision 1 must file submit the 
 15.7   quarterly wage detail report by electronic transmission in a 
 15.8   format prescribed by the commissioner.  The commissioner shall 
 15.9   have the discretion to accept wage detail reports by magnetic 
 15.10  media in a format prescribed by the commissioner.  Wage detail 
 15.11  reports from an employer with 50 or more employees to report for 
 15.12  a calendar quarter that are filed submitted by any other means 
 15.13  or the commissioner may be returned return the report submitted 
 15.14  by other than electronic transmission to the employer, and 
 15.15  reports returned shall be considered as not filed submitted and 
 15.16  the penalties late fees under subdivision 2 may be imposed. 
 15.17     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2005. 
 15.18     Sec. 19.  Minnesota Statutes 2002, section 268.044, 
 15.19  subdivision 2, is amended to read: 
 15.20     Subd. 2.  [FAILURE TO TIMELY FILE REPORT; LATE FEES.] (a) 
 15.21  Any employer who that fails to file submit the quarterly wage 
 15.22  detail report when due shall pay to the department, for each 
 15.23  month the report is delinquent, a penalty of one-half of one 
 15.24  percent of total wages paid that quarter. a late fee of $10 per 
 15.25  employee, computed based upon the highest of: 
 15.26     (1) the number of employees reported on the last wage 
 15.27  detail report submitted; 
 15.28     (2) the number of employees reported in the corresponding 
 15.29  quarter of the prior calendar year; or 
 15.30     (3) if no wage detail report has ever been submitted, the 
 15.31  number of employees listed at the time of employer registration. 
 15.32     The penalty late fee shall not be assessed waived if the 
 15.33  wage detail report is properly made and filed received within 30 
 15.34  calendar days after a demand for the report is mailed sent to 
 15.35  the employer's address of record employer by mail or electronic 
 15.36  transmission.  A late fee assessed an employer may not be waived 
 16.1   more than once each 12 months.  In no case shall The amount of 
 16.2   the penalty, if late fee assessed, shall not be less 
 16.3   than $25 $50.  Penalties 
 16.4      (b) If the wage detail report is not received in a manner 
 16.5   and format prescribed by the commissioner within 30 calendar 
 16.6   days after demand is sent under paragraph (a), the late fee 
 16.7   assessed under paragraph (a) shall double and a renewed demand 
 16.8   notice and notice of the increased late fee shall be sent to the 
 16.9   employer by mail or electronic transmission. 
 16.10     (c) Late fees due under this subdivision may be waived 
 16.11  compromised under section 268.067 where good cause for 
 16.12  late filing submission is found by the commissioner.  
 16.13     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2005. 
 16.14     Sec. 20.  Minnesota Statutes 2002, section 268.044, 
 16.15  subdivision 3, is amended to read: 
 16.16     Subd. 3.  [MISSING OR ERRONEOUS INFORMATION.] Any employer 
 16.17  who files submits the wage detail report, but knowingly fails to 
 16.18  include any of the required employee information or knowingly 
 16.19  enters erroneous information, shall be subject to a penalty an 
 16.20  administrative service fee of $25 for each employee for whom the 
 16.21  information is missing or erroneous.  An administrative service 
 16.22  fee may be compromised under section 268.067 if the commissioner 
 16.23  determines that the failure or error by the employer was 
 16.24  inadvertent. 
 16.25     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2005. 
 16.26     Sec. 21.  Minnesota Statutes 2002, section 268.044, 
 16.27  subdivision 4, is amended to read: 
 16.28     Subd. 4.  [PENALTIES FEES.] The penalties fees provided for 
 16.29  in subdivisions 2 and 3 are in addition to interest and other 
 16.30  penalties imposed by this chapter and shall be collected in the 
 16.31  same manner as delinquent taxes and shall be credited to the 
 16.32  contingent account. 
 16.33     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2005. 
 16.34     Sec. 22.  Minnesota Statutes 2003 Supplement, section 
 16.35  268.045, is amended to read: 
 16.36     268.045 [EMPLOYER TAX OR REIMBURSABLE ACCOUNTS.] 
 17.1      (a) Subdivision 1.  [ACCOUNT FOR EACH EMPLOYER.] The 
 17.2   commissioner shall maintain a tax account for each taxpaying 
 17.3   employer and a reimbursable account for each nonprofit or 
 17.4   government employer that has elected to be liable for 
 17.5   reimbursements if that employer has employees in covered 
 17.6   employment in the current or the prior calendar year, except as 
 17.7   provided in this section.  The commissioner shall assess the tax 
 17.8   account of a taxpaying employer for all the taxes due under 
 17.9   section 268.051 and credit the tax account with all taxes paid.  
 17.10  The commissioner shall charge the reimbursable account of a 
 17.11  nonprofit or government employer that elects to make 
 17.12  reimbursements for any unemployment benefits determined 
 17.13  chargeable to the employer under section 268.047 and shall 
 17.14  credit the reimbursable account with the payments made. 
 17.15     (b) Subd. 2.  [COMMON PAYMASTER TAX ACCOUNT.] Two or more 
 17.16  related taxpaying corporations concurrently employing the same 
 17.17  employees and compensating those employees through a common 
 17.18  paymaster that is one of the corporations may apply to, by 
 17.19  electronic transmission, in a format prescribed by the 
 17.20  commissioner, to establish a common paymaster tax account that 
 17.21  shall be the tax account of the common paymaster 
 17.22  corporation.  The commissioner shall have discretion on approval 
 17.23  of a common paymaster tax account.  If approved, the separate 
 17.24  tax accounts shall be maintained, but the employees compensated 
 17.25  through the common paymaster shall be reported under section 
 17.26  268.044 as employees of the common paymaster corporation.  The 
 17.27  corporations using the common paymaster tax account shall be 
 17.28  jointly and severally liable for any unpaid taxes, penalties, 
 17.29  and interest owing amounts due under this chapter and section 
 17.30  116L.20 from the common paymaster tax account.  
 17.31     (c) Subd. 3.  [JOINT TAX ACCOUNT.] Two or more taxpaying 
 17.32  employers having 50 percent or more common ownership and 
 17.33  compensating employees through a single payer that is one of the 
 17.34  employers may apply to by electronic transmission in a format 
 17.35  prescribed by the commissioner for a merging combining of the 
 17.36  experience ratings of the employers into a single experience 
 18.1   rating and joint tax account.  The commissioner shall have 
 18.2   discretion on approval of a joint tax account. 
 18.3      If approved, the joint tax account shall be effective on 
 18.4   that date assigned by the commissioner and shall remain in 
 18.5   effect for not less than two calendar years, and continuing 
 18.6   unless written notice terminating the joint tax account is filed 
 18.7   with the commissioner by electronic transmission, in a format 
 18.8   prescribed by the commissioner.  The termination shall be 
 18.9   effective on January 1 next following the filing of the written 
 18.10  notice of termination. 
 18.11     The employers in the joint tax account shall be jointly and 
 18.12  severally liable for any unpaid taxes, penalties, and interest 
 18.13  owing amounts due under this chapter and section 116L.20 from 
 18.14  the joint tax account. 
 18.15     (d) Subd. 4.  [GROUP REIMBURSABLE ACCOUNT.] Two or more 
 18.16  nonprofit or government employers that have elected to be liable 
 18.17  for reimbursements may apply to the commissioner for the 
 18.18  establishment of a group reimbursable account for the purpose of 
 18.19  sharing the cost of unemployment benefits charged based upon 
 18.20  wage credits from all employers in the group.  The application, 
 18.21  filed by electronic transmission in a format prescribed by the 
 18.22  commissioner, shall identify and authorize a group 
 18.23  representative to act as the group's agent for the purposes of 
 18.24  the reimbursable account.  The commissioner shall have 
 18.25  discretion on approval of a group reimbursable account.  If 
 18.26  approved, the commissioner shall establish a group reimbursable 
 18.27  account for the employers effective as of the beginning of the 
 18.28  calendar year that the application is received.  The 
 18.29  reimbursable account shall remain in effect for not less than 
 18.30  two calendar years and thereafter until terminated at the 
 18.31  discretion of the commissioner or upon application by the group, 
 18.32  filed by electronic transmission in a format prescribed by the 
 18.33  commissioner, at least 30 calendar days prior to the end of the 
 18.34  two year period or 30 calendar days prior to January 1 of any 
 18.35  following calendar year.  Each nonprofit or government employer 
 18.36  in the group shall be jointly and severally liable for 
 19.1   reimbursements for all unemployment benefits paid based upon 
 19.2   wage credits from all employers in the group during the period 
 19.3   the group reimbursable account was in effect.  
 19.4      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2005. 
 19.5      Sec. 23.  Minnesota Statutes 2003 Supplement, section 
 19.6   268.047, subdivision 5, is amended to read: 
 19.7      Subd. 5.  [NOTICE OF UNEMPLOYMENT BENEFITS PAID.] (a) The 
 19.8   commissioner shall notify each employer at least quarterly by 
 19.9   mail or electronic transmission of the unemployment benefits 
 19.10  paid each applicant that will be used in computing the future 
 19.11  tax rate of a taxpaying employer, or that have been charged to 
 19.12  the reimbursable account of a nonprofit or government employer 
 19.13  that has elected to be liable for reimbursements.  Unless a 
 19.14  protest is filed within 30 calendar days from the date of 
 19.15  sending of the notice, the notice shall be final and shall not 
 19.16  be subject to collateral attack by way of review of a tax rate 
 19.17  notice or application for a credit adjustment or refund. 
 19.18     (b) Upon receipt of a protest, the commissioner shall 
 19.19  review unemployment benefits to be used in computing the future 
 19.20  tax rate of a taxpaying employer or charged to the reimbursable 
 19.21  account of a nonprofit or government employer that has elected 
 19.22  to be liable for reimbursements and determine whether there has 
 19.23  been an error made.  The commissioner shall either affirm or 
 19.24  make a redetermination of the unemployment benefits paid to be 
 19.25  used in computing the future tax rate of a taxpaying employer or 
 19.26  charged to the reimbursable account of a nonprofit or government 
 19.27  employer that has elected to be liable for reimbursements, and a 
 19.28  notice of affirmation or redetermination shall be sent to the 
 19.29  employer by mail or electronic transmission. 
 19.30     (c) The affirmation or redetermination shall be final 
 19.31  unless the employer files an appeal within 30 calendar days 
 19.32  after the date the affirmation or redetermination was sent.  
 19.33  Proceedings on the appeal shall be conducted in accordance with 
 19.34  section 268.105. 
 19.35     (d) An employer may not collaterally attack, by way of a 
 19.36  protest to a notice of unemployment benefits paid, any prior 
 20.1   determination or decision holding that unemployment benefits 
 20.2   paid shall be used in computing the future tax rate of a 
 20.3   taxpaying employer or charged to the reimbursable account of a 
 20.4   nonprofit or government employer that has elected to be liable 
 20.5   for reimbursements which determination or decision has become 
 20.6   final. 
 20.7      (e) A notice under this subdivision shall not be subject to 
 20.8   protest or appeal.  The commissioner may at any time upon the 
 20.9   commissioner's own motion correct a clerical any error that 
 20.10  resulted in an incorrect notice under paragraph (a) and issue a 
 20.11  corrected notice. 
 20.12     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2005. 
 20.13     Sec. 24.  Minnesota Statutes 2003 Supplement, section 
 20.14  268.051, subdivision 1, is amended to read: 
 20.15     Subdivision 1.  [PAYMENTS.] (a) Unemployment insurance 
 20.16  taxes and any additional assessments, fees, or surcharges shall 
 20.17  accrue and become payable by each employer for each calendar 
 20.18  year on the taxable wages that the employer paid wages to 
 20.19  employees in covered employment, except for:  
 20.20     (1) nonprofit organizations that elect to make 
 20.21  reimbursements as provided in section 268.053; and 
 20.22     (2) the state of Minnesota and political subdivisions that 
 20.23  make reimbursements, unless they elect to pay taxes as provided 
 20.24  in section 268.052.  
 20.25     Except as allowed under section 268.0511, each employer 
 20.26  shall pay taxes quarterly, at the employer's assigned tax rate, 
 20.27  on the taxable wages paid to each employee.  The commissioner 
 20.28  shall compute the tax due from the wage detail report required 
 20.29  under section 268.044 and notify the employer of the tax due.  
 20.30  The taxes and any additional assessments, fees, or surcharges 
 20.31  shall be paid to the trust fund and must be received by the 
 20.32  department on or before the last day of the month following the 
 20.33  end of the calendar quarter. 
 20.34     (b) The total payment due may be paid in an tax amount 
 20.35  computed, if not a whole dollar, shall be rounded down to the 
 20.36  nearest next lower whole dollar. 
 21.1      (c) When the total payment due for any calendar quarter is 
 21.2   less than $1, it shall be disregarded.  If for any reason the 
 21.3   wages on the wage detail report under section 268.044 are 
 21.4   adjusted for any quarter, the commissioner shall recompute the 
 21.5   taxes due for that quarter and assess the employer for any 
 21.6   amount due or credit the employer as appropriate. 
 21.7      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2005. 
 21.8      Sec. 25.  Minnesota Statutes 2003 Supplement, section 
 21.9   268.051, subdivision 1a, is amended to read: 
 21.10     Subd. 1a.  [TAX REPORTS PAYMENTS BY ELECTRONIC PAYMENT 
 21.11  REQUIRED.] (a) Every employer, except those nonprofit and 
 21.12  government employers that have elected to make reimbursements, 
 21.13  shall submit a tax report on a form, or in a manner, prescribed 
 21.14  by the commissioner on or before the last day of the month 
 21.15  following the end of the calendar quarter, unless the employer 
 21.16  meets the requirements for submitting tax reports annually under 
 21.17  section 268.0511.  An employer that fails to submit a tax report 
 21.18  when due, or submits an incorrect tax report, shall be subject 
 21.19  to section 268.057, subdivision 1 that reports 500 or more 
 21.20  employees in any calendar quarter on the wage detail report 
 21.21  required under section 268.044 shall make any payments due under 
 21.22  this chapter and section 116L.20 by electronic payment. 
 21.23     (b) Each tax report shall include the total wages paid and 
 21.24  the taxable wages paid that quarter, the amount of tax due, and 
 21.25  any other information required by the commissioner.  All 
 21.26  third-party processors, paying quarterly taxes on behalf of a 
 21.27  client company, shall make any payments due under this chapter 
 21.28  and section 116L.20 by electronic payment. 
 21.29     (c) A tax report must be submitted for each calendar 
 21.30  quarter even though no wages were paid or no tax is 
 21.31  due. Regardless of paragraph (a) or (b), the commissioner shall 
 21.32  have discretion to accept payment by other means.  
 21.33     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2005. 
 21.34     Sec. 26.  Minnesota Statutes 2003 Supplement, section 
 21.35  268.051, subdivision 3, is amended to read: 
 21.36     Subd. 3.  [COMPUTATION OF A TAXPAYING EMPLOYER'S EXPERIENCE 
 22.1   RATING.] (a) For each calendar year On or before each December 
 22.2   15, the commissioner shall compute an experience rating for each 
 22.3   taxpaying employer who has been subject to paying unemployment 
 22.4   taxes for at least the 12 calendar months ending on the prior to 
 22.5   July 1 of the prior June 30.  The experience rating computed 
 22.6   shall be applicable for the following calendar year.  
 22.7      (b) The experience rating shall be the ratio obtained by 
 22.8   dividing 125 percent of the total unemployment benefits required 
 22.9   under section 268.047 to be used in computing the employer's tax 
 22.10  rate during the 48 calendar months ending on the prior June 30 
 22.11  of the prior calendar year, by the employer's total taxable 
 22.12  payroll for that same period. 
 22.13     (c) For purposes of paragraph (b), only that taxable 
 22.14  payroll upon which taxes have been paid on or before September 
 22.15  30 of the prior calendar year may be used in computing an 
 22.16  employer's experience rating. 
 22.17     (d) (b) The experience rating shall be computed to the 
 22.18  nearest one-tenth one-hundredth of a percent, to a maximum of 
 22.19  8.9 8.90 percent.  
 22.20     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2005. 
 22.21     Sec. 27.  Minnesota Statutes 2002, section 268.051, 
 22.22  subdivision 4, is amended to read: 
 22.23     Subd. 4.  [EXPERIENCE RATING TRANSFER.] (a) When a 
 22.24  taxpaying employer acquires the organization, trade or business 
 22.25  or substantially all the assets of another employer, and there 
 22.26  is 25 percent or more common ownership, directly or indirectly, 
 22.27  between the predecessor and successor, the experience rating of 
 22.28  the predecessor employer shall be transferred as of the date of 
 22.29  acquisition to the successor employer for the purpose of 
 22.30  computing a tax rate. 
 22.31     (b) When a taxpaying employer acquires a distinct severable 
 22.32  portion of the organization, trade, business, or assets that is 
 22.33  less than substantially all of the employing enterprises of 
 22.34  another employer, and there is 25 percent or more common 
 22.35  ownership, directly or indirectly, between the predecessor and 
 22.36  successor, the successor employer shall acquire the that 
 23.1   percentage of a predecessor's experience rating attributable to 
 23.2   the portion it acquired equal to that percentage of the 
 23.3   predecessor's employment positions it has obtained, and the 
 23.4   predecessor employer shall retain that percentage of the 
 23.5   experience rating attributable to the portion equal to that 
 23.6   percentage of the employment positions that it has retained, if 
 23.7   (1) the successor makes a written request to apply files an 
 23.8   application by electronic transmission, in a format prescribed 
 23.9   by the commissioner, for the transfer of a percentage of the 
 23.10  experience rating attributable to the severable portion acquired 
 23.11  from of the predecessor within 180 calendar days from the date 
 23.12  of acquisition, and (2) files an application within the time and 
 23.13  in the manner prescribed by the commissioner that furnishes 
 23.14  sufficient information to substantiate the severable portion 
 23.15  acquisition and to assign the appropriate portion percentage of 
 23.16  the experience rating.  
 23.17     (c) The term "common ownership" for purposes of this 
 23.18  subdivision includes ownership by a spouse, parent, child, 
 23.19  brother, sister, aunt, uncle, niece, nephew, or first cousin, by 
 23.20  birth or by marriage. 
 23.21     (d) If the successor employer under paragraphs (a) and (b) 
 23.22  had an experience rating at the time of the acquisition, the 
 23.23  transferred experience rating of the predecessor shall be 
 23.24  combined with the successor's experience rating for purposes of 
 23.25  computing a tax rate. 
 23.26     (e) If there has been a transfer of an experience rating 
 23.27  under paragraph (a) or (b), employment with a predecessor 
 23.28  employer shall not be considered to have been terminated if 
 23.29  similar employment is offered by the successor employer and 
 23.30  accepted by the employee. 
 23.31     (f) The commissioner, upon the commissioner's own motion or 
 23.32  upon application of an employer shall determine if an employer 
 23.33  is a successor within the meaning of this subdivision and shall 
 23.34  send the determination to the employer by mail or electronic 
 23.35  transmission.  The determination shall be final unless a protest 
 23.36  is filed by the employer within 30 calendar days after sending 
 24.1   the determination.  Upon receipt of a protest, the commissioner 
 24.2   shall review all available evidence and determine whether an 
 24.3   error has been made.  The commissioner shall either affirm or 
 24.4   make a redetermination on whether the employer is a successor 
 24.5   within the meaning of this subdivision and send the employer, by 
 24.6   mail or electronic transmission, the affirmation or 
 24.7   redetermination.  The affirmation or redetermination shall be 
 24.8   final unless an appeal is filed by the employer within 30 
 24.9   calendar days after the sending of the determination affirmation 
 24.10  or redetermination.  Proceedings on the appeal shall be 
 24.11  conducted in accordance with section 268.105. 
 24.12     (g) The commissioner may, as the result of any 
 24.13  determination or decision regarding succession or nonsuccession, 
 24.14  recompute the tax rate of all employers affected by the 
 24.15  determination or decision for any year, including the year of 
 24.16  the acquisition and subsequent years, that is affected by the 
 24.17  transfer or nontransfer of part or all of the experience 
 24.18  rating.  This paragraph does not apply to rates that have become 
 24.19  final before the filing of a written request to apply an 
 24.20  application for the transfer of a severable portion of the 
 24.21  experience rating under paragraph (b). 
 24.22     (h) Should an employer not have been in operation long 
 24.23  enough to qualify for an experience rating under subdivision 3, 
 24.24  paragraph (a), the experience rating for purposes of this 
 24.25  subdivision shall consist of those factors that normally make up 
 24.26  an experience rating, without the 12-month minimum. 
 24.27     (i) If the commissioner finds that a transaction was done, 
 24.28  in whole or in part, to avoid an experience rating or the 
 24.29  transfer of an experience rating, the commissioner may transfer 
 24.30  all or part of the experience rating regardless of the 
 24.31  requirements or limitations of paragraph paragraphs (a) and (b). 
 24.32  This shall include the transferring of employees from the 
 24.33  payroll of an employer with a higher experience rating to the 
 24.34  payroll of an employer with a lower experience rating. 
 24.35     (j) Regardless of paragraph (a), if there is an acquisition 
 24.36  or merger of a publicly held corporation by or with another 
 25.1   publicly held corporation the experience ratings of the 
 25.2   corporations shall be combined as of the date of acquisition or 
 25.3   merger for the purpose of computing a tax rate. 
 25.4      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2005. 
 25.5      Sec. 28.  Minnesota Statutes 2003 Supplement, section 
 25.6   268.051, subdivision 5, is amended to read: 
 25.7      Subd. 5.  [TAX RATE FOR NEW EMPLOYERS.] (a) Each new 
 25.8   taxpaying employer that does not qualify for an experience 
 25.9   rating under subdivision 3, except new employers in a high 
 25.10  experience rating industry, shall be assigned, for a calendar 
 25.11  year, a tax rate the higher of (1) one percent, or (2) the tax 
 25.12  rate computed, to the nearest one-hundredth of a percent, by 
 25.13  dividing the total amount of unemployment benefits paid all 
 25.14  applicants during the 48 calendar months ending on June 30 of 
 25.15  the prior calendar year by the total taxable wages of all 
 25.16  taxpaying employers during the same period, plus the applicable 
 25.17  base tax rate and any additional assessments under subdivision 
 25.18  2, paragraph (d).  
 25.19     (b) Each new taxpaying employer in a high experience rating 
 25.20  industry that does not qualify for an experience rating under 
 25.21  subdivision 3, shall be assigned, for a calendar year, a tax 
 25.22  rate of 8.0 8.00 percent, plus the applicable base tax rate and 
 25.23  any additional assessments under subdivision 2, paragraph (d).  
 25.24     An employer is considered to be in a high experience rating 
 25.25  industry if: 
 25.26     (1) the employer is engaged in residential, commercial, or 
 25.27  industrial construction, including general contractors; 
 25.28     (2) the employer is engaged in sand, gravel, or limestone 
 25.29  mining; 
 25.30     (3) the employer is engaged in the manufacturing of 
 25.31  concrete, concrete products, or asphalt; or 
 25.32     (4) the employer is engaged in road building, repair, or 
 25.33  resurfacing, including bridge and tunnels and residential and 
 25.34  commercial driveways and parking lots.  
 25.35     (c) The commissioner shall send to the new employer, by 
 25.36  mail or electronic transmission, notice of the tax rate 
 26.1   assigned.  An employer may protest the assignment of a tax rate 
 26.2   in accordance with the procedures in subdivision 6, paragraph 
 26.3   (c). 
 26.4      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2005. 
 26.5      Sec. 29.  Minnesota Statutes 2003 Supplement, section 
 26.6   268.051, subdivision 6, is amended to read: 
 26.7      Subd. 6.  [NOTICE OF TAX RATE.] (a) On or before each 
 26.8   December 15, the commissioner shall notify each employer by mail 
 26.9   or electronic transmission of the employer's tax rate, along 
 26.10  with any additional assessments, fees, or surcharges, as 
 26.11  determined for any the following calendar year.  The notice 
 26.12  shall contain the base tax rate and the factors used in 
 26.13  determining the employer's experience rating.  Unless a protest 
 26.14  of the tax rate is made, the assigned computed tax rate shall be 
 26.15  final except for fraud and shall be the rate at which taxes 
 26.16  shall be paid.  The tax rate shall not be subject to collateral 
 26.17  attack by way of claim for a credit adjustment or refund, or 
 26.18  otherwise.  
 26.19     (b) If the legislature, subsequent to the sending of the 
 26.20  tax rate, changes any of the factors used to determine the rate, 
 26.21  the earlier notice shall be void.  A new tax rate based on the 
 26.22  new factors shall be computed and sent to the employer.  
 26.23     (c) A review of an employer's tax rate may be obtained by 
 26.24  the employer filing, in a manner prescribed by the commissioner, 
 26.25  a protest within 30 calendar days from the date the tax rate 
 26.26  notice was sent to the employer.  Upon receipt of the protest, 
 26.27  the commissioner shall review the tax rate to determine whether 
 26.28  or not there has been any clerical error or error in computation 
 26.29  or assignment of the tax rate.  The commissioner shall either 
 26.30  affirm or make a redetermination of the rate and a notice of the 
 26.31  affirmation or redetermination shall be sent to the employer by 
 26.32  mail or electronic transmission.  The affirmation or 
 26.33  redetermination shall be final unless the employer files an 
 26.34  appeal within 30 calendar days after the date the affirmation or 
 26.35  redetermination was sent.  Proceedings on the appeal shall be 
 26.36  conducted in accordance with section 268.105.  
 27.1      (d) The commissioner may at any time upon the 
 27.2   commissioner's own motion correct any error in the computation 
 27.3   or the assignment of an employer's tax rate.  
 27.4      Sec. 30.  Minnesota Statutes 2002, section 268.051, 
 27.5   subdivision 7, is amended to read: 
 27.6      Subd. 7.  [TAX RATE BUYDOWN.] (a) Any taxpaying employer 
 27.7   who has been assigned a tax rate based upon an experience rating 
 27.8   may, upon the voluntary payment of an amount equivalent to any 
 27.9   portion or all of the unemployment benefits used in computing 
 27.10  the experience rating plus a surcharge of 25 percent, obtain a 
 27.11  cancellation of unemployment benefits used equal to the payment 
 27.12  made, less the surcharge.  Upon the payment, the commissioner 
 27.13  shall compute a new experience rating for the employer, 
 27.14  and determine compute a new tax rate.  
 27.15     (b) Voluntary payments may be made only during the 30 
 27.16  calendar day period immediately following the date of sending of 
 27.17  the notice of tax rate.  This period may be extended, upon a 
 27.18  showing of good cause, but in no event shall a voluntary payment 
 27.19  be allowed after by electronic payment and must be received 
 27.20  within 120 calendar days from the beginning of the calendar year 
 27.21  for which the tax rate is effective. 
 27.22     (c) Voluntary payments made within the time required will 
 27.23  not be refunded unless a request is made in writing within 30 
 27.24  calendar days after sending of the notice of the new tax rate. 
 27.25     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2005. 
 27.26     Sec. 31.  Minnesota Statutes 2002, section 268.0511, is 
 27.27  amended to read: 
 27.28     268.0511 [ANNUAL PAYMENT OF SMALL LIABILITIES.] 
 27.29     (a) An employer may file tax reports and pay all taxes, 
 27.30  surcharges, and assessments due under this chapter and section 
 27.31  116L.20, except late fees under section 268.044, for any 
 27.32  calendar year on an annual basis if the employer: 
 27.33     (1) has an experience rating of zero for that calendar 
 27.34  year; 
 27.35     (2) had total taxable wages paid in the 12-month period 
 27.36  ending the prior June 30 of less than five times the state's 
 28.1   taxable wage base; and 
 28.2      (3) has no outstanding tax or assessment liability, 
 28.3   including penalties and interest delinquent amounts due under 
 28.4   this chapter or section 116L.20. 
 28.5      (b) Tax reports and taxes and assessments All amounts due 
 28.6   under this section for any calendar year shall be paid on or 
 28.7   before the following January 31. 
 28.8      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2005. 
 28.9      Sec. 32.  Minnesota Statutes 2003 Supplement, section 
 28.10  268.052, subdivision 1, is amended to read: 
 28.11     Subdivision 1.  [PAYMENTS.] In lieu of taxes payable on a 
 28.12  quarterly basis, the state of Minnesota or its political 
 28.13  subdivisions shall reimburse the trust fund the amount of 
 28.14  unemployment benefits charged to its reimbursable account under 
 28.15  section 268.047.  Reimbursements in the amount of unemployment 
 28.16  benefits charged to the reimbursable account during a calendar 
 28.17  quarter shall be made must be received by the department on or 
 28.18  before the last day of the month following the month that the 
 28.19  notice of unemployment benefits paid is sent pursuant to section 
 28.20  268.047, subdivision 5.  Past due reimbursements shall be 
 28.21  subject to the same interest charges and collection procedures 
 28.22  that apply to past due taxes. 
 28.23     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2005. 
 28.24     Sec. 33.  Minnesota Statutes 2003 Supplement, section 
 28.25  268.052, subdivision 2, is amended to read: 
 28.26     Subd. 2.  [ELECTION BY STATE OR POLITICAL SUBDIVISION TO BE 
 28.27  A TAXPAYING EMPLOYER.] (a) The state or political subdivision 
 28.28  excluding a school district may elect to be a taxpaying employer 
 28.29  for any calendar year if a notice of election is filed within 30 
 28.30  calendar days following January 1 of that calendar year.  Upon 
 28.31  election, the state or political subdivision shall be assigned 
 28.32  the new employer tax rate under section 268.051, subdivision 5, 
 28.33  for the calendar year of the election and until it qualifies for 
 28.34  an experience rating under section 268.051, subdivision 3. 
 28.35     (b) An election shall be for a minimum period of two 
 28.36  calendar years following the effective date of the election and 
 29.1   continue unless a notice terminating the election is filed not 
 29.2   later than 30 calendar days before the beginning of the calendar 
 29.3   year.  The termination shall be effective at the beginning of 
 29.4   the next calendar year.  Upon election, the commissioner shall 
 29.5   establish a reimbursable account for the state or political 
 29.6   subdivision.  A termination of election shall be allowed only if 
 29.7   the state or political subdivision has, since the beginning of 
 29.8   the experience rating period under section 268.051, subdivision 
 29.9   3, paid taxes and made voluntary payments under section 268.051, 
 29.10  subdivision 7, equal to or more than 125 percent of the 
 29.11  unemployment benefits used in computing the experience rating.  
 29.12  In addition, any unemployment benefits paid after the experience 
 29.13  rating period shall be transferred to the new reimbursable 
 29.14  account of the state or political subdivision.  If the amount of 
 29.15  taxes and voluntary payments paid since the beginning of the 
 29.16  experience rating period exceeds 125 percent of the amount of 
 29.17  unemployment benefits paid during the experience rating period, 
 29.18  that amount in excess shall be applied against any unemployment 
 29.19  benefits paid after the experience rating period. 
 29.20     (c) The method of payments to the trust fund under 
 29.21  subdivisions 3 and 4 shall apply to all taxes paid by or due 
 29.22  from the state or political subdivision that elects to be 
 29.23  taxpaying employers under this subdivision. 
 29.24     (d) The commissioner may allow A notice of election or a 
 29.25  notice terminating election to shall be filed by mail or 
 29.26  electronic transmission in a format prescribed by the 
 29.27  commissioner.  
 29.28     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2005. 
 29.29     Sec. 34.  Minnesota Statutes 2003 Supplement, section 
 29.30  268.053, subdivision 1, is amended to read: 
 29.31     Subdivision 1.  [ELECTION.] (a) Any nonprofit organization 
 29.32  that has employees in covered employment shall pay taxes on a 
 29.33  quarterly basis pursuant to section 268.051 unless it elects to 
 29.34  make reimbursements to the trust fund the amount of unemployment 
 29.35  benefits charged to its reimbursable account under section 
 29.36  268.047. 
 30.1      The organization may elect to make reimbursements for a 
 30.2   period of not less than two calendar years beginning with the 
 30.3   date that the organization was determined to be an employer with 
 30.4   covered employment by filing a notice of election not later than 
 30.5   30 calendar days after the date of the determination. 
 30.6      (b) Any nonprofit organization that makes an election will 
 30.7   continue to be liable for reimbursements until it files a notice 
 30.8   terminating its election not later than 30 calendar days before 
 30.9   the beginning of the calendar year the termination is to be 
 30.10  effective.  
 30.11     (c) A nonprofit organization that has been making 
 30.12  reimbursements that files a notice of termination of election 
 30.13  shall be assigned the new employer tax rate under section 
 30.14  268.051, subdivision 5, for the calendar year of the termination 
 30.15  of election and until it qualifies for an experience rating 
 30.16  under section 268.051, subdivision 3. 
 30.17     (d) Any nonprofit organization that has been paying taxes 
 30.18  may elect to make reimbursements by filing no less than 30 
 30.19  calendar days before January 1 of any calendar year a notice of 
 30.20  election.  Upon election, the commissioner shall establish a 
 30.21  reimbursable account for the nonprofit organization.  An 
 30.22  election shall be allowed only if the nonprofit organization 
 30.23  has, since the beginning of the experience rating period under 
 30.24  section 268.051, subdivision 3, paid taxes and made voluntary 
 30.25  payments under section 268.051, subdivision 7, equal to or more 
 30.26  than 125 percent of the unemployment benefits used in computing 
 30.27  the experience rating.  In addition, any unemployment benefits 
 30.28  paid after the experience rating period shall be transferred to 
 30.29  the new reimbursable account of the nonprofit organization.  If 
 30.30  the amount of taxes and voluntary payments paid since the 
 30.31  beginning of the experience rating period exceeds 125 percent of 
 30.32  the amount of unemployment benefits paid during the experience 
 30.33  rating period, that amount in excess shall be applied against 
 30.34  any unemployment benefits paid after the experience rating 
 30.35  period.  The election shall not be terminable by the 
 30.36  organization for that and the next calendar year. 
 31.1      (e) The commissioner may for good cause extend the period 
 31.2   that a notice of election, or a notice of termination, must be 
 31.3   filed and may permit an election to be retroactive. 
 31.4      (f) The commissioner may allow A notice of election or 
 31.5   notice terminating election to shall be filed by mail or 
 31.6   electronic transmission in a format prescribed by the 
 31.7   commissioner. 
 31.8      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2005. 
 31.9      Sec. 35.  Minnesota Statutes 2002, section 268.053, 
 31.10  subdivision 2, is amended to read: 
 31.11     Subd. 2.  [DETERMINATION, PROTEST, AND APPEAL.] The 
 31.12  commissioner shall notify each nonprofit organization by mail or 
 31.13  electronic transmission of any determination of its status as an 
 31.14  employer with covered employment and of the effective date of 
 31.15  any election or termination of election.  The determinations 
 31.16  shall be final unless an appeal a protest is filed within 30 
 31.17  calendar days after sending of the determination.  Upon receipt 
 31.18  of a protest, the commissioner shall review all available 
 31.19  evidence and determine whether an error has been made.  The 
 31.20  commissioner shall send to the nonprofit organization, by mail 
 31.21  or electronic transmission, an affirmation or redetermination.  
 31.22  The affirmation or redetermination shall be final unless an 
 31.23  appeal is filed within 30 calendar days of sending the 
 31.24  affirmation or redetermination.  Proceedings on the appeal shall 
 31.25  be conducted in accordance with section 268.105. 
 31.26     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2005. 
 31.27     Sec. 36.  Minnesota Statutes 2003 Supplement, section 
 31.28  268.053, subdivision 3, is amended to read: 
 31.29     Subd. 3.  [PAYMENTS.] (a) Reimbursements, in the amount of 
 31.30  unemployment benefits charged to the reimbursable account, 
 31.31  during a calendar quarter, shall be made must be received by the 
 31.32  department on or before the last day of the month following the 
 31.33  month that the notice of unemployment benefits paid is sent 
 31.34  pursuant to section 268.047, subdivision 5.  
 31.35     (b) Past due reimbursements shall be subject to the same 
 31.36  interest charges and collection procedures that apply to past 
 32.1   due taxes. 
 32.2      (c) If any nonprofit organization is delinquent in making 
 32.3   reimbursements, the commissioner may terminate the 
 32.4   organization's election to make reimbursements as of the 
 32.5   beginning of the next calendar year, and the termination shall 
 32.6   be effective for that and the following calendar year.  A 
 32.7   nonprofit organization that has its election terminated under 
 32.8   this paragraph shall be assigned the new employer tax rate under 
 32.9   section 268.051, subdivision 5, until the organization qualifies 
 32.10  for an experience rating under section 268.051, subdivision 3. 
 32.11     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2005. 
 32.12     Sec. 37.  Minnesota Statutes 2002, section 268.057, as 
 32.13  amended by Laws 2003, First Special Session chapter 3, article 
 32.14  2, sections 6 and 20, is amended to read: 
 32.15     268.057 [COLLECTION OF TAXES.] 
 32.16     Subdivision 1.  [REPORTS; DELINQUENCIES; PENALTIES AMOUNT 
 32.17  COMPUTED PRESUMED CORRECT.] (a) Any employer who knowingly fails 
 32.18  to submit to the commissioner any tax report at the time the 
 32.19  report is required under section 268.051, subdivision 1a, or 
 32.20  268.0511 shall pay to the department a penalty of up to $25 or 
 32.21  an amount of 1-1/2 percent of taxes accrued for each month from 
 32.22  and after the due date until the tax report is properly 
 32.23  submitted, whichever is greater.  
 32.24     (b) If any employer required to submit tax reports fails to 
 32.25  do so, or submits, willfully or otherwise, an incorrect or false 
 32.26  tax report, the employer shall, on the demand of the 
 32.27  commissioner sent by mail or electronic transmission, submit the 
 32.28  tax report, or corrected report, within ten days and at the same 
 32.29  time pay the tax due.  If the employer fails within that time to 
 32.30  submit the tax report or corrected report and pay any tax due, 
 32.31  the commissioner shall make an estimated tax report from the 
 32.32  commissioner's own knowledge and from information the 
 32.33  commissioner may obtain and assess a tax on that basis.  That 
 32.34  assessed tax, plus any penalties and interest, shall be paid 
 32.35  within ten days after notice of the amount due has been sent by 
 32.36  mail or electronic transmission.  Any assessed tax because of 
 33.1   the failure of the employer to submit a tax report or corrected 
 33.2   tax report shall be prima facie correct and valid, and the 
 33.3   employer shall have the burden of establishing its incorrectness 
 33.4   or invalidity in any subsequent action or proceeding.  Whenever 
 33.5   the delinquent employer files a tax report or corrected tax 
 33.6   report, the commissioner may, on finding it substantially 
 33.7   correct, accept that report. 
 33.8      (c) If the commissioner finds that any part of any 
 33.9   employer's tax deficiency is due to fraud with intent to avoid 
 33.10  payment of taxes to the trust fund, 50 percent of the total 
 33.11  amount of the deficiency or $500, whichever is greater, shall be 
 33.12  assessed as a penalty against the employer and collected in 
 33.13  addition to the deficiency. 
 33.14     (d) The penalties provided for in paragraphs (a) and (c) 
 33.15  are in addition to interest and any other penalties and shall be 
 33.16  paid to the department and credited to the contingent account. 
 33.17     (e) An employer or officer or agent of an employer is 
 33.18  guilty of a gross misdemeanor, unless the tax or other payment 
 33.19  involved exceeds $500, in which case the person is guilty of a 
 33.20  felony, if the individual: 
 33.21     (1) in order to avoid becoming or remaining a subject 
 33.22  employer or to avoid or reduce any tax or other payment required 
 33.23  under this chapter: 
 33.24     (i) makes a false statement or representation knowing it to 
 33.25  be false; or 
 33.26     (ii) knowingly fails to disclose a material fact; or 
 33.27     (2) willfully fails or refuses to pay any taxes or other 
 33.28  payment at the time required. 
 33.29     Subd. 2.  [TAX OR PAYMENT IN LIEU OF TAX PRESUMED VALID.] 
 33.30  The tax and payment in lieu of tax Any amount due from an 
 33.31  employer, as assessed computed by the commissioner, including 
 33.32  any penalties, shall be presumed to be valid and correctly 
 33.33  determined and assessed, and the burden shall be upon the 
 33.34  employer to show its incorrectness or invalidity.  A statement 
 33.35  by the commissioner of the amount of the tax, payment in lieu of 
 33.36  tax, interest and penalties as determined or assessed by the 
 34.1   commissioner, due shall be admissible in evidence in any court 
 34.2   or administrative proceeding and shall be prima facie evidence 
 34.3   of the facts in the statement. 
 34.4      Subd. 2.  [PRIORITY OF PAYMENTS.] (a) Any payment received 
 34.5   from a taxpaying employer shall be applied in the following 
 34.6   order: 
 34.7      (1) unemployment insurance taxes; then 
 34.8      (2) special assessment for interest on any federal loan; 
 34.9   then 
 34.10     (3) workforce development fee; then 
 34.11     (4) interest on past due taxes; then 
 34.12     (5) penalties, late fees, administrative service fees, and 
 34.13  costs. 
 34.14     (b) Paragraph (a) shall be the priority used for all 
 34.15  payments received from a taxpaying employer, regardless of how 
 34.16  the employer may designate the payment to be applied, except 
 34.17  when: 
 34.18     (1) there is an outstanding lien and the employer 
 34.19  designates that the payment made should be applied to satisfy 
 34.20  the lien; 
 34.21     (2) the payment is for back pay withheld from an applicant 
 34.22  pursuant to section 268.085, subdivision 6, paragraph (b); 
 34.23     (3) the payment is specifically designated by the employer 
 34.24  to be applied to an outstanding overpayment of unemployment 
 34.25  benefits of an applicant; 
 34.26     (4) a court or administrative order directs that the 
 34.27  payment be applied to a specific obligation; 
 34.28     (5) a preexisting payment plan provides for the application 
 34.29  of payment; or 
 34.30     (6) the commissioner, under the compromise authority of 
 34.31  section 268.067, agrees to apply the payment to a different 
 34.32  priority. 
 34.33     Subd. 3.  [CONFESSION OF JUDGMENT ESTIMATING THE TAX 
 34.34  DUE.] (a) Any tax report or other form that is required to be 
 34.35  filed with the commissioner concerning taxes or reimbursements 
 34.36  due, shall contain a written declaration that it is made under 
 35.1   the penalties for willfully making a false report and shall 
 35.2   contain a confession of judgment for the amount of the tax or 
 35.3   reimbursements shown due thereon to the extent not timely paid 
 35.4   together with any interest and penalty due under this chapter. 
 35.5      (b) The commissioner may, within six years after the report 
 35.6   or other form is filed, regardless of section 541.09, enter 
 35.7   judgment on any confession of judgment after 20 calendar days' 
 35.8   notice served upon the employer by mail.  The judgment shall be 
 35.9   entered by the court administrator of any county upon the filing 
 35.10  of a photocopy of the confession of judgment along with a 
 35.11  statement of the commissioner that the tax or payment in lieu of 
 35.12  tax has not been paid.  Only if an employer fails to make all 
 35.13  necessary records available for an audit pursuant to section 
 35.14  268.186, paragraph (b), and the commissioner has reason to 
 35.15  believe the employer has not reported all the required wages on 
 35.16  the quarterly wage detail reports under section 268.044, may the 
 35.17  commissioner then estimate the amount of tax due and assess the 
 35.18  employer the estimated amount due. 
 35.19     Subd. 4.  [COSTS.] Any person that fails to pay any taxes, 
 35.20  reimbursements, or unemployment benefit overpayment, including 
 35.21  interest and penalties, amount when due under this chapter is 
 35.22  liable for any filing fees, recording fees, sheriff fees, costs 
 35.23  incurred by referral to any public or private collection agency, 
 35.24  or litigation costs, including attorney fees, incurred in the 
 35.25  collection of the amounts due.  
 35.26     If any check or money order, in tendered payment of any 
 35.27  amount due, is not honored when presented to a financial 
 35.28  institution for payment, a fee of $25 shall be assessed.  
 35.29     Costs and fees collected under this subdivision shall be 
 35.30  credited to the administration account to be used by the 
 35.31  commissioner to ensure integrity in the administration of the 
 35.32  unemployment insurance program. 
 35.33     Subd. 5.  [INTEREST ON AMOUNTS PAST DUE TAXES.] If 
 35.34  any taxes, reimbursements, fees, assessments, surcharges, or any 
 35.35  penalties amounts due from an employer under this chapter or 
 35.36  section 268.184 116L.20, except late fees under section 268.044, 
 36.1   are not paid received on the date due the unpaid balance shall 
 36.2   bear interest at the rate of one and one-half percent per month 
 36.3   or any part thereof.  Any payments received by mail postmarked 
 36.4   on a day following the date due shall be considered to have been 
 36.5   paid on the due date if there is substantial evidence that the 
 36.6   payment was actually deposited in the United States mail 
 36.7   properly addressed to the department with postage prepaid 
 36.8   thereon on or before the due date.  Interest assessed, if not a 
 36.9   whole dollar amount, shall be rounded down to the next lower 
 36.10  whole dollar.  Interest collected shall be credited to the 
 36.11  contingent account.  Interest may be waived compromised under 
 36.12  section 268.067. 
 36.13     Subd. 6.  [INTEREST ON JUDGMENTS.] Regardless of section 
 36.14  549.09, if judgment is entered upon any past due tax or 
 36.15  reimbursements amounts from an employer under this chapter or 
 36.16  section 116L.20, the unpaid judgment shall bear interest at the 
 36.17  rate specified in subdivision 5 until the date of payment.  
 36.18     Subd. 7.  [CREDIT ADJUSTMENTS, REFUNDS.] (a) If an employer 
 36.19  makes an application for a credit adjustment of any amount 
 36.20  paid as taxes or interest thereon under this chapter or section 
 36.21  116L.20 within four years of the year that the payment was made, 
 36.22  in a manner and format prescribed by the commissioner, and the 
 36.23  commissioner determines that the payment or any portion was 
 36.24  erroneous, the commissioner shall make an adjustment and issue a 
 36.25  credit without interest.  If a credit cannot be used, the 
 36.26  commissioner shall refund, without interest, the amount 
 36.27  erroneously paid.  The commissioner, on the commissioner's own 
 36.28  motion, may make a credit adjustment or refund under this 
 36.29  subdivision. 
 36.30     Any refund returned to the commissioner shall be considered 
 36.31  unclaimed property under chapter 345. 
 36.32     (b) If a credit adjustment or refund is denied in whole or 
 36.33  in part, a notice of denial shall be sent to the employer by 
 36.34  mail or electronic transmission.  Within 30 calendar days after 
 36.35  sending of the notice of denial, the employer may appeal protest.
 36.36     Upon receipt of a timely protest, the commissioner shall 
 37.1   review the denial and either affirm the denial or redetermine 
 37.2   the credit adjustment or refund.  The affirmation of denial or 
 37.3   redetermination of the credit adjustment or refund, sent by mail 
 37.4   or electronic transmission, shall be final unless an employer 
 37.5   files an appeal within 30 calendar days after sending.  
 37.6   Proceedings on the appeal shall be conducted in accordance with 
 37.7   section 268.105. 
 37.8      Subd. 10.  [PRIORITIES UNDER LEGAL DISSOLUTIONS OR 
 37.9   DISTRIBUTIONS.] In the event of any distribution of an 
 37.10  employer's assets pursuant to an order of any court, including 
 37.11  any receivership, assignment for benefit of creditors, 
 37.12  adjudicated insolvency, or similar proceeding, taxes then or 
 37.13  thereafter due shall be paid in full prior to all other claims 
 37.14  except claims for wages of not more than $1,000 per former 
 37.15  employee, earned within six months of the commencement of the 
 37.16  proceedings.  In the event of an employer's adjudication in 
 37.17  bankruptcy under federal law, taxes then or thereafter due shall 
 37.18  be entitled to the priority provided in that law for taxes due 
 37.19  any state. 
 37.20     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2005.  
 37.21  Subdivision 5 does not apply to late tax report penalties issued 
 37.22  prior to July 1, 2005. 
 37.23     Sec. 38.  Minnesota Statutes 2002, section 268.058, as 
 37.24  amended by Laws 2003, First Special Session chapter 3, article 
 37.25  2, section 20, is amended to read: 
 37.26     268.058 [LIEN, LEVY, SETOFF, AND CIVIL ACTION.] 
 37.27     Subdivision 1.  [LIEN.] (a) Any taxes, unemployment benefit 
 37.28  overpayments, or reimbursements due including interest, 
 37.29  penalties, and costs amount due under this chapter or section 
 37.30  116L.20, from an applicant or an employer, shall become a lien 
 37.31  upon all the property, within this state, both real and 
 37.32  personal, of the person liable, from the date of assessment.  
 37.33  The term "date of assessment" means the date the obligation was 
 37.34  due. 
 37.35     (b) The lien is not enforceable against any purchaser, 
 37.36  mortgagee, pledgee, holder of a Uniform Commercial Code security 
 38.1   interest, mechanic's lien, or judgment lien creditor, until a 
 38.2   notice of lien has been filed with the county recorder of the 
 38.3   county where the property is situated, or in the case of 
 38.4   personal property belonging to a nonresident person in the 
 38.5   Office of the Secretary of State.  When the notice of lien is 
 38.6   filed with the county recorder, the fee for filing and indexing 
 38.7   shall be as provided in sections 272.483 and 272.484.  
 38.8      (c) Notices of liens, lien renewals, and lien releases, in 
 38.9   a form prescribed by the commissioner, may be filed with the 
 38.10  county recorder or the secretary of state by mail, personal 
 38.11  delivery, or by electronic transmission into the computerized 
 38.12  filing system of the secretary of state.  The secretary of state 
 38.13  shall, on any notice filed with that office, transmit the notice 
 38.14  electronically to the appropriate county recorder.  The filing 
 38.15  officer, whether the county recorder or the secretary of state, 
 38.16  shall endorse and index a printout of the notice as if the 
 38.17  notice had been mailed or delivered.  
 38.18     (d) County recorders and the secretary of state shall enter 
 38.19  information on lien notices, renewals, and releases into the 
 38.20  central database of the secretary of state.  For notices filed 
 38.21  electronically with the county recorders, the date and time of 
 38.22  receipt of the notice and county recorder's file number, and for 
 38.23  notices filed electronically with the secretary of state, the 
 38.24  secretary of state's recording information, must be entered into 
 38.25  the central database before the close of the working day 
 38.26  following the day of the original data entry by the commissioner.
 38.27     (e) The lien imposed on personal property, even though 
 38.28  properly filed, is not enforceable against a purchaser of 
 38.29  tangible personal property purchased at retail or personal 
 38.30  property listed as exempt in sections 550.37, 550.38, and 550.39.
 38.31     (f) A notice of lien filed has priority over any security 
 38.32  interest arising under chapter 336, article 9, that is perfected 
 38.33  prior in time to the lien imposed by this subdivision, but only 
 38.34  if:  
 38.35     (1) the perfected security interest secures property not in 
 38.36  existence at the time the notice of lien is filed; and 
 39.1      (2) the property comes into existence after the 45th 
 39.2   calendar day following the day the notice of lien is filed, or 
 39.3   after the secured party has actual notice or knowledge of the 
 39.4   lien filing, whichever is earlier. 
 39.5      (g) The lien shall be enforceable from the time the lien 
 39.6   arises and for ten years from the date of filing the notice of 
 39.7   lien.  A notice of lien may be renewed before expiration for an 
 39.8   additional ten years.  
 39.9      (h) The lien shall be enforceable by levy under subdivision 
 39.10  2 or by judgment lien foreclosure under chapter 550.  
 39.11     (i) The lien may be imposed upon property defined as 
 39.12  homestead property in chapter 510 but may be enforced only upon 
 39.13  the sale, transfer, or conveyance of the homestead property. 
 39.14     (j) The commissioner may sell and assign to a third party 
 39.15  the commissioner's right of redemption in specific real property 
 39.16  for liens filed under this subdivision.  The assignee shall be 
 39.17  limited to the same rights of redemption as the commissioner, 
 39.18  except that in a bankruptcy proceeding, the assignee does not 
 39.19  obtain the commissioner's priority.  Any proceeds from the sale 
 39.20  of the right of redemption shall be credited to the contingent 
 39.21  account.  Any sale shall be by written agreement signed by an 
 39.22  attorney who is a classified employee of the department 
 39.23  designated by the commissioner for that purpose. 
 39.24     Subd. 2.  [LEVY.] (a) If any tax, reimbursements, or 
 39.25  unemployment benefit overpayment, including interest, penalties, 
 39.26  and costs amount due under this chapter or section 116L.20, from 
 39.27  an applicant or an employer, is not paid when due, the amount 
 39.28  may be collected by the commissioner by direct levy upon all 
 39.29  property and rights of property of the person liable for the 
 39.30  amount due except that exempt from execution under section 
 39.31  550.37.  The term "levy" includes the power of distraint and 
 39.32  seizure by any means.  
 39.33     (b) In addition to a direct levy, the commissioner may 
 39.34  issue a warrant to the sheriff of any county who shall proceed 
 39.35  within 60 calendar days to levy upon the property or rights to 
 39.36  property of the delinquent person within the county, except that 
 40.1   exempt under section 550.37.  The sheriff shall sell that 
 40.2   property necessary to satisfy the total amount due, together 
 40.3   with the commissioner's and sheriff's costs.  The sales shall be 
 40.4   governed by the law applicable to sales of like property on 
 40.5   execution of a judgment.  
 40.6      (c) Notice and demand for payment of the total amount due 
 40.7   shall be mailed to the delinquent person at least ten calendar 
 40.8   days prior to action being taken under paragraphs (a) and (b). 
 40.9      (d) If the commissioner has reason to believe that 
 40.10  collection of the amount due is in jeopardy, notice and demand 
 40.11  for immediate payment may be made.  If the total amount due is 
 40.12  not paid, the commissioner may proceed to collect by direct levy 
 40.13  or issue a warrant without regard to the ten calendar day period.
 40.14     (e) In executing the levy, the commissioner shall have all 
 40.15  of the powers provided in chapter 550 or any other law that 
 40.16  provides for execution against property in this state.  The sale 
 40.17  of property levied upon and the time and manner of redemption 
 40.18  shall be as provided in chapter 550.  The seal of the court 
 40.19  shall not be required.  The levy may be made whether or not the 
 40.20  commissioner has commenced a legal action for collection. 
 40.21     (f) Where any assessment has been made by the commissioner, 
 40.22  the property seized for collection of the total amount due shall 
 40.23  not be sold until any determination of liability has become 
 40.24  final.  No sale shall be made unless a portion of the amount due 
 40.25  remains unpaid for a period of more than 30 calendar days after 
 40.26  the determination of liability becomes final.  Seized property 
 40.27  may be sold at any time if:  
 40.28     (1) the delinquent person consents in writing to the sale; 
 40.29  or 
 40.30     (2) the commissioner determines that the property is 
 40.31  perishable or may become greatly reduced in price or value by 
 40.32  keeping, or that the property cannot be kept without great 
 40.33  expense.  
 40.34     (g) Where a levy has been made to collect the amount due 
 40.35  and the property seized is properly included in a formal 
 40.36  proceeding commenced under sections 524.3-401 to 524.3-505 and 
 41.1   maintained under full supervision of the court, the property 
 41.2   shall not be sold until the probate proceedings are completed or 
 41.3   until the court orders.  
 41.4      (h) The property seized shall be returned if the owner: 
 41.5      (1) gives a surety bond equal to the appraised value of the 
 41.6   owner's interest in the property, as determined by the 
 41.7   commissioner, or 
 41.8      (2) deposits with the commissioner security in a form and 
 41.9   amount the commissioner considers necessary to insure payment of 
 41.10  the liability. 
 41.11     (i) If a levy or sale would irreparably injure rights in 
 41.12  property that the court determines superior to rights of the 
 41.13  state, the court may grant an injunction to prohibit the 
 41.14  enforcement of the levy or to prohibit the sale. 
 41.15     (j) Any person who fails or refuses to surrender without 
 41.16  reasonable cause any property or rights to property subject to 
 41.17  levy shall be personally liable in an amount equal to the value 
 41.18  of the property or rights not so surrendered, but not exceeding 
 41.19  the amount due.  
 41.20     (k) If the commissioner has seized the property of any 
 41.21  individual, that individual may, upon giving 48 hours notice to 
 41.22  the commissioner and to the court, bring a claim for equitable 
 41.23  relief before the district court for the release of the property 
 41.24  upon terms and conditions the court considers equitable. 
 41.25     (l) Any person in control or possession of property or 
 41.26  rights to property upon which a levy has been made who 
 41.27  surrenders the property or rights to property, or who pays the 
 41.28  amount due shall be discharged from any obligation or liability 
 41.29  to the person liable for the amount due with respect to the 
 41.30  property or rights to property.  
 41.31     (m) The notice of any levy may be served personally or by 
 41.32  mail. 
 41.33     (n) The commissioner may release the levy upon all or part 
 41.34  of the property or rights to property levied upon if the 
 41.35  commissioner determines that the release will facilitate the 
 41.36  collection of the liability, but the release shall not prevent 
 42.1   any subsequent levy.  If the commissioner determines that 
 42.2   property has been wrongfully levied upon, the commissioner shall 
 42.3   return:  
 42.4      (1) the specific property levied upon, at any time; or 
 42.5      (2) an amount of money equal to the amount of money levied 
 42.6   upon, at any time before the expiration of nine months from the 
 42.7   date of levy. 
 42.8      (o) Regardless of section 52.12, a levy upon a person's 
 42.9   funds on deposit in a financial institution located in this 
 42.10  state, shall have priority over any unexercised right of setoff 
 42.11  of the financial institution to apply the levied funds toward 
 42.12  the balance of an outstanding loan or loans owed by the person 
 42.13  to the financial institution.  A claim by the financial 
 42.14  institution that it exercised its right to setoff prior to the 
 42.15  levy must be substantiated by evidence of the date of the 
 42.16  setoff, and verified by an affidavit from a corporate officer of 
 42.17  the financial institution.  For purposes of determining the 
 42.18  priority of any levy under this subdivision, the levy shall be 
 42.19  treated as if it were an execution under chapter 550.  
 42.20     Subd. 3.  [RIGHT OF SETOFF.] (a) Upon certification by the 
 42.21  commissioner to the commissioner of finance, or to any state 
 42.22  agency that disburses its own funds, that a person, applicant, 
 42.23  or employer has a liability under this chapter, including 
 42.24  interest, penalties, and costs or section 116L.20, and that the 
 42.25  state has purchased personal services, supplies, contract 
 42.26  services, or property from that person, the commissioner of 
 42.27  finance or the state agency shall set off and pay to the 
 42.28  commissioner an amount sufficient to satisfy the unpaid 
 42.29  liability from funds appropriated for payment of the obligation 
 42.30  of the state otherwise due the person.  No amount shall be set 
 42.31  off from any funds exempt under section 550.37 or funds due an 
 42.32  individual who receives assistance under chapter 256. 
 42.33     (b) All funds, whether general or dedicated, shall be 
 42.34  subject to setoff.  
 42.35     Regardless of any law to the contrary, the commissioner 
 42.36  shall have first priority to setoff from any funds otherwise due 
 43.1   from the department to a delinquent person. 
 43.2      Subd. 4.  [COLLECTION BY CIVIL ACTION.] (a) Any delinquent 
 43.3   taxes, reimbursements, or unemployment benefit overpayment, 
 43.4   including interest, penalties, or costs amount due under this 
 43.5   chapter or section 116L.20, from an applicant or employer, may 
 43.6   be collected by civil action in the name of the state of 
 43.7   Minnesota.  Civil actions brought under this subdivision shall 
 43.8   be heard as provided under section 16D.14.  In any action, 
 43.9   judgment shall be entered in default for the relief demanded in 
 43.10  the complaint without proof, together with costs and 
 43.11  disbursements, upon the filing of an affidavit of default. 
 43.12     (b) Any person that is not a resident of this state and any 
 43.13  resident person removed from this state, shall be considered to 
 43.14  appoint the secretary of state as its agent for the acceptance 
 43.15  of process in any civil action.  The commissioner shall file 
 43.16  process with the secretary of state, together with a payment of 
 43.17  a fee of $15 and that service shall be considered sufficient 
 43.18  service and shall have the same force and validity as if served 
 43.19  personally within this state.  Notice of the service of process, 
 43.20  together with a copy of the process, shall be sent by certified 
 43.21  mail to the person's last known address.  An affidavit of 
 43.22  compliance with this subdivision, and a copy of the notice of 
 43.23  service shall be appended to the original of the process and 
 43.24  filed in the court.  
 43.25     (c) No court filing fees, docketing fees, or release of 
 43.26  judgment fees may be assessed against the state for actions 
 43.27  pursuant to this subdivision. 
 43.28     Subd. 5.  [INJUNCTION FORBIDDEN.] No injunction or other 
 43.29  legal action to prevent the determination, assessment, or 
 43.30  collection of any tax, reimbursements, or unemployment benefit 
 43.31  overpayment, including interest, penalties, and costs amounts 
 43.32  due under this chapter or section 116L.20, from an applicant or 
 43.33  employer, shall be allowed.  
 43.34     Sec. 39.  Minnesota Statutes 2003 Supplement, section 
 43.35  268.059, subdivision 1, is amended to read: 
 43.36     Subdivision 1.  [NOTICE.] The commissioner may give notice 
 44.1   to any employer that an employee owes delinquent taxes, 
 44.2   reimbursements, or overpaid unemployment benefits, including 
 44.3   penalties, interest, and costs any amounts due under this 
 44.4   chapter or section 116L.20, and that the obligation to the trust 
 44.5   fund should be withheld from the employee's wages.  The 
 44.6   commissioner may proceed only if the tax, reimbursements, or 
 44.7   unemployment benefit overpayment amount due is uncontested or if 
 44.8   the time for any appeal has expired.  The commissioner shall not 
 44.9   proceed until 30 calendar days after mailing sending to the 
 44.10  debtor employee, at the debtor's last known address by mail or 
 44.11  electronic transmission, a written notice of intent to garnish 
 44.12  wages and exemption notice.  That notice shall list: 
 44.13     (1) the amount of taxes, reimbursements, overpaid 
 44.14  unemployment benefits, interest, penalties, or costs due from 
 44.15  the debtor; 
 44.16     (2) demand for immediate payment; and 
 44.17     (3) the intention to serve a garnishment notice on the 
 44.18  debtor's employer. 
 44.19     The notice shall expire 180 calendar days after it has been 
 44.20  mailed sent to the debtor provided that the notice may be 
 44.21  renewed by mailing sending a new notice that is in accordance 
 44.22  with this section.  The renewed notice shall have the effect of 
 44.23  reinstating the priority of the original notice.  The exemption 
 44.24  notice shall be in substantially the same form as in section 
 44.25  571.72.  The notice shall inform the debtor of the right to 
 44.26  claim exemptions contained in section 550.37, subdivision 14.  
 44.27  If no written claim of exemption is received by the commissioner 
 44.28  within 30 calendar days after mailing sending of the notice, the 
 44.29  commissioner may proceed with the garnishment.  The notice to 
 44.30  the debtor's employer may be served by mail or electronic 
 44.31  transmission and shall be in substantially the same form as in 
 44.32  section 571.75.  
 44.33     Sec. 40.  Minnesota Statutes 2002, section 268.059, 
 44.34  subdivision 3, is amended to read: 
 44.35     Subd. 3.  [DISCHARGE OR DISCIPLINE PROHIBITED.] (a) If the 
 44.36  employee ceases to be employed by the employer before the full 
 45.1   amount set forth on the garnishment notice plus accrued interest 
 45.2   has been withheld, the employer shall immediately notify the 
 45.3   commissioner in writing or by electronic transmission, as 
 45.4   prescribed by the commissioner, of the termination date of the 
 45.5   employee and the total amount withheld.  No employer may 
 45.6   discharge or discipline any employee because the commissioner 
 45.7   has proceeded under this section.  If an employer discharges an 
 45.8   employee in violation of this section, the employee shall have 
 45.9   the same remedy as provided in section 571.927, subdivision 2. 
 45.10     (b) This section shall apply if the employer is the state 
 45.11  of Minnesota or any political subdivision. 
 45.12     (c) The commissioner shall refund to the employee any 
 45.13  excess amounts withheld from the employee. 
 45.14     (d) An employer that fails or refuses to comply with this 
 45.15  section shall be jointly and severally liable for the total 
 45.16  amount due from the employee.  Any amount due from the employer 
 45.17  under this paragraph may be collected in accordance with section 
 45.18  268.058 the same manner as any other amounts due from an 
 45.19  employer under this chapter. 
 45.20     Sec. 41.  Minnesota Statutes 2002, section 268.0625, as 
 45.21  amended by Laws 2003, First Special Session chapter 3, article 
 45.22  2, section 20, is amended to read: 
 45.23     268.0625 [REVOCATIONS OF BUSINESS LICENSES.] 
 45.24     Subdivision 1.  [NOTICE OF DEBT TO LICENSING AUTHORITY.] 
 45.25  The state of Minnesota or a political subdivision may not issue, 
 45.26  transfer, or renew, and must revoke a license for the conduct of 
 45.27  any profession, trade, or business, if the commissioner notifies 
 45.28  the licensing authority that the licensee, applicant, or 
 45.29  employer owes delinquent taxes, reimbursements, or unemployment 
 45.30  benefit overpayments, including interest, penalties, and 
 45.31  costs any amount due under this chapter or section 116L.20, of 
 45.32  $500 or more.  A licensing authority that has received such a 
 45.33  notice may issue, transfer, renew, or not revoke the license 
 45.34  only if the licensing authority has received a copy of the debt 
 45.35  clearance certificate issued by the commissioner. 
 45.36     Subd. 2.  [DEBT CLEARANCE CERTIFICATE.] The commissioner 
 46.1   may issue a debt clearance certificate only if:  
 46.2      (1) the licensee has fully paid any delinquent taxes, 
 46.3   reimbursements, or unemployment benefit overpayments, including 
 46.4   interest, penalties, and costs amounts due under this chapter or 
 46.5   section 116L.20; or 
 46.6      (2) the licensee has entered into an agreement to pay the 
 46.7   total amount due and is current with all the terms of that 
 46.8   agreement. 
 46.9      Subd. 3.  [DEFINITION.] For the purposes of this section, 
 46.10  "licensee" means:  
 46.11     (1) an individual if the license is issued to or in the 
 46.12  name of an individual, or the corporation, limited liability 
 46.13  company, or partnership if the license is issued to or in the 
 46.14  name of a corporation, limited liability company, or 
 46.15  partnership; or 
 46.16     (2) an officer of a corporation, manager of a limited 
 46.17  liability company, or a member of a partnership, or an 
 46.18  individual who is liable for the delinquent taxes, 
 46.19  reimbursements, or unemployment benefit overpayments amounts due 
 46.20  under this chapter or section 116L.20, either for the entity 
 46.21  that the license is at issue or for another entity that the 
 46.22  liability was incurred, or personally as a licensee.  "Licensee" 
 46.23  includes both the transferor and the transferee of the license 
 46.24  and any holder of a license. 
 46.25     Subd. 4.  [NOTICE AND RIGHT TO HEARING.] At least 30 
 46.26  calendar days before the commissioner notifies a licensing 
 46.27  authority, a notice of action under this section shall be mailed 
 46.28  sent to the licensee by mail or electronic transmission.  If the 
 46.29  licensee disputes the action, the licensee must appeal within 30 
 46.30  calendar days after the mailing sending of the notice to 
 46.31  the licensee's last known address licensee.  The only issue on 
 46.32  any appeal is whether the commissioner has complied with the 
 46.33  requirements of this section.  Proceedings on the appeal shall 
 46.34  be conducted in accordance with section 268.105. 
 46.35     Subd. 5.  [LICENSING AUTHORITY; DUTIES.] Upon request, the 
 46.36  licensing authority shall provide the commissioner with a list 
 47.1   of all licensees, including the name, address, business name and 
 47.2   address, Social Security number, and business identification 
 47.3   number.  The commissioner may request a list of the licensees no 
 47.4   more than once each calendar year.  Regardless of section 
 47.5   268.19, the commissioner may release information necessary to 
 47.6   accomplish this section. 
 47.7      Sec. 42.  Minnesota Statutes 2003 Supplement, section 
 47.8   268.063, is amended to read: 
 47.9      268.063 [PERSONAL LIABILITY.] 
 47.10     (a) Any officer, director, or employee of a corporation or 
 47.11  any manager, governor, member, or employee of a limited 
 47.12  liability company who 
 47.13     (1) either individually or jointly with others, have or 
 47.14  should have had control of, supervision over, or responsibility 
 47.15  for the filing of the tax reports or paying the amounts due 
 47.16  under this chapter or section 116L.20, and 
 47.17     (2) willfully knowingly fails to file the tax reports or 
 47.18  pay the amounts due, shall be personally liable for taxes or 
 47.19  reimbursements, including interest, penalties, and costs the 
 47.20  amount due in the event the employer does not pay. 
 47.21     For purposes of this section, "willfulness knowingly" means 
 47.22  that the facts demonstrate that the responsible party individual 
 47.23  used or allowed the use of corporate or company assets to pay 
 47.24  other creditors knowing that the amounts due under this chapter 
 47.25  were unpaid.  An evil motive or intent to defraud is not 
 47.26  necessary.  
 47.27     (b) Any partner of a limited liability partnership, or 
 47.28  professional limited liability partnership, shall be jointly and 
 47.29  severally liable for taxes or reimbursements, including 
 47.30  interest, penalties, and costs any amount due under this chapter 
 47.31  or section 116L.20 in the event the employer does not pay.  
 47.32     (c) Any personal representative of the estate of a decedent 
 47.33  or fiduciary who voluntarily distributes the assets without 
 47.34  reserving a sufficient amount to pay the taxes, reimbursements, 
 47.35  interest, and penalties amount due shall be personally liable 
 47.36  for the deficiency. 
 48.1      (d) The personal liability of any individual shall survive 
 48.2   dissolution, reorganization, receivership, or assignment for the 
 48.3   benefit of creditors.  For the purposes of this section, all 
 48.4   wages paid by the employer shall be considered earned from the 
 48.5   individual determined to be personally liable. 
 48.6      (e) The commissioner shall make an initial a determination 
 48.7   as to personal liability.  The determination shall be final 
 48.8   unless the individual found to be personally liable, within 30 
 48.9   calendar days after mailing of sending, by mail or electronic 
 48.10  transmission, a notice of determination to the individual's last 
 48.11  known address, files a protest.  Upon receipt of the protest, 
 48.12  the commissioner shall reexamine the personal liability 
 48.13  determination and either affirm or redetermine the assessment of 
 48.14  personal liability and a notice of the affirmation or 
 48.15  redetermination shall be mailed to the individual's last known 
 48.16  address sent to the individual by mail or electronic 
 48.17  transmission.  The affirmation or redetermination shall become 
 48.18  final unless an appeal is filed within 30 calendar days after 
 48.19  the date of mailing sending.  Proceedings on the appeal shall be 
 48.20  conducted in accordance with section 268.105.  
 48.21     Sec. 43.  Minnesota Statutes 2002, section 268.064, 
 48.22  subdivision 1, is amended to read: 
 48.23     Subdivision 1.  [ACQUISITION OF ORGANIZATION, TRADE, 
 48.24  BUSINESS, OR ASSETS.] Any person who acquires all or part of the 
 48.25  organization, trade, business or assets from an employer, is 
 48.26  jointly and severally liable, in an amount not to exceed the 
 48.27  reasonable value of that part of the organization, trade, 
 48.28  business or assets acquired, for the taxes any amounts due and 
 48.29  unpaid by the employer.  The amount of liability shall, in 
 48.30  addition, be a lien against the property or assets acquired and 
 48.31  shall be prior to all other unrecorded liens.  This section does 
 48.32  not apply to sales in the normal course of the employer's 
 48.33  business. 
 48.34     Sec. 44.  Minnesota Statutes 2002, section 268.064, 
 48.35  subdivision 3, is amended to read: 
 48.36     Subd. 3.  [STATEMENT OF AMOUNT DUE.] Prior to the date of 
 49.1   acquisition, the commissioner shall furnish the acquiring person 
 49.2   with a statement of the taxes amounts due and unpaid under this 
 49.3   chapter or section 116L.20 upon the written request of the 
 49.4   potential acquiring person and the written release of the 
 49.5   obligor.  No release is required after the date of acquisition. 
 49.6      Sec. 45.  Minnesota Statutes 2002, section 268.065, 
 49.7   subdivision 1, is amended to read: 
 49.8      Subdivision 1.  [SUBCONTRACTORS.] A contractor who 
 49.9   contracts with any subcontractor shall guarantee the payment of 
 49.10  all the taxes, interest, penalties, and collection costs amounts 
 49.11  that are due or become due from the subcontractor with respect 
 49.12  to taxable wages paid on the contract by: 
 49.13     (1) withholding sufficient money on the contract; or 
 49.14     (2) requiring the subcontractor to provide a sufficient 
 49.15  bond guaranteeing the payment of all taxes, interest, penalties, 
 49.16  and collection costs amounts that may become due.  
 49.17     The contractor may make a written request for verification 
 49.18  that the subcontractor has paid the taxes due 60 calendar days 
 49.19  after the due date for filing the tax wage detail report that 
 49.20  includes the final wages paid for employment performed under the 
 49.21  contract.  If the subcontractor has paid the taxes amounts due 
 49.22  for the period covered by the contract, the commissioner may 
 49.23  release the contractor from its liability. 
 49.24     The words "contractor" and "subcontractor" include 
 49.25  individuals, partnerships, firms, or corporations, or other 
 49.26  association of persons engaged in the construction industry. 
 49.27     Sec. 46.  Minnesota Statutes 2002, section 268.065, 
 49.28  subdivision 2, is amended to read: 
 49.29     Subd. 2.  [EMPLOYEE LEASING FIRMS.] A person whose work 
 49.30  force consists of 50 percent or more of workers provided by 
 49.31  employee leasing firms, is jointly and severally liable for the 
 49.32  unpaid taxes, penalties, interest, and collection costs amounts 
 49.33  that are due under this chapter or section 116L.20 on the wages 
 49.34  paid on the contract with the employee leasing firm.  "Employee 
 49.35  leasing firm" means an employer that provides its employees to 
 49.36  other persons without severing its employer-employee 
 50.1   relationship with the worker for the services performed for the 
 50.2   lessee. 
 50.3      Sec. 47.  Minnesota Statutes 2003 Supplement, section 
 50.4   268.066, is amended to read: 
 50.5      268.066 [CANCELLATION OF DELINQUENT TAXES AMOUNTS DUE FROM 
 50.6   AN EMPLOYER.] 
 50.7      (a) The commissioner shall cancel as uncollectible any 
 50.8   taxes, reimbursements, penalties, or the interest or costs 
 50.9   thereon amounts due from an employer under this chapter or 
 50.10  section 116L.20, which remain unpaid six years after the amounts 
 50.11  have been first determined due and payable, except where the 
 50.12  delinquent amounts are secured by a notice of lien, a judgment, 
 50.13  are in the process of garnishment, or are under a payment plan. 
 50.14     (b) The commissioner may cancel at any time as 
 50.15  uncollectible any taxes, reimbursements, penalties, or the 
 50.16  interest or costs thereon amount due, or any portion of an 
 50.17  amount due, from an employer under this chapter or section 
 50.18  116L.20, that the commissioner determines (1) are uncollectible 
 50.19  due to death or bankruptcy, (2) the Minnesota Collection 
 50.20  Enterprise under section 16D.04 was unable to collect, or (3) 
 50.21  the commissioner determines that it is not in the public 
 50.22  interest to pursue collection of the amount due. 
 50.23     Sec. 48.  Minnesota Statutes 2003 Supplement, section 
 50.24  268.067, is amended to read: 
 50.25     268.067 [COMPROMISE.] 
 50.26     (a) The commissioner may compromise in whole or in part any 
 50.27  action, determination, or decision that affects only an employer 
 50.28  and not an applicant, and that has occurred during the prior 24 
 50.29  months.  This paragraph may apply if it is determined by a court 
 50.30  of law, or a confession of judgment, that an applicant, while 
 50.31  employed, wrongfully took from the employer $500 or more in 
 50.32  money or property. 
 50.33     (b) The commissioner may at any time compromise delinquent 
 50.34  any amount due from an employer taxes, reimbursements, interest, 
 50.35  penalties, and costs under this chapter or section 116L.20. 
 50.36     (c) Any compromise involving an amount over $2,500 shall be 
 51.1   authorized by written order signed by an attorney who is a 
 51.2   classified an employee of the department designated by the 
 51.3   commissioner for that purpose. 
 51.4      (d) Any compromise order must set out all the terms and the 
 51.5   reason for the order and must be in the best interest of the 
 51.6   state of Minnesota. 
 51.7      Sec. 49.  Minnesota Statutes 2003 Supplement, section 
 51.8   268.0675, is amended to read: 
 51.9      268.0675 [NO ELECTION OF REMEDY.] 
 51.10     Use of any remedy under this chapter for the collection of 
 51.11  any delinquent taxes, reimbursements, or unemployment benefit 
 51.12  overpayment, including penalties, interest, and costs, amount 
 51.13  due from an employer or an applicant shall not constitute an 
 51.14  election of remedy to the exclusion of any other available 
 51.15  remedy. 
 51.16     Sec. 50.  Minnesota Statutes 2002, section 268.07, 
 51.17  subdivision 1, is amended to read: 
 51.18     Subdivision 1.  [APPLICATION FOR UNEMPLOYMENT BENEFITS; 
 51.19  DETERMINATION OF BENEFIT ACCOUNT.] (a) An application for 
 51.20  unemployment benefits may be filed in person, by mail, by 
 51.21  telephone, or by electronic transmission as the commissioner 
 51.22  shall require.  The applicant must be unemployed at the time the 
 51.23  application is filed and must provide all requested information 
 51.24  in the manner required.  If the applicant is not unemployed at 
 51.25  the time of the application or fails to provide all requested 
 51.26  information, the communication shall not be considered an 
 51.27  application for unemployment benefits. 
 51.28     (b) The commissioner shall examine each application for 
 51.29  unemployment benefits to determine the base period and the 
 51.30  benefit year, and based upon all the covered employment in the 
 51.31  base period the commissioner shall determine the weekly 
 51.32  unemployment benefit amount available, if any, and the maximum 
 51.33  amount of unemployment benefits available, if any.  The 
 51.34  determination shall be known as the determination of benefit 
 51.35  account.  A determination of benefit account shall be sent to 
 51.36  the applicant and all base period employers, by mail or 
 52.1   electronic transmission. 
 52.2      (c) If a base period employer did not provide wage 
 52.3   information for the applicant as provided for in section 
 52.4   268.044, or provided erroneous information, the commissioner 
 52.5   shall may accept an applicant certification as to wage credits, 
 52.6   based upon the applicant's records, and issue a determination of 
 52.7   benefit account. 
 52.8      (d) The commissioner may, at any time within 24 months from 
 52.9   the establishment of a benefit account, reconsider any 
 52.10  determination of benefit account and make an amended 
 52.11  determination if the commissioner finds that the determination 
 52.12  was incorrect for any reason.  An amended determination shall be 
 52.13  promptly sent to the applicant and all base period employers, by 
 52.14  mail or electronic transmission. 
 52.15     If an amended determination of benefit account reduces the 
 52.16  weekly unemployment benefit amount or maximum amount of 
 52.17  unemployment benefits available, any unemployment benefits that 
 52.18  have been paid greater than the applicant was entitled is 
 52.19  considered an overpayment of unemployment benefits under section 
 52.20  268.18, subdivision 1. 
 52.21     Sec. 51.  Minnesota Statutes 2003 Supplement, section 
 52.22  268.07, subdivision 2, is amended to read: 
 52.23     Subd. 2.  [BENEFIT ACCOUNT REQUIREMENTS AND WEEKLY 
 52.24  UNEMPLOYMENT BENEFIT AMOUNT AND MAXIMUM AMOUNT OF UNEMPLOYMENT 
 52.25  BENEFITS.] (a) To establish a benefit account, an applicant must 
 52.26  have: 
 52.27     (1) high quarter wage credits of at least $1,000; and 
 52.28     (2) wage credits, in other than the high quarter, of at 
 52.29  least $250.  
 52.30     (b) If an applicant has established a benefit account, the 
 52.31  weekly unemployment benefit amount available during the benefit 
 52.32  year shall be the higher of: 
 52.33     (1) 50 percent of the applicant's average weekly wage 
 52.34  during the base period, to a maximum of 66-2/3 percent of the 
 52.35  state's average weekly wage; or 
 52.36     (2) 50 percent of the applicant's average weekly wage 
 53.1   during the high quarter, to a maximum of 45 percent of the 
 53.2   state's average weekly wage. 
 53.3      The applicant's average weekly wage under clause (1) shall 
 53.4   be computed by dividing the total wage credits by 52.  The 
 53.5   applicant's average weekly wage under clause (2) shall be 
 53.6   computed by dividing the high quarter wage credits by 13.  
 53.7      (c) The state's maximum weekly unemployment benefit amount 
 53.8   and an applicant's weekly unemployment benefit amount and 
 53.9   maximum amount of unemployment benefits available shall be 
 53.10  rounded down to the next lowest lower whole dollar.  The state's 
 53.11  maximum weekly benefit amount, computed in accordance with 
 53.12  section 268.035, subdivision 23, shall apply to a benefit 
 53.13  account established effective on or after the first Sunday in 
 53.14  August.  Once established, an applicant's weekly unemployment 
 53.15  benefit amount shall not be affected by the first Sunday in 
 53.16  August change in the state's maximum weekly unemployment benefit 
 53.17  amount.  
 53.18     (d) The maximum amount of unemployment benefits available 
 53.19  on any benefit account shall be the lower of: 
 53.20     (1) 33-1/3 percent of the applicant's total wage credits; 
 53.21  or 
 53.22     (2) 26 times the applicant's weekly unemployment benefit 
 53.23  amount.  
 53.24     Sec. 52.  Minnesota Statutes 2002, section 268.07, 
 53.25  subdivision 3, is amended to read: 
 53.26     Subd. 3.  [SECOND BENEFIT ACCOUNT REQUIREMENTS.] To 
 53.27  establish a second benefit account following the expiration of a 
 53.28  benefit year on a prior benefit account, an applicant must have 
 53.29  sufficient wage credits to establish a benefit account under 
 53.30  subdivision 2 and must have performed services in covered 
 53.31  employment after the effective date of the prior benefit 
 53.32  account.  The wages paid for that employment must equal not less 
 53.33  than eight times the weekly unemployment benefit amount of the 
 53.34  prior benefit account.  A benefit account established 
 53.35  sufficiently in advance of anticipated loss of employment to 
 53.36  make the limitations of this subdivision ineffective shall not 
 54.1   be allowed.  The purpose of this subdivision is to prevent an 
 54.2   applicant from establishing more than one benefit account as a 
 54.3   result of one loss of employment. 
 54.4      Sec. 53.  Minnesota Statutes 2003 Supplement, section 
 54.5   268.085, subdivision 1, is amended to read: 
 54.6      Subdivision 1.  [ELIGIBILITY CONDITIONS.] An applicant 
 54.7   shall be eligible to receive unemployment benefits for any week 
 54.8   if: 
 54.9      (1) the applicant has an active benefit account and has 
 54.10  filed a continued biweekly request for unemployment benefits for 
 54.11  that week pursuant to section 268.086; 
 54.12     (2) the applicant was able to work and was available for 
 54.13  suitable employment, and was actively seeking suitable 
 54.14  employment.  The applicant's weekly unemployment benefit amount 
 54.15  shall be reduced one-fifth for each day the applicant is unable 
 54.16  to work or is unavailable for suitable employment.  If the 
 54.17  computation of the reduced unemployment benefits is not a whole 
 54.18  dollar, it shall be rounded down to the next lower whole dollar. 
 54.19     This clause shall not apply to an applicant who is in 
 54.20  reemployment assistance training. 
 54.21     This clause shall not apply, or each day the applicant is 
 54.22  on jury duty; 
 54.23     (3) the applicant has served a waiting period of one week 
 54.24  that the applicant is otherwise entitled to some amount of 
 54.25  unemployment benefits.  This clause shall not apply if the 
 54.26  applicant would have been entitled to federal disaster 
 54.27  unemployment assistance because of a disaster in Minnesota, but 
 54.28  for the applicant's establishment of a benefit account under 
 54.29  section 268.07; and 
 54.30     (4) the applicant has been participating in reemployment 
 54.31  assistance services, such as job search and resume writing 
 54.32  classes, if the applicant has been determined in need of 
 54.33  reemployment assistance services by the commissioner, unless 
 54.34  there is good cause for the applicant's failure to participate. 
 54.35     Sec. 54.  Minnesota Statutes 2002, section 268.085, 
 54.36  subdivision 2, is amended to read: 
 55.1      Subd. 2.  [NOT ELIGIBLE.] An applicant shall not be 
 55.2   eligible to receive unemployment benefits for any week: 
 55.3      (1) that occurs before the effective date of a benefit 
 55.4   account; 
 55.5      (2) that occurs in a period when the applicant is a student 
 55.6   in attendance at, or on vacation from a secondary school 
 55.7   including the period between academic years or terms; 
 55.8      (3) that the applicant is incarcerated or performing court 
 55.9   ordered community service.  The applicant's weekly unemployment 
 55.10  benefit amount shall be reduced by one-fifth for each day the 
 55.11  applicant is incarcerated or performing court ordered community 
 55.12  service.  If the computation of the reduced unemployment 
 55.13  benefits is not a whole dollar, it shall be rounded down to the 
 55.14  next lower whole dollar; 
 55.15     (4) that the applicant fails or refuses to provide 
 55.16  information on an issue of eligibility required under section 
 55.17  268.101, subdivision 1, paragraph (a), or an issue of 
 55.18  disqualification required under section 268.101, subdivision 1, 
 55.19  paragraph (d); 
 55.20     (5) that the applicant is performing services 32 hours or 
 55.21  more, in employment, covered employment, noncovered employment, 
 55.22  or self-employment regardless of the amount of any earnings; or 
 55.23     (6) with respect to which the applicant is receiving, has 
 55.24  received, or has filed an application for unemployment benefits 
 55.25  under any federal law or the law of any other state.  If the 
 55.26  appropriate agency finally determines that the applicant is not 
 55.27  entitled to the unemployment benefits, this clause shall not 
 55.28  apply. 
 55.29     Sec. 55.  Minnesota Statutes 2003 Supplement, section 
 55.30  268.085, subdivision 3, is amended to read: 
 55.31     Subd. 3.  [PAYMENTS THAT DELAY UNEMPLOYMENT BENEFITS.] (a) 
 55.32  An applicant shall not be eligible to receive unemployment 
 55.33  benefits for any week with respect to which the applicant is 
 55.34  receiving, has received, or has filed for payment, equal to or 
 55.35  in excess of the applicant's weekly unemployment benefit amount, 
 55.36  in the form of: 
 56.1      (1) severance pay, bonus pay, vacation pay, sick pay, and 
 56.2   any other money payments, except earnings under subdivision 5, 
 56.3   and back pay under subdivision 6, paid by an employer because 
 56.4   of, upon, or after separation from employment, but only if the 
 56.5   money payment is considered wages at the time of payment under 
 56.6   section 268.035, subdivision 29, or United States Code, title 
 56.7   26, section 3121, clause (2), of the Federal Insurance 
 56.8   Contribution Act.  This clause shall apply to all the weeks of 
 56.9   payment and shall be applied to the period immediately following 
 56.10  the last day of employment.  The number of weeks of payment 
 56.11  shall be determined as follows: 
 56.12     (i) if the payments are made periodically, the total of the 
 56.13  payments to be received shall be divided by the applicant's last 
 56.14  level of regular weekly pay from the employer; or 
 56.15     (ii) if the payment is made in a lump sum, that sum shall 
 56.16  be divided by the applicant's last level of regular weekly pay 
 56.17  from the employer.  This clause shall not apply to vacation pay 
 56.18  paid by an employer upon permanent separation from employment; 
 56.19     (2) pension, retirement, or annuity payments from any plan 
 56.20  contributed to by a base period employer including the United 
 56.21  States government, except Social Security benefits which are 
 56.22  provided for in subdivision 4.  The base period employer 
 56.23  contributed to the plan if the contribution is excluded from the 
 56.24  definition of wages under section 268.035, subdivision 29, 
 56.25  clause (1), or United States Code, title 26, section 3121, 
 56.26  clause (2), of the Federal Insurance Contribution Act. 
 56.27     If the applicant receives a lump sum pension payment, that 
 56.28  sum shall be divided by the applicant's last level of regular 
 56.29  weekly pay to determine the number of weeks of payment.  The 
 56.30  number of weeks of payment shall be applied to the period 
 56.31  immediately following the last day of employment.  An applicant 
 56.32  shall not be considered to have received the lump sum payment if 
 56.33  the applicant immediately deposits that payment in a qualified 
 56.34  pension plan or account; or 
 56.35     (3) holiday pay. 
 56.36     (b) If the payment is less than the applicant's weekly 
 57.1   unemployment benefit amount, unemployment benefits shall be 
 57.2   reduced by the amount of the payment.  If the computation of 
 57.3   reduced unemployment benefits is not a whole dollar, it shall be 
 57.4   rounded down to the next lowest lower whole dollar. 
 57.5      Sec. 56.  Minnesota Statutes 2003 Supplement, section 
 57.6   268.085, subdivision 4, is amended to read: 
 57.7      Subd. 4.  [SOCIAL SECURITY BENEFITS.] (a) Any applicant 
 57.8   aged 62 or over shall be required to state when filing an 
 57.9   application for unemployment benefits and when filing continued 
 57.10  biweekly requests for unemployment benefits whether the 
 57.11  applicant is receiving, has filed for, or intends to file for, 
 57.12  primary Social Security old age or disability benefits for any 
 57.13  week during the benefit year. 
 57.14     (b) There shall be deducted from an applicant's weekly 
 57.15  unemployment benefit amount 50 percent of the weekly equivalent 
 57.16  of the primary Social Security old age or disability benefit the 
 57.17  applicant has received, has filed for, or intends to file for, 
 57.18  with respect to that week. 
 57.19     (c) Regardless of paragraph (b), An applicant shall be 
 57.20  ineligible for unemployment benefits for any week with respect 
 57.21  to which the applicant who is receiving, has received, or has 
 57.22  filed for primary Social Security disability benefits. 
 57.23  This paragraph shall not apply if for any week during the 
 57.24  benefit year shall be determined unable to work and unavailable 
 57.25  for suitable employment for that week, unless: 
 57.26     (1) the Social Security Administration approved the 
 57.27  collecting of primary Social Security disability benefits each 
 57.28  month the applicant was employed during the base period.; or 
 57.29     (2) the applicant provides a statement from an appropriate 
 57.30  health care professional who is aware of the applicant's Social 
 57.31  Security disability claim and the basis for that claim, 
 57.32  certifying that the applicant is able to work and available for 
 57.33  suitable employment. 
 57.34     If an applicant meets the requirements of clause (1) or 
 57.35  (2), then there shall be deducted from the applicant's weekly 
 57.36  unemployment benefit amount 50 percent of the weekly equivalent 
 58.1   of the primary Social Security disability benefits the applicant 
 58.2   is receiving, has received, or has filed for, with respect to 
 58.3   that week; provided, however, that if the Social Security 
 58.4   Administration determines that an individual is not entitled to 
 58.5   receive primary Social Security disability benefits for any week 
 58.6   the applicant has applied for those benefits, the 50 percent 
 58.7   deduction shall not apply to that week. 
 58.8      (d) (c) Information from the Social Security Administration 
 58.9   shall be considered conclusive, absent specific evidence showing 
 58.10  that the information was erroneous. 
 58.11     (e) Any applicant who receives primary Social Security old 
 58.12  age or disability benefits for periods that the applicant has 
 58.13  been paid unemployment benefits shall be considered overpaid 
 58.14  those unemployment benefits under section 268.18, subdivision 
 58.15  1 (d) If the computation of the reduced unemployment benefits is 
 58.16  not a whole dollar, it shall be rounded down to the next lower 
 58.17  whole dollar. 
 58.18     (e) This subdivision does not apply to Social Security 
 58.19  survivor benefits. 
 58.20     Sec. 57.  Minnesota Statutes 2003 Supplement, section 
 58.21  268.085, subdivision 5, is amended to read: 
 58.22     Subd. 5.  [DEDUCTIBLE EARNINGS.] (a) If the applicant has 
 58.23  earnings with respect to any week, from employment, covered 
 58.24  employment, noncovered employment, self-employment, or volunteer 
 58.25  work, equal to or in excess of the applicant's weekly 
 58.26  unemployment benefit amount, the applicant shall be ineligible 
 58.27  for unemployment benefits for that week. 
 58.28     (b) If the applicant has earnings, with respect to any 
 58.29  week, that is less than the applicant's weekly unemployment 
 58.30  benefit amount, from employment, covered employment, noncovered 
 58.31  employment, self-employment, or volunteer work, that amount over 
 58.32  the following shall be deducted from the weekly unemployment 
 58.33  benefit amount: 
 58.34     (1) 25 percent of earnings or $50, whichever is higher; and 
 58.35     (2) $200 for earnings from service in the National Guard or 
 58.36  a United States military reserve unit. 
 59.1      The resulting unemployment benefit, if not a whole dollar, 
 59.2   shall be rounded down to the next lower whole dollar. 
 59.3      (c) No deduction shall be made from an applicant's weekly 
 59.4   unemployment benefit amount for earnings from service as a 
 59.5   volunteer firefighter or volunteer ambulance service personnel.  
 59.6   No deduction shall be made for jury duty pay.  
 59.7      (d) The applicant may report deductible earnings on 
 59.8   continued biweekly requests for unemployment benefits at the 
 59.9   nearest next lower whole dollar amount. 
 59.10     (e) Earnings shall not include any money considered a 
 59.11  deductible payment under subdivision 3, but shall include all 
 59.12  other money considered wages and any other money considered 
 59.13  earned income under state and federal law for income tax 
 59.14  purposes. 
 59.15     Sec. 58.  Minnesota Statutes 2003 Supplement, section 
 59.16  268.085, subdivision 6, is amended to read: 
 59.17     Subd. 6.  [RECEIPT OF BACK PAY.] (a) Back pay received by 
 59.18  an applicant with respect to any week occurring in the 104 weeks 
 59.19  prior to the payment of the back pay shall be deducted from 
 59.20  unemployment benefits paid for that week. 
 59.21     If an arbitration award, administrative or judicial 
 59.22  decision, or negotiated settlement that provides for the back 
 59.23  pay does not specify the period is not paid with respect to 
 59.24  which it is paid a specific period, the back pay shall be 
 59.25  applied to the period immediately following the last day of 
 59.26  employment. 
 59.27     (b) If the back pay is reduced by the amount of 
 59.28  unemployment benefits that have been paid, the amount of back 
 59.29  pay withheld shall be: 
 59.30     (1) paid by the employer to the trust fund within 30 
 59.31  calendar days and subject to the same collection procedures that 
 59.32  apply to past due taxes; 
 59.33     (2) applied to unemployment benefit overpayments resulting 
 59.34  from the payment of the back pay; and 
 59.35     (3) credited to the maximum amount of unemployment benefits 
 59.36  available to the applicant in a benefit year that includes the 
 60.1   weeks for which back pay was deducted. 
 60.2      (c) Unemployment benefits paid the applicant shall be 
 60.3   removed from the computation of the tax rate for taxpaying 
 60.4   employers and removed from the reimbursable account for 
 60.5   nonprofit and government employers that have elected to be 
 60.6   liable for reimbursements in the calendar quarter the trust fund 
 60.7   receives payment.  
 60.8      (d) Payments to the trust fund under this subdivision shall 
 60.9   be considered as made by the applicant.  
 60.10     Sec. 59.  Minnesota Statutes 2002, section 268.085, 
 60.11  subdivision 12, is amended to read: 
 60.12     Subd. 12.  [ALIENS.] (a) An alien shall be ineligible for 
 60.13  unemployment benefits for any week the alien is not authorized 
 60.14  to work in the United States under federal law.  Information 
 60.15  from the Immigration and Naturalization Service shall be 
 60.16  considered conclusive, absent specific evidence that the 
 60.17  information was erroneous.  Pursuant to the existing agreement 
 60.18  between the United States and Canada, this paragraph shall not 
 60.19  apply to an applicant who is a Canadian citizen and has returned 
 60.20  to and is living in Canada each week unemployment benefits are 
 60.21  requested. 
 60.22     (b) Unemployment benefits shall not be paid on the basis of 
 60.23  wage credits earned by an alien unless the alien (1) was 
 60.24  lawfully admitted for permanent residence at the time of the 
 60.25  employment, (2) was lawfully present for the purposes of the 
 60.26  employment, or (3) was permanently residing in the United States 
 60.27  under color of law at the time of the employment. 
 60.28     (c) Any information required of applicants applying for 
 60.29  unemployment benefits to determine eligibility because of their 
 60.30  alien status shall be required from all applicants. 
 60.31     Sec. 60.  Minnesota Statutes 2002, section 268.085, 
 60.32  subdivision 13a, is amended to read: 
 60.33     Subd. 13a.  [LEAVE OF ABSENCE.] (a) An applicant on a 
 60.34  voluntary leave of absence shall be ineligible for unemployment 
 60.35  benefits for the duration of the leave of absence.  An applicant 
 60.36  on an involuntary leave of absence shall not be ineligible under 
 61.1   this subdivision. 
 61.2      A leave of absence is voluntary when work that the 
 61.3   applicant can then perform is available with the applicant's 
 61.4   employer but the applicant chooses not to work.  A medical leave 
 61.5   of absence shall not be presumed to be voluntary. 
 61.6      (b) A period of vacation requested by the applicant, paid 
 61.7   or unpaid, shall be considered a voluntary leave of absence.  A 
 61.8   vacation period assigned by an employer under:  (1) a uniform 
 61.9   vacation shutdown; (2) a collective bargaining agreement; or (3) 
 61.10  an established employer policy, shall not be considered a 
 61.11  voluntary an involuntary leave of absence. 
 61.12     (c) A voluntary leave of absence shall not be considered a 
 61.13  quit or and an involuntary leave of absence shall not be 
 61.14  considered a discharge from employment for purposes of section 
 61.15  268.095. 
 61.16     (d) An applicant who is on a paid leave of absence, whether 
 61.17  the leave of absence is voluntary or involuntary, shall be 
 61.18  ineligible for unemployment benefits for the duration of the 
 61.19  leave. 
 61.20     (e) This subdivision shall apply to a leave of absence from 
 61.21  a base period employer, an employer during the period between 
 61.22  the end of the base period and the effective date of the benefit 
 61.23  account, or an employer during the benefit year. 
 61.24     Sec. 61.  Minnesota Statutes 2002, section 268.085, 
 61.25  subdivision 14, is amended to read: 
 61.26     Subd. 14.  [ABLE TO WORK DEFINED.] "Able to work" means an 
 61.27  applicant has the physical and mental ability to perform (1) the 
 61.28  usual duties of the applicant's usual occupation or of 
 61.29  comparable (2) the usual duties of work that is gainful 
 61.30  employment engaged in by others as a means of livelihood. 
 61.31     <b>[EFFECTIVE DATE.]</b> This section is effective August 1, 2004, 
 61.32  and applies to all determinations and decisions issued on or 
 61.33  after that date. 
 61.34     Sec. 62.  Minnesota Statutes 2003 Supplement, section 
 61.35  268.095, subdivision 1, is amended to read: 
 61.36     Subdivision 1.  [QUIT.] An applicant who quit employment 
 62.1   shall be ineligible for all unemployment benefits except when: 
 62.2      (1) the applicant quit the employment because of a good 
 62.3   reason caused by the employer as defined in subdivision 3; 
 62.4      (2) the applicant quit the employment to accept other 
 62.5   covered employment that provided substantially better terms and 
 62.6   conditions of employment, but the applicant did not work long 
 62.7   enough at the other second employment to have sufficient 
 62.8   subsequent earnings to satisfy the disqualification that would 
 62.9   otherwise be imposed under subdivision 10 for quitting the first 
 62.10  employment; 
 62.11     (3) the applicant quit the employment within 30 calendar 
 62.12  days of beginning the employment because the employment was 
 62.13  unsuitable for the applicant; 
 62.14     (4) the employment was unsuitable for the applicant and the 
 62.15  applicant quit to enter reemployment assistance training; 
 62.16     (5) the employment was part time and the applicant also had 
 62.17  full-time employment in the base period, that from which 
 62.18  full-time employment the applicant separated from because of 
 62.19  nondisqualifying reasons, and the wage credits from the 
 62.20  full-time employment are sufficient to meet the minimum 
 62.21  requirements to establish a benefit account under section 
 62.22  268.07; 
 62.23     (6) the applicant quit because the employer notified the 
 62.24  applicant that the applicant was going to be laid off due to 
 62.25  lack of work within 30 calendar days.  An applicant who quit 
 62.26  employment within 30 calendar days of a notified date of layoff 
 62.27  due to lack of work shall be ineligible for unemployment 
 62.28  benefits through the end of the week that includes the scheduled 
 62.29  date of layoff; 
 62.30     (7) the applicant quit the employment because the 
 62.31  applicant's serious illness or injury made it medically 
 62.32  necessary that the applicant quit, provided that the applicant 
 62.33  inform the employer of the serious illness or injury and request 
 62.34  accommodation and no reasonable accommodation is made available. 
 62.35     If the applicant's serious illness is chemical dependency, 
 62.36  this exception shall not apply if the applicant was previously 
 63.1   diagnosed as chemically dependent or had treatment for chemical 
 63.2   dependency, and since that diagnosis or treatment has failed to 
 63.3   make consistent efforts to control the chemical dependency; or 
 63.4      (8) domestic abuse of the applicant or the applicant's 
 63.5   minor child, necessitated the applicant's quitting the 
 63.6   employment.  Domestic abuse shall be shown by one or more of the 
 63.7   following: 
 63.8      (i) a court order for protection or other documentation of 
 63.9   equitable relief issued by a court; 
 63.10     (ii) a police record documenting the domestic abuse; 
 63.11     (iii) documentation that the perpetrator of the domestic 
 63.12  abuse has been convicted of the offense of domestic abuse; 
 63.13     (iv) medical documentation of domestic abuse; or 
 63.14     (v) written statement that the applicant or the applicant's 
 63.15  minor child is a victim of domestic abuse, provided by a social 
 63.16  worker, member of the clergy, shelter worker, attorney at law, 
 63.17  or other professional who has assisted the applicant in dealing 
 63.18  with the domestic abuse. 
 63.19     Domestic abuse for purposes of this clause shall be defined 
 63.20  under section 518B.01. 
 63.21     <b>[EFFECTIVE DATE.]</b> This section is effective August 1, 2004, 
 63.22  and applies to all determinations and decisions issued by the 
 63.23  department on or after that date. 
 63.24     Sec. 63.  Minnesota Statutes 2003 Supplement, section 
 63.25  268.095, subdivision 3, is amended to read: 
 63.26     Subd. 3.  [GOOD REASON CAUSED BY THE EMPLOYER DEFINED.] (a) 
 63.27  A good reason caused by the employer for quitting is a reason:  
 63.28     (1) that is directly related to the employment and for 
 63.29  which the employer is responsible; and 
 63.30     (2) that is adverse to the worker; and 
 63.31     (2) (3) that is significant and would compel an average, 
 63.32  reasonable worker to quit and become unemployed rather than 
 63.33  remaining in the employment. 
 63.34     (b) The analysis required in paragraph (a) must be applied 
 63.35  to the specific facts of each case.  
 63.36     (c) If an applicant was subjected to adverse working 
 64.1   conditions by the employer, the applicant must complain to the 
 64.2   employer and give the employer a reasonable opportunity to 
 64.3   correct the adverse working conditions before that may be 
 64.4   considered a good reason caused by the employer for quitting. 
 64.5      (c) (d) A substantial adverse change in the wages, hours, 
 64.6   or other terms of reason for quitting employment by the employer 
 64.7   shall not be considered a good reason caused by the employer for 
 64.8   quitting unless the change if the reason for quitting occurred 
 64.9   because of the applicant's employment misconduct. 
 64.10     (d) (e) Notification of discharge in the future, including 
 64.11  a layoff due to lack of work, shall not be considered a good 
 64.12  reason caused by the employer for quitting. 
 64.13     (e) (f) An applicant has a good reason caused by the 
 64.14  employer for quitting if it results from sexual harassment of 
 64.15  which the employer was aware, or should have been aware, and the 
 64.16  employer failed to take timely and appropriate action.  Sexual 
 64.17  harassment means unwelcome sexual advances, requests for sexual 
 64.18  favors, sexually motivated physical contact or other conduct or 
 64.19  communication of a sexual nature when:  
 64.20     (1) the applicant's submission to the conduct or 
 64.21  communication is made a term or condition of the employment; 
 64.22     (2) the applicant's submission to or rejection of the 
 64.23  conduct or communication is the basis for decisions affecting 
 64.24  employment; or 
 64.25     (3) the conduct or communication has the purpose or effect 
 64.26  of substantially interfering with an applicant's work 
 64.27  performance or creating an intimidating, hostile, or offensive 
 64.28  working environment. 
 64.29     (f) (g) The definition of a good reason caused by the 
 64.30  employer for quitting employment provided by this subdivision 
 64.31  shall be exclusive and no other definition shall apply.  
 64.32     <b>[EFFECTIVE DATE.]</b> This section is effective August 1, 2004, 
 64.33  and applies to all determinations and decisions issued by the 
 64.34  department on or after that date. 
 64.35     Sec. 64.  Minnesota Statutes 2002, section 268.095, 
 64.36  subdivision 4, is amended to read: 
 65.1      Subd. 4.  [DISCHARGE.] An applicant who was discharged from 
 65.2   employment by an employer shall not be ineligible for any 
 65.3   unemployment benefits except when: 
 65.4      (1) the applicant was discharged because of employment 
 65.5   misconduct as defined in subdivision 6; or 
 65.6      (2) the applicant was discharged because of aggravated 
 65.7   employment misconduct as defined in subdivision 6a.  
 65.8      Sec. 65.  Minnesota Statutes 2002, section 268.095, 
 65.9   subdivision 6a, is amended to read: 
 65.10     Subd. 6a.  [AGGRAVATED EMPLOYMENT MISCONDUCT DEFINED.] (a) 
 65.11  For the purpose of this section, "aggravated employment 
 65.12  misconduct" means: 
 65.13     (1) the commission of any act, on the job or off the job, 
 65.14  that would amount to a gross misdemeanor or felony if the act 
 65.15  substantially interfered with the employment or adversely 
 65.16  affected had a significant adverse effect on the employment; or 
 65.17     (2) for an employee of a facility as defined in section 
 65.18  626.5572, aggravated employment misconduct includes an act of 
 65.19  patient or resident abuse, financial exploitation, or recurring 
 65.20  or serious neglect, as defined in section 626.5572 and 
 65.21  applicable rules. 
 65.22     (b) If an applicant is convicted of a gross misdemeanor or 
 65.23  felony for the same act for which the applicant was discharged, 
 65.24  it is aggravated employment misconduct if the act substantially 
 65.25  interfered with the employment or had a significant adverse 
 65.26  effect on the employment. 
 65.27     (c) The definition of aggravated employment misconduct 
 65.28  provided by this subdivision shall be exclusive and no other 
 65.29  definition shall apply. 
 65.30     Sec. 66.  Minnesota Statutes 2002, section 268.101, 
 65.31  subdivision 2, is amended to read: 
 65.32     Subd. 2.  [DISQUALIFICATION DETERMINATION.] (a) The 
 65.33  commissioner shall determine any issue of disqualification 
 65.34  raised by information required from an applicant under 
 65.35  subdivision 1, paragraph (a) or (c), and mail send to the 
 65.36  applicant and employer at the last known address, by mail or 
 66.1   electronic transmission, a determination of disqualification or 
 66.2   a determination of nondisqualification, as is appropriate.  The 
 66.3   determination shall state the effect on the employer under 
 66.4   section 268.047.  A determination shall be made pursuant to this 
 66.5   paragraph even if a notified employer has not raised the issue 
 66.6   of disqualification. 
 66.7      (b) The commissioner shall determine any issue of 
 66.8   disqualification raised by an employer and mail send to the 
 66.9   applicant and that employer at the last known address, by mail 
 66.10  or electronic transmission, a determination of disqualification 
 66.11  or a determination of nondisqualification as is appropriate.  
 66.12  The determination shall state the effect on the employer under 
 66.13  section 268.047.  
 66.14     If a base period employer: 
 66.15     (1) was not the applicant's most recent employer prior to 
 66.16  the application for unemployment benefits; 
 66.17     (2) did not employ the applicant during the six calendar 
 66.18  months prior to the application for unemployment benefits; and 
 66.19     (3) did not raise an issue of disqualification within ten 
 66.20  calendar days of notification under subdivision 1, paragraph 
 66.21  (b); 
 66.22  then any exception under section 268.047, subdivisions 2 and 3, 
 66.23  shall begin the Sunday two weeks following the week that the 
 66.24  issue of disqualification was raised by the employer. 
 66.25     (c) If any time within 24 months from the establishment of 
 66.26  a benefit account the commissioner finds that an applicant 
 66.27  failed to report any employment, loss of employment, or offers 
 66.28  of employment that were required to be provided by the applicant 
 66.29  under this section, the commissioner shall determine any issue 
 66.30  of disqualification on that loss of employment or offer of 
 66.31  employment and mail send to the applicant and involved employer 
 66.32  at the last known address, by mail or electronic transmission, a 
 66.33  determination of disqualification or a determination of 
 66.34  nondisqualification, as is appropriate.  The determination shall 
 66.35  state the effect on the employer under section 268.047. 
 66.36     This paragraph shall not prevent the imposition of any 
 67.1   penalty under section 268.18, subdivision 2, or 268.182. 
 67.2      (d) An issue of disqualification shall be determined based 
 67.3   upon that information required of an applicant, any information 
 67.4   that may be obtained from an applicant or employer, and 
 67.5   information from any other source, without regard to any common 
 67.6   law burden of proof.  
 67.7      (e) A determination of disqualification or a determination 
 67.8   of nondisqualification shall be final unless an appeal is filed 
 67.9   by the applicant or notified employer within 30 calendar days 
 67.10  after mailing sending.  The determination shall contain a 
 67.11  prominent statement indicating the consequences of not appealing.
 67.12  Proceedings on the appeal shall be conducted in accordance with 
 67.13  section 268.105. 
 67.14     (f) An issue of disqualification for purposes of this 
 67.15  section shall include any reason for no longer working for an 
 67.16  employer other than a layoff due to lack of work, any question 
 67.17  of a disqualification from unemployment benefits under section 
 67.18  268.095, any question of an exception to disqualification under 
 67.19  section 268.095, any question of effect on an employer under 
 67.20  section 268.047, and any question of an otherwise imposed 
 67.21  disqualification that an applicant has satisfied under section 
 67.22  268.095, subdivision 10.  
 67.23     (g) Regardless of the requirements of this subdivision, the 
 67.24  commissioner is not required to mail send to an applicant a 
 67.25  determination where the applicant has satisfied any otherwise 
 67.26  potential disqualification under section 268.095, subdivision 10.
 67.27     Sec. 67.  Minnesota Statutes 2003 Supplement, section 
 67.28  268.101, subdivision 3, is amended to read: 
 67.29     Subd. 3.  [ELIGIBILITY DETERMINATION.] (a) The commissioner 
 67.30  shall determine any issue of eligibility raised by an 
 67.31  employer, whether timely or untimely, and mail send to the 
 67.32  applicant and that employer at the last known address, by mail 
 67.33  or electronic transmission, a determination of eligibility or a 
 67.34  determination of ineligibility, as is appropriate. 
 67.35     (b) The commissioner shall determine any issue of 
 67.36  eligibility raised by information obtained from an applicant and 
 68.1   mail send to the applicant at the last known address, by mail or 
 68.2   electronic transmission, a determination of eligibility or a 
 68.3   determination of ineligibility, as is appropriate.  A 
 68.4   determination shall be made pursuant to this paragraph even if a 
 68.5   notified employer has not raised the issue of eligibility.  
 68.6      (c) If any time within 24 months from the establishment of 
 68.7   a benefit account the commissioner finds the applicant failed to 
 68.8   provide, on an application for unemployment benefits or on a 
 68.9   continued biweekly request for unemployment benefits, requested 
 68.10  information on an issue of eligibility, the commissioner shall 
 68.11  determine the issue of eligibility and mail send to the 
 68.12  applicant at the last known address, by mail or electronic 
 68.13  transmission, a determination of eligibility or a determination 
 68.14  of ineligibility, as is appropriate. 
 68.15     This paragraph shall not prevent the imposition of a 
 68.16  penalty under section 268.18, subdivision 2, or 268.182.  
 68.17     (d) A determination of eligibility or determination of 
 68.18  ineligibility shall be final unless an appeal is filed by the 
 68.19  applicant or notified employer within 30 calendar days after 
 68.20  mailing sending.  The determination shall contain a prominent 
 68.21  statement indicating the consequences of not appealing.  
 68.22  Proceedings on the appeal shall be conducted in accordance with 
 68.23  section 268.105. 
 68.24     (e) An issue of eligibility for purposes of this section 
 68.25  shall include any question regarding the denial or allowing of 
 68.26  unemployment benefits under sections 268.085, 268.086, 268.115, 
 68.27  268.125, 268.135, and 268.155. 
 68.28     (f) Only if an employer raised the issue of eligibility 
 68.29  shall the employer be:  (1) mailed sent the determination of 
 68.30  eligibility or a determination of ineligibility, or (2) 
 68.31  considered an involved employer for purposes of an appeal under 
 68.32  section 268.105.  
 68.33     Sec. 68.  Minnesota Statutes 2003 Supplement, section 
 68.34  268.101, subdivision 3a, is amended to read: 
 68.35     Subd. 3a.  [DIRECT HEARING.] Regardless of any provision of 
 68.36  the Minnesota Unemployment Insurance Law, the commissioner or an 
 69.1   unemployment law judge or a senior unemployment review judge 
 69.2   may, prior to a determination being made under this chapter, 
 69.3   refer any issue of disqualification, any issue of eligibility, 
 69.4   or any other issue under sections 268.035 to 268.23 this 
 69.5   chapter, directly for hearing in accordance with section 
 69.6   268.105, subdivision 1.  The status of the issue shall be the 
 69.7   same as if a determination had been made and an appeal filed. 
 69.8      Sec. 69.  Minnesota Statutes 2002, section 268.101, 
 69.9   subdivision 4, is amended to read: 
 69.10     Subd. 4.  [AMENDED DETERMINATION.] Unless an appeal has 
 69.11  been filed, the commissioner, on the commissioner's own motion, 
 69.12  may reconsider a determination of disqualification or 
 69.13  nondisqualification or a determination of eligibility or 
 69.14  ineligibility that has not become final and issue an amended 
 69.15  determination.  Any amended determination shall be mailed sent 
 69.16  to the applicant and any involved employer at the last known 
 69.17  address by mail or electronic transmission.  Any amended 
 69.18  determination shall be final unless an appeal is filed by the 
 69.19  applicant or notified employer within 30 calendar days 
 69.20  after mailing sending.  Proceedings on the appeal shall be 
 69.21  conducted in accordance with section 268.105. 
 69.22     Sec. 70.  Minnesota Statutes 2002, section 268.103, is 
 69.23  amended to read: 
 69.24     268.103 [APPEALS BY TELEPHONE; ELECTRONIC TRANSMISSION.] 
 69.25     Subdivision 1.  [IN COMMISSIONER'S DISCRETION.] (a) Unless 
 69.26  the statutory provision providing for an appeal requires that 
 69.27  the appeal be in writing, The commissioner shall have the 
 69.28  discretion to allow an appeal to be made filed by telephone or 
 69.29  by electronic transmission.  If the commissioner allows an 
 69.30  appeal to be made filed by telephone or by electronic 
 69.31  transmission, that shall be clearly set out on the determination 
 69.32  or decision subject to appeal. 
 69.33     (b) The commissioner may restrict the manner, format, and 
 69.34  conditions under which an appeal by telephone or electronic 
 69.35  transmission may be made filed.  Any restrictions as to days, 
 69.36  hours, telephone number, electronic transmission address, or 
 70.1   other conditions, shall be clearly set out on the determination 
 70.2   or decision subject to appeal. 
 70.3      (c) All information requested by the commissioner when an 
 70.4   appeal is made by telephone or filed by electronic transmission 
 70.5   must be supplied or the communication will shall not constitute 
 70.6   an appeal. 
 70.7      Subd. 2.  [APPEAL IN WRITING BY MAIL.] (a) The commissioner 
 70.8   must allow an appeal may to be made in writing filed by mail 
 70.9   even if an appeal by telephone or by electronic transmission is 
 70.10  allowed. 
 70.11     (b) A written statement delivered or mailed to the 
 70.12  department that could reasonably be interpreted to mean that an 
 70.13  involved applicant or employer is in disagreement with a 
 70.14  specific determination or decision shall be considered an 
 70.15  appeal.  No specific words need be used for the written 
 70.16  statement to be considered an appeal. 
 70.17     Subd. 3.  [EXCLUSIVE MEANS OF APPEAL.] A written appeal, or 
 70.18  if allowed an appeal by telephone or electronic transmission, 
 70.19  shall be the only manner of appeal. 
 70.20     Subd. 4.  [PROTESTS BY TELEPHONE AND ELECTRONIC 
 70.21  TRANSMISSION.] This section shall apply to the filing of 
 70.22  protests to those determinations and notices that require a 
 70.23  protest and affirmation procedure prior to an appeal. 
 70.24     Sec. 71.  Minnesota Statutes 2002, section 268.105, as 
 70.25  amended by Laws 2003, First Special Session chapter 3, article 
 70.26  2, section 15, is amended to read: 
 70.27     268.105 [HEARINGS; APPEALS.] 
 70.28     Subdivision 1.  [EVIDENTIARY HEARING BY AN UNEMPLOYMENT LAW 
 70.29  JUDGE.] (a) Upon a timely appeal having been filed, the 
 70.30  department shall send a notice of appeal to all involved parties 
 70.31  that an appeal has been filed, that a de novo due process 
 70.32  evidentiary hearing will be scheduled, and that the parties have 
 70.33  certain rights and responsibilities regarding the hearing.  The 
 70.34  department shall set a time and place for a de novo due process 
 70.35  evidentiary hearing and mail send notice to any involved 
 70.36  applicant and any involved employer, by mail or electronic 
 71.1   transmission, not less than ten calendar days prior to the date 
 71.2   of the hearing. 
 71.3      (b) The evidentiary hearing shall be conducted by an 
 71.4   unemployment law judge without regard to any common law burden 
 71.5   of proof as an evidence gathering inquiry and not an adversarial 
 71.6   proceeding.  The unemployment law judge shall ensure that all 
 71.7   relevant facts are clearly and fully developed.  The 
 71.8   commissioner department shall adopt rules on evidentiary 
 71.9   hearings.  The rules need not conform to common law or statutory 
 71.10  rules of evidence and other technical rules of procedure.  The 
 71.11  department shall have discretion regarding the method by which 
 71.12  the evidentiary hearing is conducted.  A report of any employee 
 71.13  of the department, except a determination, made in the regular 
 71.14  course of the employee's duties, shall be competent evidence of 
 71.15  the facts contained in it. 
 71.16     (c) After the conclusion of the hearing, upon the evidence 
 71.17  obtained, the unemployment law judge shall make written findings 
 71.18  of fact and decision and mail send those, by mail or electronic 
 71.19  transmission, to all involved parties.  The unemployment law 
 71.20  judge's decision is the final department decision unless a 
 71.21  further appeal is filed pursuant to subdivision 2. 
 71.22     (d) The commissioner shall designate classified Only 
 71.23  employees of the department shall serve as unemployment law 
 71.24  judges to conduct evidentiary hearings on appeals.  The 
 71.25  commissioner or authorized representative A senior unemployment 
 71.26  review judge may personally hear or transfer to another 
 71.27  unemployment law judge any proceedings pending before an 
 71.28  unemployment law judge.  Any proceedings removed to the 
 71.29  commissioner or authorized representative a senior unemployment 
 71.30  review judge shall be heard in accordance with this subdivision. 
 71.31     Subd. 2.  [COMMISSIONER DE NOVO REVIEW BY A SENIOR 
 71.32  UNEMPLOYMENT REVIEW JUDGE.] (a) Within 30 calendar days after 
 71.33  mailing of the unemployment law judge's decision Except as 
 71.34  provided under subdivision 2a, any involved applicant or 
 71.35  involved employer may appeal a decision of an unemployment law 
 71.36  judge and obtain a de novo review by the commissioner or an 
 72.1   authorized representative a senior unemployment review judge by 
 72.2   filing with a senior unemployment review judge an appeal within 
 72.3   30 calendar days after the sending of the unemployment law 
 72.4   judge's decision.  The commissioner A senior unemployment review 
 72.5   judge within the same period of time may, on the commissioner's 
 72.6   a senior unemployment review judge's own motion, order a de novo 
 72.7   review of any decision of an unemployment law judge.  
 72.8      (b) The authorized representative of the commissioner A 
 72.9   senior unemployment review judge shall be an attorney who is a 
 72.10  classified an employee of the department.  The authority to act 
 72.11  on behalf of the commissioner under this section shall be by 
 72.12  specific written delegation filed with the secretary of state. 
 72.13     (c) Upon de novo review, the commissioner a senior 
 72.14  unemployment review judge shall, on the basis of that evidence 
 72.15  submitted at the evidentiary hearing under subdivision 1, make 
 72.16  findings of fact and decision, or remand the matter back to an 
 72.17  unemployment law judge for the taking of additional evidence and 
 72.18  the making of new findings and decision based on all the 
 72.19  evidence.  The commissioner A senior unemployment review judge 
 72.20  shall, independent of the findings of fact and decision of the 
 72.21  unemployment law judge, examine the evidence and make those 
 72.22  findings of fact as the evidence, in the judgment of 
 72.23  the commissioner senior unemployment review judge require, and 
 72.24  make that decision as the facts found by the commissioner senior 
 72.25  unemployment review judge require.  
 72.26     (d) The commissioner A senior unemployment review judge may 
 72.27  conduct a de novo review without argument by any involved party, 
 72.28  or the commissioner a senior unemployment review judge may allow 
 72.29  written argument.  The commissioner A senior unemployment review 
 72.30  judge shall not, except for purposes of deciding whether to 
 72.31  remand a matter to an unemployment law judge for a further 
 72.32  evidentiary hearing, consider any evidence that was not 
 72.33  submitted at the hearing before the unemployment law judge.  
 72.34     (e) The commissioner senior unemployment review judge shall 
 72.35  send, by mail or electronic transmission, to any involved party 
 72.36  the commissioner's senior unemployment review judge's findings 
 73.1   of fact and decision.  The decision of the commissioner senior 
 73.2   unemployment review judge is the final department decision of 
 73.3   the department.  Unless judicial review is sought under 
 73.4   subdivision 7, the decision of the commissioner senior 
 73.5   unemployment review judge shall become final 30 calendar days 
 73.6   after mailing sending. 
 73.7      Subd. 2a.  [ORDERS BY A SENIOR UNEMPLOYMENT REVIEW 
 73.8   JUDGE.] (a) If an applicant or employer files an appeal in a 
 73.9   matter where an unemployment law judge affirmed a determination 
 73.10  issued under section 268.101, and there is no dispute regarding 
 73.11  the determinative facts, a senior unemployment review judge 
 73.12  shall have the discretion to decline to conduct a de novo 
 73.13  review.  If de novo review is declined, the senior unemployment 
 73.14  review judge shall issue an order adopting the unemployment law 
 73.15  judge's findings of fact and decision. 
 73.16     (b) If an involved party fails, without good cause, to 
 73.17  appear and participate at the evidentiary hearing conducted by 
 73.18  an unemployment law judge under subdivision 1, and that party 
 73.19  files an appeal, a senior unemployment review judge shall have 
 73.20  the discretion to decline to conduct a de novo review.  If de 
 73.21  novo review is declined, the senior unemployment review judge 
 73.22  shall issue an order dismissing the appeal. 
 73.23     Submission of a written statement shall not constitute an 
 73.24  appearance and participation at an evidentiary hearing for 
 73.25  purposes of this paragraph. 
 73.26     All involved parties must be notified of this paragraph 
 73.27  with the notice of appeal and notice of hearing provided for 
 73.28  under subdivision 1.  The senior unemployment review judge shall 
 73.29  allow for the submission of a written argument on the issue of 
 73.30  good cause before dismissing an appeal under this paragraph.  
 73.31     "Good cause" for purposes of this paragraph is a compelling 
 73.32  reason that would have prevented a reasonable person acting with 
 73.33  due diligence from appearing and participating at the 
 73.34  evidentiary hearing. 
 73.35     (c) The senior unemployment review judge shall send to any 
 73.36  involved party the order issued under this subdivision.  The 
 74.1   order may be sent by mail or electronic transmission.  Unless 
 74.2   judicial review is sought under subdivision 7, the order of a 
 74.3   senior unemployment review judge becomes final 30 calendar days 
 74.4   after sending. 
 74.5      Subd. 3.  [WITHDRAWAL OF APPEAL.] (a) Any appeal that is 
 74.6   pending a decision before an unemployment law judge or the 
 74.7   commissioner a senior unemployment review judge may be withdrawn 
 74.8   by the appealing person, or an authorized representative of that 
 74.9   person, upon filing of a notice of withdrawal. 
 74.10     (b) The appeal shall, by written order, be dismissed if a 
 74.11  notice of withdrawal is filed, unless the commissioner an 
 74.12  unemployment law judge or a senior unemployment review judge, by 
 74.13  written order, directs that further adjudication is required for 
 74.14  a proper result. 
 74.15     (c) A notice of withdrawal may be filed by mail, by 
 74.16  telephone, or if the commissioner allows, by electronic 
 74.17  transmission. 
 74.18     Subd. 3a.  [DECISIONS.] (a) If an unemployment law judge's 
 74.19  decision or the commissioner's a senior unemployment review 
 74.20  judge's decision or order allows unemployment benefits to an 
 74.21  applicant, the unemployment benefits shall be paid regardless of 
 74.22  any appeal period or any appeal having been filed. 
 74.23     (b) If an unemployment law judge's decision modifies or 
 74.24  reverses a determination allowing unemployment benefits to an 
 74.25  applicant, any benefits paid pursuant to the determination is 
 74.26  considered an overpayment of those unemployment benefits under 
 74.27  section 268.18, subdivision 1. 
 74.28     (c) If a commissioner's senior unemployment review judge's 
 74.29  decision modifies or reverses an unemployment law judge's 
 74.30  decision allowing unemployment benefits to an applicant, any 
 74.31  unemployment benefits paid pursuant to the unemployment law 
 74.32  judge's decision is considered an overpayment of those 
 74.33  unemployment benefits under section 268.18, subdivision 1. 
 74.34     (d) If the commissioner a senior unemployment review judge 
 74.35  affirms an unemployment law judge's decision on an issue of 
 74.36  disqualification that allows unemployment benefits to an 
 75.1   applicant, and the commissioner's senior unemployment review 
 75.2   judge's decision, if finally or order is reversed by the 
 75.3   Minnesota Court of Appeals or the Supreme Court of 
 75.4   Minnesota, shall not result in a disqualification of the 
 75.5   applicant shall not be disqualified from unemployment benefits 
 75.6   under section 268.095, subdivision 10.  
 75.7      (e) If the commissioner a senior unemployment review judge, 
 75.8   pursuant to subdivision 2, remands a matter to an unemployment 
 75.9   law judge for the taking of additional evidence, the prior 
 75.10  unemployment law judge's decision shall continue to be enforced 
 75.11  until new findings of fact and decision are made by an 
 75.12  unemployment law judge. 
 75.13     Subd. 4.  [TESTIMONIAL POWERS.] The An unemployment law 
 75.14  judge, the commissioner, or authorized representative, and a 
 75.15  senior unemployment review judge may administer oaths and 
 75.16  affirmations, take depositions, and issue subpoenas to compel 
 75.17  the attendance of witnesses and the production of documents and 
 75.18  other personal property considered necessary as evidence in 
 75.19  connection with the subject matter of an evidentiary hearing.  
 75.20  The subpoenas shall be enforceable through the district court in 
 75.21  the district that the subpoena is issued.  Witnesses subpoenaed, 
 75.22  other than an involved applicant or involved employer or 
 75.23  officers and employees of an involved employer, shall be paid by 
 75.24  the commissioner department the same witness fees as in a civil 
 75.25  action in district court.  
 75.26     Subd. 5.  [USE OF INFORMATION EVIDENCE; DATA PRIVACY.] (a) 
 75.27  All testimony at any evidentiary hearing conducted pursuant to 
 75.28  subdivision 1 shall be recorded.  A copy of any recorded 
 75.29  testimony and exhibits offered or received into evidence at the 
 75.30  hearing shall, upon request, or upon directive of the 
 75.31  commissioner a senior unemployment review judge, be furnished to 
 75.32  a party at no cost during the time period for filing an appeal 
 75.33  to the commissioner a senior unemployment review judge or while 
 75.34  such an appeal is pending.  If requested, the commissioner 
 75.35  department shall make available a device for listening to the 
 75.36  recording if an appeal is pending before the commissioner a 
 76.1   senior unemployment review judge under subdivision 2. 
 76.2      (b) Regardless of any provision of law to the contrary, if 
 76.3   recorded testimony and exhibits received into evidence at the 
 76.4   evidentiary hearing are not requested during the time period for 
 76.5   filing an appeal to the commissioner a senior unemployment 
 76.6   review judge, or while such an appeal is pending, that testimony 
 76.7   and other evidence shall later be made available to an involved 
 76.8   party only pursuant to a court order.  A subpoena shall not be 
 76.9   considered a court order. 
 76.10     (c) Testimony obtained under subdivision 1, may not be used 
 76.11  or considered for any purpose, including impeachment, in any 
 76.12  civil, administrative, or contractual proceeding, except by a 
 76.13  local, state, or federal human rights agency with enforcement 
 76.14  powers, unless the proceeding is initiated by the department. 
 76.15     (d) Subd. 5a.  [NO COLLATERAL ESTOPPEL.] No findings of 
 76.16  fact or decision or order issued by an unemployment law judge or 
 76.17  the commissioner a senior unemployment review judge may be held 
 76.18  conclusive or binding or used as evidence in any separate or 
 76.19  subsequent action in any other forum, be it contractual, 
 76.20  administrative, or judicial, except proceedings provided for 
 76.21  under this chapter, regardless of whether the action involves 
 76.22  the same or related parties or involves the same facts. 
 76.23     Subd. 6.  [REPRESENTATION; FEES.] (a) In any proceeding 
 76.24  under subdivision 1 or, 2, or 2a, an applicant or involved 
 76.25  employer may be represented by any agent.  
 76.26     (b) Except for services provided by an attorney-at-law, an 
 76.27  applicant shall not be charged fees, costs, or disbursements of 
 76.28  any kind in a proceeding before an unemployment law judge, the 
 76.29  commissioner a senior unemployment review judge, the Minnesota 
 76.30  Court of Appeals, or Supreme Court of Minnesota. 
 76.31     Subd. 7.  [JUDICIAL REVIEW.] (a) The Minnesota Court of 
 76.32  Appeals shall, by writ of certiorari to the commissioner 
 76.33  department, review the senior unemployment review judge's 
 76.34  decision of the commissioner under subdivision 2 or order under 
 76.35  subdivision 2a, provided a petition for the writ is filed with 
 76.36  the court and a copy is served upon the senior unemployment 
 77.1   review judge or the commissioner and any other involved party 
 77.2   within 30 calendar days of the mailing sending of the 
 77.3   commissioner's senior unemployment review judge's decision under 
 77.4   subdivision 2 or order under subdivision 2a.  
 77.5      (b) Any employer petitioning for a writ of certiorari shall 
 77.6   pay to the court the required filing fee and upon the service of 
 77.7   the writ shall furnish a cost bond to the commissioner 
 77.8   department in accordance with the Rules of Civil Appellate 
 77.9   Procedure.  If the employer requests a written transcript of the 
 77.10  testimony received at the evidentiary hearing conducted pursuant 
 77.11  to subdivision 1, the employer shall pay to the commissioner 
 77.12  department the cost of preparing the transcript.  That money 
 77.13  shall be credited to the administration account. 
 77.14     (c) Upon issuance by the Minnesota Court of Appeals of a 
 77.15  writ of certiorari as a result of an applicant's petition, the 
 77.16  commissioner department shall furnish to the applicant at no 
 77.17  cost a written transcript of the any testimony received at the 
 77.18  evidentiary hearing conducted pursuant to subdivision 1, and, if 
 77.19  requested, a copy of all exhibits entered into evidence.  No 
 77.20  filing fee or cost bond shall be required of an applicant 
 77.21  petitioning the Minnesota Court of Appeals for a writ of 
 77.22  certiorari.  
 77.23     (d) The commissioner department shall be considered the 
 77.24  primary responding party to any judicial action involving the 
 77.25  commissioner's a senior unemployment review judge's decision or 
 77.26  order.  The commissioner department may be represented by an 
 77.27  attorney who is an employee of the department designated by the 
 77.28  commissioner for that purpose. 
 77.29     <b>[EFFECTIVE DATE.]</b> This section is effective August 1, 2004, 
 77.30  and applies to all decisions issued by the department on or 
 77.31  after that date. 
 77.32     Sec. 72.  Minnesota Statutes 2002, section 268.115, 
 77.33  subdivision 5, is amended to read: 
 77.34     Subd. 5.  [MAXIMUM AMOUNT OF EXTENDED UNEMPLOYMENT 
 77.35  BENEFITS.] The maximum amount of extended unemployment benefits 
 77.36  available to an applicant shall be 50 percent of the maximum 
 78.1   amount of regular unemployment benefits available in the benefit 
 78.2   year, rounded down to the next lower whole dollar.  If the total 
 78.3   rate of unemployment computed under subdivision 1, clause 
 78.4   (2)(ii), equaled or exceeded eight percent, the maximum amount 
 78.5   of extended unemployment benefits available shall be 80 percent 
 78.6   of the maximum amount of regular unemployment benefits available 
 78.7   in the benefit year.  
 78.8      Sec. 73.  Minnesota Statutes 2002, section 268.125, 
 78.9   subdivision 5, is amended to read: 
 78.10     Subd. 5.  [MAXIMUM AMOUNT OF UNEMPLOYMENT BENEFITS.] The 
 78.11  maximum amount of additional unemployment benefits available in 
 78.12  the applicant's benefit year shall be one-half of the 
 78.13  applicant's maximum amount of regular unemployment benefits 
 78.14  available under section 268.07, subdivision 2, rounded down to 
 78.15  the next lower whole dollar.  Extended unemployment benefits 
 78.16  paid and unemployment benefits paid under any federal law other 
 78.17  than regular unemployment benefits shall be deducted from the 
 78.18  maximum amount of additional unemployment benefits available. 
 78.19     Sec. 74.  Minnesota Statutes 2002, section 268.135, 
 78.20  subdivision 1, is amended to read: 
 78.21     Subdivision 1.  [DEFINITIONS.] For purposes of this section:
 78.22     (1) "Affected employee" means an employee who was 
 78.23  continuously employed as a member of the affected group, for at 
 78.24  least six months, on a full-time basis, prior to submission of 
 78.25  the shared work plan. 
 78.26     (2) "Affected group" means five or more employees 
 78.27  designated by the employer to participate in a shared work plan. 
 78.28     (3) "Shared work plan" or "plan" means an employer's 
 78.29  written plan, submitted in a manner and format prescribed by the 
 78.30  commissioner, under which a group of employees whose normal 
 78.31  weekly hours of work are reduced, in order to prevent employees 
 78.32  from being laid off due to lack of work. 
 78.33     (4) "Normal weekly hours of work" means the number of hours 
 78.34  in a week that the employee normally would work for the shared 
 78.35  work employer or 40 hours, whichever is less. 
 78.36     Sec. 75.  Minnesota Statutes 2002, section 268.135, 
 79.1   subdivision 2, is amended to read: 
 79.2      Subd. 2.  [PARTICIPATION.] (a) An employer wishing to 
 79.3   participate in the shared work benefit program shall submit a 
 79.4   written shared work plan to the commissioner in a manner and 
 79.5   format prescribed for approval.  The commissioner may approve a 
 79.6   shared work plan only if it: 
 79.7      (1) specifies the employees in the affected group; 
 79.8      (2) applies to only one affected group; 
 79.9      (3) includes a certified statement by the employer that 
 79.10  each employee specified in the affected group is an affected 
 79.11  employee; 
 79.12     (4) includes a certified statement by the employer that for 
 79.13  the duration of the plan the reduction in normal weekly hours of 
 79.14  work of the employees in the affected group is instead of 
 79.15  layoffs that otherwise would result in at least as large a 
 79.16  reduction in the total normal weekly hours of work; 
 79.17     (5) specifies an expiration date that is no more than one 
 79.18  year from the date the employer submits the plan for approval; 
 79.19     (6) specifies that fringe benefits, such as health and 
 79.20  retirement, available to the employees in the affected group are 
 79.21  not reduced beyond the percentage of reduction in hours of work; 
 79.22  and 
 79.23     (7) is approved in writing by the collective bargaining 
 79.24  agent for each collective bargaining agreement that covers any 
 79.25  employee in the affected group. 
 79.26     (b) The commissioner shall set the beginning and ending 
 79.27  dates of an approved shared work plan. 
 79.28     (c) The commissioner shall mail send to the employer a 
 79.29  written determination, by mail or electronic transmission, 
 79.30  approving or disapproving the plan within 15 calendar days of 
 79.31  its receipt.  Determinations are final. 
 79.32     (d) Disapproval of a plan may be reconsidered at the 
 79.33  discretion of the commissioner.  Approval of a shared work plan 
 79.34  may be revoked if the approval was based, in whole or in part, 
 79.35  upon information that was false or misleading. 
 79.36     Sec. 76.  Minnesota Statutes 2002, section 268.135, 
 80.1   subdivision 4, is amended to read: 
 80.2      Subd. 4.  [WEEKLY BENEFIT AMOUNT.] (a) An applicant who is 
 80.3   eligible for shared work benefits shall be paid an amount equal 
 80.4   to the regular weekly unemployment benefit amount multiplied by 
 80.5   the nearest full percentage of reduction of the applicant's 
 80.6   regular weekly hours of work as set in the plan.  The benefit 
 80.7   payment, if not a whole dollar shall be rounded down to the next 
 80.8   lower whole dollar. 
 80.9      (b) The deductible earnings provisions of section 268.085, 
 80.10  subdivision 5, shall not apply to earnings from the shared work 
 80.11  employer of an applicant eligible for shared work benefits 
 80.12  unless the resulting amount would be less than the regular 
 80.13  weekly unemployment benefit amount the applicant would otherwise 
 80.14  be eligible for without regard to shared work benefits. 
 80.15     (c) An applicant shall not be eligible for shared work 
 80.16  benefits for any week that employment is performed for the 
 80.17  shared work employer in excess of the reduced hours set forth in 
 80.18  the plan. 
 80.19     Sec. 77.  Minnesota Statutes 2002, section 268.145, 
 80.20  subdivision 1, is amended to read: 
 80.21     Subdivision 1.  [NOTIFICATION.] (a) Upon filing an 
 80.22  application for unemployment benefits, the applicant shall be 
 80.23  informed that: 
 80.24     (1) unemployment benefits are subject to federal and state 
 80.25  income tax; 
 80.26     (2) there are requirements for filing estimated tax 
 80.27  payments; 
 80.28     (3) the applicant may elect to have federal income tax 
 80.29  withheld from unemployment benefits; 
 80.30     (4) if the applicant elects to have federal income tax 
 80.31  withheld, the applicant may, in addition, elect to have 
 80.32  Minnesota state income tax withheld; and 
 80.33     (5) at any time during the benefit year the applicant may 
 80.34  change a prior election. 
 80.35     (b) If an applicant elects to have federal income tax 
 80.36  withheld, the commissioner shall deduct ten percent for federal 
 81.1   income tax, rounded down to the nearest next lower whole dollar. 
 81.2   If an applicant also elects to have Minnesota state income tax 
 81.3   withheld, the commissioner shall make an additional five percent 
 81.4   deduction for state income tax, rounded down to the next lower 
 81.5   whole dollar.  Any amounts deducted or offset pursuant to 
 81.6   sections 268.155, 268.156, 268.18, and 268.184 have priority 
 81.7   over any amounts deducted under this section.  Federal income 
 81.8   tax withholding has priority over state income tax withholding. 
 81.9      (c) An election to have income tax withheld shall not be 
 81.10  retroactive and shall only apply to unemployment benefits paid 
 81.11  after the election. 
 81.12     Sec. 78.  Minnesota Statutes 2003 Supplement, section 
 81.13  268.18, subdivision 1, is amended to read: 
 81.14     Subdivision 1.  [NONFRAUD OVERPAYMENT.] (a) Any applicant 
 81.15  who (1) by reason of the applicant's own mistake, or (2) because 
 81.16  of an error by any employee of the department, or (3) because of 
 81.17  a determination, redetermination, or amended determination 
 81.18  issued pursuant to section 268.07 or 268.101, or (4) because of 
 81.19  an appeal decision under section 268.105, has received any 
 81.20  unemployment benefits that the applicant was not entitled to, 
 81.21  shall promptly repay the unemployment benefits to the trust 
 81.22  fund. The commissioner shall, as soon as the overpayment is 
 81.23  discovered, determine the amount due and notify the applicant in 
 81.24  writing to repay the unemployment benefits. 
 81.25     (b) Unless the applicant files an appeal within 30 calendar 
 81.26  days after the mailing sending of the determination of 
 81.27  overpayment to the applicant's last known address applicant by 
 81.28  mail or electronic transmission, the determination shall become 
 81.29  final.  Proceedings on the appeal shall be conducted in 
 81.30  accordance with section 268.105.  An applicant may not 
 81.31  collaterally attack, by way of an appeal to an overpayment 
 81.32  determination, any prior determination issued pursuant to 
 81.33  section 268.07 or 268.101, or decision issued pursuant to 
 81.34  section 268.105, that has become final. 
 81.35     (c) If the applicant fails to repay the unemployment 
 81.36  benefits determined overpaid under this subdivision, the 
 82.1   commissioner may offset from any future unemployment benefits 
 82.2   otherwise payable the amount of the overpayment.  Except when 
 82.3   the overpayment resulted because the applicant failed to report 
 82.4   deductible earnings or deductible or benefit delaying payments, 
 82.5   no single offset shall exceed 50 percent of the amount of the 
 82.6   payment from which the offset is made.  The overpayment may also 
 82.7   be collected by the same methods as delinquent taxes payments 
 82.8   from an employer.  A determination of overpayment shall state 
 82.9   the methods of collection the commissioner may use to recover 
 82.10  the overpayment.  
 82.11     (d) If an applicant has been overpaid unemployment benefits 
 82.12  under the law of another state, due to a reason other than 
 82.13  fraud, and that state certifies that the applicant is liable 
 82.14  under its law to repay the unemployment benefits and requests 
 82.15  the commissioner to recover the overpayment, the commissioner 
 82.16  may offset from future unemployment benefits otherwise payable 
 82.17  the amount of overpayment, except that no single offset shall 
 82.18  exceed 50 percent of the amount of the payment from which the 
 82.19  offset is made.  
 82.20     (e) If under paragraph (c) or (d) the reduced unemployment 
 82.21  benefits as a result of a 50 percent offset is not a whole 
 82.22  dollar amount, it shall be rounded down to the next lower whole 
 82.23  dollar. 
 82.24     (f) Unemployment benefits paid for weeks more than three 
 82.25  years prior to the discovery of overpayment under this 
 82.26  subdivision are not overpaid unemployment benefits. 
 82.27     Sec. 79.  Minnesota Statutes 2003 Supplement, section 
 82.28  268.18, subdivision 2, is amended to read: 
 82.29     Subd. 2.  [OVERPAYMENT DUE TO FRAUD.] (a) Any applicant who 
 82.30  receives unemployment benefits by intentionally misrepresenting, 
 82.31  misstating, or failing to disclose any material fact, or who 
 82.32  makes a false statement or representation without a good faith 
 82.33  belief as to the correctness of the statement or representation, 
 82.34  has committed fraud.  After the discovery of facts indicating 
 82.35  fraud, the commissioner shall make a written determination that 
 82.36  the applicant obtained unemployment benefits by fraud and that 
 83.1   the applicant must promptly repay the unemployment benefits to 
 83.2   the trust fund.  In addition, the commissioner shall assess a 
 83.3   penalty equal to 25 percent of the amount fraudulently 
 83.4   obtained.  If the applicant had a prior overpayment due to 
 83.5   fraud, the commissioner shall, on the present overpayment, 
 83.6   assess a penalty equal to 50 percent of the amount fraudulently 
 83.7   obtained.  This penalty is in addition to penalties under 
 83.8   section 268.182. 
 83.9      (b) Unless the applicant files an appeal within 30 calendar 
 83.10  days after the mailing sending of the determination of 
 83.11  overpayment by fraud to the applicant's last known address 
 83.12  applicant by mail or electronic transmission, the determination 
 83.13  shall become final.  Proceedings on the appeal shall be 
 83.14  conducted in accordance with section 268.105.  
 83.15     (c) If the applicant fails to repay the unemployment 
 83.16  benefits, penalty, and interest assessed, the commissioner shall 
 83.17  offset from future unemployment benefits otherwise payable the 
 83.18  total amount of overpayment due.  The total due may also be 
 83.19  collected by the same methods as delinquent taxes payments from 
 83.20  an employer.  A determination of overpayment by fraud shall 
 83.21  state the methods of collection the commissioner may use to 
 83.22  recover the overpayment.  Money received in repayment of 
 83.23  fraudulently obtained unemployment benefits, penalties, and 
 83.24  interest shall first be applied to the unemployment benefits 
 83.25  overpaid, then to the penalty amount due, then to any interest 
 83.26  due.  Payments made toward penalty and interest shall be 
 83.27  credited to the contingent account. 
 83.28     (d) If an applicant has been overpaid unemployment benefits 
 83.29  under the law of another state because of fraud and that state 
 83.30  certifies that the applicant is liable to repay the unemployment 
 83.31  benefits and requests the commissioner to recover the 
 83.32  overpayment, the commissioner may offset from future 
 83.33  unemployment benefits otherwise payable the amount of 
 83.34  overpayment.  
 83.35     (e) A determination of overpayment by fraud may only be 
 83.36  made at any time within four years of the effective date of the 
 84.1   benefit account from which the unemployment benefits were 
 84.2   fraudulently obtained.  
 84.3      Sec. 80.  Minnesota Statutes 2002, section 268.18, 
 84.4   subdivision 2b, is amended to read: 
 84.5      Subd. 2b.  [INTEREST.] (a) On any unemployment benefits 
 84.6   fraudulently obtained, and any penalty amounts assessed under 
 84.7   subdivision 2, the commissioner may assess interest at the rate 
 84.8   of 1-1/2 percent per month on any amount that remains unpaid 30 
 84.9   calendar days after the date of the determination of overpayment 
 84.10  by fraud.  A determination of overpayment by fraud shall state 
 84.11  that interest shall be assessed. 
 84.12     (b) If this subdivision became effective after the date of 
 84.13  the determination, or the determination did not state that 
 84.14  interest shall be assessed, interest shall be assessed beginning 
 84.15  30 calendar days after written notification, by mail or 
 84.16  electronic transmission, to the applicant. 
 84.17     Sec. 81.  Minnesota Statutes 2002, section 268.18, 
 84.18  subdivision 6, is amended to read: 
 84.19     Subd. 6.  [COLLECTION OF OVERPAYMENTS.] (a) The 
 84.20  commissioner may not compromise the amount that has been 
 84.21  determined overpaid under this section including penalties and 
 84.22  interest.  
 84.23     (b) The commissioner shall have discretion regarding the 
 84.24  use of any method of recovery of any overpayment under 
 84.25  subdivision 1.  Regardless of any law to the contrary, the 
 84.26  commissioner shall not be required to refer any amount 
 84.27  determined overpaid under subdivision 1 to a public or private 
 84.28  collection agency, including agencies of this state.  
 84.29     (c) Amounts determined overpaid under subdivision 1 shall 
 84.30  not be considered a "debt" to the state of Minnesota for 
 84.31  purposes of any reporting requirements to the commissioner of 
 84.32  finance. 
 84.33     (d) A pending appeal under section 268.105 shall not toll 
 84.34  suspend the assessment of interest, penalties, or collection of 
 84.35  an overpayment under this section. 
 84.36     (e) Section 16A.626 applies to the repayment by an 
 85.1   applicant of any overpayment, penalty, or interest under this 
 85.2   section. 
 85.3      Sec. 82.  Minnesota Statutes 2002, section 268.182, is 
 85.4   amended to read: 
 85.5      268.182 [APPLICANT'S FALSE REPRESENTATIONS; CONCEALMENT OF 
 85.6   FACTS; PENALTY.] 
 85.7      (a) Subdivision 1.  [CRIMINAL PENALTIES.] Whoever obtains, 
 85.8   or attempts to obtain, or aids or abets any individual to obtain 
 85.9   by means of an intentional false statement or representation, by 
 85.10  intentional concealment of a material fact, or by impersonation 
 85.11  or other fraudulent means, unemployment benefits that the 
 85.12  individual is not entitled or unemployment benefits greater than 
 85.13  the individual is entitled under this chapter, or under the law 
 85.14  of any state or of the federal government, either personally or 
 85.15  for any other individual, is guilty of theft and shall be 
 85.16  sentenced pursuant to section 609.52.  
 85.17     (b) Subd. 2.  [ADMINISTRATIVE PENALTIES.] Any individual 
 85.18  who intentionally makes a false statement or representation, who 
 85.19  intentionally fails to disclose a material fact, or who makes a 
 85.20  false statement or representation without a good faith belief as 
 85.21  to the correctness of the statement or representation, in order 
 85.22  to obtain or in an attempt to obtain unemployment benefits may 
 85.23  be assessed, in addition to any other penalties, an 
 85.24  administrative penalty of denial of unemployment benefits for 
 85.25  one to 52 weeks that the individual would otherwise be entitled 
 85.26  to unemployment benefits.  A denial shall not apply to any week 
 85.27  more than two years after the week that the penalty was 
 85.28  determined.  A written determination of denial shall be mailed 
 85.29  sent to the individual's last known address individual by mail 
 85.30  or electronic transmission.  Unless an appeal is filed within 30 
 85.31  calendar days of mailing sending, the determination shall be 
 85.32  final.  Proceeding on the appeal shall be conducted in 
 85.33  accordance with section 268.105.  
 85.34     Sec. 83.  Minnesota Statutes 2002, section 268.184, is 
 85.35  amended to read: 
 85.36     268.184 [EMPLOYER MISCONDUCT; PENALTY.] 
 86.1      Subdivision 1.  [ADMINISTRATIVE PENALTIES.] (a) If the 
 86.2   commissioner finds that any employer or any employee, officer, 
 86.3   or agent of any employer, is in collusion with any applicant for 
 86.4   the purpose of assisting the applicant to receive unemployment 
 86.5   benefits illegally fraudulently, the employer shall be penalized 
 86.6   $500 or the amount of unemployment benefits determined to be 
 86.7   overpaid, whichever is greater. 
 86.8      (b) If the commissioner finds that any employer or any 
 86.9   employee, officer, or agent of an employer has made (1) a false 
 86.10  statement or representation knowing it to be false, or (2) has 
 86.11  made a false statement or representation without a good faith 
 86.12  belief as to correctness of the statement or representation, or 
 86.13  (3) who knowingly fails to disclose a material fact, to prevent 
 86.14  or reduce the payment of unemployment benefits to any applicant 
 86.15  or to reduce or prevent the effects of unemployment benefits 
 86.16  paid on its tax or reimbursable account avoid any payment 
 86.17  required from an employer under this chapter or section 116L.20, 
 86.18  the employer shall be penalized $500, or 50 percent of the 
 86.19  reduced unemployment benefits or payment required, whichever is 
 86.20  greater. 
 86.21     (c) If the commissioner finds that an employer failed or 
 86.22  refused to honor a subpoena issued under section 268.105, 
 86.23  subdivision 4, or section 268.188, the employer shall be 
 86.24  penalized $500 and any costs of enforcing the subpoena, 
 86.25  including attorney fees. 
 86.26     (d) Penalties under this section shall be in addition to 
 86.27  any other penalties and subject to the same collection 
 86.28  procedures that apply to past due taxes.  Penalties shall be 
 86.29  paid to the department within 30 calendar days of assessment and 
 86.30  credited to the contingent account. 
 86.31     (d) (e) The assessment of the penalty shall be final unless 
 86.32  the employer files an appeal within 30 calendar days after the 
 86.33  sending of notice of the penalty to the employer by mail or 
 86.34  electronic transmission.  Proceedings on the appeal shall be 
 86.35  conducted in accordance with section 268.105. 
 86.36     (e) Subd. 2.  [CRIMINAL PENALTIES.] Any employer or any 
 87.1   officer or agent of an employer or any other individual who 
 87.2   makes a false statement or representation knowing it to be 
 87.3   false, or who knowingly fails to disclose a material fact to 
 87.4   avoid or reduce any payment required from an employer under this 
 87.5   chapter or section 116L.20, or to prevent or reduce the payment 
 87.6   of unemployment benefits to any applicant, is guilty of a gross 
 87.7   misdemeanor unless the unemployment benefit underpayment exceeds 
 87.8   $500, in that case the individual is guilty of a felony.  
 87.9      Sec. 84.  Minnesota Statutes 2003 Supplement, section 
 87.10  268.186, is amended to read: 
 87.11     268.186 [RECORDS; AUDITS.] 
 87.12     (a) Each employer shall keep true and accurate records for 
 87.13  the periods of time and containing the information the 
 87.14  commissioner may require.  For the purpose of administering this 
 87.15  chapter, the commissioner has the power to audit, examine, or 
 87.16  cause to be supplied or copied, any books, correspondence, 
 87.17  papers, records, or memoranda that are relevant, whether the 
 87.18  books, correspondence, papers, records, or memoranda are the 
 87.19  property of or in the possession of the employer or any other 
 87.20  person at any reasonable time and as often as may be necessary. 
 87.21     (b) Any employer that refuses to allow an audit of its 
 87.22  records by the department, or that fails to make all necessary 
 87.23  records available for audit in Minnesota upon request of the 
 87.24  commissioner, may be assessed an administrative penalty of 
 87.25  $500.  The penalty collected shall be credited to the 
 87.26  administration account to be used by the commissioner to ensure 
 87.27  integrity in the administration of the unemployment insurance 
 87.28  program. 
 87.29     (c) The commissioner may make summaries, compilations, 
 87.30  photographs, duplications, or reproductions of any records, or 
 87.31  reports that the commissioner considers advisable for the 
 87.32  preservation of the information contained therein.  Any 
 87.33  summaries, compilations, photographs, duplications, or 
 87.34  reproductions shall be admissible in any proceeding under this 
 87.35  chapter.  The commissioner may duplicate records, reports, 
 87.36  summaries, compilations, instructions, determinations, or any 
 88.1   other written or recorded matter pertaining to the 
 88.2   administration of this chapter. 
 88.3      (c) (d) Regardless of any law to the contrary, the 
 88.4   commissioner may provide for the destruction of any records, 
 88.5   reports, or reproductions thereof, or other papers, that are 
 88.6   more than two years old, and that are no longer necessary for 
 88.7   determining employer liability or an applicant's unemployment 
 88.8   benefit rights or for the administration of this chapter, 
 88.9   including any required audit.  In addition, the commissioner may 
 88.10  provide for the destruction or disposition of any record, 
 88.11  report, or other paper from which the information has been 
 88.12  electronically captured and stored, or that has been 
 88.13  photographed, duplicated, or reproduced.  
 88.14     Sec. 85.  Minnesota Statutes 2003 Supplement, section 
 88.15  268.19, subdivision 2, is amended to read: 
 88.16     Subd. 2.  [EMPLOYER INFORMATION; ABSOLUTE PRIVILEGE.] (a) 
 88.17  Regardless of any provision of law to the contrary, an employer 
 88.18  may provide the commissioner with information on an applicant so 
 88.19  that the commissioner can determine an applicant's entitlement 
 88.20  to unemployment benefits under the Minnesota Unemployment 
 88.21  Insurance Law. 
 88.22     (b) The commissioner may disseminate any employer's name 
 88.23  and address and the name and address of any employer's 
 88.24  unemployment insurance processing agent in order to administer 
 88.25  the Minnesota unemployment insurance program. 
 88.26     (c) Information obtained pursuant to the Minnesota 
 88.27  Unemployment Insurance Law, in order to determine an applicant's 
 88.28  entitlement to unemployment benefits, shall be absolutely 
 88.29  privileged and shall not be made the subject matter or the basis 
 88.30  for any civil proceeding, administrative, or judicial.  
 88.31     Sec. 86.  [REVISOR'S INSTRUCTION.] 
 88.32     The revisor of statutes shall renumber Minnesota Statutes, 
 88.33  section 268.022, as Minnesota Statutes, section 116L.20. 
 88.34     The revisor of statutes shall change the terms "evinces" 
 88.35  and "demonstrates" to "displays clearly" wherever they appear in 
 88.36  Minnesota Statutes, chapter 268.