Bill Text: MN HF2949 | 2013-2014 | 88th Legislature | Engrossed

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Bill Title: Unemployment insurance program policy and housekeeping changes made, and Unemployment Insurance Advisory Council recommendations adopted.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2014-05-16 - Secretary of State Chapter 251 [HF2949 Detail]

Download: Minnesota-2013-HF2949-Engrossed.html

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A bill for an act

relating to unemployment insurance; making policy and housekeeping changes
to the unemployment insurance program; adopting recommendations of the
Unemployment Insurance Advisory Council;amending Minnesota Statutes 2012,
sections 268.035, subdivisions 2, 4, 11, 12, 20, 22, 29; 268.051, subdivision 4;
268.057, subdivisions 5, 7; 268.0625, subdivision 4; 268.085, subdivisions 3, 4,
6, by adding a subdivision; 268.0865, subdivisions 3, 4; 268.095, subdivision 2;
268.103, subdivision 2a; 268.105, subdivisions 1, 2, 3a, 5, 6; 268.18, subdivision
2b; 268.184, subdivisions 1, 1a; 268.186; 268.196, subdivision 1; 268.215;
repealing Minnesota Statutes 2012, section 268.105, subdivision 4; Laws 2005,
chapter 112, article 1, section 15; Laws 2008, chapter 363, article 10, section 30;
Minnesota Rules, parts 3315.0200, subpart 1; 3315.0203; 3315.0211; 3315.0212;
3315.0213; 3315.0801; 3315.0805; 3315.0810; 3315.0815; 3315.0820;
3315.0825; 3315.0830; 3315.0835; 3315.0840; 3315.0845; 3315.0901;
3315.0905.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

UNEMPLOYMENT INSURANCE ADVISORY COUNCIL POLICY

    Section 1. Minnesota Statutes 2012, section 268.035, subdivision 29, is amended to read:
    Subd. 29. Wages. (a) "Wages" means all compensation for services employment,
including commissions; bonuses, awards, and prizes; severance payments; standby pay;
vacation and holiday pay; back pay as of the date of payment; tips and gratuities paid to
an employee by a customer of an employer and accounted for by the employee to the
employer; sickness and accident disability payments, except as otherwise provided in
this subdivision; and the cash value of housing, utilities, meals, exchanges of services,
and any other goods and services provided to compensate for an employee's services
employee, except:
    (1) the amount of any payment made to, or on behalf of, an employee under a plan
established by an employer that makes provision for employees generally or for a class or
classes of employees, including any amount paid by an employer for insurance or annuities,
or into a plan, to provide for a payment, on account of (i) retirement or (ii) medical and
hospitalization expenses in connection with sickness or accident disability, or (iii) death;
    (2) the payment by an employer of the tax imposed upon an employee under United
States Code, title 26, section 3101 of the Federal Insurance Contribution Act, with respect
to compensation paid to an employee for domestic employment in a private household of
the employer or for agricultural employment;
    (3) any payment made to, or on behalf of, an employee or beneficiary (i) from or
to a trust described in United States Code, title 26, section 401(a) of the federal Internal
Revenue Code, that is exempt from tax under section 501(a) at the time of the payment
unless the payment is made to an employee of the trust as compensation for services as an
employee and not as a beneficiary of the trust, or (ii) under or to an annuity plan that, at
the time of the payment, is a plan described in section 403(a);
    (4) the value of any special discount or markdown allowed to an employee on goods
purchased from or services supplied by the employer where the purchases are optional and
do not constitute regular or systematic payment for services;
    (5) customary and reasonable directors' fees paid to individuals who are not
otherwise employed by the corporation of which they are directors;
    (6) the payment to employees for reimbursement of meal expenses when employees
are required to perform work after their regular hours;
    (7) the payment into a trust or plan for purposes of providing legal or dental services
if provided for all employees generally or for a class or classes of employees;
    (8) the value of parking facilities provided or paid for by an employer, in whole or in
part, if provided for all employees generally or for a class or classes of employees;
    (9) royalties to an owner of a franchise, license, copyright, patent, oil, mineral,
or other right;
    (10) advances or reimbursements for traveling or other bona fide ordinary and
necessary expenses incurred or reasonably expected to be incurred in the business of the
employer. Traveling and other reimbursed expenses must be identified either by making
separate payments or by specifically indicating the separate amounts where both wages
and expense allowances are combined in a single payment;
    (11) residual payments to radio, television, and similar artists that accrue after
the production of television commercials, musical jingles, spot announcements, radio
transcriptions, film sound tracks, and similar activities;
    (12) the income to a former employee resulting from the exercise of a nonqualified
stock option;
    (13) payments made to supplement unemployment benefits under a plan established
by an employer, that makes provisions for employees generally or for a class or classes of
employees under the written terms of an agreement, contract, trust arrangement, or other
instrument. The plan must provide supplemental payments solely for the supplementing
of weekly state or federal unemployment benefits. The plan must provide supplemental
payments only for those weeks the applicant has been paid regular, extended, or additional
unemployment benefits. The supplemental payments, when combined with the applicant's
weekly unemployment benefits paid, may not exceed the applicant's regular weekly
pay. The plan must not allow the assignment of supplemental payments or provide for
any type of additional payment. The plan must not require any consideration from the
applicant, other than a release of claims, and must not be designed for the purpose of
avoiding the payment of Social Security obligations, or unemployment taxes on money
disbursed from the plan;
    (13) (14) sickness or accident disability payments made by the employer after the
expiration of six calendar months following the last calendar month that the individual
worked for the employer;
    (14) (15) disability payments made under the provisions of any workers'
compensation law;
    (15) (16) sickness or accident disability payments made by a third-party payer
such as an insurance company; or
    (16) (17) payments made into a trust fund, or for the purchase of insurance or an
annuity, to provide for sickness or accident disability payments to employees under a
plan or system established by the employer that provides for the employer's employees
generally or for a class or classes of employees.
    (b) Nothing in this subdivision excludes from the term "wages" any payment
made under any type of salary reduction agreement, including payments made under a
cash or deferred arrangement and cafeteria plan, as defined in United States Code, title
26, sections 401(k) and 125 of the federal Internal Revenue Code, to the extent that the
employee has the option to receive the payment in cash.
    (c) Wages includes the total payment to the operator and supplier of a vehicle or
other equipment where the payment combines compensation for personal services as well
as compensation for the cost of operating and hiring the equipment in a single payment.
This paragraph does not apply if:
(1) there is a preexisting written agreement providing for allocation of specific
amounts; or
(2) at the time of each payment there is a written acknowledgement indicating
the separate allocated amounts.
    (d) Wages includes payments made for services as a caretaker. Unless there is a
contract or other proof to the contrary, compensation is considered as being equally
received by a married couple where the employer makes payment to only one spouse, or
by all tenants of a household who perform services where two or more individuals share
the same dwelling and the employer makes payment to only one individual.
    (d) (e) Wages includes payments made for services by a migrant family. Where
services are performed by a married couple or a family and an employer makes payment
to only one individual, each worker is considered as having received an equal share of the
compensation unless there is a contract or other proof to the contrary.
    (e) (f) Wages includes advances or draws against future earnings, when paid, unless
the payments are designated as a loan or return of capital on the books of the employer
at the time of payment.
    (f) (g) Wages includes payments made by a subchapter "S" corporation, as organized
under the Internal Revenue Code, to or on behalf of officers and shareholders that are
reasonable compensation for services performed for the corporation.
    For a subchapter "S" corporation, wages does not include:
    (1) a loan for business purposes to an officer or shareholder evidenced by a
promissory note signed by an officer before the payment of the loan proceeds and recorded
on the books and records of the corporation as a loan to an officer or shareholder;
    (2) a repayment of a loan or payment of interest on a loan made by an officer to the
corporation and recorded on the books and records of the corporation as a liability;
    (3) a reimbursement of reasonable corporation expenses incurred by an officer and
documented by a written expense voucher and recorded on the books and records of
the corporation as corporate expenses; and
    (4) a reasonable lease or rental payment to an officer who owns property that is
leased or rented to the corporation.

    Sec. 2. Minnesota Statutes 2012, section 268.051, subdivision 4, is amended to read:
    Subd. 4. Experience rating history transfer. (a) The experience rating history of
the predecessor employer is transferred to the successor employer when:
    (1) a taxpaying employer acquires all of the organization, trade or business, or
workforce of another taxpaying employer; and
    (2) there is 25 percent or more common ownership or there is substantially common
management or control between the predecessor and successor.
    (b) A portion of the experience rating history of the predecessor employer is
transferred to the successor employer when:
    (1) a taxpaying employer acquires a portion, but less than all, of the organization,
trade or business, or workforce of another taxpaying employer; and
    (2) there is 25 percent or more common ownership or there is substantially common
management or control between the predecessor and successor,.
    The successor employer acquires, as of the date of acquisition, the experience
rating history attributable to the portion it acquired, and the predecessor employer
retains the experience rating history attributable to the portion that it has retained. If the
commissioner determines that sufficient information is not available to substantiate that a
distinct severable portion was acquired and to assign the appropriate distinct severable
portion of the experience rating history, the commissioner must assign the successor
employer that percentage of the predecessor employer's experience rating history equal to
that percentage of the employment positions it has obtained, and the predecessor employer
retains that percentage of the experience rating history equal to the percentage of the
employment positions it has retained.
    (c) Paragraphs (a) and (b) do not require concurrent ownership, management, or
control of the predecessor and successor for there to be a transfer, or partial transfer,
of the experience rating history.
    (d) The term "common ownership" for purposes of this subdivision includes
ownership by a spouse, parent, grandparent, child, grandchild, brother, sister, aunt, uncle,
niece, nephew, or first cousin, by birth or by marriage.
    (d) (e) Each successor employer that is subject to paragraph (a) or (b) must notify
the commissioner of the acquisition by electronic transmission, in a format prescribed by
the commissioner, within 30 calendar days of the date of acquisition. Any successor
employer that fails to notify the commissioner is subject to the penalties under section
268.184, subdivision 1a , if the successor's assigned tax rate under subdivision 2 or 5 was
lower than the predecessor's assigned tax rate at the time of the acquisition. Payments
made toward the penalties are credited to the trust fund.
    (e) (f) If the successor employer under paragraphs (a) and (b) had an experience
rating at the time of the acquisition, the transferred experience rating history of the
predecessor is combined with the successor's experience rating history for purposes of
recomputing a tax rate.
    (f) (g) If there has been a transfer of an experience rating history under paragraph (a)
or (b), employment with a predecessor employer is not considered to have been terminated
if similar employment is offered by the successor employer and accepted by the employee.
    (g) (h) The commissioner, upon notification of an employer, or upon the
commissioner's own motion if the employer fails to provide the required notification, must
determine if an employer is a successor within the meaning of this subdivision. The
commissioner must, after determining the issue of succession or nonsuccession, recompute
the tax rate under subdivision 6 of all employers affected. The commissioner must send
the recomputed tax rate to all affected employers by mail or electronic transmission. Any
affected employer may appeal the recomputed tax rate in accordance with the procedures
in subdivision 6, paragraph (c).
    (h) (i) The "experience rating history" for purposes of this subdivision and subdivision
4a means the amount of unemployment benefits paid and the taxable wages that are being
used and would be used in computing the current and any future experience rating.
    For purposes of this chapter, an "acquisition" means anything that results in the
obtaining by the successor employer obtaining, in any way or manner, all, or a portion of,
the organization, trade or business, or workforce of the predecessor employer.
    A "distinct severable portion" in paragraph (b) means a location or unit separately
identifiable within the employer's wage detail report under section 268.044.
    (i) (j) Regardless of the ownership, management, or control requirements of
paragraph (a), if there is an acquisition or merger of a publicly held corporation by or with
another publicly held corporation the experience rating histories of the corporations are
combined as of the date of acquisition or merger for the purpose of recomputing a tax rate.

    Sec. 3. Minnesota Statutes 2012, section 268.057, subdivision 5, is amended to read:
    Subd. 5. Interest on amounts past due. If any amounts due from an employer
under this chapter or section 116L.20, except late fees under section 268.044, are not
received on the date due the unpaid balance bears interest at the rate of one and one-half
percent per month or any part thereof of a month. Interest collected under this subdivision
is credited to the contingent account.
EFFECTIVE DATE.This section applies to all interest assessed after July 1, 2015.

    Sec. 4. Minnesota Statutes 2012, section 268.085, subdivision 3, is amended to read:
    Subd. 3. Payments that delay unemployment benefits. (a) An applicant is not
eligible to receive unemployment benefits for any week with respect to which the applicant
is receiving, has received, or has filed for payment, equal to or in excess of the applicant's
weekly unemployment benefit amount, in the form of:
    (1) will receive vacation pay, sick pay, or personal time off pay, also known as
"PTO,." paid
    This paragraph only applies upon temporary, indefinite, or seasonal separation. This
clause and does not apply to (i) vacation pay, sick pay, or personal time off pay, paid:
    (1) upon a permanent separation from employment,; or (ii) vacation pay, sick pay, or
personal time off pay, paid
    (2) to payments from a vacation fund administered by a union or a third party not
under the control of the employer;.
Payments under this paragraph are applied to the period immediately following the
temporary, indefinite, or seasonal separation.
    (2) (b) An applicant is not eligible to receive unemployment benefits for any week
the applicant is receiving, has received, or will receive severance pay, bonus pay, and or
any other payments, except earnings under subdivision 5, and back pay under subdivision
6, paid by an employer because of, upon, or after separation from employment, but.
    This paragraph only applies if the payment is:
    (1) considered wages at the time of payment under section 268.035, subdivision 29; or
(2) subject to the Federal Insurance Contributions Act (FICA) tax imposed to fund
Social Security and Medicare.
Payments under this paragraph are applied to the period immediately following the
later of the date of separation from employment or the date the applicant first becomes
aware that the employer will be making a payment. The date the payment is actually
made or received, or that an applicant must agree to a release of claims, does not affect
the application of this paragraph.
This paragraph does not apply to earnings under subdivision 5, back pay under
subdivision 6, or vacation pay, sick pay, or personal time off pay under paragraph (a).
    (3) (c) An applicant is not eligible to receive unemployment benefits for any
week the applicant is receiving, has received, will receive, or has applied for pension,
retirement, or annuity payments from any plan contributed to by a base period employer
including the United States government, except Social Security benefits that are provided
for in subdivision 4. The base period employer is considered to have contributed to the
plan if the contribution is excluded from the definition of wages under section 268.035,
subdivision 29 , clause (1). If the pension, retirement, or annuity payment is paid in a lump
sum, an applicant is not considered to have received a payment if:
    (i) (1) the applicant immediately deposits that payment in a qualified pension plan
or account,; or
    (ii) (2) that payment is an early distribution for which the applicant paid an early
distribution penalty under the Internal Revenue Code, United States Code, title 26, section
72(t)(1).
This paragraph does not apply to Social Security benefits under subdivision 4 or 4a.
    (b) (d) This subdivision applies to all the weeks of payment. Payments under
paragraph (a), clause (1), are applied to the period immediately following the last day of
employment. The number of weeks of payment is determined as follows:
    (1) if the payments are made periodically, the total of the payments to be received is
divided by the applicant's last level of regular weekly pay from the employer; or
    (2) if the payment is made in a lump sum, that sum is divided by the applicant's last
level of regular weekly pay from the employer.
    For purposes of this paragraph, "last level of regular weekly pay" includes
commissions, bonuses, and overtime pay if that is part of the applicant's ongoing regular
compensation.
    (c) (e) Under this subdivision, if the payment with respect to a week is equal to
or more than the applicant's weekly unemployment benefit amount, the applicant is
ineligible for benefits for that week. If the payment with respect to a week is less than the
applicant's weekly unemployment benefit amount, unemployment benefits are reduced
by the amount of the payment.

    Sec. 5. Minnesota Statutes 2012, section 268.103, subdivision 2a, is amended to read:
    Subd. 2a. Employer-agent appeals filed online. (a) If an agent files an appeal on
behalf of an employer, the appeal must be filed online. The appeal must be filed through
the electronic address provided on the determination being appealed. Use of another
method of filing does not constitute an appeal. This paragraph does not apply to:
(1) an employee filing an appeal on behalf of an employer.; or
(2) an attorney licensed to practice law who is directly representing the employer
on appeal.
(b) All information requested when the appeal is filed must be supplied or the
communication does not constitute an appeal.

    Sec. 6. Minnesota Statutes 2012, section 268.18, subdivision 2b, is amended to read:
    Subd. 2b. Interest. (a) On any unemployment benefits fraudulently obtained,
and any penalty amounts assessed under subdivision 2, the commissioner must assess
interest at the rate of 1-1/2 one percent per month on any amount that remains unpaid
beginning 30 calendar days after the date of the determination of overpayment by fraud. A
determination of overpayment by fraud must state that interest will be assessed. Interest is
assessed in the same manner as on employer debt under section 268.057, subdivision 5.
    (b) If the determination did not state that interest will be assessed, interest is assessed
beginning 30 calendar days after notification, by mail or electronic transmission, to the
applicant that interest is now assessed.
    (c) Interest payments collected under this section subdivision are credited to the
trust fund.
EFFECTIVE DATE.This section applies to interest assessed after July 1, 2015.

    Sec. 7. Minnesota Statutes 2012, section 268.186, is amended to read:
268.186 RECORDS; AUDITS.
    Subdivision 1. Employer records; audits. (a) Each employer must keep true and
accurate records for the periods of time and on individuals performing services for the
employer, containing the information the commissioner may require by rule. under
Minnesota Rules, part 3315.1010. The records must be kept for a period of not less than
four years in addition to the current calendar year.
    (b) For the purpose of administering this chapter, the commissioner has the power
to audit, examine, or cause to be supplied or copied, any books, correspondence, papers,
records, or memoranda that are relevant, whether the books, correspondence, papers,
records, or memoranda are the property of, or in the possession of the, an employer or any
other person at any reasonable time and as often as may be necessary. Subpoenas may be
issued under section 268.188, as necessary, for an audit.
    (b) Any An employer, or other person, that refuses to allow an audit of its records by
the department, or that fails to make all necessary records available for audit in Minnesota
upon request of the commissioner, may be assessed an administrative penalty of $500.
The penalty collected is credited to the trust fund.
    (c) An employer, or other person, that fails to provide a weekly breakdown of money
earned by an applicant upon request of the commissioner, information necessary for the
detection of applicant fraud under section 268.18, subdivision 2, may be assessed an
administrative penalty of $100. Any notice requesting a weekly breakdown must clearly
state that a $100 penalty may be assessed for failure to provide the information. The
penalty collected is credited to the trust fund.
    Subd. 2. Department records; destruction. (c) (a) The commissioner may make
summaries, compilations, photographs, duplications, or reproductions of any records,
or reports pertaining to this chapter that the commissioner considers advisable for the
preservation of the information. contained therein. Any summaries, compilations,
photographs, duplications, or reproductions is admissible in any proceeding under this
chapter. The commissioner may duplicate records, reports, summaries, compilations,
instructions, determinations, or any other written or recorded matter pertaining to the
administration of this chapter.
    (d) (b) Regardless of any law to the contrary, the commissioner may provide for the
destruction of destroy any records, reports, or reproductions, or other papers that are no
longer necessary for the administration of this chapter, including any required audit. In
addition, the commissioner may provide for the destruction or disposition of destroy any
record, report, or other paper from which the information has been electronically captured
and stored, or that has been photographed, duplicated, or reproduced.

    Sec. 8. EFFECTIVE DATE.
Unless otherwise specified, this article is effective the fourth Sunday following final
enactment and applies to all matters and issues pending determination or decision.

ARTICLE 2

UNEMPLOYMENT INSURANCE ADVISORY COUNCIL HOUSEKEEPING

    Section 1. Minnesota Statutes 2012, section 268.035, subdivision 2, is amended to read:
    Subd. 2. Agricultural employment. (a) "Agricultural employment" means
services: the same as "agricultural labor" defined under United States Code, title 26,
section 3306, subparagraph (k), of the Federal Unemployment Tax Act and Code of
Federal Regulations, title 26, section 31.3121(G)-1.
(1) on a farm, in the employ of any person or family farm corporation in connection
with cultivating the soil, or in connection with raising or harvesting any agricultural or
horticultural commodity, including the raising, shearing, feeding, caring for, training, and
management of livestock, bees, poultry, fur-bearing animals, and wildlife;
(2) in the employ of the owner or tenant or other operator of a farm, in connection
with the operation, management, conservation, improvement, or maintenance of the farm
and its tools and equipment, or in salvaging timber or clearing land of brush and other debris
left by a tornado-like storm, if the major part of the employment is performed on a farm;
(3) in connection with the production or harvesting of any commodity defined as
an agricultural product in United States Code, title 7, section 1626 of the Agricultural
Marketing Act, or in connection with cotton ginning, or in connection with the operation
or maintenance of ditches, canals, reservoirs, or waterways, not owned or operated for
profit, used exclusively for supplying and storing water for farming purposes;
(4) in the employ of the operator of a farm in handling, planting, drying, packing,
packaging, processing, freezing, grading, storing, or delivering to storage or to market
or to a carrier for transportation to market, in its unmanufactured state, any agricultural
or horticultural commodity; but only if the operator produced more than one-half of the
commodity with respect to which the employment is performed, or in the employ of a
group of operators of farms or a cooperative organization of which the operators are
members, but only if the operators produced more than one-half of the commodity with
respect to which the employment is performed; however, this clause is not applicable to
employment performed in connection with commercial canning or commercial freezing
or in connection with any agricultural or horticultural commodity after its delivery to a
terminal market for distribution for consumption; or
(5) on a farm operated for profit if the employment is not in the course of the
employer's trade or business.
For purposes of this subdivision, the term "farm" includes stock, dairy, poultry, fruit,
fur-bearing animals, and truck farms, plantations, ranches, nurseries, orchards, ranges,
greenhouses, or other similar structures used primarily for the raising of agricultural or
horticultural commodities.
(b) For the purposes of this chapter, the term "crew leader" means an individual who:
(1) furnishes workers to be employed in agricultural employment for another person;
and
(2) pays the wages to the worker.
(c) For the purposes of this chapter, a worker who is a member of a crew furnished
by a crew leader for another person is an employee of the crew leader if:
    (1)(i) the crew leader holds a valid certificate of registration under United States
Code, title 29, section 1802, the Migrant and Seasonal Agricultural Worker Protection Act;
or (ii) substantially all of the members of the crew operate or maintain any mechanized
equipment that is provided by the crew leader; and
(2) the crew leader has not entered into a written agreement with the other person
under which the worker is designated as an employee of the other person.
If a worker furnished by a crew leader for another person is not an employee of the
crew leader under clauses (1) and (2), the worker is an employee of the other person and
the wages paid to the worker are considered paid by the other person.

    Sec. 2. Minnesota Statutes 2012, section 268.035, subdivision 4, is amended to read:
    Subd. 4. Base period. (a) "Base period," unless otherwise provided in this
subdivision, means the most recent four completed calendar quarters before the effective
date of an applicant's application for unemployment benefits if the application has an
effective date occurring after the month following the most recent completed calendar
quarter. The base period defined in this paragraph is considered the primary base period.
The base period under this paragraph is as follows:

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

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

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

    (c) If the applicant has insufficient wage credits to establish a benefit account under
paragraph (a) or (b) a base period of the four most recent completed calendar quarters,
or a base period of the first four of the most recent five completed calendar quarters,
but during the either base period under paragraph (a) or (b) an the applicant received
workers' compensation for temporary disability under chapter 176 or a similar federal law
or similar law of another state, or if an the applicant whose own serious illness caused a
loss of work for which the applicant received compensation for loss of wages from some
other source, the applicant may request an extended a base period as follows:
    (1) if an applicant was compensated for a loss of work of seven to 13 weeks, the
base period is the first four of the most recent six completed calendar quarters before the
effective date of the application for unemployment benefits;
    (2) if an applicant was compensated for a loss of work of 14 to 26 weeks, the base
period is the first four of the most recent seven completed calendar quarters before the
effective date of the application for unemployment benefits;
    (3) if an applicant was compensated for a loss of work of 27 to 39 weeks, the base
period is the first four of the most recent eight completed calendar quarters before the
effective date of the application for unemployment benefits; and
    (4) if an applicant was compensated for a loss of work of 40 to 52 weeks, the base
period is the first four of the most recent nine completed calendar quarters before the
effective date of the application for unemployment benefits.
(d) If the applicant under paragraph (b) has insufficient wage credits to establish a
benefit account using the secondary base period under paragraph (b), an alternate, then a
base period of the most recent four completed calendar quarters before the effective date
of the applicant's application for unemployment benefits will must be used. Establishment
of a benefit account is in accordance with section 268.07, subdivision 2.
    (e) No base period under paragraph (a), (b), (c), or (d) this subdivision may include
wage credits upon which a prior benefit account was established.
(f) Regardless of paragraph (a), the secondary a base period in paragraph (b) of the
first four of the most recent five completed calendar quarters must be used if the applicant
has would have more wage credits under that base period than under the primary a base
period in paragraph (a) of the four most recent completed calendar quarters.

    Sec. 3. Minnesota Statutes 2012, section 268.035, subdivision 11, is amended to read:
    Subd. 11. Covered agricultural employment. (a) "Covered agricultural
employment" means agricultural employment where:
    (1) The employment is performed for a person who:
    (i) (1) during any calendar quarter in either the current or the prior calendar year
paid wages of $20,000 or more to employees in agricultural employment; or
    (ii) (2) in the current or the prior calendar year employed four or more employees
who each worked for some portion of a day in each of 20 different calendar weeks,
whether or not the weeks were consecutive, in either the current or prior calendar year
employed in agricultural employment four or more employees, regardless of whether they
were employed at during the same time weeks.
    (2) Any employee who is a member of a crew furnished by a crew leader to be
employed in agricultural employment for any other person is treated as an employee
of the crew leader:
    (i) if the crew leader holds a valid certificate of registration under United States
Code, title 29, section 1802, the Migrant and Seasonal Agricultural Worker Protection
Act; or substantially all of the members of the crew operate or maintain tractors,
mechanized harvesting or crop dusting equipment, or any other mechanized equipment,
that is provided by the crew leader; and
    (ii) if the employee is not an employee of another person.
    (3) Any employee who is furnished by a crew leader to be employed in agricultural
employment for any other person and who is not treated as an employee of the crew
leader under clause (2):
    (i) the other person and not the crew leader is treated as the employer of the
employee; and
    (ii) the other person is treated as having paid wages to the employee in an amount
equal to the amount of wages paid to the employee by the crew leader (either on the
crew leader's behalf or on behalf of the other person) for the agricultural employment
performed for the other person.
    (4) The term "crew leader" means an individual who:
    (i) furnishes employees to be employed in agricultural employment for any other
person;
    (ii) pays (either on the crew leader's own behalf or on behalf of the other person)
the employees furnished by the crew leader for the agricultural employment performed
by them; and
    (iii) has not entered into a written agreement with the other person under which the
furnished employee is designated as an employee of the other person.
    (5) (b) Employment of an officer or shareholder of a family farm corporation is
excluded from covered agricultural employment unless the corporation is an employer
under United States Code, title 26, section 3306(a)(2) of the Federal Unemployment
Tax Act.
    (6) and employment of an individual 16 years of age or under is excluded from
included in covered agricultural employment unless only if the employer is an employer
under United States Code, title 26, section 3306(a)(2) of the Federal Unemployment
Tax Act.

    Sec. 4. Minnesota Statutes 2012, section 268.035, subdivision 12, is amended to read:
    Subd. 12. Covered employment. (a) "Covered employment" means the following
unless excluded as "noncovered employment" under subdivision 20:
    (1) an employee's entire employment during the calendar quarter if:
    (i) the employment is performed entirely in Minnesota;
    (ii) (i) the employment during the quarter is performed primarily in Minnesota,
and the employment performed outside Minnesota is incidental to the employment in
Minnesota; or;
    (iii) (ii) the employment during the quarter is not performed primarily in Minnesota
or any one other state but some of the employment is performed in Minnesota and the
base of operations or the place from which the employment is directed or controlled
is in Minnesota; or
    (iii) the employment during the quarter is not performed primarily in Minnesota
or any other state and the base of operations or place from which the employment is
directed or controlled is not in any state where part of the employment is performed, but
the employee's residence is in Minnesota;
    (2) an employee's entire employment during the calendar quarter wherever
performed within the United States or Canada, if:
    (i) the employment is not considered covered employment under the unemployment
insurance program of any other state, federal law, or the law of Canada; and
    (ii) the place from which the employment is directed or controlled is in Minnesota;
    (3) the employment during the calendar quarter of, performed entirely outside of
the United States and Canada, by an employee who is a United States citizen of the
United States, performed outside the United States, except in Canada, in the employ of
an American employer if:
    (i) the employer's principal place of business in the United States is located in
Minnesota;.
    (ii) the employer has no place of business in the United States, but the employer
is an individual who is a resident of Minnesota, or the employer is a corporation that is
organized under the laws of Minnesota, or the employer is a partnership or a trust and the
number of partners or trustees who are residents of Minnesota is greater than the number
who are residents of any one other state;
    (iii) none of the criteria of items (i) and (ii) is met but the employer has elected
coverage in Minnesota, or the employer having failed to elect coverage in any state,
an applicant has made an application for unemployment benefits under section 268.07,
based on the employment;
    (iv) An "American employer," for the purposes of this subdivision clause, means a
corporation organized under the laws of any state, an individual who is a resident of
the United States, or a partnership if two-thirds or more of the partners are residents of
the United States, or a trust, if all of the trustees are residents of the United States, or a
corporation organized under the laws of the United States, or of any state; or; and
    (v) as used in this subdivision, the term "United States" includes the states, the
District of Columbia, the Commonwealth of Puerto Rico, and the Virgin Islands;
    (4) all employment during the calendar quarter performed by an officer or member
of the crew of an American vessel on or in connection with the vessel, if the operating
office from which the operations of the vessel operating on navigable waters within, or
within and without, the United States are ordinarily and regularly supervised, managed,
directed, and controlled is in Minnesota; and.
(b) "Covered employment" includes covered agricultural employment under
subdivision 11.
    (5) (c) For the purposes of satisfying the period of ineligibility under section
268.095, subdivision 10 , "covered employment" includes covered employment under an
unemployment insurance program:
    (1) of any other state or employment covered under an unemployment insurance
program; or
    (2) established by an act of Congress.

    Sec. 5. Minnesota Statutes 2012, section 268.035, subdivision 20, is amended to read:
    Subd. 20. Noncovered employment. "Noncovered employment" means:
    (1) employment for the United States government or an instrumentality thereof,
including military service;
    (2) employment for a state, other than Minnesota, or a political subdivision or
instrumentality thereof;
    (3) employment for a foreign government;
    (4) employment for an instrumentality wholly owned by a foreign government,
if the employment is of a character similar to that performed in foreign countries by
employees of the United States government or an instrumentality thereof and the United
States Secretary of State has certified that the foreign government grants an equivalent
exemption to similar employment performed in the foreign country by employees of the
United States government and instrumentalities thereof;
    (5) employment covered under United States Code, title 45, section 351, the
Railroad Unemployment Insurance Act;
    (6) employment covered by a reciprocal arrangement between the commissioner and
another state or the federal government that provides that all employment performed by an
individual for an employer during the period covered by the reciprocal arrangement is
considered performed entirely within another state;
    (7) employment for a church or convention or association of churches, or an
organization operated primarily for religious purposes that is operated, supervised,
controlled, or principally supported by a church or convention or association of churches
described in United States Code, title 26, section 501(c)(3) of the federal Internal Revenue
Code and exempt from income tax under section 501(a);
    (8) employment of a duly ordained or licensed minister of a church in the exercise of
a ministry or by a member of a religious order in the exercise of duties required by the
order, for Minnesota or a political subdivision or an organization described in United
States Code, title 26, section 501(c)(3) of the federal Internal Revenue Code and exempt
from income tax under section 501(a);
    (9) employment of an individual receiving rehabilitation of "sheltered" work in
a facility conducted for the purpose of carrying out a program of rehabilitation for
individuals whose earning capacity is impaired by age or physical or mental deficiency
or injury or a program providing "sheltered" work for individuals who because of an
impaired physical or mental capacity cannot be readily absorbed in the competitive labor
market. This clause applies only to services performed for Minnesota or a political
subdivision or an organization described in United States Code, title 26, section 501(c)(3)
of the federal Internal Revenue Code and exempt from income tax under section 501(a)
in a facility certified by the Rehabilitation Services Branch of the department or in a day
training or habilitation program licensed by the Department of Human Services;
    (10) employment of an individual receiving work relief or work training as part of
an unemployment work relief or work training program assisted or financed in whole or
in part by any federal agency or an agency of a state or political subdivision thereof.
This clause applies only to employment for Minnesota or a political subdivision or an
organization described in United States Code, title 26, section 501(c)(3) of the federal
Internal Revenue Code and exempt from income tax under section 501(a). This clause does
not apply to programs that require unemployment benefit coverage for the participants;
    (11) employment for Minnesota or a political subdivision as an elected official, a
member of a legislative body, or a member of the judiciary;
    (12) employment as a member of the Minnesota National Guard or Air National
Guard;
    (13) employment for Minnesota, a political subdivision, or instrumentality thereof,
as an employee serving only on a temporary basis in case of fire, flood, tornado, or
similar emergency;
    (14) employment as an election official or election worker for Minnesota or a
political subdivision, but only if the compensation for that employment was less than
$1,000 in a calendar year;
    (15) employment for Minnesota that is a major policy-making or advisory position
in the unclassified service;
(16) employment for Minnesota in an unclassified position established under section
43A.08, subdivision 1a ;
    (17) employment for a political subdivision of Minnesota that is a nontenured major
policy making or advisory position;
    (18) domestic employment in a private household, local college club, or local
chapter of a college fraternity or sorority performed for a person, only if the wages paid
in any calendar quarter in either the current or prior calendar year to all individuals in
domestic employment totaled less than $1,000.
    "Domestic employment" includes all service in the operation and maintenance of a
private household, for a local college club, or local chapter of a college fraternity or
sorority as distinguished from service as an employee in the pursuit of an employer's
trade or business;
    (19) employment of an individual by a son, daughter, or spouse, and employment of
a child under the age of 18 by the child's father or mother;
    (20) employment of an individual who provides direct care to an immediate family
member funded through the personal care assistance program under section 256B.0659;
(21) (20) employment of an inmate of a custodial or penal institution;
    (22) (21) employment for a school, college, or university by a student who is
enrolled and whose primary relation to the school, college, or university is as a student.
This does not include an individual whose primary relation to the school, college, or
university is as an employee who also takes courses;
    (23) (22) employment of an individual who is enrolled as a student in a full-time
program at a nonprofit or public educational institution that maintains a regular faculty
and curriculum and has a regularly organized body of students in attendance at the place
where its educational activities are carried on, taken for credit at the institution, that
combines academic instruction with work experience, if the employment is an integral
part of the program, and the institution has so certified to the employer, except that this
clause does not apply to employment in a program established for or on behalf of an
employer or group of employers;
    (24) (23) employment of university, college, or professional school students in an
internship or other training program with the city of St. Paul or the city of Minneapolis
under Laws 1990, chapter 570, article 6, section 3;
    (25) (24) employment for a hospital by a patient of the hospital. "Hospital" means
an institution that has been licensed by the Department of Health as a hospital;
    (26) (25) employment as a student nurse for a hospital or a nurses' training school by
an individual who is enrolled and is regularly attending classes in an accredited nurses'
training school;
    (27) (26) employment as an intern for a hospital by an individual who has completed
a four-year course in an accredited medical school;
    (28) (27) employment as an insurance salesperson, by other than a corporate
officer, if all the wages from the employment is solely by way of commission. The word
"insurance" includes an annuity and an optional annuity;
    (29) (28) employment as an officer of a township mutual insurance company or
farmer's mutual insurance company operating under chapter 67A;
    (30) (29) employment of a corporate officer, if the officer directly or indirectly,
including through a subsidiary or holding company, owns 25 percent or more of the
employer corporation, and employment of a member of a limited liability company, if the
member directly or indirectly, including through a subsidiary or holding company, owns
25 percent or more of the employer limited liability company;
    (31) (30) employment as a real estate salesperson, by other than a corporate officer,
if all the wages from the employment is solely by way of commission;
    (32) (31) employment as a direct seller as defined in United States Code, title 26,
section 3508;
    (33) (32) employment of an individual under the age of 18 in the delivery or
distribution of newspapers or shopping news, not including delivery or distribution to any
point for subsequent delivery or distribution;
    (34) (33) casual employment performed for an individual, other than domestic
employment under clause (18), that does not promote or advance that employer's trade or
business;
    (35) (34) employment in "agricultural employment" unless considered "covered
agricultural employment" under subdivision 11; or
    (36) (35) if employment during one-half or more of any pay period was covered
employment, all the employment for the pay period is considered covered employment;
but if during more than one-half of any pay period the employment was noncovered
employment, then all of the employment for the pay period is considered noncovered
employment. "Pay period" means a period of not more than a calendar month for which a
payment or compensation is ordinarily made to the employee by the employer.

    Sec. 6. Minnesota Statutes 2012, section 268.035, subdivision 22, is amended to read:
    Subd. 22. State and United States. "State" and "United States" includes, in
addition to the states of the United States, the Commonwealth of Puerto Rico, the District
of Columbia, and the Virgin Islands.

    Sec. 7. Minnesota Statutes 2012, section 268.057, subdivision 7, is amended to read:
    Subd. 7. Credit adjustments, refunds. (a) If an employer makes an application
for a credit adjustment of any amount paid under this chapter or section 116L.20 within
four years of the date that the payment was due, in a manner and format prescribed by
the commissioner, and the commissioner determines that the payment or any portion was
erroneous, the commissioner must make an adjustment and issue a credit without interest.
If a credit cannot be used, the commissioner must refund, without interest, the amount
erroneously paid. The commissioner, on the commissioner's own motion, may make a
credit adjustment or refund under this subdivision.
    Any refund returned to the commissioner is considered unclaimed property under
chapter 345.
    (b) If a credit adjustment or refund is denied in whole or in part, a notice determination
of denial must be sent to the employer by mail or electronic transmission. The notice
determination of denial is final unless an employer files an appeal within 20 calendar days
after sending. Proceedings on the appeal are conducted in accordance with section 268.105.

    Sec. 8. Minnesota Statutes 2012, section 268.0625, subdivision 4, is amended to read:
    Subd. 4. Notice Determination and right to hearing. At least 30 calendar days
before the commissioner notifies a licensing authority, a notice determination of action
under this section must be sent to the licensee by mail or electronic transmission. If the
licensee disputes the action, the licensee must appeal within 20 calendar days after the
sending of the notice determination to the licensee. The only issue on any appeal is
whether the commissioner has complied with the requirements of this section. Proceedings
on the appeal are conducted in accordance with section 268.105.

    Sec. 9. Minnesota Statutes 2012, section 268.085, subdivision 4, is amended to read:
    Subd. 4. Social Security old age insurance benefits. (a) Any applicant aged 62
or over is required to state when filing an application for unemployment benefits and
when filing continued requests for unemployment benefits if the applicant is receiving,
has filed for, or intends to file for, primary Social Security old age benefits for any week
during the benefit year.
    Unless paragraph (b) applies, 50 percent of the weekly equivalent of the primary
Social Security old age benefit the applicant has received, has filed for, or intends to file
for, with respect to that week must be deducted from an applicant's weekly unemployment
benefit amount.
    (b) If all of the applicant's wage credits were earned while the applicant was claiming
Social Security old age benefits, there is no deduction from the applicant's weekly
unemployment benefit amount. The purpose of this paragraph is to ensure that an applicant
who is claiming Social Security benefits has demonstrated a desire and ability to work.
(c) Information from the Social Security Administration is considered conclusive,
absent specific evidence showing that the information was erroneous.
(d) This subdivision does not apply to Social Security survivor benefits.
    (c) An applicant who is receiving, has received, or has filed for primary Social
Security disability benefits for any week during the benefit year must be determined
unavailable for suitable employment for that week, unless:
    (1) the Social Security Administration approved the collecting of primary Social
Security disability benefits each month the applicant was employed during the base
period; or
    (2) the applicant provides a statement from an appropriate health care professional
who is aware of the applicant's Social Security disability claim and the basis for that claim,
certifying that the applicant is available for suitable employment.
    If an applicant meets the requirements of clause (1) there is no deduction from the
applicant's weekly benefit amount for any Social Security disability benefits. If only
clause (2) applies, then there must be deducted from the applicant's weekly unemployment
benefit amount 50 percent of the weekly equivalent of the primary Social Security
disability benefits the applicant is receiving, has received, or has filed for, with respect
to that week; provided, however, that if the Social Security Administration determines
that an individual is not entitled to receive primary Social Security disability benefits for
any week the applicant has applied for those benefits, the 50 percent deduction does not
apply to that week.
    (d) Information from the Social Security Administration is considered conclusive,
absent specific evidence showing that the information was erroneous.
    (e) This subdivision does not apply to Social Security survivor benefits.
EFFECTIVE DATE.The amendment to paragraph (b) is effective the day
following final enactment.

    Sec. 10. Minnesota Statutes 2012, section 268.085, is amended by adding a subdivision
to read:
    Subd. 4a. Social Security disability benefits. (a) An applicant who is receiving,
has received, or has filed for primary Social Security disability benefits for any week is
ineligible for unemployment benefits for that week, unless:
    (1) the Social Security Administration approved the collecting of primary Social
Security disability benefits each month the applicant was employed during the base
period; or
    (2) the applicant provides a statement from an appropriate health care professional
who is aware of the applicant's Social Security disability claim and the basis for that claim,
certifying that the applicant is available for suitable employment.
    (b) If an applicant meets the requirements of paragraph (a), clause (1), there is no
deduction from the applicant's weekly benefit amount for any Social Security disability
benefits.
    (c) If an applicant meets the requirements of paragraph (a), clause (2), there must
be deducted from the applicant's weekly unemployment benefit amount 50 percent of
the weekly equivalent of the primary Social Security disability benefits the applicant is
receiving, has received, or has filed for, with respect to that week.
    If the Social Security Administration determines that the applicant is not entitled to
receive primary Social Security disability benefits for any week the applicant has applied
for those benefits, then this paragraph does not apply to that week.
    (d) Information from the Social Security Administration is considered conclusive,
absent specific evidence showing that the information was erroneous.
    (e) This subdivision does not apply to Social Security survivor benefits.

    Sec. 11. Minnesota Statutes 2012, section 268.085, subdivision 6, is amended to read:
    Subd. 6. Receipt of back pay. (a) Back pay received by an applicant within 24
months of the establishment of the benefit account with respect to any week occurring
during the benefit year must be deducted from unemployment benefits paid for that week,
and the applicant is considered to have been overpaid the unemployment benefits under
section 268.18, subdivision 1.
    If the back pay is not paid with respect to a specific period, the back pay must be
applied to the period immediately following the last day of employment.
    (b) If the back pay is reduced by the amount of unemployment benefits that have
been paid, the amount of back pay withheld and not paid the applicant must be:
    (1) paid by the taxpaying or reimbursing employer to the trust fund within 30
calendar days and is subject to the same collection procedures that apply to past due
taxes and reimbursements; and
    (2) when received by the trust fund:
    (i) an overpayment of unemployment benefits must be created which, under section
268.047, subdivision 2, clause (8), clears the employer's tax or reimbursable account
of any effect; and
    (ii) the back pay must then be applied to the unemployment benefit overpayments
resulting from the payment of the back pay; and overpayment, eliminating any effect on
the applicant.
    (3) credited to the maximum amount of unemployment benefits available to the
applicant in a benefit year that includes the weeks for which back pay was deducted.
    (c) Unemployment benefits paid the applicant must be removed from the
computation of the tax rate for taxpaying employers and removed from the reimbursable
account for nonprofit and government employers that have elected to be liable for
reimbursements in the calendar quarter the trust fund receives payment.
    (d) Payments to the trust fund under this subdivision are considered as made by
the applicant.
(c) The following must result when applying paragraph (b):
(1) an employer neither overpays nor underpays the employer's proper portion
of the unemployment benefit costs; and
(2) the applicant is placed in the same position as never having been paid the
unemployment benefits.
(d) This subdivision applies to payments labeled front pay, settlement pay, and other
terms describing or dealing with wage loss.

    Sec. 12. Minnesota Statutes 2012, section 268.0865, subdivision 3, is amended to read:
    Subd. 3. Continued request for unemployment benefits by electronic
transmission. (a) A continued request for unemployment benefits by electronic
transmission must be filed to that electronic mail address, telephone number, or Internet
address prescribed by the commissioner for that applicant. In order to constitute a
continued request, all information asked for, including information authenticating that the
applicant is sending the transmission, must be provided in the format required. If all of the
information asked for is not provided, the communication does not constitute a continued
request for unemployment benefits.
    (b) The electronic transmission communication must be filed on the date and during
the time of day designated for the applicant for filing a continued request by electronic
transmission.
    (c) If the electronic transmission continued request is not filed on the date and
during the time of day designated as required under paragraph (b), a continued request
by electronic transmission must be accepted if the applicant files the continued request
by electronic transmission within two three calendar weeks following the week in which
the date designated occurred for which payment is requested. If the continued request by
electronic transmission is not filed within two three calendar weeks following the week
in which the date designated occurred for which payment is requested, the electronic
continued request will not be accepted and the applicant is ineligible for unemployment
benefits for the period covered by the continued request, unless the applicant shows good
cause for failing to file the continued request by electronic transmission within the time
period required.

    Sec. 13. Minnesota Statutes 2012, section 268.0865, subdivision 4, is amended to read:
    Subd. 4. Continued request for unemployment benefits by mail. (a) A
continued request for unemployment benefits by mail must be on a form prescribed by
the commissioner. The form, in order to constitute a continued request, must be totally
completed and signed by the applicant. The form must be filed on the date required for the
applicant for filing a continued request by mail, in an envelope with postage prepaid, and
sent to the address designated during the week following the week for which payment is
requested.
    (b) If the mail continued request for unemployment benefits is not filed on the date
designated as required under paragraph (a), a continued request must be accepted if the
form is filed by mail within two three calendar weeks following the week in which the date
designated occurred for which payment is requested. If the form is not filed within two
three calendar weeks following the week in which the date designated occurred for which
payment is requested, the form will not be accepted and the applicant is ineligible for
unemployment benefits for the period covered by the continued request for unemployment
benefits, unless the applicant shows good cause for failing to file the form by mail within
the time period required.
    (c) If the applicant has been designated to file a continued request for unemployment
benefits by mail, an applicant may submit the form by facsimile transmission on the day
otherwise required for mailing, or within two three calendar weeks following the week in
which the date designated occurred for which payment is requested. A form submitted by
facsimile transmission must be sent only to the telephone number assigned for that purpose.
    (d) An applicant who has been designated to file a continued request by mail may
personally deliver a continued request form only to the location to which the form was
otherwise designated to be mailed.

    Sec. 14. Minnesota Statutes 2012, section 268.095, subdivision 2, is amended to read:
    Subd. 2. Quit defined. (a) A quit from employment occurs when the decision to end
the employment was, at the time the employment ended, the employee's.
    (b) An employee who has been notified that the employee will be discharged in the
future, who chooses to end the employment while employment in any capacity is still
available, is considered to have quit the employment.
    (c) An employee who seeks to withdraw a previously submitted notice of quitting
is considered to have quit the employment, as of the intended date of quitting, if the
employer does not agree that the notice may be withdrawn.
    (d) An applicant who, within five calendar days after completion of a suitable job
assignment from a staffing service (1) fails without good cause to affirmatively request an
additional suitable job assignment, (2) refuses without good cause an additional suitable
job assignment offered, or (3) accepts employment with the client of the staffing service, is
considered to have quit employment with the staffing service. Accepting employment with
the client of the staffing service meets the requirements of the exception to ineligibility
under subdivision 1, clause (2).
    This paragraph applies only if, at the time of beginning of employment with the
staffing service, the applicant signed and was provided a copy of a separate document
written in clear and concise language that informed the applicant of this paragraph and
that unemployment benefits may be affected.
    For purposes of this paragraph, "good cause" is a reason that is significant and would
compel an average, reasonable worker, who would otherwise want an additional suitable
job assignment with the staffing service (1) to fail to contact the staffing service, or (2)
to refuse an offered assignment.

    Sec. 15. Minnesota Statutes 2012, section 268.105, subdivision 1, is amended to read:
    Subdivision 1. Evidentiary Hearing by unemployment law judge. (a) Upon a
timely appeal to a determination having been filed, the department must send, by mail or
electronic transmission, a notice of appeal to all involved parties that an appeal has been
filed, and that a de novo due process evidentiary hearing will be scheduled. The notice
must set out the parties' rights and responsibilities regarding the hearing. The notice must
explain that the facts will be determined by the unemployment law judge based upon a
preponderance of the evidence. The notice must explain in clear and simple language the
meaning of the term "preponderance of the evidence." The department or upon a referral
for direct hearing under section 268.101, subdivision 3a, the chief unemployment law
judge must set a time and place date for a de novo due process evidentiary hearing and
send notice to any involved applicant and any involved employer, by mail or electronic
transmission, not less than ten calendar days before the date of the hearing.
    (b) The evidentiary hearing is conducted by an unemployment law judge as an
evidence gathering inquiry. At the beginning of the hearing the unemployment law judge
must fully explain how the hearing will be conducted, that the applicant has the right to
request that the hearing be rescheduled so that documents or witnesses can be subpoenaed,
that the facts will be determined based on a preponderance of the evidence, and, in
clear and simple language, the meaning of the term "preponderance of the evidence."
The unemployment law judge must ensure that all relevant facts are clearly and fully
developed. The department may adopt rules on evidentiary procedures for hearings under
Minnesota Rules, chapter 3310. The rules need not conform to common law or statutory
rules of evidence and other technical rules of procedure.
    (c) The department chief unemployment law judge has discretion regarding the
method by which the evidentiary hearing is conducted. A report of any employee of the
department, except a determination, made in the regular course of the employee's duties, is
competent evidence of the facts contained in it. An affidavit or written statement based on
personal knowledge and signed under penalty of perjury is competent evidence of the facts
contained in it; however, the veracity of statements contained within the document or the
credibility of the witness making the statement may be disputed with other documents or
testimony and production of such documents or testimony may be compelled by subpoena.
    (c) (d) After the conclusion of the hearing, upon the evidence obtained, the
unemployment law judge must make written findings of fact, reasons for decision, and
decision and send those, by mail or electronic transmission, to all involved parties. When
the credibility of an involved party or a witness testifying in an evidentiary a hearing has a
significant effect on the outcome of a decision, the unemployment law judge must set out
the reason for crediting or discrediting that testimony. The unemployment law judge's
decision is final unless a request for reconsideration is filed under subdivision 2.
    (d) Regardless of paragraph (c), (e) If the appealing party fails to participate in the
evidentiary hearing, the unemployment law judge has the discretion to dismiss the appeal
by summary order decision. By failing to participate, the appealing party is considered to
have failed to exhaust available administrative remedies unless the appealing party files
a request for reconsideration under subdivision 2 and establishes good cause for failing
to participate in the evidentiary hearing under subdivision 2, paragraph (d). Submission
of a written statement does not constitute participation. The applicant must participate
personally and appearance solely by a representative does not constitute participation.
    (f) The unemployment law judge must issue a decision dismissing the appeal as
untimely if the judge decides the appeal was not filed within 20 calendar days after the
sending of the determination. The unemployment law judge may dismiss the appeal
by summary decision, or the judge may conduct a hearing to obtain evidence on the
timeliness of the appeal.
    (g) Decisions of an unemployment law judge are not precedential.
    (e) (h) Only employees of the department who are attorneys licensed to practice law
in Minnesota may serve as the chief unemployment law judge, senior unemployment
law judges who are supervisors, or unemployment law judges. The commissioner must
designate a chief unemployment law judge.
    (i) The chief unemployment law judge must assign an unemployment law judge to
conduct a hearing and may transfer to another unemployment law judge any proceedings
pending before an unemployment law judge.
(f) (j) A full-time unemployment law judge must be paid a salary within a range
directly tied to the salary set under section 15A.083, subdivision 7, for a workers'
compensation judge. The salary paid within that range to any single unemployment law
judge is based on experience and performance.

    Sec. 16. Minnesota Statutes 2012, section 268.105, subdivision 2, is amended to read:
    Subd. 2. Request for reconsideration. (a) Any involved applicant, involved
employer party, or the commissioner, may, within 20 calendar days of the sending
of the unemployment law judge's decision under subdivision 1 1a, file a request for
reconsideration asking the unemployment law judge to reconsider that decision. Section
268.103 applies to a request for reconsideration. If a request for reconsideration is timely
filed, the unemployment law judge must issue an order:.
    (1) modifying the findings of fact and decision issued under subdivision 1;
    (2) setting aside the decision issued under subdivision 1 and directing that an
additional evidentiary hearing be conducted under subdivision 1; or
    (3) affirming the findings of fact and decision issued under subdivision 1.
    (b) Upon a timely request for reconsideration having been filed, the department
chief unemployment law judge must send a notice, by mail or electronic transmission,
to all involved parties that a request for reconsideration has been filed. The notice must
inform the involved parties:
    (1) that reconsideration is the procedure for the unemployment law judge to
correct any factual or legal mistake in the decision, or to order an additional hearing
when appropriate;
    (2) of the opportunity to provide comment on the request for reconsideration, and
the right under subdivision 5 to obtain a copy of any recorded testimony and exhibits
offered or received into evidence at the evidentiary hearing;
    (2) (3) that providing specific comments as to a perceived factual or legal error
mistake in the decision, or a perceived error mistake in procedure during the evidentiary
hearing, will assist the unemployment law judge in deciding the request for reconsideration;
    (3) (4) of the right to obtain any comments and submissions provided by the any
other involved party regarding the request for reconsideration; and
    (4) (5) of the provisions of paragraph (c) regarding additional evidence.
This paragraph does not apply if paragraph (d) is applicable. Sending the notice does
not mean the unemployment law judge has decided the request for reconsideration was
timely filed.
    (c) In deciding a request for reconsideration, the unemployment law judge must not,
except for purposes of determining whether to order an additional evidentiary hearing,
consider any evidence that was not submitted at the evidentiary hearing conducted under
subdivision 1, except for purposes of determining whether to order an additional hearing.
    The unemployment law judge must order an additional evidentiary hearing if an
involved a party shows that evidence which was not submitted at the evidentiary hearing:
    (1) would likely change the outcome of the decision and there was good cause for
not having previously submitted that evidence; or
    (2) would show that the evidence that was submitted at the evidentiary hearing was
likely false and that the likely false evidence had an effect on the outcome of the decision.
    (d) If the involved applicant or involved employer party who filed the request
for reconsideration failed to participate in the evidentiary hearing conducted under
subdivision 1, the unemployment law judge must issue an order setting aside the decision
and directing that ordering an additional evidentiary hearing be conducted must be issued
if the party who failed to participate had good cause for failing to do so. In the notice
that a request for reconsideration has been filed, The party who failed to participate in
the hearing must be informed of the requirement, and provided the opportunity, to show
good cause for failing to participate. If the unemployment law judge determines that good
cause for failure to participate has not been shown, the unemployment law judge must
state that in the order decision issued under paragraph (a) (f).
    Submission of a written statement at the evidentiary hearing under subdivision 1
does not constitute participation for purposes of this paragraph.
    All involved parties must be informed of this paragraph with the notice of appeal
and notice of hearing provided for in subdivision 1.
    "Good cause" for purposes of this paragraph is a reason that would have prevented a
reasonable person acting with due diligence from participating at in the evidentiary hearing.
    (e) A request for reconsideration must be decided by the unemployment law judge
who issued the decision under subdivision 1 1a unless that unemployment law judge:
    (1) is no longer employed by the department;
    (2) is on an extended or indefinite leave; or
    (3) has been disqualified from the proceedings on the judge's own motion; or
    (4) (3) has been removed from the proceedings by the chief unemployment law judge.
    (f) If a request for reconsideration is timely filed, the unemployment law judge
must issue:
(1) a decision affirming the findings of fact, reasons for decision, and decision
issued under subdivision 1a;
(2) a decision modifying the findings of fact, reasons for decision, and decision
under subdivision 1a; or
(3) an order setting aside the findings of fact, reasons for decision, and decision
issued under subdivision 1a, and ordering an additional hearing.
    The unemployment law judge must issue a decision dismissing the request for
reconsideration as untimely if the judge decides the request for reconsideration was not
filed within 20 calendar days after the sending of the decision under subdivision 1a.
    The unemployment law judge must send to any involved applicant or involved
employer all parties, by mail or electronic transmission, the decision or order issued
under this subdivision. An order A decision affirming or modifying the previously
issued findings of fact, reasons for decision, and decision or an order affirming the
previously issued findings of fact and decision, or a decision dismissing the request for
reconsideration as untimely, is the final department decision on the matter and is final and
binding on the involved applicant and involved employer parties unless judicial review is
sought under subdivision 7.

    Sec. 17. Minnesota Statutes 2012, section 268.105, subdivision 3a, is amended to read:
    Subd. 3a. Effect of decisions. (a) If an unemployment law judge's decision or order
allows unemployment benefits to an applicant, the unemployment benefits must be paid
regardless of any request for reconsideration or any appeal petition to the Minnesota
Court of Appeals having been filed.
    (b) If an unemployment law judge's decision or order modifies or reverses a
determination that allowed unemployment benefits, or on reconsideration the decision
modifies or reverses a prior decision of the unemployment law judge, allowing
unemployment that allowed benefits to an applicant, any benefits paid in accordance with
the determination, or prior decision of the unemployment law judge, is are considered
an overpayment of those unemployment benefits. A decision or order issued under this
section that results in an overpayment of unemployment benefits must set out the amount
of the overpayment and the requirement under section 268.18, subdivision 1, that the
overpaid unemployment benefits must be repaid.
    (c) If an unemployment law judge's order decision on reconsideration under
subdivision 2 allows unemployment benefits to an applicant under section 268.095
because of a quit or discharge and the unemployment law judge's decision is reversed
by the Minnesota Court of Appeals or the Supreme Court of Minnesota, the applicant
cannot be held ineligible for any of the unemployment benefits paid the applicant and it is
not considered an overpayment of those unemployment benefits under section 268.18,
subdivision 1 before the date of the court's reversal. The effect of the court's reversal is:
(1) that the applicant may only be held ineligible for future unemployment benefits;
and
    (2) the application of section 268.047, subdivision 3, in computing the future tax
rate of the a taxpaying employer.
    (d) If an unemployment law judge, on reconsideration under subdivision 2,
orders the taking of additional evidence, the unemployment law judge's prior decision
must continue to be enforced until new findings of fact and decision are made by the
unemployment law judge.

    Sec. 18. Minnesota Statutes 2012, section 268.105, subdivision 5, is amended to read:
    Subd. 5. Use of evidence; data privacy. (a) All testimony at any evidentiary
hearing conducted under subdivision 1 must be recorded. A copy of any recorded
testimony and exhibits offered or received into evidence at the hearing must, upon request,
be furnished to a party at no cost:
    (1) during the time period for filing a request for reconsideration or;
    (2) while a request for reconsideration is pending.;
(3) during the time for filing a petition under subdivision 7; or
(4) while a petition is pending.
    (b) Regardless of any provision of law to the contrary, if recorded testimony and
exhibits received into evidence at the evidentiary hearing are not requested during the
time period for filing a request for reconsideration, while a request for reconsideration is
pending, during the time for filing any appeal under subdivision 7, or during the pendency
thereof, that testimony and other evidence may later be made available only under a
district court order. A subpoena is not considered a district court order.
    (c) (b) Testimony obtained under subdivision 1 at a hearing, may not be used
or considered for any purpose, including impeachment, in any civil, administrative, or
contractual proceeding, except by a local, state, or federal human rights agency with
enforcement powers, unless the proceeding is initiated by the department. This paragraph
does not apply to criminal proceedings.

    Sec. 19. Minnesota Statutes 2012, section 268.105, subdivision 6, is amended to read:
    Subd. 6. Representation; fees. (a) In any proceeding under subdivision 1 or 2, an
applicant or involved employer may be represented by any agent authorized representative.
    (b) Except for services provided by an attorney-at-law, no person may charge an
applicant a fee of any kind for advising, assisting, or representing an applicant in a hearing
or on reconsideration.
    (b) An applicant may not be charged fees, costs, or disbursements of any kind in
a proceeding before an unemployment law judge, the Minnesota Court of Appeals, or
the Supreme Court of Minnesota.
(c) No attorney fees may be awarded against the department as a result of any
proceedings under this section.

    Sec. 20. Minnesota Statutes 2012, section 268.184, subdivision 1, is amended to read:
    Subdivision 1. Administrative penalties. (a) The commissioner must penalize
an employer if that employer or any employee, officer, or agent of that employer, is
in collusion with any applicant for the purpose of assisting the applicant to receive
unemployment benefits fraudulently. The penalty is $500 or the amount of unemployment
benefits determined to be overpaid, whichever is greater.
    (b) The commissioner must penalize an employer if that employer or any employee,
officer, or agent of that employer: (1) made a false statement or representation knowing
it to be false,; (2) made a false statement or representation without a good faith belief
as to correctness of the statement or representation,; (3) knowingly failed to disclose a
material fact,; or (4) made an offer of employment to an applicant when, in fact, the
employer had no employment available.
The penalty is the greater of $500 or 50 percent of the following resulting from the
employer's action:
(i) the amount of any overpaid unemployment benefits to an applicant;
(ii) the amount of unemployment benefits not paid to an applicant that would
otherwise have been paid; or
(iii) the amount of any payment required from the employer under this chapter or
section 116L.20 that was not paid.
    (c) The commissioner must penalize an employer if that employer failed or refused
to honor a subpoena issued under section 268.105, subdivision 4, or section 268.188. The
penalty is $500 and any costs of enforcing the subpoena, including attorney fees.
    (d) Penalties under this subdivision and under section 268.047, subdivision 4,
paragraph (b), are in addition to any other penalties and subject to the same collection
procedures that apply to past due taxes. Penalties must be paid within 30 calendar days of
issuance of the determination of penalty and credited to the trust fund.
    (e) The determination of penalty is final unless the employer files an appeal within
20 calendar days after the sending of the determination of penalty to the employer by
mail or electronic transmission. Proceedings on the appeal are conducted in accordance
with section 268.105.

    Sec. 21. Minnesota Statutes 2012, section 268.184, subdivision 1a, is amended to read:
    Subd. 1a. Notification and misreporting penalties. (a) If the commissioner finds
that any employer or agent of an employer failed to meet the notification requirements of
section 268.051, subdivision 4, the employer must be assessed a penalty of $5,000 or two
percent of the first full quarterly payroll acquired, whichever is higher. Payroll is wages
paid as defined in section 268.035, subdivision 30. The penalty under this paragraph
must be canceled if the commissioner determines that the failure occurred because of
ignorance or inadvertence.
    (b) If the commissioner finds that any individual advised an employer to violate the
employer's notification requirements under section 268.051, subdivision 4, the individual,
and that individual's employer, must each be assessed the penalty in paragraph (a).
    (c) If the commissioner finds that any person or agent of a person violated the
reporting requirements of section 268.046, the person must be assessed a penalty of $5,000
or two percent of the quarterly payroll reported in violation of section 268.046, whichever
is higher. Payroll is wages paid as defined in section 268.035, subdivision 30.
    (d) Penalties under this subdivision are in addition to any other penalties and subject
to the same collection procedures that apply to past due amounts from an employer.
Penalties must be paid within 30 calendar days after sending of the determination of
penalty and credited to the trust fund.
    (e) The determination of penalty is final unless the person assessed files an appeal
within 20 calendar days after sending of the determination of penalty by mail or electronic
transmission. Proceedings on the appeal are conducted in accordance with section 268.105.

    Sec. 22. Minnesota Statutes 2012, section 268.196, subdivision 1, is amended to read:
    Subdivision 1. Administration account. (a) There is created in the state treasury a
special account to be known as the administration account. All money that is deposited
into this account is continuously available to the commissioner for expenditure to
administer administering the Minnesota unemployment insurance program, and does not
lapse at any time. The administration account consists of all money:
    (1) all money received from the federal government to:
    (i) administer the Minnesota unemployment insurance program,;
    (ii) administer any federal unemployment insurance program, or assistance provided
to; and
    (iii) assist any other state to administer in administering that state's unemployment
insurance program;
    (2) five percent of any money recovered on overpaid unemployment benefits as
provided for in section 268.194, subdivision 1, clause (7), which must be used for
deterring, detecting, and collecting overpaid unemployment benefits;
    (3) any money (2) received as compensation for services or facilities supplied to
the federal government or any other state;
    (4) any money (3) credited to this account under this chapter;
(5) any amounts (4) received for losses sustained by this account or by reason of
damage to equipment or supplies; and
    (6) any proceeds (5) received from the sale or disposition of any equipment or
supplies that may are no longer be necessary for the proper administration of those
sections the Minnesota unemployment insurance program.
    (b) All money in this account must be deposited, administered, and disbursed in the
same manner and under the same conditions and requirements as are provided by law for
the other special accounts in the state treasury. The commissioner of management and
budget, as treasurer and custodian of this account, is liable for the faithful performance
of duties in connection with this account.
    (c) All money in this account must may only be spent for the purposes and in the
amounts found necessary by the United States Secretary of Labor for the proper and
efficient administration of the Minnesota unemployment insurance program.

    Sec. 23. Minnesota Statutes 2012, section 268.215, is amended to read:
268.215 DAY OF THE WEEK AND DATE REQUIREMENT.
    (a) Every determination issued under this chapter that is subject to an appeal to an
unemployment law judge must indicate the day of the week and the date, for example,
Tuesday, August 1, 2006, that the determination is final and no longer subject to an appeal.
    (b) Every decision issued by an unemployment law judge under section 268.105,
subdivision 11a, must indicate the day of the week and the date, for example, Tuesday,
August 1, 2006, that the decision is final and no longer subject to reconsideration.

    Sec. 24. REVISOR'S INSTRUCTION.
(a) The revisor of statutes shall make the following terminology changes in
Minnesota Statutes and Minnesota Rules:
(1) "evidentiary hearing" to "hearing" in Minnesota Statutes, section 268.105;
(2) "involved employer" to "employer" in Minnesota Statutes, section 268.105;
(3) "involved applicant" to "applicant" in Minnesota Statutes, section 268.105;
(4) "involved party" to "party" in Minnesota Statutes, section 268.105;
(5) "order under subdivision 2" to "decision on reconsideration under subdivision 2"
in Minnesota Statutes, section 268.105;
(6) "review the unemployment law judge's decision" to "review the unemployment
law judge's decision on reconsideration" in Minnesota Statutes, section 268.105;
(7) "If the applicant has earnings, with respect to any week" to "If the applicant has
earnings, including holiday pay, with respect to any week" in Minnesota Statutes, section
268.085;
(8) "retroactive payment of money" to "payment" in Minnesota Statutes, section
268.035;
(9) "an alternate base period" to "a base period" in Minnesota Statutes, chapter 268;
(10) "section 645.151" to "sections 645.15 and 645.151" in Minnesota Statutes,
section 268.033;
(11) "appeal decision or order" to "unemployment law judge's decision" in
Minnesota Statutes, section 268.18;
(12) "personal identification number," "personal identification number (PIN)," or
"PIN" to "password" in Minnesota Statutes, section 268.084; and
(13) "for a period of not less than eight years after the calendar year" to "for a period
of not less than four years in addition to the current calendar year" in Minnesota Rules,
part 3315.1010.
(b) The revisor of statutes shall renumber Minnesota Statutes, section 268.105,
subdivision 1, paragraphs (d) to (g), as Minnesota Statutes, section 268.105, subdivision 1a,
paragraphs (a) to (d); and Minnesota Statutes, section 268.105, subdivision 1, paragraphs
(h) to (j), as Minnesota Statutes, section 268.105, subdivision 1b, paragraphs (a) to (c).
(c) The revisor of statutes shall reletter Minnesota Statutes, section 268.035,
subdivision 4, as follows: paragraph (c) is relettered paragraph (e); paragraph (e) is
relettered paragraph (f); and paragraph (f) is relettered paragraph (c). The revisor shall
make any cross-reference changes necessary from this relettering.

    Sec. 25. REPEALER.
(a) Minnesota Statutes 2012, section 268.105, subdivision 4, is repealed.
(b) Laws 2005, chapter 112, article 1, section 15, is repealed.
(c) Laws 2008, chapter 363, article 10, section 30, is repealed.
(d) Minnesota Rules, parts 3315.0200, subpart 1; 3315.0203; 3315.0211; 3315.0212;
3315.0213; 3315.0801; 3315.0805; 3315.0810; 3315.0815; 3315.0820; 3315.0825;
3315.0830; 3315.0835; 3315.0840; 3315.0845; 3315.0901; and 3315.0905, are repealed.

    Sec. 26. EFFECTIVE DATE.
Unless otherwise specified, this article is effective the fourth Sunday following final
enactment, and applies to all matters and issues pending determination or decision.