1.1 	A bill for an act
1.2 	relating to unemployment insurance; making federal conformity, policy, and 
1.3 	housekeeping changes;amending Minnesota Statutes 2012, sections 116L.17, 
1.4 	subdivision 4, by adding a subdivision; 268.033; 268.035, subdivisions 2, 4, 
1.5 	11, 12, 15, 22, 29; 268.042, subdivision 1; 268.043; 268.051, subdivisions 4a, 
1.6 	5; 268.057, subdivisions 5, 7; 268.0625, subdivision 4; 268.069, subdivision 
1.7 	3; 268.07, subdivisions 1, 3b; 268.085, subdivisions 3, 4, 5, 6; 268.0865, 
1.8 	subdivisions 3, 4; 268.095, subdivisions 2, 3; 268.103, subdivision 2a; 
1.9 	268.105; 268.131, subdivision 1; 268.136, subdivisions 1, 2, 3, 4, 5, by adding 
1.10 	subdivisions; 268.18, subdivisions 1, 2b; 268.184, subdivision 1a; 268.186; 
1.11 	268.192, subdivision 1a; 268.194, subdivision 1; 268.196, subdivision 1; 
1.12 	268.215; 268.23; Laws 2012, chapter 201, article 1, section 3; proposing coding 
1.13 	for new law in Minnesota Statutes, chapter 268; repealing Minnesota Rules, parts 
1.14 	3310.2905, subpart 2; 3310.2910; 3310.2914, subpart 1; 3310.2916; 3310.2919; 
1.15 	3310.2920; 3315.0200, subpart 1; 3315.0203; 3315.0211; 3315.0212; 3315.0213; 
1.16 	3315.0501, subparts 1, 2; 3315.0555, subpart 1; 3315.0801; 3315.0805; 
1.17 	3315.0810; 3315.0815; 3315.0820; 3315.0825; 3315.0830; 3315.0835; 
1.18 	3315.0840; 3315.0845; 3315.0901; 3315.0905; 3315.1001; 3315.1010.
1.19 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.20 	ARTICLE 1
1.21 	FEDERAL CONFORMITY

1.22 	Section 1. Minnesota Statutes 2012, section 268.136, subdivision 1, is amended to read:
1.23 		Subdivision 1.Shared work agreement plan requirements. (a) An employer 
1.24 	may submit a proposed shared work plan for an employee group to the commissioner 
1.25 	for approval in a manner and format set by the commissioner. The proposed agreement
1.26 	 shared work plan must include:
1.27 	(1) a certified statement that the normal weekly hours of work of all of the proposed 
1.28 	participating employees were full time or regular part time but are now reduced, or will be 
1.29 	reduced, with a corresponding reduction in pay, in order to prevent layoffs;
2.1 	(2) the name and Social Security number of each participating employee;
2.2 	(3) the number of layoffs that would have occurred absent the employer's ability to 
2.3 	participate in a shared work plan;
2.4 	(4) a certified statement of when that each participating employee was first hired by 
2.5 	the employer, which must be at least one year before the proposed agreement shared work 
2.6 	plan is submitted and is not a seasonal, temporary, or intermittent worker;
2.7 	(4) (5) the hours of work each participating employee will work each week for the 
2.8 	duration of the agreement shared work plan, which must be at least 20 one-half the normal 
2.9 	weekly hours and but no more than 32 hours per week, except that the agreement plan
2.10 	 may provide for a uniform vacation shutdown of up to two weeks;
2.11 	(6) a certified statement that any health benefits and any pension benefits provided 
2.12 	by the employer to participating employees will continue to be provided under the same 
2.13 	terms and conditions as though the participating employees' hours of work each week had 
2.14 	not been reduced;
2.15 	(7) a certified statement that the terms and implementation of the shared work plan is 
2.16 	consistent with the employer's obligations under state and federal law;
2.17 	(8) an acknowledgement that the employer understands that unemployment benefits 
2.18 	paid under a shared work plan will be used in computing the future tax rate of a taxpaying 
2.19 	employer or charged to the reimbursable account of a nonprofit or government employer;
2.20 	(5) (9) the proposed duration of the agreement shared work plan, which must be 
2.21 	at least two months and not more than one year, although an agreement a plan may be 
2.22 	extended for up to an additional year upon approval of the commissioner;
2.23 	(6) (10) a starting date beginning on a Sunday at least 15 calendar days after the date 
2.24 	the proposed agreement shared work plan is submitted; and
2.25 	(7) (11) a signature of an owner or officer of the employer who is listed as an owner 
2.26 	or officer on the employer's account under section 268.045.
2.27 	(b) An agreement may not be approved for an employer that:
2.28 	(1) has any unemployment tax or reimbursements, including any interest, fees, 
2.29 	or penalties, due but unpaid; or
2.30 	(2) has the maximum experience rating provided for under section 268.051, 
2.31 	subdivision 3.

2.32 	Sec. 2. Minnesota Statutes 2012, section 268.136, subdivision 2, is amended to read:
2.33 		Subd. 2.Agreement Approval by commissioner. (a) The commissioner must 
2.34 	promptly review a proposed agreement shared work plan and notify the employer, by mail 
2.35 	or electronic transmission, within 15 days of receipt, whether the proposal satisfies the 
3.1 	requirements of this section and has been approved. If the proposal does not comply 
3.2 	with this section, the commissioner must specifically state why the proposal is not in 
3.3 	compliance. If a proposed agreement complies with this section shared work plan has 
3.4 	been approved, it must be implemented according to its terms.
3.5 	(b) The commissioner may reject an agreementnot approve a proposed shared work 
3.6 	plan if the commissioner has cause to believe the proposal is not was submitted for the a
3.7 	 purpose of other than preventing layoffs due to lack of work.
3.8 	(c) The commissioner may not approve a proposed shared work plan if the employer 
3.9 	has any unemployment tax or reimbursements, including any interest, fees, or penalties, 
3.10 	due but unpaid.
3.11 	(d) A shared work plan that has been approved by the commissioner is considered 
3.12 	a contract that is binding on the employer and the department. This contract may be 
3.13 	canceled or modified under subdivision 5.

3.14 	Sec. 3. Minnesota Statutes 2012, section 268.136, is amended by adding a subdivision 
3.15 	to read:
3.16 		Subd. 2a.Notice to participating employee. The employer must provide written 
3.17 	notification to each participating employee that the employer has submitted a proposed 
3.18 	shared work plan. The notification must be provided to the employee no later than at 
3.19 	the time the commissioner notifies the employer that a proposed shared work plan has 
3.20 	been approved. The notification must inform the employee of the proposed terms of the 
3.21 	shared work plan along with notice to the employee of the employee's right to apply for 
3.22 	unemployment benefits.

3.23 	Sec. 4. Minnesota Statutes 2012, section 268.136, subdivision 3, is amended to read:
3.24 		Subd. 3.Applicant requirements. (a) An applicant, in order to be paid 
3.25 	unemployment benefits under this section, must meet all of the requirements under section 
3.26 	268.069, subdivision 1. The following provisions of section 268.085 do not apply to an 
3.27 	applicant under this section in an approved shared work plan:
3.28 	(1) the deductible earnings provision of section 268.085,under subdivision 5;
3.29 	(2) the restriction under section 268.085, subdivision 6 2, clause (6), if the applicant 
3.30 	works exactly 32 hours in a week;
3.31 	(3) the requirement of being available for suitable employment under subdivision 1, 
3.32 	clause (4), but only if the applicant is (i) available for the normal hours of work per week 
3.33 	with the shared work employer, or (ii) is in a training program when not working; and
4.1 	(4) the requirement of actively seeking suitable employment under subdivision 
4.2 	1, clause (5).
4.3 	(b) An applicant is ineligible for unemployment benefits under this section for 
4.4 	any week, if:
4.5 	(1) the applicant works more than 32 hours in a week in employment with one or 
4.6 	more employer; or.
4.7 	(2) the applicant works more hours in a week for the shared work employer than 
4.8 	the reduced weekly hours provided for in the agreement.

4.9 	Sec. 5. Minnesota Statutes 2012, section 268.136, subdivision 4, is amended to read:
4.10 		Subd. 4.Amount of unemployment benefits available. (a) The weekly benefit 
4.11 	amount and maximum amount of unemployment benefits available are computed 
4.12 	according to section 268.07, except that an applicant is paid the amount of benefits 
4.13 	available is a reduced amount in direct proportion to the reduction in hours set out in the 
4.14 	shared work plan from the normal weekly hours.
4.15 	(b) Regardless of paragraph (a), if the applicant works more hours in a week for the 
4.16 	shared work employer than the reduced weekly hours provided for in the shared work 
4.17 	plan, the amount of unemployment benefits available is a reduced amount in direct 
4.18 	proportion to the reduction in hours actually worked from the normal weekly hours.
4.19 	(c) If an applicant works fewer hours in a week for the shared work employee than 
4.20 	set out in the shared work plan, the amount of unemployment benefits are available in 
4.21 	accordance with paragraph (a).

4.22 	Sec. 6. Minnesota Statutes 2012, section 268.136, subdivision 5, is amended to read:
4.23 		Subd. 5.Cancellation; modification. (a) An employer may cancel an agreement a 
4.24 	shared work plan at any time upon seven calendar days' notice to the commissioner in a 
4.25 	manner and format prescribed by the commissioner. The cancellation must be signed by 
4.26 	an owner or officer of the employer.
4.27 	(b) An employer may request that the commissioner allow modification of the shared 
4.28 	work plan as to the hours of work each participating employee will work each week. The 
4.29 	request must be sent in a manner and form prescribed by the commissioner. The request 
4.30 	must be signed by an owner or officer of the employer. The commissioner must notify the 
4.31 	employer as soon as possible if the modification is allowed.
4.32 	(b) (c) An employer that cancels an agreement or requests modification of a shared 
4.33 	work plan must provide written notice to each participating employee in the group of the 
4.34 	cancellation or requested modification at the time notice is sent to the commissioner.
5.1 	(c) (d) If an employer cancels an agreement a shared work plan before the expiration 
5.2 	date provided for in subdivision 1, a new agreement shared work plan may not be entered 
5.3 	into with approved for that employer under this section for at least 60 calendar days.
5.4 	(d) (e) The commissioner may immediately cancel any agreement shared work plan
5.5 	 if the commissioner determines the agreement plan was based upon false information or 
5.6 	the employer is in breach has failed to adhere to the terms of the contract shared work plan. 
5.7 	The commissioner must immediately send written notice of cancellation to the employer. 
5.8 	An employer that receives notice of cancellation by the commissioner must provide 
5.9 	written notice to each participating employer in the group employee of the cancellation.

5.10 	Sec. 7. Minnesota Statutes 2012, section 268.136, is amended by adding a subdivision 
5.11 	to read:
5.12 		Subd. 6.Federal law. This section is enacted to comply with the "short time 
5.13 	compensation" requirements of the Federal Unemployment Tax Act, United States Code, 
5.14 	title 26, section 3306 (v).

5.15 	Sec. 8. Minnesota Statutes 2012, section 268.23, is amended to read:
5.16 	268.23 SEVERABLE.
5.17 	In the event that If the United States Department of Labor determines that any 
5.18 	provision of the Minnesota Unemployment Insurance Law, or any other provision of 
5.19 	Minnesota Statutes relating to the unemployment insurance program, is not in conformity 
5.20 	with, or is inconsistent with, the requirements of federal law, the provision has no force 
5.21 	or effect; but. If only a portion of the provision, or the application to any person or 
5.22 	circumstances, is held determined not in conformity, or determined inconsistent, the 
5.23 	remainder of the provision and the application of the provision to other persons or 
5.24 	circumstances are not affected.

5.25 	Sec. 9. COMMISSIONER AUTHORIZED TO REQUEST SHARED WORK 
5.26 	FUNDS.
 5.27 	The commissioner of employment and economic development is authorized to 
5.28 	request federal funding for Minnesota's "shared work" unemployment benefit program 
5.29 	under Minnesota Statutes, section 268.136. Federal funding is available under the Middle 
5.30 	Class Tax Relief and Job Creation Act of 2012, Public Law 112-96. Federal funding 
5.31 	provided under that act for the "shared work" program must be immediately deposited 
5.32 	in the Minnesota Unemployment Insurance Trust Fund. The exception under Minnesota 
5.33 	Statutes, section 268.047, subdivision 2, clause (10), does not apply to the federal money.

6.1 	EFFECTIVE DATE. This section is effective the day following final enactment.

6.2 	Sec. 10. EFFECTIVE DATE.
 6.3 	Unless otherwise specified, this article is effective for shared work plans approved 
6.4 	on or after July 1, 2013.

6.5 	ARTICLE 2
6.6 	HOUSEKEEPING AND POLICY

6.7 	Section 1. Minnesota Statutes 2012, section 116L.17, subdivision 4, is amended to read:
6.8 		Subd. 4.Use of funds. Funds granted by the board under this section may be used 
6.9 	for any combination of the following, except as otherwise provided in this section:
6.10 	(1) employment transition services such as developing readjustment plans for 
6.11 	individuals; outreach and intake; early readjustment; job or career counseling; testing; 
6.12 	orientation; assessment of skills and aptitudes; provision of occupational and labor market 
6.13 	information; job placement assistance; job search; job development; prelayoff assistance; 
6.14 	relocation assistance; and programs provided in cooperation with employers or labor 
6.15 	organizations to provide early intervention in the event of plant closings or substantial 
6.16 	layoffs; and entrepreneurial training and business consulting;
6.17 	(2) support services, including assistance to help the participant relocate to employ 
6.18 	existing skills; out-of-area job search assistance; family care assistance, including child 
6.19 	care; commuting assistance; emergency housing and rental assistance; counseling 
6.20 	assistance, including personal and financial; health care; emergency health assistance; 
6.21 	emergency financial assistance; work-related tools and clothing; and other appropriate 
6.22 	support services that enable a person to participate in an employment and training program 
6.23 	with the goal of reemployment;
6.24 	(3) specific, short-term training to help the participant enhance current skills 
6.25 	in a similar occupation or industry; entrepreneurial training, customized training, or 
6.26 	on-the-job training; basic and remedial education to enhance current skills; and literacy 
6.27 	and work-related English training for non-English speakers; and
6.28 	(4) long-term training in a new occupation or industry, including occupational skills 
6.29 	training or customized training in an accredited program recognized by one or more 
6.30 	relevant industries. Long-term training shall only be provided to dislocated workers 
6.31 	whose skills are obsolete and who have no other transferable skills likely to result in 
6.32 	employment at a comparable wage rate. Training shall only be provided for occupations or 
6.33 	industries with reasonable expectations of job availability based on the service provider's 
6.34 	thorough assessment of local labor market information where the individual currently 
7.1 	resides or is willing to relocate. This clause shall not restrict training in personal services 
7.2 	or other such industries.

7.3 	Sec. 2. Minnesota Statutes 2012, section 116L.17, is amended by adding a subdivision 
7.4 	to read:
7.5 		Subd. 11.Converting layoffs into Minnesota businesses (CLIMB). Converting 
7.6 	layoffs into Minnesota businesses (CLIMB) is created to assist dislocated workers in 
7.7 	starting or growing a business. CLIMB must offer entrepreneurial training, business 
7.8 	consulting, and technical assistance to dislocated workers seeking to start or grow a 
7.9 	business. The commissioner, in cooperation with local workforce councils, must provide 
7.10 	the assistance in this subdivision by:
7.11 	(1) encouraging closer ties between the Small Business Development Center 
7.12 	network, Small Business Development Center training providers; and workforce centers, 
7.13 	as well as other dislocated worker program service providers; and
7.14 	(2) eliminating grantee performance data disincentives that would otherwise prevent 
7.15 	enrollment of dislocated workers in entrepreneurship-related training.

7.16 	Sec. 3. Minnesota Statutes 2012, section 268.033, is amended to read:
7.17 	268.033 COMPUTATION OF TIME.
7.18 	The computation of time provisions of section sections 645.15 and645.151 apply 
7.19 	to this chapter.

7.20 	Sec. 4. Minnesota Statutes 2012, section 268.035, subdivision 2, is amended to read:
7.21 		Subd. 2.Agricultural employment. "Agricultural employment" means services:
7.22 	 the same as the definition of "agricultural labor" under United States Code, title 26, section 
7.23 	3306(k) of the Federal Unemployment Tax Act, and Code of Federal Regulations, title 26, 
7.24 	section 31.3121(G)-1, further defining agricultural labor.
7.25 	(1) on a farm, in the employ of any person or family farm corporation in connection 
7.26 	with cultivating the soil, or in connection with raising or harvesting any agricultural or 
7.27 	horticultural commodity, including the raising, shearing, feeding, caring for, training, and 
7.28 	management of livestock, bees, poultry, fur-bearing animals, and wildlife;
7.29 	(2) in the employ of the owner or tenant or other operator of a farm, in connection 
7.30 	with the operation, management, conservation, improvement, or maintenance of the farm 
7.31 	and its tools and equipment, or in salvaging timber or clearing land of brush and other debris 
7.32 	left by a tornado-like storm, if the major part of the employment is performed on a farm;
8.1 	(3) in connection with the production or harvesting of any commodity defined as 
8.2 	an agricultural product in United States Code, title 7, section 1626 of the Agricultural 
8.3 	Marketing Act, or in connection with cotton ginning, or in connection with the operation 
8.4 	or maintenance of ditches, canals, reservoirs, or waterways, not owned or operated for 
8.5 	profit, used exclusively for supplying and storing water for farming purposes;
8.6 	(4) in the employ of the operator of a farm in handling, planting, drying, packing, 
8.7 	packaging, processing, freezing, grading, storing, or delivering to storage or to market 
8.8 	or to a carrier for transportation to market, in its unmanufactured state, any agricultural 
8.9 	or horticultural commodity; but only if the operator produced more than one-half of the 
8.10 	commodity with respect to which the employment is performed, or in the employ of a 
8.11 	group of operators of farms or a cooperative organization of which the operators are 
8.12 	members, but only if the operators produced more than one-half of the commodity with 
8.13 	respect to which the employment is performed; however, this clause is not applicable to 
8.14 	employment performed in connection with commercial canning or commercial freezing 
8.15 	or in connection with any agricultural or horticultural commodity after its delivery to a 
8.16 	terminal market for distribution for consumption; or
8.17 	(5) on a farm operated for profit if the employment is not in the course of the 
8.18 	employer's trade or business.
8.19 	For purposes of this subdivision, the term "farm" includes stock, dairy, poultry, fruit, 
8.20 	fur-bearing animals, and truck farms, plantations, ranches, nurseries, orchards, ranges, 
8.21 	greenhouses, or other similar structures used primarily for the raising of agricultural or 
8.22 	horticultural commodities.

8.23 	Sec. 5. Minnesota Statutes 2012, section 268.035, subdivision 4, is amended to read:
8.24 		Subd. 4.Base period. (a) "Base period," unless otherwise provided in this 
8.25 	subdivision, means the most recent four completed calendar quarters before the effective 
8.26 	date of an applicant's application for unemployment benefits if the application has an 
8.27 	effective date occurring after the month following the most recent completed calendar 
8.28 	quarter. The base period defined in this paragraph is considered the primary base period.
8.29 	 The base period under this paragraph is as follows:

8.30
8.31
8.32		If the application for unemployment 
benefits is effective on or between these 
dates:
		The base period is the prior:
	
8.33		February 1 - March 31
		January 1 - December 31
	
8.34		May 1 - June 30
		April 1 - March 31
	
8.35		August 1 - September 30
		July 1 - June 30
	
8.36		November 1 - December 31
		October 1 - September 30
	
9.1 	(b) If an application for unemployment benefits has an effective date that is during 
9.2 	the month following the most recent completed calendar quarter, then the base period is 
9.3 	the first four of the most recent five completed calendar quarters before the effective 
9.4 	date of an applicant's application for unemployment benefits. The base period defined 
9.5 	in this paragraph is considered the secondary base period. The base period under this 
9.6 	paragraph is as follows:

9.7
9.8
9.9		If the application for unemployment 
benefits is effective on or between these 
dates:
		The base period is the prior:
	
9.10		January 1 -  January 31
		October 1 - September 30
	
9.11		April 1 -  April 30
		January 1 - December 31
	
9.12		July 1 -  July 31
		April 1 - March 31
	
9.13		October 1 -  October 31
		July 1 - June 30
	
9.14 	The base period in this paragraph is used when the wage detail report on the most 
9.15 	recent completed calendar quarter is not yet available. According to section 268.044, 
9.16 	subdivision 1, the wage detail report is due the last day of the month following the end 
9.17 	of the calendar quarter.
9.18 	(c) If the applicant has insufficient wage credits to establish a benefit account under 
9.19 	paragraph (a) or (b), but during the base period under paragraph (a) or (b) an applicant 
9.20 	received workers' compensation for temporary disability under chapter 176 or a similar 
9.21 	federal law or similar law of another state, or if an applicant whose own serious illness 
9.22 	caused a loss of work for which the applicant received compensation for loss of wages 
9.23 	from some other source, the applicant may request an extended a base period as follows:
9.24 	(1) if an applicant was compensated for a loss of work of seven to 13 weeks, the 
9.25 	base period is the first four of the most recent six completed calendar quarters before the 
9.26 	effective date of the application for unemployment benefits;
9.27 	(2) if an applicant was compensated for a loss of work of 14 to 26 weeks, the base 
9.28 	period is the first four of the most recent seven completed calendar quarters before the 
9.29 	effective date of the application for unemployment benefits;
9.30 	(3) if an applicant was compensated for a loss of work of 27 to 39 weeks, the base 
9.31 	period is the first four of the most recent eight completed calendar quarters before the 
9.32 	effective date of the application for unemployment benefits; and
9.33 	(4) if an applicant was compensated for a loss of work of 40 to 52 weeks, the base 
9.34 	period is the first four of the most recent nine completed calendar quarters before the 
9.35 	effective date of the application for unemployment benefits.
9.36 	(d) If the applicant applies for unemployment benefits with an effective date that 
9.37 	is during the month following the most recent completed calendar quarter, but has 
10.1 	insufficient wage credits to establish a benefit account using the secondary base period 
10.2 	under paragraph (b), an alternate of the first four of the most recent five completed 
10.3 	calendar quarters, then a base period of the most recent four completed calendar quarters 
10.4 	before the effective date of the applicant's application for unemployment benefits will be 
10.5 	used. This base period is used even though the wage detail report on the most recent 
10.6 	completed quarter has not yet been filed. In that circumstance, obtaining necessary wage 
10.7 	credit information for establishment of a benefit account is done in accordance with 
10.8 	section 268.07, subdivision 2 1, paragraph (c).
10.9 	(e) No base period under paragraph (a), (b), (c), or (d) may include wage credits 
10.10 	upon which a prior benefit account was established.
10.11 	(f) Regardless of paragraph (a), the secondary if an applicant applies for 
10.12 	unemployment benefits with an effective date occurring after the month following the 
10.13 	most recent calendar quarter, a base period in paragraph (b)of the first four of the most 
10.14 	recent five completed calendar quarters must be used if the applicant has would have more 
10.15 	wage credits under that base period than under the primary a base period in paragraph 
10.16 	(a) of the four most recent completed calendar quarters.

10.17 	Sec. 6. Minnesota Statutes 2012, section 268.035, subdivision 11, is amended to read:
10.18 		Subd. 11.Covered agricultural employment. (a) "Covered agricultural 
10.19 	employment" means agricultural employment where:
10.20 	(1) The agricultural employment is performed for a person who:
10.21 	(i) during any calendar quarter in either the current or the prior calendar year paid 
10.22 	wages of $20,000 or more to employees in agricultural employment; or
10.23 	(ii) employed at least four employees in agricultural employment who each worked 
10.24 	for some portion of a day in each of 20 different calendar weeks, whether or not the weeks 
10.25 	were consecutive, in either the current or prior calendar year employed in agricultural 
10.26 	employment four or more employees, regardless of whether they were employed at the 
10.27 	same time.;
10.28 	(2) any employee who is a member of a crew furnished by a crew leader to be 
10.29 	employed in agricultural employment for any other person is treated as an employee 
10.30 	of the crew leader:
10.31 	(i) if the crew leader holds a valid certificate of registration under United States 
10.32 	Code, title 29, section 1802, the Migrant and Seasonal Agricultural Worker Protection 
10.33 	Act; or substantially all of the members of the crew operate or maintain tractors, 
10.34 	mechanized harvesting or crop dusting equipment, or any other mechanized equipment, 
10.35 	that is provided by the crew leader; and
11.1 	(ii) if the employee is not an employee of another person.; and
11.2 	(3) any employee who is furnished by a crew leader to be employed in agricultural 
11.3 	employment for any other person and who is not treated as an employee of the crew 
11.4 	leader under clause (2):
11.5 	(i) the other person and not the crew leader is treated as the employer of the 
11.6 	employee; and
11.7 	(ii) the other person is treated as having paid wages to the employee in an amount 
11.8 	equal to the amount of wages paid to the employee by the crew leader (either on the 
11.9 	crew leader's behalf or on behalf of the other person) for the agricultural employment 
11.10 	performed for the other person.
11.11 	(4) (b) The term "crew leader" under this subdivision means an individual who:
11.12 	(i) (1) furnishes employees to be employed in agricultural employment for any 
11.13 	other person;
11.14 	(ii) (2) pays,(either on the crew leader's own behalf or on behalf of the other 
11.15 	person), the employees furnished by the crew leader for the agricultural employment 
11.16 	performed by them; and
11.17 	(iii) (3) has not entered into a written agreement with the other person under which 
11.18 	the furnished employee is designated as an employee of the other person.
11.19 	(5) (c) For purposes of paragraph (a), clause (1), item (ii),  employment of an 
11.20 	officer or shareholder of a family farm corporation is excluded from covered agricultural 
11.21 	employment unless the corporation is an employer under United States Code, title 26, 
11.22 	section 3306(a)(2) of the Federal Unemployment Tax Act.
11.23 	(6) and employment of an individual 16 years of age or under is excluded from 
11.24 	covered agricultural employment unless considered only if the employer is an employer 
11.25 	under United States Code, title 26, section 3306(a)(2) of the Federal Unemployment 
11.26 	Tax Act.

11.27 	Sec. 7. Minnesota Statutes 2012, section 268.035, subdivision 12, is amended to read:
11.28 		Subd. 12.Covered employment. (a) "Covered employment" means the following 
11.29 	unless excluded as "noncovered employment" under subdivision 20:
11.30 	(1) an employee's entire employment during the calendar quarter if:
11.31 	(i) the employment is performed entirely in Minnesota;
11.32 	(ii) (i) the employment during the quarter is performed primarily in Minnesota, 
11.33 	and the employment performed outside Minnesota is incidental to the employment in 
11.34 	Minnesota; or
12.1 	(iii) (ii) the employment during the quarter is not performed primarily in Minnesota 
12.2 	or any one other state but some of the employment is performed in Minnesota and the 
12.3 	base of operations or the place from which the employment is directed or controlled 
12.4 	is in Minnesota; or
12.5 	(iii) the employment during the quarter is not performed primarily in Minnesota 
12.6 	or any other state and the base of operations or place from which the employment is 
12.7 	directed or controlled is not in any state where part of the employment is performed, but 
12.8 	the employee's residence is in Minnesota;
12.9 	(2) an employee's employment during the calendar quarter wherever performed 
12.10 	within the United States or Canada, if:
12.11 	(i) the employment is not covered under the unemployment insurance program of 
12.12 	any other state or Canada; and
12.13 	(ii) the place from which the employment is directed or controlled is in Minnesota;
12.14 	The term "performed primarily" for purposes of this clause means more than 50 percent 
12.15 	as measured by the wages paid;
12.16 	(3) (2) the employment during the calendar quarter of, performed entirely outside 
12.17 	of the United States and Canada, by an employee who is a United States citizen of the 
12.18 	United States, performed outside the United States, except in Canada, in the employ of 
12.19 	an American employer if:
12.20 	(i) the employer's principal place of business in the United States is located in 
12.21 	Minnesota;.
12.22 	(ii) the employer has no place of business in the United States, but the employer 
12.23 	is an individual who is a resident of Minnesota, or the employer is a corporation that is 
12.24 	organized under the laws of Minnesota, or the employer is a partnership or a trust and the 
12.25 	number of partners or trustees who are residents of Minnesota is greater than the number 
12.26 	who are residents of any one other state;
12.27 	(iii) none of the criteria of items (i) and (ii) is met but the employer has elected 
12.28 	coverage in Minnesota, or the employer having failed to elect coverage in any state, 
12.29 	an applicant has made an application for unemployment benefits under section 268.07, 
12.30 	based on the employment;
12.31 	(iv) An "American employer," for the purposes of this subdivision clause, means 
12.32 	an individual who is a resident of the United States, or a partnership if two-thirds or 
12.33 	more of the partners are residents of the United States, or a trust, if all of the trustees are 
12.34 	residents of the United States, or a corporation organized under the laws of the United 
12.35 	States, or the law of any state; or and
13.1 	(v) as used in this subdivision, the term "United States" includes the states, the 
13.2 	District of Columbia, the Commonwealth of Puerto Rico, and the Virgin Islands;
13.3 	(4) (3) all employment during the calendar quarter performed by an officer or 
13.4 	member of the crew of an American vessel on or in connection with the vessel, if the 
13.5 	operating office from which the operations of the vessel operating on navigable waters 
13.6 	within, or within and without, the United States are ordinarily and regularly supervised, 
13.7 	managed, directed, and controlled is in Minnesota; and.
13.8 	(5) (b) For the purposes of satisfying the period of ineligibility under section 
13.9 	268.095, subdivision 10, "covered employment" includes covered employment under an 
13.10 	unemployment insurance program:
13.11 	(1) of any other state or employment covered under an unemployment insurance 
13.12 	program;
13.13 	(2) established by an act of Congress.; or
13.14 	(3) under the law of Canada.

13.15 	Sec. 8. Minnesota Statutes 2012, section 268.035, subdivision 15, is amended to read:
13.16 		Subd. 15.Employment. (a) "Employment" means service performed by:
13.17 	(1) an individual who is considered an employee under the common law of 
13.18 	employer-employee and not considered an independent contractor under (i) subdivision 
13.19 	9a or 25b or (ii) the common law of employer-employee;
13.20 	(2) an officer of a corporation;
13.21 	(3) a member of a limited liability company who is considered an employee under 
13.22 	the common law of employer-employee;
13.23 	(4) product demonstrators in retail stores or other locations to aid in the sale of 
13.24 	products. The person that pays the wages is considered the employer; or
13.25 	(5) an individual who performs services for a person for compensation, as:
13.26 	(i) an agent-driver or commission-driver engaged in distributing meat products, 
13.27 	vegetable products, fruit products, beverages, or laundry or dry cleaning services; or
13.28 	(ii) a traveling or city salesperson, other than as an agent-driver or commission-driver, 
13.29 	engaged full-time in the solicitation on behalf of the person, of orders from wholesalers, 
13.30 	retailers, contractors, or operators of hotels, restaurants, or other similar establishments for 
13.31 	merchandise for resale or supplies for use in their business operations.
13.32 	This clause applies only if the contract of service provides that substantially all of 
13.33 	the services are to be performed personally by the individual, and the services are part of 
13.34 	a continuing relationship with the person for whom the services are performed, and the 
14.1 	individual does not have a substantial investment in facilities used in connection with the 
14.2 	performance of the services, other than facilities for transportation.
14.3 	(b) Employment does not include service as a juror.

14.4 	Sec. 9. Minnesota Statutes 2012, section 268.035, subdivision 22, is amended to read:
14.5 		Subd. 22.State and United States. "State" and "United States" includes, in 
14.6 	addition to the states of the United States, the Commonwealth of Puerto Rico, the District 
14.7 	of Columbia, and the Virgin Islands.

14.8 	Sec. 10. Minnesota Statutes 2012, section 268.035, subdivision 29, is amended to read:
14.9 		Subd. 29.Wages. (a) "Wages" means all compensation for services, including 
14.10 	commissions; bonuses, awards, and prizes; severance payments; standby pay; vacation 
14.11 	and holiday pay; back pay as of the date of payment; tips and gratuities paid to an 
14.12 	employee by a customer of an employer and accounted for by the employee to the 
14.13 	employer; sickness and accident disability payments, except as otherwise provided in 
14.14 	this subdivision; and the cash value, but not less than the fair market value, of housing, 
14.15 	utilities, meals, exchanges of services, and any other goods and services provided to 
14.16 	compensate for an employee's services, except:
14.17 	(1) the amount of any payment made to, or on behalf of, an employee under a plan 
14.18 	established by an employer that makes provision for employees generally or for a class or 
14.19 	classes of employees, including any amount paid by an employer for insurance or annuities, 
14.20 	or into a plan, to provide for a payment, on account of (i) retirement or (ii) medical and 
14.21 	hospitalization expenses in connection with sickness or accident disability, or (iii) death;
14.22 	(2) the payment by an employer of the tax imposed upon an employee under United 
14.23 	States Code, title 26, section 3101 of the Federal Insurance Contribution Act, with respect 
14.24 	to compensation paid to an employee for domestic employment in a private household of 
14.25 	the employer or for agricultural employment;
14.26 	(3) any payment made to, or on behalf of, an employee or beneficiary (i) from or 
14.27 	to a trust described in United States Code, title 26, section 401(a) of the federal Internal 
14.28 	Revenue Code, that is exempt from tax under section 501(a) at the time of the payment 
14.29 	unless the payment is made to an employee of the trust as compensation for services as an 
14.30 	employee and not as a beneficiary of the trust, or (ii) under or to an annuity plan that, at 
14.31 	the time of the payment, is a plan described in section 403(a);
14.32 	(4) the value of any special discount or markdown allowed to an employee on goods 
14.33 	purchased from or services supplied by the employer where the purchases are optional and 
14.34 	do not constitute regular or systematic payment for services;
15.1 	(5) customary and reasonable directors' fees paid to individuals who are not 
15.2 	otherwise employed by the corporation of which they are directors;
15.3 	(6) the payment to employees for reimbursement of meal expenses when employees 
15.4 	are required to perform work after their regular hours;
15.5 	(7) the payment into a trust or plan for purposes of providing legal or dental services 
15.6 	if provided for all employees generally or for a class or classes of employees;
15.7 	(8) the value of parking facilities provided or paid for by an employer, in whole or in 
15.8 	part, if provided for all employees generally or for a class or classes of employees;
15.9 	(9) royalties to an owner of a franchise, license, copyright, patent, oil, mineral, 
15.10 	or other right;
15.11 	(10) advances or reimbursements for traveling or other bona fide ordinary and 
15.12 	necessary expenses incurred or reasonably expected to be incurred in the business of the 
15.13 	employer. Traveling and other reimbursed expenses must be identified either by making 
15.14 	separate payments or by specifically indicating the separate amounts where both wages 
15.15 	and expense allowances are combined in a single payment;
15.16 	(11) residual payments to radio, television, and similar artists that accrue after 
15.17 	the production of television commercials, musical jingles, spot announcements, radio 
15.18 	transcriptions, film sound tracks, and similar activities;
15.19 	(12) payments made to supplement unemployment benefits under a plan established 
15.20 	by an employer, that makes provisions for employees generally or for a class or classes of 
15.21 	employees under the written terms of an agreement, contract, trust arrangement, or other 
15.22 	instrument. The plan must provide supplemental payments solely for the supplementing 
15.23 	of weekly state or federal unemployment benefits. The plan must provide supplemental 
15.24 	payments only for those weeks the applicant has been paid regular, extended, or additional 
15.25 	unemployment benefits. The supplemental payments, when combined with the applicant's 
15.26 	weekly unemployment benefits paid, may not exceed the applicant's regular weekly pay. 
15.27 	The plan must not allow the assignment of supplemental payments or provide for any type 
15.28 	of additional payment. The plan must not require any consideration from the applicant 
15.29 	and must not be designed for the purpose of avoiding the payment of Social Security 
15.30 	obligations, or unemployment taxes on money disbursed from the plan;
15.31 	(13) sickness or accident disability payments made by the employer after the 
15.32 	expiration of six calendar months following the last calendar month that the individual 
15.33 	worked for the employer;
15.34 	(14) disability payments made under the provisions of any workers' compensation 
15.35 	law;
16.1 	(15) sickness or accident disability payments made by a third-party payer such as 
16.2 	an insurance company; or
16.3 	(16) payments made into a trust fund, or for the purchase of insurance or an annuity, 
16.4 	to provide for sickness or accident disability payments to employees under a plan or 
16.5 	system established by the employer that provides for the employer's employees generally 
16.6 	or for a class or classes of employees.
16.7 	(b) Nothing in this subdivision excludes from the term "wages" any payment 
16.8 	made under any type of salary reduction agreement, including payments made under a 
16.9 	cash or deferred arrangement and cafeteria plan, as defined in United States Code, title 
16.10 	26, sections 401(k) and 125 of the federal Internal Revenue Code, to the extent that the 
16.11 	employee has the option to receive the payment in cash.
16.12 	(c) Wages includes the total payment to the operator and supplier of a vehicle or 
16.13 	other equipment where the payment combines compensation for personal services as well 
16.14 	as compensation for the cost of operating and hiring the equipment in a single payment. 
16.15 	This paragraph does not apply if:
16.16 	(1) there is a preexisting written agreement providing for allocation of specific 
16.17 	amounts; or
16.18 	(2) at the time of each payment there is a written acknowledgement indicating 
16.19 	the separate allocated amounts.
16.20 	(d) Wages includes payments made for services as a caretaker. Unless there is a 
16.21 	contract or other proof to the contrary, compensation is considered as being equally 
16.22 	received by a married couple where the employer makes payment to only one spouse, or 
16.23 	by all tenants of a household who perform services where two or more individuals share 
16.24 	the same dwelling and the employer makes payment to only one individual.
16.25 	(d)(e) Wages includes payments made for services by a migrant family. Where 
16.26 	services are performed by a married couple or a family and an employer makes payment 
16.27 	to only one individual, each worker is considered as having received an equal share of the 
16.28 	compensation unless there is a contract or other proof to the contrary.
16.29 	(e)(f) Wages includes advances or draws against future earnings, when paid, unless 
16.30 	the payments are designated as a loan or return of capital on the books of the employer 
16.31 	at the time of payment.
16.32 	(f)(g) Wages includes payments made by a subchapter "S" corporation, as organized 
16.33 	under the Internal Revenue Code, to or on behalf of officers and shareholders that are 
16.34 	reasonable compensation for services performed for the corporation.
16.35 	For a subchapter "S" corporation, wages does not include:
17.1 	(1) a loan for business purposes to an officer or shareholder evidenced by a 
17.2 	promissory note signed by an officer before the payment of the loan proceeds and recorded 
17.3 	on the books and records of the corporation as a loan to an officer or shareholder;
17.4 	(2) a repayment of a loan or payment of interest on a loan made by an officer to the 
17.5 	corporation and recorded on the books and records of the corporation as a liability;
17.6 	(3) a reimbursement of reasonable corporation expenses incurred by an officer and 
17.7 	documented by a written expense voucher and recorded on the books and records of 
17.8 	the corporation as corporate expenses; and
17.9 	(4) a reasonable lease or rental payment to an officer who owns property that is 
17.10 	leased or rented to the corporation.

17.11 	Sec. 11. Minnesota Statutes 2012, section 268.042, subdivision 1, is amended to read:
17.12 		Subdivision 1.Employer registration. (a) Each employer must, upon or before 
17.13 	the submission of its first wage detail report under section 268.044, register with the 
17.14 	commissioner for a tax account or a reimbursable account, by electronic transmission 
17.15 	in a format prescribed by the commissioner. The employer must provide all required 
17.16 	information for registration, including the actual physical street and city address of the 
17.17 	employer.
17.18 	(b) Within 30 calendar days, each employer must notify the commissioner by 
17.19 	electronic transmission, in a format prescribed, of a change in legal entity, of the 
17.20 	transfer, sale, or acquisition of a business conducted in Minnesota, in whole or in part, 
17.21 	if the transaction results in the creation of a new or different employer or affects the 
17.22 	establishment of employer accounts, the assignment of tax rates, or the transfer of 
17.23 	experience rating history.
17.24 	(c) Except as provided in subdivision 3, any person that is or becomes an employer 
17.25 	subject to the Minnesota Unemployment Insurance Law within any calendar year is 
17.26 	considered to be subject to this chapter the entire calendar year.
17.27 	(d) Within 30 calendar days of the termination of business, an employer that has 
17.28 	been assigned a tax account or reimbursable account must notify the commissioner by 
17.29 	electronic transmission, in a format prescribed by the commissioner, if that employer does 
17.30 	not intend or expect to pay wages to any employees in covered employment during the 
17.31 	current or the next calendar year. Upon notification, the employer is no longer required 
17.32 	to file wage detail reports under section 268.044, subdivision 1, paragraph (d), and the 
17.33 	employer's account must be terminated.
18.1 	(e) The commissioner, after notifying the employer, may terminate an employer's 
18.2 	tax account if the employer has not filed a wage detail report as required under section 
18.3 	268.044 for eight consecutive calendar quarters.
18.4 	(f) An employer that has its account terminated regains its previous tax account 
18.5 	under section 268.045, with the experience rating history of that account, if the employer 
18.6 	again commences business and again pays wages in covered employment if:
18.7 	(1) less than 14 calendar quarters have elapsed in which no wages were paid for 
18.8 	covered employment;
18.9 	(2) the experience rating history regained contains taxable wages; and
18.10 	(3) the experience rating history has not been transferred to a successor under 
18.11 	section 268.051, subdivision 4.
18.12 	If the experience rating history is not regained under this paragraph, the employer must be 
18.13 	assigned the new employer tax rate under section 268.051, subdivision 5.

18.14 	EFFECTIVE DATE. This section is effective the day following final enactment.

18.15 	Sec. 12. Minnesota Statutes 2012, section 268.043, is amended to read:
18.16 	268.043 DETERMINATIONS OF COVERAGE.
18.17 	(a) The commissioner, upon the commissioner's own motion or upon application of a 
18.18 	person, must determine if that person is an employer or whether services performed for it 
18.19 	constitute employment and covered employment, or whether any compensation constitutes 
18.20 	wages, and notify. The commissioner must send to the person of the a determination of 
18.21 	coverage. The determination of coverage is final unless the person files an appeal within 
18.22 	20 calendar days after the commissioner sends the determination by mail or electronic 
18.23 	transmission. Proceedings on the appeal are conducted in accordance with section 268.105.
18.24 	(b) No person may be initially determined an employer, or that services performed 
18.25 	for it were in employment or covered employment, for periods more than four years before 
18.26 	the year in which the determination of coverage is made, unless the commissioner finds 
18.27 	that there was fraudulent action to avoid liability under this chapter.

18.28 	Sec. 13. Minnesota Statutes 2012, section 268.051, subdivision 4a, is amended to read:
18.29 		Subd. 4a.Actions that avoid taxes or reimbursements. (a) If the commissioner 
18.30 	determines that any action was done, in whole or in part, to avoid:
18.31 	(1) an experience rating history;
18.32 	(2) the transfer of an experience rating history; or
19.1 	(3) the assignment of a tax rate for new employers under subdivision 5, paragraph 
19.2 	(a) or (b),; or
19.3 	(4) reimbursement required from a nonprofit or government employer, the 
19.4 	commissioner, to insure that the trust fund receives all the taxes and reimbursements that 
19.5 	would have been received had the action not occurred, may, effective the date of the 
19.6 	action, transfer all or part of an experience rating history and recompute the tax rate or,
19.7 	 assign the appropriate new employer tax rate, or assess a reimbursement.
19.8 	(b) This subdivision applies to any action between persons regardless of whether 
19.9 	there is any commonality of ownership, management, or control between the persons. The 
19.10 	authority granted to the commissioner under this subdivision is in addition to any other 
19.11 	authority granted to the commissioner.

19.12 	Sec. 14. Minnesota Statutes 2012, section 268.051, subdivision 5, is amended to read:
19.13 		Subd. 5.Tax rate for new employers. (a) Each new taxpaying employer that does 
19.14 	not qualify for an experience rating under subdivision 3, except new employers in a high 
19.15 	experience rating industry, must be assigned, for a calendar year, a tax rate the higher of 
19.16 	(1) one percent, or (2) the tax rate computed, to the nearest 1/100 of a percent, by dividing 
19.17 	the total amount of unemployment benefits paid all applicants during the 48 calendar 
19.18 	months ending on June 30 of the prior calendar year by the total taxable wages of all 
19.19 	taxpaying employers during the same period, plus the applicable base tax rate and any 
19.20 	additional assessments under subdivision 2, paragraph (c).
19.21 	(b) Each new taxpaying employer in a high experience rating industry that does not 
19.22 	qualify for an experience rating under subdivision 3, must be assigned, for a calendar year, 
19.23 	a tax rate the higher of (1) that assigned under paragraph (a), or (2) the tax rate, computed 
19.24 	to the nearest 1/100 of a percent, by dividing the total amount of unemployment benefits 
19.25 	paid to all applicants from high experience rating industry employers during the 48 
19.26 	calendar months ending on June 30 of the prior calendar year by the total taxable wages 
19.27 	of all high experience rating industry employers during the same period, to a maximum 
19.28 	provided for under subdivision 3, paragraph (b), plus the applicable base tax rate and any 
19.29 	additional assessments under subdivision 2, paragraph (c).
19.30 	(c) An employer is considered to be in a high experience rating industry if:
19.31 	(1) the employer is engaged in residential, commercial, or industrial construction, 
19.32 	including general contractors;
19.33 	(2) the employer is engaged in sand, gravel, or limestone mining;
19.34 	(3) the employer is engaged in the manufacturing of concrete, concrete products, 
19.35 	or asphalt; or
20.1 	(4) the employer is engaged in road building, repair, or resurfacing, including bridge 
20.2 	and tunnels and residential and commercial driveways and parking lots.
20.3 	(d) Regardless of any law to the contrary, a taxpaying employer must be assigned a 
20.4 	tax rate under this subdivision if:
20.5 	(1) the employer registers for a tax account under section 268.042 and for each of 
20.6 	the five calendar quarters after registering files a "no wages paid" report on wage detail 
20.7 	under section 268.044; or had no taxable wages during the experience rating period under 
20.8 	subdivision 3.
20.9 	(2) the employer has filed 14 consecutive quarterly "no wages paid" reports on 
20.10 	wage detail under section 268.044.
20.11 	(e) The commissioner must send to the new employer, by mail or electronic 
20.12 	transmission, a determination of tax rate. An employer may appeal the determination of 
20.13 	tax rate in accordance with the procedures in subdivision 6, paragraph (c).

20.14 	EFFECTIVE DATE. This section is effective the day following final enactment.

20.15 	Sec. 15. Minnesota Statutes 2012, section 268.057, subdivision 5, is amended to read:
20.16 		Subd. 5.Interest on amounts past due. If any amounts due from an employer 
20.17 	under this chapter or section 116L.20, except late fees under section 268.044, are not 
20.18 	received on the date due the unpaid balance bears interest at the rate of one and one-half
20.19 	 percent per month or any part thereof of a month. Interest collected under this subdivision 
20.20 	is credited to the contingent account.

20.21 	EFFECTIVE DATE. This section applies to all interest assessed after January 
20.22 	1, 2014.

20.23 	Sec. 16. Minnesota Statutes 2012, section 268.057, subdivision 7, is amended to read:
20.24 		Subd. 7.Credit adjustments, refunds. (a) If an employer makes an application 
20.25 	for a credit adjustment of any amount paid under this chapter or section 116L.20 within 
20.26 	four years of the date that the payment was due, in a manner and format prescribed by 
20.27 	the commissioner, and the commissioner determines that the payment or any portion was 
20.28 	erroneous, the commissioner must make an adjustment and issue a credit without interest. 
20.29 	If a credit cannot be used, the commissioner must refund, without interest, the amount 
20.30 	erroneously paid. The commissioner, on the commissioner's own motion, may make a 
20.31 	credit adjustment or refund under this subdivision.
20.32 	Any refund returned to the commissioner is considered unclaimed property under 
20.33 	chapter 345.
21.1 	(b) If a credit adjustment or refund is denied in whole or in part, a notice determination
21.2 	 of denial must be sent to the employer by mail or electronic transmission. The notice
21.3 	 determination of denial is final unless an employer files an appeal within 20 calendar days 
21.4 	after sending. Proceedings on the appeal are conducted in accordance with section 268.105.

21.5 	Sec. 17. Minnesota Statutes 2012, section 268.0625, subdivision 4, is amended to read:
21.6 		Subd. 4.Notice Determination and right to hearing. At least 30 calendar days 
21.7 	before the commissioner notifies a licensing authority, a notice determination of action 
21.8 	under this section must be sent to the licensee by mail or electronic transmission. If the 
21.9 	licensee disputes the action, the licensee must appeal within 20 calendar days after the 
21.10 	sending of the notice determination of action to the licensee. The only issue on any 
21.11 	appeal is whether the commissioner has complied with the requirements of this section. 
21.12 	Proceedings on the appeal are conducted in accordance with section 268.105.

21.13 	Sec. 18. Minnesota Statutes 2012, section 268.069, subdivision 3, is amended to read:
21.14 		Subd. 3.Common law. (a) There is no equitable or common law denial or 
21.15 	allowance of unemployment benefits.
21.16 	(b) The equitable and common law concepts of constructive quit and constructive 
21.17 	discharge do not apply to this chapter.

21.18 	Sec. 19. Minnesota Statutes 2012, section 268.07, subdivision 1, is amended to read:
21.19 		Subdivision 1.Application for unemployment benefits; determination of benefit 
21.20 	account. (a) An application for unemployment benefits may be filed in person, by mail, 
21.21 	or by electronic transmission as the commissioner may require. The applicant must be 
21.22 	unemployed at the time the application is filed and must provide all requested information 
21.23 	in the manner required. If the applicant is not unemployed at the time of the application 
21.24 	or fails to provide all requested information, the communication is not considered an 
21.25 	application for unemployment benefits.
21.26 	(b) The commissioner must examine each application for unemployment benefits to 
21.27 	determine the base period and the benefit year, and based upon all the covered employment 
21.28 	in the base period the commissioner must determine the weekly unemployment benefit 
21.29 	amount available, if any, and the maximum amount of unemployment benefits available, if 
21.30 	any. The determination, which is a document separate and distinct from a document titled 
21.31 	a determination of eligibility or determination of ineligibility issued under section 268.101, 
21.32 	must be titled determination of benefit account. A determination of benefit account must 
21.33 	be sent to the applicant and all base period employers, by mail or electronic transmission.
22.1 	(c) If a base period employer did not provide wage detail information for the 
22.2 	applicant as required under section 268.044, or provided erroneous information, or 
22.3 	wage detail is not yet due and the applicant is using an alternate a base period under 
22.4 	section 268.035, subdivision 4, paragraph (d), the commissioner may accept an applicant 
22.5 	certification of wage credits, based upon the applicant's records, and issue a determination 
22.6 	of benefit account.
22.7 	(d) An employer must provide wage detail information on an applicant within five 
22.8 	calendar days of request by the commissioner, in a manner and format requested, when:
22.9 	(1) the applicant is using an alternate a base period under section 268.035, 
22.10 	subdivision 4, paragraph (d); and
22.11 	(2) wage detail under section 268.044 is not yet required to have been filed by 
22.12 	the employer.
22.13 	(e) The commissioner may, at any time within 24 months from the establishment of 
22.14 	a benefit account, reconsider any determination of benefit account and make an amended 
22.15 	determination if the commissioner finds that the wage credits listed in the determination 
22.16 	were incorrect for any reason. An amended determination of benefit account must be 
22.17 	promptly sent to the applicant and all base period employers, by mail or electronic 
22.18 	transmission. This subdivision does not apply to documents titled determinations of 
22.19 	eligibility or determinations of ineligibility issued under section 268.101.
22.20 	(f) If an amended determination of benefit account reduces the weekly 
22.21 	unemployment benefit amount or maximum amount of unemployment benefits available, 
22.22 	any unemployment benefits that have been paid greater than the applicant was entitled 
22.23 	is considered an overpayment of unemployment benefits. A determination or amended 
22.24 	determination issued under this section that results in an overpayment of unemployment 
22.25 	benefits must set out the amount of the overpayment and the requirement under section 
22.26 	268.18, subdivision 1, that the overpaid unemployment benefits must be repaid.

22.27 	Sec. 20. Minnesota Statutes 2012, section 268.07, subdivision 3b, is amended to read:
22.28 		Subd. 3b.Limitations on applications and benefit accounts. (a) An application for 
22.29 	unemployment benefits is effective the Sunday of the calendar week that the application 
22.30 	was filed. An application for unemployment benefits may be backdated one calendar week 
22.31 	before the Sunday of the week the application was actually filed if the applicant requests 
22.32 	the backdating at the time the application is filed. An application may be backdated only if 
22.33 	the applicant had no employment was unemployed during the period of the backdating. 
22.34 	If an individual attempted to file an application for unemployment benefits, but was 
23.1 	prevented from filing an application by the department, the application is effective the 
23.2 	Sunday of the calendar week the individual first attempted to file an application.
23.3 	(b) A benefit account established under subdivision 2 is effective the date the 
23.4 	application for unemployment benefits was effective.
23.5 	(c) A benefit account, once established, may later be withdrawn only if:
23.6 	(1) the applicant has not been paid any unemployment benefits on that benefit 
23.7 	account; and
23.8 	(2) a new application for unemployment benefits is filed and a new benefit account is 
23.9 	established at the time of the withdrawal.
23.10 	A determination or amended determination of eligibility or ineligibility issued under 
23.11 	section 268.101, that was sent before the withdrawal of the benefit account, remains in 
23.12 	effect and is not voided by the withdrawal of the benefit account.
23.13 	(d) An application for unemployment benefits is not allowed before the Sunday 
23.14 	following the expiration of the benefit year on a prior benefit account. Except as allowed 
23.15 	under paragraph (c), an applicant may establish only one benefit account each 52 calendar 
23.16 	weeks.

23.17 	Sec. 21. Minnesota Statutes 2012, section 268.085, subdivision 3, is amended to read:
23.18 		Subd. 3.Payments that delay unemployment benefits. (a) An applicant is not 
23.19 	eligible to receive unemployment benefits for any week with respect to which the applicant 
23.20 	is receiving, has received, or has filed for payment will receive, equal to or in excess of the 
23.21 	applicant's weekly unemployment benefit amount, in the form of:
23.22 	(1) vacation pay, sick pay, or personal time off pay, also known as "PTO," paid 
23.23 	upon temporary, indefinite, or seasonal separation. This clause does not apply to (i)
23.24 	 vacation pay, sick pay, or personal time off pay, paid (i) upon a permanent separation from 
23.25 	employment, or (ii) vacation pay, sick pay, or personal time off pay, paid from a vacation 
23.26 	fund administered by a union or a third party not under the control of the employer;
23.27 	(2) severance pay, bonus pay, and any other payments, except earnings under 
23.28 	subdivision 5, and back pay under subdivision 6, paid by an employer because of, upon, 
23.29 	or after a separation from employment, but only such as severance pay and retention 
23.30 	pay, if the payment is considered wages at the time of payment under section 268.035, 
23.31 	subdivision 29. This clause does not apply to back pay under subdivision 6 or to vacation 
23.32 	pay, sick pay, or personal time off pay under clause (1); or
23.33 	(3) pension, retirement, or annuity payments from any plan contributed to by a base 
23.34 	period employer including the United States government, except Social Security benefits 
23.35 	that are provided for in subdivision 4. The base period employer is considered to have 
24.1 	contributed to the plan if the contribution is excluded from the definition of wages under 
24.2 	section 268.035, subdivision 29, paragraph (a), clause (1). This clause does not apply to 
24.3 	Social Security benefits under subdivision 4.
24.4 	If the pension, retirement, or annuity payment is paid in a lump sum, an applicant is 
24.5 	not considered to have received a payment if (i) the applicant immediately deposits, within 
24.6 	60 calendar days, makes a rollover contribution of that payment in a qualified pension 
24.7 	plan or account, or (ii) that payment is an early distribution for which the applicant paid 
24.8 	an early distribution penalty under the Internal Revenue Code, United States Code, title 
24.9 	26, section 72(t)(1).
24.10 	(b) This subdivision applies to all the weeks of payment. Payments under paragraph 
24.11 	(a), clause (1), are applied to the period immediately following the last day of employment.
24.12 	 Payments under paragraph (a), clause (2), made within 13 weeks of the last day of 
24.13 	employment, are applied to the period immediately following the last day of employment.
24.14 	 The number of weeks of payment is determined as follows:
24.15 	(1) if the payments are made periodically, the total of the payments to be received is 
24.16 	divided by the applicant's last level of regular weekly pay from the employer; or
24.17 	(2) if the payment is made in a lump sum, that sum is divided by the applicant's last 
24.18 	level of regular weekly pay from the employer.
24.19 	(c) If the payment is less than the applicant's weekly unemployment benefit amount, 
24.20 	unemployment benefits are reduced by the amount of the payment.

24.21 	EFFECTIVE DATE.  The amendments to paragraph (a) are effective July 1, 2013. 
24.22 	The amendments to paragraph (b) are effective for determinations and decisions issued 
24.23 	after June 30, 2013.

24.24 	Sec. 22. Minnesota Statutes 2012, section 268.085, subdivision 4, is amended to read:
24.25 		Subd. 4.Social Security old age benefits. (a) Any applicant aged 62 or over is 
24.26 	required to state when filing an application for unemployment benefits and when filing 
24.27 	continued requests for unemployment benefits if the applicant is receiving, has filed 
24.28 	for, or intends to file for, primary Social Security old age benefits for any week during 
24.29 	the benefit year.
24.30 	Unless paragraph (b) applies, 50 percent of the weekly equivalent of the primary 
24.31 	Social Security old age benefit the applicant has received, has filed for, or intends to file 
24.32 	for, with respect to that week must be deducted from an applicant's weekly unemployment 
24.33 	benefit amount.
24.34 	(b) If all of the applicant's wage credits were earned while the applicant was claiming 
24.35 	Social Security old age benefits, there is no deduction from the applicant's weekly 
25.1 	unemployment benefit amount. The purpose of this paragraph is to ensure that an applicant 
25.2 	who is claiming Social Security benefits has demonstrated a desire and ability to work.
25.3 	(c) Information from the Social Security Administration is considered conclusive, 
25.4 	absent specific evidence showing that the information was erroneous.
25.5 	(d) This subdivision does not apply to Social Security survivor benefits.
25.6 		Subd. 4a.Social Security disability benefits. (c) (a) An applicant who is receiving, 
25.7 	has received, or has filed applied for primary Social Security disability benefits for any 
25.8 	week during the benefit year must be determined unavailable for suitable employment is 
25.9 	ineligible for unemployment benefits for that week, unless:
25.10 	(1) the Social Security Administration approved the collecting of primary Social 
25.11 	Security disability benefits each month the applicant was employed during the base 
25.12 	period; or
25.13 	(2) the applicant provides a statement from an appropriate health care professional 
25.14 	who is aware of the applicant's Social Security disability claim and the basis for that claim, 
25.15 	certifying that the applicant is available for suitable employment.
25.16 	(b) If an applicant meets the requirements of paragraph (a), clause (1), there is no 
25.17 	deduction from the applicant's weekly benefit amount for any Social Security disability 
25.18 	benefits.
25.19 	(c) If onlyan applicant meets the requirements of paragraph (a), clause (2) applies, 
25.20 	then, there must be deducted from the applicant's weekly unemployment benefit amount 
25.21 	50 percent of the weekly equivalent of the primary Social Security disability benefits 
25.22 	the applicant is receiving, has received, or has filed applied for, with respect to that 
25.23 	week; provided, however, that. If the Social Security Administration determines that 
25.24 	an individual the applicant is not entitled to receive primary Social Security disability 
25.25 	benefits for any week the applicant has applied for those benefits, the 50 percent deduction
25.26 	then this paragraph does not apply to that week.
25.27 	(d) Information from the Social Security Administration is considered conclusive, 
25.28 	absent specific evidence showing that the information was erroneous.
25.29 	(e) This subdivision does not apply to Social Security survivor benefits.

25.30 	Sec. 23. Minnesota Statutes 2012, section 268.085, subdivision 5, is amended to read:
25.31 		Subd. 5.Deductible earnings. (a) If the applicant has earnings, including holiday 
25.32 	pay, with respect to any week, from employment, covered employment, noncovered 
25.33 	employment, self-employment, or volunteer work, equal to or in excess of the applicant's 
25.34 	weekly unemployment benefit amount, the applicant is ineligible for unemployment 
25.35 	benefits for that week.
26.1 	(b) If the applicant has earnings, including holiday pay, with respect to any week, 
26.2 	that is less than the applicant's weekly unemployment benefit amount, from employment, 
26.3 	covered employment, noncovered employment, self-employment, or volunteer work, 50 
26.4 	percent of the earnings are deducted from the weekly unemployment benefit amount.
26.5 	(c) No deduction is made from an applicant's weekly unemployment benefit amount 
26.6 	for earnings from service in the National Guard or a United States military reserve unit or 
26.7 	from direct service as a volunteer firefighter or volunteer ambulance service personnel. 
26.8 	This exception to paragraphs (a) and (b) does not apply to on-call or standby pay provided 
26.9 	to a volunteer firefighter or volunteer ambulance service personnel. No deduction is made 
26.10 	for jury duty pay or for pay as an election judge.
26.11 	(d) The applicant may report deductible earnings on continued requests for 
26.12 	unemployment benefits at the next lower whole dollar amount.
26.13 	(e) Deductible earnings does not include any money considered a deductible 
26.14 	payment under subdivision 3, but includes all compensation considered wages under 
26.15 	section 268.035, subdivision 29, and any other compensation considered earned income 
26.16 	under state and federal law for income tax purposes.

26.17 	Sec. 24. Minnesota Statutes 2012, section 268.085, subdivision 6, is amended to read:
26.18 		Subd. 6.Receipt of back pay. (a) Back pay received by an applicant within 24 
26.19 	months of the establishment of the benefit account with respect to any week occurring 
26.20 	during the benefit year must be deducted from unemployment benefits paid for that week, 
26.21 	and the applicant is considered to have been overpaid the unemployment benefits for the 
26.22 	purposes of section 268.18, subdivision 1.
26.23 	If the back pay is not paid with respect to a specific period, the back pay must be 
26.24 	applied to the period immediately following the last day of employment.
26.25 	(b) If the back pay is reduced by the amount of unemployment benefits that have 
26.26 	been paid, the amount of back pay withheld and not paid the applicant must be:
26.27 	(1) paid by the taxpaying or reimbursing employer to the trust fund within 30 
26.28 	calendar days and is subject to the same collection procedures that apply to past due 
26.29 	taxes and reimbursements; and
26.30 	(2) when received by the trust fund:
26.31 	(i) an overpayment of unemployment benefits must be created which, under section 
26.32 	268.047, subdivision 2, clause (8), clears the employer's tax or reimbursable account 
26.33 	of any effect; and
27.1 	(ii) the back pay must then be applied to the unemployment benefit overpayments 
27.2 	resulting from the payment of the back pay; and overpayment, eliminating any effect on 
27.3 	the applicant.
27.4 	(3) credited to the maximum amount of unemployment benefits available to the 
27.5 	applicant in a benefit year that includes the weeks for which back pay was deducted.
27.6 	When implemented, this paragraph must produce the following results: (1) that 
27.7 	an employer neither overpays nor underpays the employer's proper portion of the 
27.8 	unemployment benefit costs; and (2) that the applicant is placed in the same position as 
27.9 	never having been paid the unemployment benefits.
27.10 	(c) The unemployment benefits paid considered overpaid the applicant must be
27.11 	 under this subdivision are, according to section 268.047, subdivision 2, clause (8),
27.12 	 removed from the computation of the tax rate for taxpaying employers and removed from 
27.13 	the reimbursable account for nonprofit and government employers that have elected to be 
27.14 	liable for reimbursements in the calendar quarter the trust fund receives payment.
27.15 	(d) Payments to the trust fund under this subdivision are considered as made by 
27.16 	the applicant.

27.17 	Sec. 25. Minnesota Statutes 2012, section 268.0865, subdivision 3, is amended to read:
27.18 		Subd. 3.Continued request for unemployment benefits by electronic 
27.19 	transmission. (a) A continued request for unemployment benefits by electronic 
27.20 	transmission must be filed to that electronic mail address, telephone number, or Internet 
27.21 	address prescribed by the commissioner for that applicant. In order to constitute a 
27.22 	continued request, all information asked for, including information authenticating that the 
27.23 	applicant is sending the transmission, must be provided in the format required. If all of the 
27.24 	information asked for is not provided, the communication does not constitute a continued 
27.25 	request for unemployment benefits.
27.26 	(b) The electronic transmission communication must be filed on the date and during 
27.27 	the time of day designated for the applicant for filing a continued request by electronic 
27.28 	transmission during the week following the week for which payment is requested.
27.29 	(c) If the electronic transmission continued request is not filed on the date and 
27.30 	during the time of day designated as required under paragraph (b), a continued request 
27.31 	by electronic transmission must be accepted if the applicant files the continued request 
27.32 	by electronic transmission within two three calendar weeks following the week in which 
27.33 	the date designated occurred for which payment is requested. If the continued request by 
27.34 	electronic transmission is not filed within two three calendar weeks following the week 
27.35 	in which the date designated occurred for which payment is requested, the electronic 
28.1 	continued request will not be accepted and the applicant is ineligible for unemployment 
28.2 	benefits for the period covered by the continued request, unless the applicant shows good 
28.3 	cause for failing to file the continued request by electronic transmission within the time 
28.4 	period required.

28.5 	Sec. 26. Minnesota Statutes 2012, section 268.0865, subdivision 4, is amended to read:
28.6 		Subd. 4.Continued request for unemployment benefits by mail. (a) A 
28.7 	continued request for unemployment benefits by mail must be on a form prescribed by 
28.8 	the commissioner. The form, in order to constitute a continued request, must be totally 
28.9 	completed and signed by the applicant. The form must be filed on the date required for the 
28.10 	applicant for filing a continued request by mail, in an envelope with postage prepaid, and 
28.11 	sent to the address designated during the week following the week for which payment is 
28.12 	requested.
28.13 	(b) If the mail continued request for unemployment benefits is not filed on the date 
28.14 	designated as required under paragraph (a), a continued request must be accepted if the 
28.15 	form is filed by mail within two three calendar weeks following the week in which the 
28.16 	date designated occurred for which payment is requested. If the form is not filed within 
28.17 	two three calendar weeks following the week in which the date designated occurred for 
28.18 	which payment is required, the form will not be accepted and the applicant is ineligible for 
28.19 	unemployment benefits for the period covered by the continued request for unemployment 
28.20 	benefits, unless the applicant shows good cause for failing to file the form by mail within 
28.21 	the time period required.
28.22 	(c) If the applicant has been designated to file a continued request for unemployment 
28.23 	benefits by mail, an applicant may submit the form by facsimile transmission on the day 
28.24 	otherwise required for mailing, or within two three calendar weeks following the week in 
28.25 	which the date designated occurred for which payment is requested. A form submitted by 
28.26 	facsimile transmission must be sent only to the telephone number assigned for that purpose.
28.27 	(d) An applicant who has been designated to file a continued request by mail may 
28.28 	personally deliver a continued request form only to the location to which the form was 
28.29 	otherwise designated to be mailed.

28.30 	Sec. 27. Minnesota Statutes 2012, section 268.095, subdivision 2, is amended to read:
28.31 		Subd. 2.Quit defined. (a) A quit from employment occurs when the decision to 
28.32 	end the employment was, at the time the employment ended, the employee's. A notice of 
28.33 	quitting is not considered a quit at the time the notice is given. A notice of quitting is an 
28.34 	expression of the employee's intention to quit the employment at a future time.
29.1 	(b) An employee who has been notified that the employee will be discharged in the 
29.2 	future, who chooses to end the employment while employment in any capacity is still 
29.3 	available, is considered to have quit the employment.
29.4 	(c) An employee who seeks to withdraw a previously submitted notice of quitting 
29.5 	is considered to have quit the employment, as of the intended date of quitting, if the 
29.6 	employer does not agree that the notice may be withdrawn.
29.7 	(d) An applicant who, within five calendar days after completion of a suitable job 
29.8 	assignment from a staffing service (1) fails without good cause to affirmatively request an 
29.9 	additional suitable job assignment, (2) refuses without good cause an additional suitable 
29.10 	job assignment offered, or (3) accepts employment with the client of the staffing service, is 
29.11 	considered to have quit employment with the staffing service. Accepting employment with 
29.12 	the client of the staffing service meets the requirements of the exception to ineligibility 
29.13 	under subdivision 1, clause (2).
29.14 	This paragraph applies only if, at the time of beginning of employment with the 
29.15 	staffing service, the applicant signed and was provided a copy of a separate document 
29.16 	written in clear and concise language that informed the applicant of this paragraph and 
29.17 	that unemployment benefits may be affected.
29.18 	For purposes of this paragraph, "good cause" is a reason that is significant and would 
29.19 	compel an average, reasonable worker, who would otherwise want an additional suitable 
29.20 	job assignment with the staffing service (1) to fail to contact the staffing service, or (2) 
29.21 	to refuse an offered assignment.

29.22 	Sec. 28. Minnesota Statutes 2012, section 268.095, subdivision 3, is amended to read:
29.23 		Subd. 3.Good reason caused by the employer defined. (a) A good reason caused 
29.24 	by the employer for quitting is a reason:
29.25 	(1) that is directly related to the employment and for which the employer is 
29.26 	responsible;
29.27 	(2) that is adverse to the worker; and
29.28 	(3) that would compel an average, reasonable worker to quit and become 
29.29 	unemployed rather than remaining in the employment.
29.30 	(b) The analysis required in paragraph (a) must be applied to the specific facts 
29.31 	of each case.
29.32 	(c) If an applicant was subjected to adverse working conditions by the employer, the 
29.33 	applicant must complain to the employer and give the employer a reasonable opportunity 
29.34 	to correct the adverse working conditions before that may be considered a good reason 
30.1 	caused by the employer for quitting. This paragraph does not apply to unilateral reductions 
30.2 	in wages or hours.
30.3 	(d) A reason for quitting employment is not considered a good reason caused by 
30.4 	the employer for quitting if the reason for quitting occurred because of the applicant's 
30.5 	employment misconduct.
30.6 	(e) Notification of discharge in the future, including a layoff because of lack of work, 
30.7 	is not considered a good reason caused by the employer for quitting.
30.8 	(f) An applicant has a good reason caused by the employer for quitting if it results 
30.9 	from sexual harassment of which the employer was aware, or should have been aware, 
30.10 	and the employer failed to take timely and appropriate action. Sexual harassment means 
30.11 	unwelcome sexual advances, requests for sexual favors, sexually motivated physical 
30.12 	contact or other conduct or communication of a sexual nature when:
30.13 	(1) the applicant's submission to the conduct or communication is made a term 
30.14 	or condition of the employment;
30.15 	(2) the applicant's submission to or rejection of the conduct or communication is the 
30.16 	basis for decisions affecting employment; or
30.17 	(3) the conduct or communication has the purpose or effect of substantially 
30.18 	interfering with an applicant's work performance or creating an intimidating, hostile, or 
30.19 	offensive working environment.
30.20 	(g) The definition of a good reason caused by the employer for quitting employment 
30.21 	provided by this subdivision is exclusive and no other definition applies.

30.22 	Sec. 29. Minnesota Statutes 2012, section 268.103, subdivision 2a, is amended to read:
30.23 		Subd. 2a.Employer-agent appeals filed online. (a) If an agent, including an 
30.24 	attorney-at-law, files an appeal on behalf of an employer, the appeal must be filed online. 
30.25 	The appeal must be filed through the electronic address provided on the determination 
30.26 	being appealed. Use of another method of filing does not constitute an appeal. This 
30.27 	paragraph does not apply to an employee filing an appeal on behalf of an employer.
30.28 	(b) All information requested when the appeal is filed must be supplied or the 
30.29 	communication does not constitute an appeal.

30.30 	Sec. 30. Minnesota Statutes 2012, section 268.105, is amended to read:
30.31 	268.105 APPEALS.
30.32 		Subdivision 1.Evidentiary Notice of hearing by unemployment law judge.
 30.33 	(a) Upon a timely appeal to a determination having been filed, the department chief 
30.34 	unemployment law judge must send, by mail or electronic transmission, a notice of appeal
31.1 	 hearing to all involved parties that an appeal has been filed, and that a de novo due process 
31.2 	evidentiary hearing will be scheduled conducted by an unemployment law judge.
31.3 	(b) The notice of hearing must include materials that set out the parties' rights and 
31.4 	responsibilities regarding the hearing. The notice materials must explain that the facts 
31.5 	will be determined by the unemployment law judge based upon a preponderance of the 
31.6 	evidence. The notice must presented at the hearing and explain in clear and simple 
31.7 	language the meaning of the term "preponderance of the evidence."
31.8 	(c) The department notice of hearing must set a time and place for a de novo due 
31.9 	process evidentiary hearing and send date and must state the issues to be considered 
31.10 	and the method by which the hearing will be conducted. The notice to any involved 
31.11 	applicant and any involved employer, by mail or electronic transmission, must be sent
31.12 	 not less than ten calendar days before the date of the hearing. The parties may waive the 
31.13 	ten-calendar-day notice requirement. Rescheduled hearings and continued hearings do not 
31.14 	require an additional ten-calendar-day notice.
31.15 		Subd. 1a.Definitions. The words and terms used in this subdivision have, for 
31.16 	purposes of the Minnesota Unemployment Insurance Law, the following meaning:
31.17 	(1) "Decision" means a written ruling by an unemployment law judge on a particular 
31.18 	issue. Decisions under subdivision 1c are subject to request for reconsideration and 
31.19 	decisions under subdivision 2 are subject to review by the Minnesota Court of Appeals. 
31.20 	A decision must be specifically identified as a "decision."
31.21 	(2) "Hearing" means the de novo evidentiary hearing under subdivision 1.
31.22 	(3) "Order" means a written directive by an unemployment law judge dealing with 
31.23 	a matter of procedure. Orders are not subject to appeal. An order must be specifically 
31.24 	identified as an "order." An order is not a "decision" under the Minnesota Unemployment 
31.25 	Insurance Law.
31.26 	(4) "Party" means an involved applicant or involved employer whose legal rights will 
31.27 	be directly determined in a hearing or on request for reconsideration. The department is not 
31.28 	a party to any proceedings before an unemployment law judge. The department becomes a 
31.29 	party, and is the primary responding party, before the Court of Appeals under subdivision 7.
31.30 		Subd. 1b.Conduct of hearing. (b) (a) The evidentiary hearing is conducted by an 
31.31 	unemployment law judge de novo as an evidence gathering inquiry. At the beginning of 
31.32 	the hearing the unemployment law judge must fully explain:
31.33 	(1) how the hearing will be conducted, and the role of the judge in developing 
31.34 	the record;
31.35 	(2) that the information obtained will be used to decide the parties' rights under the 
31.36 	Minnesota Unemployment Insurance Law;
32.1 	(3) that certain other government officials may have access to information provided 
32.2 	at the hearing if allowed by statute and that the information provided may be disclosed 
32.3 	under a district court order;
32.4 	(4) that the applicant has parties have the right to request that the hearing be 
32.5 	rescheduled continued so that documents or witnesses can be subpoenaed,; and
32.6 	(5) that the facts will be determined based on a preponderance of the evidence, and, 
32.7 	in clear and simple language, the meaning of the term "preponderance of the evidence." 
32.8 	(b) The unemployment law judge must ensure that all relevant facts are clearly and 
32.9 	fully developed and must assist all parties in the presentation of the evidence.
32.10 	(c) The department may adopt rules on evidentiary hearings. The rules need 
32.11 	not conform to common law or statutory rules of evidence and other technical rules of 
32.12 	procedure.
32.13 	(d) The department chief unemployment law judge has discretion regarding the 
32.14 	method by which the evidentiary hearing is conducted. A report of any employee of the 
32.15 	department, except a determination, made in the regular course of the employee's duties, is 
32.16 	competent evidence of the facts contained in it. An affidavit or written statement based on 
32.17 	personal knowledge and signed under penalty of perjury is competent evidence of the facts 
32.18 	contained in it; however, the veracity of statements contained within the document or the 
32.19 	credibility of the witness making the statement may be disputed with other documents or 
32.20 	testimony and production of such documents or testimony may be compelled by subpoena.
32.21 		Subd. 1c.Decisions. (c) (a) After the conclusion of the hearing, upon the evidence 
32.22 	obtained, the unemployment law judge must make findings of fact and decision and send 
32.23 	those, by mail or electronic transmission, to all involved parties. When the credibility of 
32.24 	an involved party or a witness testifying in an evidentiary a hearing has a significant effect 
32.25 	on the outcome of a decision, the unemployment law judge must set out the reason for 
32.26 	crediting or discrediting that testimony. The unemployment law judge's decision is final 
32.27 	unless a request for reconsideration is filed under subdivision 2.
32.28 	(d) Regardless of paragraph (c), (b) If the appealing party fails to participate in the 
32.29 	evidentiary hearing, the unemployment law judge has the discretion to dismiss the appeal 
32.30 	by summary order decision. By failing to participate, the appealing party is considered to 
32.31 	have failed to exhaust available administrative remedies unless the appealing party files 
32.32 	a request for reconsideration under subdivision 2 and establishes good cause for failing 
32.33 	to participate in the evidentiary hearing under subdivision 2, paragraph (d). Submission 
32.34 	of a written statement does not constitute participation. The applicant must participate 
32.35 	personally and appearance solely by a representative does not constitute participation.
33.1 	(e) (c) The unemployment law judge must issue a decision dismissing the appeal 
33.2 	as untimely if the judge decides the appeal to the determination was not filed within the 
33.3 	20-calendar-day limit. The unemployment law judge may dismiss the appeal by summary 
33.4 	decision, or the judge may conduct a hearing to obtain evidence on the timeliness of 
33.5 	the appeal.
33.6 		Subd. 1d.Unemployment law judges.  (a) Only employees of the department who 
33.7 	are attorneys licensed to practice law in Minnesota may serve as the chief unemployment 
33.8 	law judge, senior unemployment law judges who are supervisors, or unemployment law 
33.9 	judges. The commissioner must designate a chief unemployment law judge.
33.10 	(b) The chief unemployment law judge must assign the unemployment law judge 
33.11 	to conduct the hearing. The chief unemployment law judge may transfer to another 
33.12 	unemployment law judge any proceedings pending before an unemployment law a judge
33.13 	 under this section.
33.14 	(f) (c) A full-time unemployment law judge must be paid a salary within a range
33.15 	 directly tied to the salary set under section 15A.083, subdivision 7, for a workers' 
33.16 	compensation judge. The salary paid within that range to any single unemployment law 
33.17 	judge is based on experience and performance.
33.18 		Subd. 1e.Consolidation of issues; consideration of additional issues. Upon 
33.19 	request of a party or on the unemployment law judge's own motion, the judge may 
33.20 	consolidate for hearing issues involving the same parties. The unemployment law judge 
33.21 	may take testimony and render a decision on issues not listed on the notice of hearing if 
33.22 	each party is notified on the record, is advised of the right to object, and does not object. If 
33.23 	a party objects, the unemployment law judge must:
33.24 	(1) continue the hearing to allow the party to prepare for consideration of the 
33.25 	additional issue; or
33.26 	(2) direct that the department make and send to the parties, by mail or electronic 
33.27 	transmission, a determination on the issue.
33.28 		Subd. 2.Request for reconsideration. (a) Any involved applicant, involved 
33.29 	employer party, or the commissioner, may, within 20 calendar days of the sending 
33.30 	of the unemployment law judge's decision under subdivision 1 1c, file a request for 
33.31 	reconsideration asking the unemployment law judge to reconsider that decision. Section 
33.32 	268.103 applies to a request for reconsideration. If a request for reconsideration is timely 
33.33 	filed, the unemployment law judge must issue an order:
33.34 	(1) a decision modifying the findings of fact and decision issued under subdivision 
33.35 	1 1c;
34.1 	(2) an order setting aside the decision issued under subdivision 1 1c and directing 
34.2 	that an additional evidentiary hearing be conducted under subdivision 1; or
34.3 	(3) a decision affirming the findings of fact and decision issued under subdivision 1 1c.
34.4 	(b) Upon a timely request for reconsideration having been filed, the department
34.5 	 chief unemployment law judge must send a notice, by mail or electronic transmission, 
34.6 	to all involved parties that a request for reconsideration has been filed. The notice must 
34.7 	inform the involved parties:
34.8 	(1) that reconsideration is the procedure for the unemployment law judge to correct 
34.9 	any factual or legal errors in the decision, as well as correct any procedural errors, 
34.10 	including ordering an additional hearing when appropriate;
34.11 	(2) of the opportunity to provide comment on the request for reconsideration, and 
34.12 	the right under subdivision 5 to obtain a copy of any recorded testimony and exhibits 
34.13 	offered or received into evidence at the evidentiary hearing;
34.14 	(2) (3) that providing specific comments as to a perceived factual or legal error in the 
34.15 	decision, or a perceived error in procedure during the evidentiary hearing, will assist the 
34.16 	unemployment law judge in deciding the request for reconsideration;
34.17 	(3) (4) of the right to obtain any comments and submissions provided by the any
34.18 	 other involved party regarding the request for reconsideration; and
34.19 	(4) (5) of the provisions of paragraph (c) regarding additional evidence.
34.20 	This paragraph does not apply if paragraph (d) is applicable. Sending the notice does 
34.21 	not mean the unemployment law judge has decided the request for reconsideration was 
34.22 	timely filed.
34.23 	(c) In deciding a request for reconsideration, the unemployment law judge must not, 
34.24 	except for purposes of determining whether to order an additional evidentiary hearing, 
34.25 	consider any evidence that was not submitted at the evidentiary hearing conducted under 
34.26 	subdivision 1. The unemployment law judge must order an additional evidentiary hearing if 
34.27 	an involved a party shows that evidence which was not submitted at the evidentiary hearing: 
34.28 	(1) would likely change the outcome of the decision and there was good cause for 
34.29 	not having previously submitted that evidence; or 
34.30 	(2) would show that the evidence that was submitted at the evidentiary hearing was 
34.31 	likely false and that the likely false evidence had an effect on the outcome of the decision.
34.32 	(d) If the involved applicant or involved employer party who filed the request for 
34.33 	reconsideration failed to participate in the evidentiary hearing conducted under subdivision 
34.34 	1, an order setting aside the decision and directing that an additional evidentiary hearing 
34.35 	be conducted must be issued if the party who failed to participate had good cause for 
34.36 	failing to do so. In the notice that a request for reconsideration has been filed, The party 
35.1 	who failed to participate in the hearing must be informed, in the notice that a request for 
35.2 	reconsideration has been filed, of the requirement, and provided the opportunity, to show 
35.3 	good cause for failing to participate. If the unemployment law judge determines that good 
35.4 	cause for failure to participate has not been shown, the unemployment law judge must 
35.5 	state make that finding in the order decision issued under paragraph (a).
35.6 	Submission of a written statement at the evidentiary hearing under subdivision 1
35.7 	 does not constitute participation for purposes of this paragraph.
35.8 	All involved parties must be informed of this paragraph with the notice of appeal 
35.9 	and notice of hearing provided for in subdivision 1.
35.10 	"Good cause" for purposes of this paragraph is a reason that would have prevented a 
35.11 	reasonable person acting with due diligence from participating at in the evidentiary hearing.
35.12 	(e) A request for reconsideration must be decided by the unemployment law judge 
35.13 	who issued the decision under subdivision 1 1c unless that unemployment law judge: 
35.14 	(1) is no longer employed by the department; 
35.15 	(2) is on an extended or indefinite leave; or
35.16 	(3) has been disqualified from the proceedings on the judge's own motion; or
35.17 	(4) (3) has been removed from the proceedings by the chief unemployment law judge.
35.18 	(f) A request for reconsideration that is filed more than 20 calendar days after the 
35.19 	sending of the decision under subdivision 1c must be dismissed by a decision as untimely.
35.20 	(f) (g) The unemployment law judge must send to any involved applicant or involved 
35.21 	employer all parties, by mail or electronic transmission, the decision or order issued 
35.22 	under this subdivision. An order A decision affirming or modifying the previously issued 
35.23 	findings of fact and decision or an order affirming the previously issued findings of fact 
35.24 	and decision, or a decision dismissing the request for reconsideration as untimely, is the 
35.25 	final department decision on the matter and is final and binding on the involved applicant 
35.26 	and involved employer parties unless judicial review is sought under subdivision 7.
35.27 		Subd. 3.Withdrawal of appeal and request for reconsideration. (a) Any appeal
35.28 	 or request for reconsideration that is pending before an unemployment law judge may be 
35.29 	withdrawn by the appealing person party, or an authorized representative of that person
35.30 	 party, upon filing of a notice of withdrawal.
35.31 	(b) The appeal or request for reconsideration must, by order, be dismissed if a notice 
35.32 	of withdrawal is filed, unless an unemployment law judge directs that further adjudication 
35.33 	is proceedings are required for a proper result. The withdrawal of the appeal or request for 
35.34 	reconsideration is, unless the unemployment law judge orders further proceedings, treated 
35.35 	as if an appeal or request for reconsideration had not been filed.
35.36 	(c) A notice of withdrawal may be filed by mail or by electronic transmission.
36.1 		Subd. 3a.Effect of decisions. (a) If an unemployment law judge's decision or order
36.2 	 allows unemployment benefits to an applicant, the unemployment benefits must be paid 
36.3 	regardless of any request for reconsideration or any appeal a petition to the Minnesota 
36.4 	Court of Appeals having been filed.
36.5 	(b) If an unemployment law judge's decision or order modifies or reverses a 
36.6 	determination, or on reconsideration, the decision modifies or reverses a prior decision 
36.7 	of the unemployment law judge, allowing unemployment which allowed benefits to an 
36.8 	applicant, any benefits paid in accordance with the determination, or prior decision of the 
36.9 	unemployment law judge, is are considered an overpayment of those unemployment
36.10 	 benefits. A decision or order issued under this section that results in an overpayment of 
36.11 	unemployment benefits must set out the amount of the overpayment and the requirement 
36.12 	under section 268.18, subdivision 1, that the overpaid unemployment benefits must be 
36.13 	repaid.
36.14 	(c) If an unemployment law judge's order decision under subdivision 2 allows 
36.15 	unemployment benefits to an applicant under section 268.095 because of a quit or 
36.16 	discharge and the unemployment law judge's decision is reversed by the Minnesota Court 
36.17 	of Appeals or the Supreme Court of Minnesota, the applicant cannot be held ineligible 
36.18 	for any of the unemployment benefits paid the applicant and it is not considered an 
36.19 	overpayment of those unemployment benefits under section 268.18, subdivision 1 prior to 
36.20 	the date of the court's reversal. The effect of the court's reversal is:
36.21 	(1) that the applicant may only be held ineligible for future unemployment benefits; 
36.22 	and
36.23 	(2) the application of section 268.047, subdivision 3, in computing the future tax 
36.24 	rate of the a taxpaying employer.
36.25 	(d) If an unemployment law judge, under subdivision 2, orders the taking of an
36.26 	 additional evidence hearing, the unemployment law judge's prior decision must continue 
36.27 	to be enforced until new findings of fact and decision are made by the unemployment 
36.28 	law judge.
36.29 		Subd. 4.Oaths; subpoenas and affirmations. An unemployment law judge has 
36.30 	authority to administer oaths and affirmations, take depositions, and. Before testifying in a 
36.31 	hearing, every witness is required to declare to testify truthfully, by oath or affirmation. 
36.32 	The form of oath or affirmation is in sections 358.07 and 358.08.
36.33 		Subd. 4a.Subpoenas. (a) The unemployment law judge has authority to issue 
36.34 	subpoenas to compel the attendance of witnesses and the production of documents and other 
36.35 	personal property considered necessary as evidence in connection with the subject matter 
36.36 	of an evidentiary a hearing. A party may request issuance of a subpoena by contacting the 
37.1 	chief unemployment law judge, by mail or electronic transmission, sufficiently in advance 
37.2 	of the hearing to allow for service of the subpoena. A request must identify the subject 
37.3 	matter and necessity of the evidence sought. The unemployment law judge must give full 
37.4 	consideration to a request for a subpoena and must not unreasonably deny a request for a 
37.5 	subpoena. If a subpoena request is initially denied, the unemployment law judge must, on 
37.6 	the unemployment law judge's own motion, reconsider that request during the evidentiary
37.7 	 hearing and rule on whether the request was properly denied. If the request was not 
37.8 	properly denied, the evidentiary hearing must be continued for issuance of the subpoena.
37.9 	(b) The subpoenas are enforceable through the district court in Ramsey County.
37.10 	(c) Witnesses subpoenaed, other than an involved applicant or involved employer a 
37.11 	party or officers and employees of an involved employer, must be paid by the department 
37.12 	the same witness fees as in a civil action in district court.
37.13 		Subd. 5.Use of evidence; data privacy. (a) All testimony at any evidentiary 
37.14 	hearing conducted under subdivision 1 must be recorded. A copy of any recorded 
37.15 	testimony and exhibits offered or received into evidence at the hearing must, upon request, 
37.16 	be furnished to a party at no cost:
37.17 	(1)  during the time period for filing a request for reconsideration or;
37.18 	(2) while a request for reconsideration is pending.;
37.19 	(b) Regardless of any provision of law to the contrary, if recorded testimony and 
37.20 	exhibits received into evidence at the evidentiary hearing are not requested during the time 
37.21 	period for filing a request for reconsideration, while a request for reconsideration is pending,
37.22 	(3) during the time for filing any appeal a petition under subdivision 7, or during the 
37.23 	pendency thereof, that; or
37.24 	(4) while a petition is pending.
37.25 	Regardless of any law to the contrary, recorded testimony and other evidence may later 
37.26 	be made available only under a district court order. A subpoena is not considered a 
37.27 	district court order.
37.28 	(c) (b) Testimony obtained under subdivision 1, at a hearing may not be used 
37.29 	or considered for any purpose, including impeachment, in any civil, administrative, or 
37.30 	contractual proceeding, except by a local, state, or federal human rights agency with 
37.31 	enforcement powers, unless the proceeding is initiated by the department. This paragraph 
37.32 	does not apply to criminal proceedings.
37.33 		Subd. 5a.No collateral estoppel. No findings of fact or decision or order issued by 
37.34 	an unemployment law judge may be held conclusive or binding or used as evidence in 
37.35 	any separate or subsequent action in any other forum, be it contractual, administrative, or 
37.36 	judicial, except proceedings provided for under this chapter,. This subdivision applies
38.1 	 regardless of whether the other action involves the same or related parties or involves 
38.2 	the same facts.
38.3 		Subd. 6.Representation; fees before an unemployment law judge. (a) In any 
38.4 	proceeding under subdivision 1 or 2, an applicant or involved employera party may 
38.5 	be represented by any agent. Except for an attorney-at-law, no person may charge an 
38.6 	applicant a fee of any kind for representing, assisting, or advising the applicant in a 
38.7 	hearing or on reconsideration.
38.8 	(b) An unemployment law judge may refuse to allow any person to represent a party 
38.9 	in any proceeding before a judge if that person repeatedly fails to follow the instructions 
38.10 	of the judge or acts in an unethical manner.
38.11 		Subd. 6a.No fees. (a) Except for services provided by an attorney-at-law, an 
38.12 	applicant may not be charged fees, costs, or disbursements of any kind in a proceeding 
38.13 	before an unemployment law judge, the Minnesota Court of Appeals, or the Supreme 
38.14 	Court of Minnesota.
38.15 	(b) No attorney fees may be awarded against the department as a result of any 
38.16 	proceedings under this chapter.
38.17 		Subd. 7.Judicial review. (a) The Minnesota Court of Appeals must, by writ of 
38.18 	certiorari to the department, review the unemployment law judge's decision issued under 
38.19 	subdivision 2, provided a petition for the writ is filed with the court and a copy is served 
38.20 	upon the chief unemployment law judge or the commissioner and any other involved party 
38.21 	within 30 calendar days of the sending of the unemployment law judge's order under 
38.22 	subdivision 2 decision on reconsideration.
38.23 	(b) Any employer petitioning for a writ of certiorari must pay to the court the required 
38.24 	filing fee, and, upon the service of the writ, must furnish a cost bond to the department 
38.25 	in accordance with the Rules of Civil Appellate Procedure. If the employer requests a 
38.26 	written transcript of the testimony received at the evidentiary hearing conducted under 
38.27 	subdivision 1, the employer must pay the cost of preparing the transcript to the department 
38.28 	the cost of preparing the transcript. That money is credited to the administration account.
38.29 	(c) Upon issuance by the Minnesota Court of Appeals of a writ of certiorari as a result 
38.30 	of an applicant's petition, the department must furnish to the applicant at no cost a written 
38.31 	transcript of any testimony received at the evidentiary hearing conducted under subdivision 
38.32 	1, and, if requested, a copy of all exhibits entered into evidence. No filing fee or cost bond is 
38.33 	required of an applicant petitioning the Minnesota Court of Appeals for a writ of certiorari.
38.34 	(d) The Minnesota Court of Appeals may affirm the decision of the unemployment 
38.35 	law judge or remand the case for further proceedings; or it may reverse or modify the 
39.1 	decision if the substantial rights of the petitioner may have been prejudiced because the 
39.2 	findings, inferences, conclusion, or decision are:
39.3 	(1) in violation of constitutional provisions;
39.4 	(2) in excess of the statutory authority or jurisdiction of the department;
39.5 	(3) made upon unlawful procedure;
39.6 	(4) affected by other error of law;
39.7 	(5) unsupported by substantial evidence in view of the entire record as submitted; or
39.8 	(6) arbitrary or capricious.
39.9 	(e) The department is considered the primary responding party to any judicial action 
39.10 	involving an unemployment law judge's decision, because unemployment benefits are, 
39.11 	under section 268.069, subdivision 2, paid from state funds. The department may be 
39.12 	represented by an attorney licensed to practice law in Minnesota who is an employee 
39.13 	of the department.

39.14 	Sec. 31. Minnesota Statutes 2012, section 268.131, subdivision 1, is amended to read:
39.15 		Subdivision 1.Cooperation with other states on combining wages. (a) In 
39.16 	accordance with the requirements of United States Code, title 26, section 3304(a)(9)(B), 
39.17 	the Federal Unemployment Tax Act, the commissioner must participate in reciprocal 
39.18 	arrangements with other states for the payment of unemployment benefits on the basis 
39.19 	of combining an applicant's wages from multiple states for the purposes of collecting 
39.20 	unemployment benefits from a single state. The reciprocal agreement must include 
39.21 	provisions for applying the base period of a single state law to a benefit account involving 
39.22 	the combining of an applicant's wages and employment and avoiding the duplicate use of 
39.23 	wages by reason of such combining. The commissioner may not enter into any reciprocal 
39.24 	arrangement unless it contains provisions for reimbursements to the trust fund, by the 
39.25 	other state, for unemployment benefits paid from the trust fund to applicants based upon 
39.26 	wages and employment covered under the laws of the other state.
39.27 	(b) The commissioner is authorized to pay unemployment benefits based upon 
39.28 	an applicant's wages paid in covered employment in another state only if the applicant 
39.29 	is combining Minnesota wage credits with the wages paid in covered employment from 
39.30 	another state or states.
39.31 	(c) Section 268.23 does not apply to this subdivision.
39.32 	(d) Section 268.07, subdivision 3b, paragraph (d), limiting an applicant to one 
39.33 	benefit account every 52 calendar weeks, includes combined wage benefit accounts 
39.34 	authorized under this section.
40.1 	(d) (e) On any reciprocal arrangement, the wages paid an applicant from employment 
40.2 	covered under an unemployment insurance program of another state are considered 
40.3 	wages from covered employment for the purpose of determining the applicant's rights to 
40.4 	unemployment benefits under the Minnesota Unemployment Insurance Law.

40.5 	Sec. 32. [268.133] UNEMPLOYMENT BENEFITS WHILE IN 
40.6 	ENTREPRENEURIAL TRAINING.
40.7 	Unemployment benefits are available to dislocated workers participating in the 
40.8 	converting layoffs into Minnesota businesses (CLIMB) program under section 116L.17, 
40.9 	subdivision 11. Applicants participating in CLIMB are considered in reemployment 
40.10 	assistance training under section 268.035, subdivision 21c. All requirements under section 
40.11 	268.069, subdivision 1, must be met, except the commissioner may waive:
40.12 	(1) the earnings deductible provisions in section 268.085, subdivision 5; and
40.13 	(2) the 32 hours of work limitation in section 268.085, subdivision 2, clause (6). A 
40.14 	maximum of 500 applicants may receive a waiver at any given time.

40.15 	Sec. 33. Minnesota Statutes 2012, section 268.18, subdivision 1, is amended to read:
40.16 		Subdivision 1.Nonfraud overpayment. (a) Any applicant who (1) because of a 
40.17 	determination or amended determination issued under section 268.07 or 268.101, or any 
40.18 	other section of this chapter, or (2) because of an appeal unemployment law judge's decision 
40.19 	or order under section 268.105, has received any unemployment benefits that the applicant 
40.20 	was held not entitled to, must promptly repay the unemployment benefits to the trust fund.
40.21 	(b) If the applicant fails to repay the unemployment benefits overpaid, the 
40.22 	commissioner may offset the amount of the overpayment from any future unemployment 
40.23 	benefits otherwise payable the amount of the overpayment. Except when the overpayment 
40.24 	resulted because the applicant failed to report deductible earnings or deductible or benefit 
40.25 	delaying payments, no single offset may exceed 50 percent of the amount of the payment 
40.26 	from which the offset is made. The overpayment may also be collected by the methods 
40.27 	allowed under state and federal law.
40.28 	(c) If an applicant has been overpaid unemployment benefits under the law of 
40.29 	another state, because of a reason other than fraud, and that state certifies that the applicant 
40.30 	is liable under its law to repay the unemployment benefits and requests the commissioner 
40.31 	to recover the overpayment, the commissioner may offset from future unemployment 
40.32 	benefits otherwise payable the amount of overpayment, except that no single offset may 
40.33 	exceed 50 percent of the amount of the payment from which the offset is made.

41.1 	Sec. 34. Minnesota Statutes 2012, section 268.18, subdivision 2b, is amended to read:
41.2 		Subd. 2b.Interest. (a) On any unemployment benefits fraudulently obtained, and 
41.3 	any penalty amounts assessed under subdivision 2, the commissioner must assess interest 
41.4 	at the rate of 1-1/2 one percent per month on any amount that remains unpaid beginning 
41.5 	30 calendar days after the date of the determination of overpayment by fraud. Interest is 
41.6 	assessed in the same manner as employer debt under section 268.057, subdivision 5. A 
41.7 	determination of overpayment by fraud must state that interest will be assessed.
41.8 	(b) If the determination did not state that interest will be assessed, interest is assessed 
41.9 	beginning 30 calendar days after notification, by mail or electronic transmission, to the 
41.10 	applicant that interest is now assessed.
41.11 	(c) Interest payments under this section are credited to the trust fund.

41.12 	Sec. 35. Minnesota Statutes 2012, section 268.184, subdivision 1a, is amended to read:
41.13 		Subd. 1a.Notification and misreporting penalties. (a) If the commissioner finds 
41.14 	that any employer or agent of an employer failed to meet the notification requirements of 
41.15 	section 268.051, subdivision 4, the employer must be assessed a penalty of $5,000 or two 
41.16 	percent of the first full quarterly payroll acquired, whichever is higher. Payroll is wages 
41.17 	paid as defined in section 268.035, subdivision 30. The penalty under this paragraph 
41.18 	must be canceled if the commissioner determines that the failure occurred because of 
41.19 	ignorance or inadvertence.
41.20 	(b) If the commissioner finds that any individual advised an employer to violate the 
41.21 	employer's notification requirements under section 268.051, subdivision 4, the individual, 
41.22 	and that individual's employer, must each be assessed the penalty in paragraph (a).
41.23 	(c) If the commissioner finds that any person or agent of a person violated the 
41.24 	reporting requirements of section 268.046, the person must be assessed a penalty of $5,000 
41.25 	or two percent of the quarterly payroll reported in violation of section 268.046, whichever 
41.26 	is higher. Payroll is wages paid as defined in section 268.035, subdivision 30.
41.27 	(d) Penalties under this subdivision are in addition to any other penalties and subject 
41.28 	to the same collection procedures that apply to past due amounts from an employer. 
41.29 	Penalties must be paid within 30 calendar days after sending of the determination of 
41.30 	penalty and credited to the trust fund.
41.31 	(e) The determination of penalty is final unless the person assessed files an appeal 
41.32 	within 20 calendar days after sending of the determination of penalty by mail or electronic 
41.33 	transmission. Proceedings on the appeal are conducted in accordance with section 268.105.

42.1 	Sec. 36. Minnesota Statutes 2012, section 268.186, is amended to read:
42.2 	268.186 RECORDS; AUDITS, RECORD KEEPING.
42.3 		Subdivision 1.Audits. (a) Each employer must keep true and accurate records for 
42.4 	the periods of time and containing the information the commissioner may require by rule.
42.5 	 For the purpose of administering this chapter, the commissioner has the power to audit, 
42.6 	examine, or cause to be supplied or copied, any books, correspondence, papers, records, 
42.7 	or memoranda that are relevant, whether the books, correspondence, papers, records, or 
42.8 	memoranda are the property of or in the possession of the an employer or any other person 
42.9 	at any reasonable time and as often as may be necessary. Subpoenas may be issued under 
42.10 	section 268.188, as are necessary, for an audit.
42.11 	(b) Any An employer or other person that refuses to allow an audit of its records by 
42.12 	the department, or that fails to make all necessary records available for audit in Minnesota 
42.13 	upon request of the commissioner, may be assessed an administrative penalty of $500. 
42.14 	The penalty collected is credited to the trust fund.
42.15 	(b) An employer or other person that fails to provide a weekly breakdown of money 
42.16 	earned by an applicant upon request of the commissioner, information necessary for the 
42.17 	detection of applicant fraud under section 268.18, subdivision 2, may be assessed an 
42.18 	administrative penalty of $100. Any notice requesting a weekly breakdown must clearly 
42.19 	state that a $100 penalty may be assessed for failure to provide the information. The 
42.20 	penalty collected is credited to the trust fund.
42.21 	(c) The commissioner may make summaries, compilations, photographs, 
42.22 	duplications, or reproductions of any records, or reports that the commissioner considers 
42.23 	advisable for the preservation of the information contained therein. Any summaries, 
42.24 	compilations, photographs, duplications, or reproductions is admissible in any proceeding 
42.25 	under this chapter. The commissioner may duplicate records, reports, summaries, 
42.26 	compilations, instructions, determinations, or any other written or recorded matter 
42.27 	pertaining to the administration of this chapter.
42.28 	(d) Regardless of any law to the contrary, the commissioner may provide for the 
42.29 	destruction of any records, reports, or reproductions, or other papers that are no longer 
42.30 	necessary for the administration of this chapter, including any required audit. In addition, 
42.31 	the commissioner may provide for the destruction or disposition of any record, report, 
42.32 	or other paper from which the information has been electronically captured and stored, 
42.33 	or that has been photographed, duplicated, or reproduced.
42.34 		Subd. 2.Record keeping. (a) Each person must establish, maintain, and preserve 
42.35 	records on individuals performing services for the person as employees or as independent 
43.1 	contractors. The records must be preserved for a period of not less than four years after 
43.2 	the calendar year in which the compensation for the services was paid or was payable.
43.3 	(b) Each employer must maintain records on each employee, in covered and 
43.4 	noncovered employment, showing the following:
43.5 	(1) the employee's name and complete resident address;
43.6 	(2) the employee's Social Security number;
43.7 	(3) the days in which the employee performed services;
43.8 	(4) the location where the employee performed services;
43.9 	(5) the wages paid to the employee and wages due but not paid for services;
43.10 	(6) the employee's rate of pay; and
43.11 	(7) the amounts paid to the employee as allowances or reimbursement for travel 
43.12 	or other activity that were not included as wages. The records must show each item of 
43.13 	expense incurred during each pay period or calendar month.
43.14 	(c) For each employee who performs services both in Minnesota and outside of 
43.15 	Minnesota, the records required to be maintained, in addition to paragraph (b), include:
43.16 	(1) a list of the states in which the employee performs services other than temporary 
43.17 	or incidental services, and the dates services were performed in each state;
43.18 	(2) the state in which the employer maintains a base of operations used by the 
43.19 	employee; and
43.20 	(3) the state from which the services are directed and controlled.

43.21 	Sec. 37. [268.187] DEPARTMENT RECORDS; DESTRUCTION.
43.22 	(a) The commissioner may make summaries, compilations, duplications, or 
43.23 	reproductions of any records pertaining to this chapter that the commissioner considers 
43.24 	advisable for the preservation of the information.
43.25 	(b) Regardless of any law to the contrary, the commissioner may destroy any 
43.26 	records that are no longer necessary for the administration of this chapter. In addition, the 
43.27 	commissioner may destroy any record from which the information has been electronically 
43.28 	captured and stored.

43.29 	Sec. 38. Minnesota Statutes 2012, section 268.192, subdivision 1a, is amended to read:
43.30 		Subd. 1a.Agreements not allowed. (a) An employer may not make an agreement 
43.31 	that in exchange for the employer agreeing not to contest the payment of unemployment 
43.32 	benefits, including agreeing not to provide information to the department, an employee will:
43.33 	(1) quit the employment;
43.34 	(2) take a leave of absence;
44.1 	(3) leave the employment temporarily or permanently; or
44.2 	(4) withdraw a grievance or appeal of a termination.
44.3 	(b) Paragraph (a) does not apply if the parties to the agreement acknowledge in 
44.4 	writing that they are aware of sections 268.069, subdivision 2, and 268.182, subdivision 2.
44.5 	(c) An agreement that violates this subdivision has no effect under this chapter.

44.6 	Sec. 39. Minnesota Statutes 2012, section 268.194, subdivision 1, is amended to read:
44.7 		Subdivision 1.Establishment. There is established as a special state trust fund, 
44.8 	separate and apart from all other public money or funds of this state, an unemployment 
44.9 	insurance trust fund, that is administered by the commissioner exclusively for the payment 
44.10 	of unemployment benefits. This trust fund consists of:
44.11 	(1) all taxes collected;
44.12 	(2) interest earned upon any money in the trust fund;
44.13 	(3) reimbursements paid by nonprofit organizations and the state and political 
44.14 	subdivisions;
44.15 	(4) tax rate buydown payments under section 268.051, subdivision 7;
44.16 	(5) any money received as a loan from the federal unemployment trust fund in 
44.17 	accordance with United States Code, title 42, section 1321, of the Social Security Act;
44.18 	(6) any other money received under a reciprocal unemployment benefit arrangement 
44.19 	with the federal government or any other state;
44.20 	(7) money recovered on overpaid unemployment benefits except, if allowed by 
44.21 	federal law, five percent of any recovered amount is credited to the administration account;
44.22 	(8) all money credited to the account under this chapter;
44.23 	(9) all money credited to the account of Minnesota in the federal unemployment 
44.24 	trust fund under United States Code, title 42, section 1103, of the Social Security Act, 
44.25 	also known as the Reed Act; and
44.26 	(10) all money received for the trust fund from any other source.

44.27 	Sec. 40. Minnesota Statutes 2012, section 268.196, subdivision 1, is amended to read:
44.28 		Subdivision 1.Administration account. (a) There is created in the state treasury a 
44.29 	special account to be known as the administration account. All money that is deposited 
44.30 	into this account is continuously available to the commissioner for expenditure to 
44.31 	administer the Minnesota unemployment insurance program, and does not lapse at any 
44.32 	time. The administration account consists of:
44.33 	(1) all money received from the federal government to administer the Minnesota 
44.34 	unemployment insurance program, or any federal unemployment insurance program, or 
45.1 	assistance provided to any other state to administer that state's unemployment insurance 
45.2 	program;
45.3 	(2) five percent of any money recovered on overpaid unemployment benefits as 
45.4 	provided for in section 268.194, subdivision 1, clause (7), which must be used for 
45.5 	deterring, detecting, and collecting overpaid unemployment benefits;
45.6 	(3) (2) any money received as compensation for services or facilities supplied to 
45.7 	the federal government or any other state;
45.8 	(4) (3) any money credited to this account under this chapter;
45.9 	(5) (4) any amounts received for losses sustained by this account or by reason of 
45.10 	damage to equipment or supplies; and
45.11 	(6) (5) any proceeds from the sale or disposition of any equipment or supplies that 
45.12 	may no longer be necessary for the proper administration of those sections the Minnesota 
45.13 	unemployment insurance program.
45.14 	(b) All money in this account must be deposited, administered, and disbursed in the 
45.15 	same manner and under the same conditions and requirements as are provided by law for 
45.16 	the other special accounts in the state treasury. The commissioner of management and 
45.17 	budget, as treasurer and custodian of this account, is liable for the faithful performance 
45.18 	of duties in connection with this account.
45.19 	(c) All money in this account must only be spent for the purposes and in the amounts 
45.20 	found necessary by the United States Secretary of Labor for the proper and efficient
45.21 	 administration of the Minnesota unemployment insurance program.

45.22 	Sec. 41. Minnesota Statutes 2012, section 268.215, is amended to read:
45.23 	268.215 DAY OF THE WEEK AND DATE REQUIREMENT.
45.24 	(a) Every determination issued under this chapter that is subject to an appeal to an 
45.25 	unemployment law judge must indicate the day of the week and the date, for example, 
45.26 	Tuesday, August 1, 2006, that the determination is final and no longer subject to an appeal.
45.27 	(b) Every decision issued by an unemployment law judge under section 268.105, 
45.28 	subdivision 1 1c, must indicate the day of the week and the date, for example, Tuesday, 
45.29 	August 1, 2006, that the decision is final and no longer subject to reconsideration.

45.30 	Sec. 42. Laws 2012, chapter 201, article 1, section 3, the effective date, is amended to 
45.31 	read:

45.32 	EFFECTIVE DATE. This section is effective July 1, 2012, except the amendments 
45.33 	to paragraph (d) are effective for penalties imposed credited on or after July 1, 2013.

46.1 	EFFECTIVE DATE. This section is effective the day following final enactment.

46.2 	Sec. 43.  REPEALER.
 46.3 	Minnesota Rules, parts 3310.2905, subpart 2; 3310.2910; 3310.2914, subpart 
46.4 	1; 3310.2916; 3310.2919; 3310.2920; 3315.0200, subpart 1; 3315.0203; 3315.0211; 
46.5 	3315.0212; 3315.0213; 3315.0501, subparts 1 and 2; 3315.0555, subpart 1; 3315.0801; 
46.6 	3315.0805; 3315.0810; 3315.0815; 3315.0820; 3315.0825; 3315.0830; 3315.0835; 
46.7 	3315.0840; 3315.0845; 3315.0901; 3315.0905; 3315.1001; and 3315.1010, are repealed.

46.8 	Sec. 44. EFFECTIVE DATE.
 46.9 	Unless otherwise specified, this article is effective July 1, 2013.