1.1 A bill for an act
1.2 relating to unemployment; modifying penalties for a misrepresentation
1.3 overpayment; amending Minnesota Statutes 2022, sections 268.069, subdivision
1.4 1; 268.085, subdivision 2; 268.101, subdivisions 1, 2; 268.133; 268.18; repealing
1.5 Minnesota Statutes 2022, section 268.183.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2022, section 268.069, subdivision 1, is amended to read:
1.8 Subdivision 1.Requirements.The commissioner must pay unemployment benefits
1.9from the trust fund to an applicant who has met each of the following requirements:
1.10 (1) the applicant has filed an application for unemployment benefits and established a
1.11benefit account in accordance with section 268.07;
1.12 (2) the applicant has not been held ineligible for unemployment benefits under section
1.13268.095 because of a quit or discharge;
1.14 (3) the applicant has met all of the ongoing eligibility requirements under section 268.085;
1.15and
1.16 (4) the applicant does not have an outstanding overpayment of unemployment benefits,
1.17including any penalties or interest; and.
1.18 (5) the applicant has not been held ineligible for unemployment benefits under section
1.19268.183.
1.20 Sec. 2. Minnesota Statutes 2022, section 268.085, subdivision 2, is amended to read:
1.21 Subd. 2.Not eligible.An applicant is ineligible for unemployment benefits for any week:
1Sec. 2.
REVISOR SS/AD 23-0196701/12/23
State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 784
NINETY-THIRD SESSION
Authored by Noor, Xiong and Hassan01/25/2023
The bill was read for the first time and referred to the Committee on Workforce Development Finance and Policy 2.1 (1) that occurs before the effective date of a benefit account;
2.2 (2) that the applicant, at any time during the week, has an outstanding misrepresentation
2.3overpayment balance under section 268.18, subdivision 2, including any penalties and
2.4interest;
2.5 (3) (2) that the applicant is incarcerated or performing court-ordered community service.
2.6The applicant's weekly unemployment benefit amount is reduced by one-fifth for each day
2.7the applicant is incarcerated or performing court-ordered community service;
2.8 (4) (3) that the applicant fails or refuses to provide information on an issue of ineligibility
2.9required under section 268.101;
2.10 (5) (4) that the applicant is performing services 32 hours or more, in employment, covered
2.11employment, noncovered employment, volunteer work, or self-employment regardless of
2.12the amount of any earnings; or
2.13 (6) (5) with respect to which the applicant has filed an application for unemployment
2.14benefits under any federal law or the law of any other state. If the appropriate agency finally
2.15determines that the applicant is not entitled to establish a benefit account under federal law
2.16or the law of any other state, this clause does not apply.
2.17 Sec. 3. Minnesota Statutes 2022, section 268.101, subdivision 1, is amended to read:
2.18 Subdivision 1.Notification.(a) In an application for unemployment benefits, each
2.19applicant must report the name and the reason for no longer working for the applicant's
2.20most recent employer, as well as the names of all employers and the reasons for no longer
2.21working for all employers during the six calendar months before the date of the application.
2.22If the reason reported for no longer working for any of those employers is other than a layoff
2.23because of lack of work, that raises an issue of ineligibility that the department must
2.24determine. An applicant must report any offers of employment refused during the eight
2.25calendar weeks before the date of the application for unemployment benefits and the name
2.26of the employer that made the offer. An applicant's failure to report the name of an employer,
2.27or giving an incorrect reason for no longer working for an employer, or failing to disclose
2.28an offer of employment that was refused, is a violation of section 268.183 268.18.
2.29 In an application, the applicant must also provide all information necessary to determine
2.30the applicant's eligibility for unemployment benefits under this chapter. If the applicant fails
2.31or refuses to provide information necessary to determine the applicant's eligibility for
2.32unemployment benefits, the applicant is ineligible for unemployment benefits under section
2.33268.085, subdivision 2, until the applicant provides this required information.
2Sec. 3.
REVISOR SS/AD 23-0196701/12/23 3.1 (b) Upon establishment of a benefit account under section 268.07, subdivision 2, the
3.2commissioner must notify, by mail or electronic transmission, all employers the applicant
3.3was required to report on the application and all base period employers and determined
3.4successors to those employers under section 268.051, subdivision 4, in order to provide the
3.5employer an opportunity to raise, in a manner and format prescribed by the commissioner,
3.6any issue of ineligibility. An employer must be informed of the effect that failure to raise
3.7an issue of ineligibility as a result of a quit or discharge of the applicant, as provided for
3.8under subdivision 2, paragraph (b), may have on the employer under section 268.047.
3.9 (c) Each applicant must report any employment, and loss of employment, and offers of
3.10employment refused, during those weeks the applicant filed continued requests for
3.11unemployment benefits under section 268.0865. Each applicant who stops filing continued
3.12requests during the benefit year and later begins filing continued requests during that same
3.13benefit year must report the name of any employer the applicant worked for during the
3.14period between the filing of continued requests and the reason the applicant stopped working
3.15for the employer. The applicant must report any offers of employment refused during the
3.16period between the filing of continued requests for unemployment benefits. Those employers
3.17from which the applicant has reported a loss of employment under this paragraph must be
3.18notified by mail or electronic transmission and provided an opportunity to raise, in a manner
3.19prescribed by the commissioner, any issue of ineligibility. An employer must be informed
3.20of the effect that failure to raise an issue of ineligibility as a result of a quit or a discharge
3.21of the applicant may have on the employer under section 268.047.
3.22 (d) The purpose for requiring the applicant to report the name of employers and the
3.23reason for no longer working for those employers, or offers of employment refused, under
3.24paragraphs (a) and (c) is for the commissioner to obtain information from an applicant
3.25raising all issues that may result in the applicant being ineligible for unemployment benefits
3.26under section 268.095, because of a quit or discharge, or the applicant being ineligible for
3.27unemployment benefits under section 268.085, subdivision 13c. If the reason given by the
3.28applicant for no longer working for an employer is other than a layoff because of lack of
3.29work, that raises an issue of ineligibility and the applicant is required, as part of the
3.30determination process under subdivision 2, paragraph (a), to state all the facts about the
3.31cause for no longer working for the employer, if known. If the applicant fails or refuses to
3.32provide any required information, the applicant is ineligible for unemployment benefits
3.33under section 268.085, subdivision 2, until the applicant provides this required information.
3Sec. 3.
REVISOR SS/AD 23-0196701/12/23 4.1 Sec. 4. Minnesota Statutes 2022, section 268.101, subdivision 2, is amended to read:
4.2 Subd. 2.Determination.(a) The commissioner must determine any issue of ineligibility
4.3raised by information required from an applicant under subdivision 1, paragraph (a) or (c),
4.4and send to the applicant and any involved employer, by mail or electronic transmission, a
4.5document titled a determination of eligibility or a determination of ineligibility, as is
4.6appropriate. The determination on an issue of ineligibility as a result of a quit or a discharge
4.7of the applicant must state the effect on the employer under section 268.047. A determination
4.8must be made in accordance with this paragraph even if a notified employer has not raised
4.9the issue of ineligibility.
4.10 (b) The commissioner must determine any issue of ineligibility raised by an employer
4.11and send to the applicant and that employer, by mail or electronic transmission, a document
4.12titled a determination of eligibility or a determination of ineligibility as is appropriate. The
4.13determination on an issue of ineligibility as a result of a quit or discharge of the applicant
4.14must state the effect on the employer under section 268.047.
4.15 If a base period employer:
4.16 (1) was not the applicant's most recent employer before the application for unemployment
4.17benefits;
4.18 (2) did not employ the applicant during the six calendar months before the application
4.19for unemployment benefits; and
4.20 (3) did not raise an issue of ineligibility as a result of a quit or discharge of the applicant
4.21within ten calendar days of notification under subdivision 1, paragraph (b);
4.22then any exception under section 268.047, subdivisions 2 and 3, begins the Sunday two
4.23weeks following the week that the issue of ineligibility as a result of a quit or discharge of
4.24the applicant was raised by the employer.
4.25 A communication from an employer must specifically set out why the applicant should
4.26be determined ineligible for unemployment benefits for that communication to be considered
4.27to have raised an issue of ineligibility for purposes of this section. A statement of "protest"
4.28or a similar term without more information does not constitute raising an issue of ineligibility
4.29for purposes of this section.
4.30 (c) Subject to section 268.031, an issue of ineligibility is determined based upon that
4.31information required of an applicant, any information that may be obtained from an applicant
4.32or employer, and information from any other source.
4Sec. 4.
REVISOR SS/AD 23-0196701/12/23 5.1 (d) Regardless of the requirements of this subdivision, the commissioner is not required
5.2to send to an applicant a copy of the determination where the applicant has satisfied a period
5.3of ineligibility because of a quit or a discharge under section 268.095, subdivision 10.
5.4 (e) The department is authorized to issue a determination on an issue of ineligibility
5.5within 24 months from the establishment of a benefit account based upon information from
5.6any source, even if the issue of ineligibility was not raised by the applicant or an employer.
5.7 If an applicant obtained unemployment benefits through misrepresentation under section
5.8268.18, subdivision 2, the department is authorized to issue a determination of ineligibility
5.9within 48 months of the establishment of the benefit account.
5.10 If the department has filed an intervention in a worker's compensation matter under
5.11section 176.361, the department is authorized to issue a determination of ineligibility within
5.1248 months of the establishment of the benefit account.
5.13 (f) A determination of eligibility or determination of ineligibility is final unless an appeal
5.14is filed by the applicant or employer within 20 calendar days after sending. The determination
5.15must contain a prominent statement indicating the consequences of not appealing.
5.16Proceedings on the appeal are conducted in accordance with section 268.105.
5.17 (g) An issue of ineligibility required to be determined under this section includes any
5.18question regarding the denial or allowing of unemployment benefits under this chapter
5.19except for issues under section 268.07. An issue of ineligibility for purposes of this section
5.20includes any question of effect on an employer under section 268.047.
5.21 Sec. 5. Minnesota Statutes 2022, section 268.133, is amended to read:
5.22 268.133 UNEMPLOYMENT BENEFITS WHILE IN ENTREPRENEURIAL
5.23TRAINING.
5.24 Unemployment benefits are available to dislocated workers participating in the converting
5.25layoffs into Minnesota businesses (CLIMB) program under section 116L.17, subdivision
5.2611. Applicants participating in CLIMB are considered in reemployment assistance training
5.27under section 268.035, subdivision 21c. All requirements under section 268.069, subdivision
5.281, must be met, except the commissioner may waive:
5.29 (1) the deductible earnings provisions in section 268.085, subdivision 5; and
5.30 (2) the 32 hours of work limitation in section 268.085, subdivision 2, clause (5) (4). A
5.31maximum of 500 applicants may receive a waiver at any given time.
5Sec. 5.
REVISOR SS/AD 23-0196701/12/23 6.1 Sec. 6. Minnesota Statutes 2022, section 268.18, is amended to read:
6.2 268.18 UNEMPLOYMENT BENEFIT OVERPAYMENTS.
6.3 Subdivision 1.Repaying an overpayment.(a) Any applicant who (1) because of a
6.4determination or amended determination issued under section 268.07 or 268.101, or any
6.5other section of this chapter, or (2) because of an unemployment law judge's decision under
6.6section 268.105, has received any unemployment benefits that the applicant was held not
6.7entitled to, is overpaid the benefits, and must promptly repay the benefits to the trust fund.
6.8 (b) If the applicant fails to repay the unemployment benefits overpaid, including any
6.9penalty and interest assessed under subdivisions subdivision 2 and 2b, the total due may be
6.10collected by the methods allowed under state and federal law.
6.11 Subd. 2.Overpayment because of misrepresentation.(a) An applicant has committed
6.12misrepresentation if the applicant is overpaid unemployment benefits by making a an
6.13intentional false statement or representation without in an effort to fraudulently collect
6.14benefits. Overpayment because of misrepresentation does not occur where there is
6.15unintentional mistake or a good faith belief as to the correctness of the statement or
6.16representation.
6.17 (b) In reviewing the facts of an alleged misrepresentation, the department shall consider
6.18any literacy, language, disability, and mental health barriers of the applicant. After the
6.19discovery of facts indicating misrepresentation, the commissioner must issue a determination
6.20of overpayment penalty assessing a penalty equal to 40 15 percent of the amount overpaid.
6.21This penalty is in addition to penalties under section 268.183.
6.22 (b) (c) Unless the applicant files an appeal within 20 60 calendar days after the sending
6.23of a determination of overpayment penalty to the applicant by mail or electronic transmission,
6.24the determination is final. Proceedings on the appeal are conducted in accordance with
6.25section 268.105.
6.26 (c) (d) A determination of overpayment penalty must state the methods of collection the
6.27commissioner may use to recover the overpayment, and penalty, and interest assessed.
6.28Money received in repayment of overpaid unemployment benefits, and penalties, and interest
6.29is first applied to the benefits overpaid, and then to the penalty amount due, then to any
6.30interest due. 62.5 percent of the payments made toward the penalty are credited to the
6.31contingent account and 37.5 percent credited to the trust fund.
6Sec. 6.
REVISOR SS/AD 23-0196701/12/23 7.1 (d) (e) The department is authorized to issue a determination of overpayment penalty
7.2under this subdivision within 48 months of the establishment of the benefit account upon
7.3which the unemployment benefits were obtained through misrepresentation.
7.4 Subd. 2b.Interest.On any unemployment benefits obtained by misrepresentation, and
7.5any penalty amounts assessed under subdivision 2, the commissioner must assess interest
7.6on any amount that remains unpaid beginning 30 calendar days after the date of a
7.7determination of overpayment penalty. Interest is assessed at the rate of one percent per
7.8month or any part of a month. A determination of overpayment penalty must state that
7.9interest will be assessed. Interest is not assessed on unpaid interest. Interest collected under
7.10this subdivision is credited to the trust fund.
7.11 Subd. 3a.Offset of unemployment benefits.(a) The commissioner may offset from
7.12any future unemployment benefits otherwise payable the amount of a nonmisrepresentation
7.13an overpayment. Except when the nonmisrepresentation overpayment resulted because the
7.14applicant failed to report deductible earnings or deductible or benefit delaying payments,
7.15no single offset may exceed 50 percent of the amount of the payment from which the offset
7.16is made.
7.17 (b) Overpayments of unemployment benefits under a federal program, may be recovered
7.18by offset from future benefits otherwise payable.
7.19 (c) If an applicant has been overpaid unemployment benefits under the law of another
7.20state, the commissioner may offset from future benefits otherwise payable the amount of
7.21overpayment.
7.22 (d) Nonmisrepresentation Unemployment benefit overpayments may be recovered by
7.23offset from future benefits otherwise payable under a federal program.
7.24 Subd. 4.Cancellation of overpayments.(a) If unemployment benefits overpaid for
7.25reasons other than misrepresentation are not repaid or offset from subsequent benefits within
7.26six years after the date of the determination or decision holding the applicant overpaid, the
7.27commissioner must cancel the overpayment balance, and no administrative or legal
7.28proceedings may be used to enforce collection of those amounts.
7.29 (b) If unemployment benefits overpaid because of misrepresentation including penalties
7.30and interest are not repaid within ten years after the date of the determination of overpayment
7.31penalty, the commissioner must cancel the overpayment balance and any penalties and
7.32interest due, and no administrative or legal proceeding may be used to enforce collection
7.33of those amounts.
7Sec. 6.
REVISOR SS/AD 23-0196701/12/23 8.1 (c) (b) The commissioner may cancel at any time any overpayment, including penalties
8.2and interest, that the commissioner determines is uncollectible because of death or
8.3bankruptcy.
8.4 Subd. 4a.Court fees; collection fees.(a) If the department is required to pay any court
8.5fees in an attempt to enforce collection of overpaid unemployment benefits, or penalties,
8.6or interest, the amount of the court fees may be added to the total amount due.
8.7 (b) If an applicant who has been overpaid unemployment benefits because of
8.8misrepresentation seeks to have any portion of the debt discharged under the federal
8.9bankruptcy code, and the department files an objection in bankruptcy court to the discharge,
8.10the cost of any court fees may be added to the debt if the bankruptcy court does not discharge
8.11the debt.
8.12 (c) If the Internal Revenue Service assesses the department a fee for offsetting from a
8.13federal tax refund the amount of any overpayment, including penalties and interest, the
8.14amount of the fee may be added to the total amount due. The offset amount must be put in
8.15the trust fund and that amount credited to the total amount due from the applicant.
8.16 Subd. 5.Remedies.(a) Any method undertaken to recover an overpayment of
8.17unemployment benefits, including any penalties and interest, is not an election of a method
8.18of recovery.
8.19 (b) Intervention or lack thereof, in whole or in part, in a workers' compensation matter
8.20under section 176.361 is not an election of a remedy and does not prevent the commissioner
8.21from determining an applicant ineligible for unemployment benefits.
8.22 Subd. 6.Collection of overpayments.(a) The commissioner may not compromise the
8.23amount of any overpaid unemployment benefits including penalties and interest.
8.24 (b) The commissioner has discretion regarding the recovery of any overpayment for
8.25reasons other than misrepresentation. Regardless of any law to the contrary, the commissioner
8.26is not required to refer any overpayment for reasons other than misrepresentation to a public
8.27or private collection agency, including agencies of this state.
8.28 (c) Amounts overpaid for reasons other than misrepresentation are not considered a
8.29"debt" to the state of Minnesota for purposes of any reporting requirements to the
8.30commissioner of management and budget.
8.31 (d) A pending appeal under section 268.105 does not suspend the assessment of interest,
8.32penalties, or collection of an overpayment.
8Sec. 6.
REVISOR SS/AD 23-0196701/12/23 9.1 (e) Section 16A.626 applies to the repayment by an applicant of any overpayment, or
9.2penalty, or interest.
9.3 Sec. 7. REPEALER.
9.4 Minnesota Statutes 2022, section 268.183, is repealed.
9Sec. 7.
REVISOR SS/AD 23-0196701/12/23 268.183 APPLICANT ADMINISTRATIVE PENALTIES.
(a) Any applicant who makes a false statement or representation without a good faith belief as
to the correctness of the statement or representation, in order to obtain or in an attempt to obtain
unemployment benefits may be assessed, in addition to any other penalties, an administrative penalty
of being ineligible for unemployment benefits for 13 to 104 weeks.
(b) A determination of ineligibility setting out the weeks the applicant is ineligible must be sent
to the applicant by mail or electronic transmission. The department is authorized to issue a
determination of ineligibility under this subdivision within 48 months of the establishment of the
benefit account upon which the unemployment benefits were obtained, or attempted to be obtained.
Unless an appeal is filed within 20 calendar days of sending, the determination is final. Proceedings
on the appeal are conducted in accordance with section 268.105.
1R
APPENDIX
Repealed Minnesota Statutes: 23-01967