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SF 1007

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

  1.1                          A bill for an act 
  1.2             relating to reemployment insurance; excepting from the 
  1.3             definition of "employment" services performed by 
  1.4             certain taxi cab drivers; amending Minnesota Statutes 
  1.5             1996, section 268.04, subdivision 12. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1996, section 268.04, 
  1.8   subdivision 12, is amended to read: 
  1.9      Subd. 12.  [EMPLOYMENT.] "Employment" means: 
  1.10     (1) Any service performed, including service in interstate 
  1.11  commerce, by; 
  1.12     (a) any officer of any corporation; 
  1.13     (b) any member of a limited liability company who is a 
  1.14  servant under the law of master and servant; 
  1.15     (c) any individual who performs services for remuneration 
  1.16  for any person as an agent-driver or commission-driver engaged 
  1.17  in distributing meat products, vegetable products, fruit 
  1.18  products, bakery products, beverages, or laundry or dry cleaning 
  1.19  services, for a principal, or as a traveling or city 
  1.20  salesperson, other than as an agent-driver or commission-driver, 
  1.21  engaged upon a full-time basis in the solicitation on behalf of, 
  1.22  and the transmission to, a principal (except for sideline sales 
  1.23  activities on behalf of some other person) of orders from 
  1.24  wholesalers, retailers, contractors, or operators of hotels, 
  1.25  restaurants, or other similar establishments for merchandise for 
  2.1   resale or supplies for use in their business operations; or 
  2.2      (d) any individual who is a servant under the law of master 
  2.3   and servant or who performs services for any employing unit, 
  2.4   unless such services are performed by an independent contractor. 
  2.5      Provided, that for purposes of clause (1)(c), the term 
  2.6   "employment" shall include services described above only if the 
  2.7   contract of service contemplates that substantially all of the 
  2.8   services are to be performed personally by such individual, the 
  2.9   individual does not have a substantial investment in facilities 
  2.10  used in connection with the performance of the services (other 
  2.11  than in facilities for transportation), and the services are not 
  2.12  in the nature of a single transaction that is not part of a 
  2.13  continuing relationship with the person for whom the services 
  2.14  are performed. 
  2.15     (2) The term "employment" shall include an individual's 
  2.16  entire service, performed within or both within and without this 
  2.17  state if (a) the service is localized in this state; or (b) the 
  2.18  service is not localized in any state but some of the service is 
  2.19  performed in this state and (1) the base of operations, or, if 
  2.20  there is no base of operations, then the place from which such 
  2.21  service is directed or controlled, is in this state; or (2) the 
  2.22  base of operations or place from which such service is directed 
  2.23  or controlled is not in any state in which some part of the 
  2.24  service is performed, but the individual's residence is in this 
  2.25  state. 
  2.26     (3) Service shall be deemed to be localized within a state 
  2.27  if (a) the service is performed entirely within such state; or 
  2.28  (b) the service is performed both within and without such state, 
  2.29  but the service performed without such state is incidental to 
  2.30  the individual's service within the state, for example, is 
  2.31  temporary or transitory in nature or consists of isolated 
  2.32  transactions. 
  2.33     (4) The term "employment" shall include an individual's 
  2.34  service wherever performed within the United States or Canada, 
  2.35  if 
  2.36     (a) such service is not covered under the unemployment 
  3.1   compensation law of any other state or Canada; and 
  3.2      (b) the place from which the service is directed or 
  3.3   controlled is in this state. 
  3.4      (5)(a) Service covered by an election pursuant to section 
  3.5   268.11, subdivision 3; and 
  3.6      (b) service covered by an arrangement pursuant to section 
  3.7   268.13 between the commissioner and the agency charged with the 
  3.8   administration of any other state or federal employment security 
  3.9   law, pursuant to which all service performed by an individual 
  3.10  for an employing unit is deemed to be performed entirely within 
  3.11  this state, shall be deemed to be employment if the commissioner 
  3.12  has approved an election of the employing unit for which such 
  3.13  service is performed, pursuant to which the entire service of 
  3.14  such individual during the period covered by such election is 
  3.15  deemed to be employment. 
  3.16     (6) Notwithstanding any inconsistent provisions of sections 
  3.17  268.03 to 268.23, the term "employment" shall include any 
  3.18  services which are performed by an individual with respect to 
  3.19  which an employing unit is liable for any federal tax against 
  3.20  which credit may be taken for contributions required to be paid 
  3.21  into a state reemployment insurance fund or which as a condition 
  3.22  for full tax credit against the tax imposed by the Federal 
  3.23  Unemployment Tax Act is required to be covered under this law. 
  3.24     (7) Service performed by an individual in the employ of the 
  3.25  state of Minnesota or any instrumentality which is wholly owned 
  3.26  by the state of Minnesota or in the employ of this state and one 
  3.27  or more other states or an instrumentality of this state and one 
  3.28  or more of its political subdivisions or an instrumentality of 
  3.29  this state and another state or an instrumentality of this state 
  3.30  and one or more political subdivisions of another state if such 
  3.31  service is excluded from "employment" as defined by section 
  3.32  3306(c)(7) of the Federal Unemployment Tax Act and is not 
  3.33  excluded from "employment" under clause (10). 
  3.34     (8) Service performed by an individual in the employ of any 
  3.35  political subdivision of the state of Minnesota or 
  3.36  instrumentality thereof or an instrumentality of two or more 
  4.1   political subdivisions of this state or any instrumentality of a 
  4.2   political subdivision of this state and another state or 
  4.3   political subdivisions of another state if such service is 
  4.4   excluded from "employment" as defined by section 3306(c)(7) of 
  4.5   the Federal Unemployment Tax Act and is not excluded from 
  4.6   "employment" under clause (10). 
  4.7      (9) Service performed by an individual in the employ of a 
  4.8   religious, charitable, educational or other organization but 
  4.9   only if the following conditions are met: 
  4.10     (a) the service is excluded from "employment" as defined in 
  4.11  the Federal Unemployment Tax Act solely by reason of section 
  4.12  3306(c)(8) of that act; and 
  4.13     (b) the organization had one or more individuals in 
  4.14  employment for some portion of a day in each of 20 different 
  4.15  weeks, whether or not such weeks were consecutive, within either 
  4.16  the current or preceding calendar year, regardless of whether 
  4.17  they were employed at the same moment of time. 
  4.18     (10) For the purposes of clauses (7), (8), and (9), the 
  4.19  term "employment" does not apply to service performed: 
  4.20     (a) in the employ of a church or convention or association 
  4.21  of churches, or an organization which is operated primarily for 
  4.22  religious purposes and which is operated, supervised, 
  4.23  controlled, or principally supported by a church or convention 
  4.24  or association of churches; or 
  4.25     (b) by a duly ordained, commissioned, or licensed minister 
  4.26  of a church in the exercise of a ministry or by a member of a 
  4.27  religious order in the exercise of duties required by such 
  4.28  order; or 
  4.29     (c) in a facility conducted for the purpose of carrying out 
  4.30  a program of rehabilitation for individuals whose earning 
  4.31  capacity is impaired by age or physical or mental deficiency or 
  4.32  injury or a program providing remunerative work for individuals 
  4.33  who because of an impaired physical or mental capacity cannot be 
  4.34  readily absorbed in the competitive labor market, by an 
  4.35  individual receiving the rehabilitation or remunerative work.  
  4.36  This exclusion applies only to services performed in a facility 
  5.1   which is certified by the Minnesota department of economic 
  5.2   security, division of rehabilitative services or in day training 
  5.3   and habilitation programs licensed by the department of human 
  5.4   services, and is limited to the effective period of the 
  5.5   certificate or license; or 
  5.6      (d) as part of an unemployment work relief or work training 
  5.7   program assisted or financed in whole or in part by any federal 
  5.8   agency or an agency of a state or political subdivision thereof, 
  5.9   by an individual receiving such work relief or work training.  
  5.10  This exclusion shall not apply to programs that provide for and 
  5.11  require unemployment insurance coverage for the participants; or 
  5.12     (e) by an inmate of a custodial or penal institution; or 
  5.13     (f) in the employ of governmental entities referred to in 
  5.14  clauses (7) and (8) if such service is performed by an 
  5.15  individual in the exercise of duties: 
  5.16     (i) as an elected official, 
  5.17     (ii) as a member of a legislative body, or a member of the 
  5.18  judiciary, 
  5.19     (iii) as a member of the Minnesota national guard or air 
  5.20  national guard, 
  5.21     (iv) as an employee serving only on a temporary basis in 
  5.22  case of fire, storm, snow, earthquake, flood or similar 
  5.23  emergency, 
  5.24     (v)(a) in a position with the state of Minnesota which is a 
  5.25  major nontenured policy making or advisory position in the 
  5.26  unclassified service, or 
  5.27     (b) a policy making position with the state of Minnesota or 
  5.28  a political subdivision the performance of the duties of which 
  5.29  ordinarily does not require more than eight hours per week; or 
  5.30     (c) in a position with a political subdivision which is a 
  5.31  major nontenured policy making or advisory position. 
  5.32     (11) The term "employment" shall include the service of an 
  5.33  individual who is a citizen of the United States, performed 
  5.34  outside the United States, except in Canada, in the employ of an 
  5.35  American employer (other than service which is deemed 
  5.36  "employment" under the provisions of clause (2), (3), or (4) or 
  6.1   the parallel provisions of another state's law) if: 
  6.2      (a) The employer's principal place of business in the 
  6.3   United States is located in this state; or 
  6.4      (b) The employer has no place of business in the United 
  6.5   States, but the employer is an individual who is a resident of 
  6.6   this state, or the employer is a corporation which is organized 
  6.7   under the laws of this state, or the employer is a partnership 
  6.8   or a trust and the number of partners or trustees who are 
  6.9   residents of this state is greater than the number who are 
  6.10  residents of any one other state; or 
  6.11     (c) None of the criteria of clauses (a) and (b) is met but 
  6.12  the employer has elected coverage in this state, or the employer 
  6.13  having failed to elect coverage in any state, the individual has 
  6.14  filed a claim for benefits, based on such service, under the law 
  6.15  of this state. 
  6.16     (d) An "American employer," for the purposes of this 
  6.17  subdivision, means a person who is an individual who is a 
  6.18  resident of the United States, or a partnership if two-thirds or 
  6.19  more of the partners are residents of the United States, or a 
  6.20  trust, if all of the trustees are residents of the United 
  6.21  States, or a corporation organized under the laws of the United 
  6.22  States or of any state; 
  6.23     (e) As used in this subdivision, the term "United States" 
  6.24  includes the states, the District of Columbia, the Commonwealth 
  6.25  of Puerto Rico, and the Virgin Islands. 
  6.26     (12) Notwithstanding clause (2), all service performed by 
  6.27  an officer or member of the crew of an American vessel on or in 
  6.28  connection with such vessel, if the operating office, from which 
  6.29  the operations of such vessel operating on navigable waters 
  6.30  within, or within and without, the United States are ordinarily 
  6.31  and regularly supervised, managed, directed, and controlled is 
  6.32  within this state. 
  6.33     (13) Service performed by an individual in agricultural 
  6.34  labor as defined in clause (15)(a) when: 
  6.35     (a) Such service is performed for a person who: 
  6.36     (i) during any calendar quarter in either the current or 
  7.1   the preceding calendar year paid wages of $20,000 or more to 
  7.2   individuals employed in agricultural labor, or 
  7.3      (ii) for some portion of a day in each of 20 different 
  7.4   calendar weeks, whether or not such weeks were consecutive, in 
  7.5   either the current or preceding calendar year employed in 
  7.6   agricultural labor four or more individuals regardless of 
  7.7   whether they were employed at the same time. 
  7.8      (b) For the purpose of this clause (13) any individual who 
  7.9   is a member of a crew furnished by a crew leader to perform 
  7.10  service in agricultural labor for any other person shall be 
  7.11  treated as an employee of the crew leader: 
  7.12     (i) if the crew leader holds a valid certificate of 
  7.13  registration under the Migrant and Seasonal Agricultural Worker 
  7.14  Protection Act; or substantially all of the members of the crew 
  7.15  operate or maintain tractors, mechanized harvesting or crop 
  7.16  dusting equipment, or any other mechanized equipment, which is 
  7.17  provided by the crew leader; and 
  7.18     (ii) if the individual is not an employee of another person 
  7.19  as determined by clause (1). 
  7.20     (c) For the purpose of this clause (13) in the case of any 
  7.21  individual who is furnished by a crew leader to perform service 
  7.22  in agricultural labor for any other person and who is not 
  7.23  treated as an employee of the crew leader under subclause 
  7.24  (13)(b): 
  7.25     (i) such other person and not the crew leader shall be 
  7.26  treated as the employer of such individual; and 
  7.27     (ii) such other person shall be treated as having paid 
  7.28  wages to such individual in an amount equal to the amount of 
  7.29  wages paid to such individual by the crew leader (either on the 
  7.30  crew leader's behalf or on behalf of such other person) for the 
  7.31  service in agricultural labor performed for such other person. 
  7.32     (d) For the purposes of this clause (13) the term "crew 
  7.33  leader" means an individual who: 
  7.34     (i) furnishes individuals to perform service in 
  7.35  agricultural labor for any other person, 
  7.36     (ii) pays (either on the crew leader's own behalf or on 
  8.1   behalf of such other person) the individuals so furnished by the 
  8.2   crew leader for the service in agricultural labor performed by 
  8.3   them, and 
  8.4      (iii) has not entered into a written agreement with such 
  8.5   other person under which such furnished individual is designated 
  8.6   as an employee of such other person. 
  8.7      (e) For the purposes of this clause (13) services performed 
  8.8   by an officer or shareholder of a family farm corporation shall 
  8.9   be excluded from agricultural labor and employment unless said 
  8.10  corporation is an employer as defined in section 3306(a)(2) of 
  8.11  the Federal Unemployment Tax Act. 
  8.12     (f) For the purposes of this clause (13), services 
  8.13  performed by an individual 16 years of age or under shall be 
  8.14  excluded from agricultural labor and employment unless the 
  8.15  employer is an employer as defined in section 3306(a)(2) of the 
  8.16  Federal Unemployment Tax Act. 
  8.17     (14) Domestic service in a private home, local college 
  8.18  club, or local chapter of a college fraternity or sorority 
  8.19  performed for a person who paid wages of $1,000 or more in any 
  8.20  calendar quarter in either the current or preceding calendar 
  8.21  year to individuals employed in domestic service. 
  8.22     "Domestic service" includes all service for an individual 
  8.23  in the operation and maintenance of a private household, for a 
  8.24  local college club, or local chapter of a college fraternity or 
  8.25  sorority as distinguished from service as an employee in the 
  8.26  pursuit of an employer's trade, occupation, profession, 
  8.27  enterprise, or vocation. 
  8.28     (15) The term "employment" shall not include: 
  8.29     (a) Agricultural labor.  Service performed by an individual 
  8.30  in agricultural labor, except as provided in clause (13).  The 
  8.31  term "agricultural labor" includes all services performed: 
  8.32     (1) On a farm, in the employ of any person or family farm 
  8.33  corporation, in connection with cultivating the soil, or in 
  8.34  connection with raising or harvesting any agricultural or 
  8.35  horticultural commodity, including the raising, shearing, 
  8.36  feeding, caring for, training, and management of livestock, 
  9.1   bees, poultry, fur-bearing animals and wildlife; 
  9.2      (2) In the employ of the owner or tenant or other operator 
  9.3   of a farm, in connection with the operation, management, 
  9.4   conservation, improvement, or maintenance of such farm and its 
  9.5   tools and equipment, or in salvaging timber or clearing land of 
  9.6   brush and other debris left by a tornadic-like storm, if the 
  9.7   major part of such service is performed on a farm; 
  9.8      (3) In connection with the production or harvesting of any 
  9.9   commodity defined as an agricultural commodity in section 15(g) 
  9.10  of the Agricultural Marketing Act, as amended (46 Statutes 1550, 
  9.11  section 3; United States Code, title 12, section 1141j) or in 
  9.12  connection with the ginning of cotton, or in connection with the 
  9.13  operation or maintenance of ditches, canals, reservoirs, or 
  9.14  waterways, not owned or operated for profit, used exclusively 
  9.15  for supplying and storing water for farming purposes; 
  9.16     (4) In the employ of the operator of a farm in handling, 
  9.17  planting, drying, packing, packaging, processing, freezing, 
  9.18  grading, storing, or delivering to storage or to market or to a 
  9.19  carrier for transportation to market, in its unmanufactured 
  9.20  state, any agricultural or horticultural commodity; but only if 
  9.21  such operator produced more than one-half of the commodity with 
  9.22  respect to which such service is performed, or in the employ of 
  9.23  a group of operators of farms (or a cooperative organization of 
  9.24  which such operators are members) in the performance of service 
  9.25  described herein, but only if such operators produced more than 
  9.26  one-half of the commodity with respect to which such service is 
  9.27  performed; however, the provisions of this paragraph shall not 
  9.28  be deemed to be applicable with respect to service performed in 
  9.29  connection with commercial canning or commercial freezing or in 
  9.30  connection with any agricultural or horticultural commodity 
  9.31  after its delivery to a terminal market for distribution for 
  9.32  consumption; or 
  9.33     (5) On a farm operated for profit if such service is not in 
  9.34  the course of the employer's trade or business. 
  9.35     As used herein, the term "farm" includes stock, dairy, 
  9.36  poultry, fruit, fur-bearing animal, and truck farms, 
 10.1   plantations, ranches, nurseries, ranges, greenhouses or other 
 10.2   similar structures used primarily for the raising of 
 10.3   agricultural or horticultural commodities, and orchards. 
 10.4      (b) Casual labor not in the course of the employing unit's 
 10.5   trade or business; 
 10.6      (c) Service performed on the navigable waters of the United 
 10.7   States as to which this state is prohibited by the constitution 
 10.8   and laws of the United States of America from requiring 
 10.9   contributions of employers with respect to wages as provided in 
 10.10  sections 268.03 to 268.23; 
 10.11     (d) Service performed by an individual in the employ of a 
 10.12  son, daughter, or spouse, and service performed by a child under 
 10.13  the age of 18 in the employ of the child's father or mother; 
 10.14     (e) Service performed in the employ of the United States 
 10.15  government, or any instrumentality of the United States exempt 
 10.16  under the Constitution of the United States from the 
 10.17  contributions imposed by sections 268.03 to 268.23, except that 
 10.18  with respect to such service and to the extent that the Congress 
 10.19  of the United States shall permit states to require any 
 10.20  instrumentalities of the United States to make payments into a 
 10.21  reemployment insurance fund under a state reemployment insurance 
 10.22  act; then, to the extent permitted by Congress, and from and 
 10.23  after the date as of which such permission becomes effective, 
 10.24  all of the provisions of these sections shall be applicable to 
 10.25  such instrumentalities and to services performed for such 
 10.26  instrumentalities in the same manner, to the same extent, and on 
 10.27  the same terms as to all other employers, employing units, 
 10.28  individuals, and services; provided, that if this state shall 
 10.29  not be certified for any year by the United States Department of 
 10.30  Labor under section 3304(c) of the federal Internal Revenue 
 10.31  Code, the payments required of such instrumentalities with 
 10.32  respect to such year shall be refunded by the commissioner from 
 10.33  the fund in the same manner and within the same period as is 
 10.34  provided in section 268.16, subdivision 6, with respect to 
 10.35  contributions erroneously collected; 
 10.36     (f) Service with respect to which reemployment insurance is 
 11.1   payable under an unemployment compensation system established by 
 11.2   an act of Congress; 
 11.3      (g)(1) Service performed in any calendar quarter in the 
 11.4   employ of any organization exempt from income tax under section 
 11.5   501(a) (other than an organization described in section 401(a)) 
 11.6   or section 521 of the federal Internal Revenue Code, if the 
 11.7   remuneration for such service is less than $50; or 
 11.8      (2) Service performed in the employ of a school, college, 
 11.9   or university, if such service is performed by a student who is 
 11.10  enrolled and is regularly attending classes at such school, 
 11.11  college, or university; or 
 11.12     (3) Service performed by an individual who is enrolled at a 
 11.13  nonprofit or public educational institution which normally 
 11.14  maintains a regular faculty and curriculum and normally has a 
 11.15  regularly organized body of students in attendance at the place 
 11.16  where its educational activities are carried on as a student in 
 11.17  a full-time program, taken for credit at such institution, which 
 11.18  combines academic instruction with work experience, if such 
 11.19  service is an integral part of such program, and such 
 11.20  institution has so certified to the employer, except that this 
 11.21  paragraph shall not apply to service performed in a program 
 11.22  established for or on behalf of an employer or group of 
 11.23  employers; 
 11.24     (h) Service performed in the employ of a foreign government 
 11.25  (including service as a consular or other officer or employee or 
 11.26  a nondiplomatic representative); 
 11.27     (i) Service performed in the employ of an instrumentality 
 11.28  wholly owned by a foreign government, if 
 11.29     (1) The service is of a character similar to that performed 
 11.30  in foreign countries by employees of the United States 
 11.31  government or of an instrumentality thereof; and 
 11.32     (2) The commissioner finds that the United States Secretary 
 11.33  of State has certified to the United States Secretary of the 
 11.34  Treasury that the foreign government, with respect to whose 
 11.35  instrumentality exemption is claimed, grants an equivalent 
 11.36  exemption with respect to similar service performed in the 
 12.1   foreign country by employees of the United States government and 
 12.2   of instrumentalities thereof. 
 12.3      (j) Service covered by an arrangement between the 
 12.4   commissioner and the agency charged with the administration of 
 12.5   any other state or federal employment security law pursuant to 
 12.6   which all services performed by an individual for an employing 
 12.7   unit during the period covered by such employing unit's duly 
 12.8   approved election, are deemed to be performed entirely within 
 12.9   such agency's state; 
 12.10     (k) Service performed in the employ of a hospital, if such 
 12.11  service is performed by a patient of the hospital, as defined in 
 12.12  clause (17); 
 12.13     (l) Service performed as a student nurse in the employ of a 
 12.14  hospital or a nurses' training school by an individual who is 
 12.15  enrolled and is regularly attending classes in a nurses' 
 12.16  training school chartered and approved pursuant to state law; 
 12.17  and service performed as an intern in the employ of a hospital 
 12.18  by an individual who has completed a four years' course in a 
 12.19  medical school chartered and approved pursuant to state law; 
 12.20     (m) Service performed by an individual other than a 
 12.21  corporate officer, for a person as an insurance agent or as an 
 12.22  insurance solicitor, if all such service performed by such 
 12.23  individual for such person is performed for remuneration solely 
 12.24  by way of commission (the word "insurance" as used in this 
 12.25  subdivision shall include an annuity and an optional annuity); 
 12.26     (n) Service performed by an individual under the age of 18 
 12.27  in the delivery or distribution of newspapers or shopping news, 
 12.28  not including delivery or distribution to any point for 
 12.29  subsequent delivery or distribution; 
 12.30     (o) Service performed by an individual other than a 
 12.31  corporate officer, for a person as a real estate salesperson, if 
 12.32  all such service performed by such individual for such person is 
 12.33  performed for remuneration solely by way of commission; 
 12.34     (p) If the service performed during one-half or more of any 
 12.35  pay period by an individual for the person employing the 
 12.36  individual constitutes employment, all the service of such 
 13.1   individual for such period shall be deemed to be employment; but 
 13.2   if the service performed during more than one-half of any such 
 13.3   pay period by an individual for the person employing the 
 13.4   individual does not constitute employment, then none of the 
 13.5   service of such individual for such period shall be deemed to be 
 13.6   employment.  As used in this subdivision, the term "pay period" 
 13.7   means a period of not more than a calendar month for which a 
 13.8   payment or remuneration is ordinarily made to the individual by 
 13.9   the person employing the individual.; 
 13.10     (q) Services performed for a state, other than the state of 
 13.11  Minnesota, or an instrumentality wholly owned by such other 
 13.12  state or political subdivision of such other state; 
 13.13     (r) Services performed as a direct seller as defined in 
 13.14  United States Code, title 26, section 3508; 
 13.15     (s) Notwithstanding clauses (1)(a) and (15)(m), services 
 13.16  performed as an officer of a township mutual insurance company 
 13.17  or farmer's mutual insurance company operating pursuant to 
 13.18  chapter 67A; 
 13.19     (t) Service performed by an individual for a person as a 
 13.20  taxi driver, when the individual agrees in writing to 
 13.21  independent contractor status and the individual leases the taxi 
 13.22  cab used to perform the service, without regard to the duration 
 13.23  of the lease. 
 13.24     (16) "Institution of higher education," for the purposes of 
 13.25  this chapter, means an educational institution which: 
 13.26     (a) Admits as regular students only individuals having a 
 13.27  certificate of graduation from a high school, or the recognized 
 13.28  equivalent of such a certificate; 
 13.29     (b) Is legally authorized in this state to provide a 
 13.30  program of education beyond high school; 
 13.31     (c) Provides an educational program for which it awards a 
 13.32  bachelor's or higher degree, or provides a program which is 
 13.33  acceptable for credit toward such a degree, a program of 
 13.34  postgraduate or postdoctoral studies, or a program of training 
 13.35  to prepare students for gainful employment in a recognized 
 13.36  occupation; and 
 14.1      (d) Is a public or other nonprofit institution. 
 14.2      (e) Notwithstanding any of the foregoing provisions of this 
 14.3   clause, all colleges and universities in this state are 
 14.4   institutions of higher education for purposes of this section. 
 14.5      (17) "Hospital" means an institution which has been 
 14.6   licensed, certified or approved by the department of health as a 
 14.7   hospital. 
 14.8      Sec. 2.  [EFFECTIVE DATE.] 
 14.9      Section 1 is effective the day following final enactment.