1st Engrossment - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to reemployment insurance; making technical 1.3 changes; modifying procedures; complying with federal 1.4 requirements; modifying definitions; amending 1.5 Minnesota Statutes 1998, sections 268.035, 1.6 subdivisions 3, 4, 5, 6, 8, 12, 14, 15, 18, 20, 24, 1.7 30, 32, and by adding a subdivision; 268.042, 1.8 subdivision 3; 268.045; 268.047, subdivisions 1, 2, 3, 1.9 and 4; 268.048; 268.051, subdivisions 1, 2, 3, 4, 5, 1.10 and 8; 268.052; 268.053; 268.057, subdivisions 4 and 1.11 10; 268.058; 268.0625; 268.064; 268.065; 268.067; 1.12 268.068; 268.069; 268.07; 268.085; 268.095; 268.101; 1.13 268.103, by adding a subdivision; 268.105; 268.115; 1.14 268.125, subdivisions 1, 4, and 5; 268.135; 268.145; 1.15 268.155; 268.18; 268.182; 268.186; 268.188; 268.192, 1.16 subdivision 2; 268.194; 268.196; 268.198; 268.21; 1.17 268.23; and 268.30, subdivision 2; proposing coding 1.18 for new law in Minnesota Statutes, chapter 268; 1.19 repealing Minnesota Statutes 1998, sections 268.021; 1.20 and 268.057, subdivisions 8 and 9; Minnesota Rules, 1.21 parts 3305.0100; 3305.0200; 3305.0300; 3305.0400; 1.22 3305.0500; 3305.0600; 3305.0700; 3305.0800; 3305.0900; 1.23 3305.1100; 3310.1500; 3310.1600; 3310.1700; 3310.1800; 1.24 3310.1900; 3310.2000; 3310.2100; 3310.2200; 3310.5100; 1.25 and 3310.5800. 1.26 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.27 Section 1. [STATEMENT OF INTENT.] 1.28 Regardless of Minnesota Statutes, section 268.194, 1.29 subdivision 5, or any other provisions of law to the contrary, 1.30 in order to meet the requirements of section 5403 of the Federal 1.31 Balanced Budget Act of 1997, the distribution of excess Federal 1.32 Unemployment Tax Act funds under United States Code, title 42, 1.33 section 1103, also known as the Reed Act, with respect to 1.34 federal fiscal years ending in 1999, 2000, and 2001 (Minnesota's 1.35 portion being projected to be approximately $2,000,000 per year) 2.1 shall be used only for systems development for the reemployment 2.2 insurance program. 2.3 Sec. 2. Minnesota Statutes 1998, section 268.035, 2.4 subdivision 3, is amended to read: 2.5 Subd. 3. [BACK PAY.] "Back pay" means a retroactive 2.6 payment of money by an employer to an employee or former 2.7 employee for lost wages
because of the employer's noncompliance2.8 with a state or federal law or a collective bargaining agreement2.9 as determined by an arbitration award, administrative or 2.10 judicial decision, or negotiated settlement. The payment shall2.11 be applied to the period immediately following the last day of2.12 employment or as specified in the award, decision, or settlement.2.13 Sec. 3. Minnesota Statutes 1998, section 268.035, 2.14 subdivision 4, is amended to read: 2.15 Subd. 4. [BASE PERIOD.] "Base period" means: 2.16 (1) the first four of the last five completed calendar 2.17 quarters immediately prior to the effective date of a claimant's 2.18 reemployment insurancebenefit account; 2.19 (2) if during the base period under clause (1) a claimant 2.20 received workers' compensation for temporary disability under 2.21 chapter 176 or a similar law of the United States, or if a 2.22 claimant whose own serious illness caused a loss of work for 2.23 which the claimant received compensation for loss of wages from 2.24 some other source, the claimant may request that thea base 2.25 period be extendedas follows: 2.26 (i) if a claimant was compensated for a loss of work of 2.27 seven to 13 weeks, the originalbase period shall be extended to2.28 includethe onefirst four of the last six completed calendar 2.29 quarterquarters prior to the original base periodeffective 2.30 date of the benefit account; 2.31 (ii) if a claimant was compensated for a loss of work of 14 2.32 to 26 weeks, the originalbase period shall be extended to2.33 includethe twofirst four of the last seven completed calendar 2.34 quarters prior to the original base periodeffective date of the 2.35 benefit account; 2.36 (iii) if a claimant was compensated for a loss of work of 2.37 27 to 39 weeks, the originalbase period shall be extended to3.1 includethe threefirst four of the last eight completed 3.2 calendar quarters prior to the original base periodeffective 3.3 date of the benefit account; and 3.4 (iv) if a claimant was compensated for a loss of work of 40 3.5 to 52 weeks, the originalbase period shall be extended to3.6 includethe first four of the last nine completed calendar 3.7 quarters prior to the original base periodeffective date of the 3.8 benefit account; 3.9 (3) if the claimant qualifies for an extendeda base period 3.10 under clause (2), but has insufficient wage credits to establish 3.11 a reemployment insurancebenefit account, the claimant may 3.12 request an alternatea base period of the last four completed 3.13 calendar quarters prior to the date the claimant's reemployment3.14 insurancebenefit account is effective. This alternatebase 3.15 period may be used only once during any five-calendar-year 3.16 period; and 3.17 (4) no base period under clause (1), extended base period3.18 under clause(2), or alternate base period under clause(3) 3.19 shall include wage credits upon which a prior reemployment3.20 insurancebenefit account was established. 3.21 Sec. 4. Minnesota Statutes 1998, section 268.035, 3.22 subdivision 5, is amended to read: 3.23 Subd. 5. [BENEFITS.] "Benefits" means the money 3.24 payments payableavailable to a claimant , as provided in3.25 sections 268.03 to 268.23, with respect to the claimant's3.26 unemployment. 3.27 Sec. 5. Minnesota Statutes 1998, section 268.035, 3.28 subdivision 6, is amended to read: 3.29 Subd. 6. [BENEFIT YEAR.] "Benefit year" means the period 3.30 of 52 calendar weeks beginning the date a reemployment insurance3.31 benefit account is effective. For a reemployment3.32 insurancebenefit account established effective any January 1, 3.33 April 1, July 1, orOctober 1, or January 2, 2000, or October 2, 3.34 2011, the benefit year will be a period of 53 calendar weeks. 3.35 Sec. 6. Minnesota Statutes 1998, section 268.035, 3.36 subdivision 8, is amended to read: 4.1 Subd. 8. [CLAIMANT.] "Claimant" means an individual who 4.2 has madefiled an application for a reemployment insurance4.3 accountbenefits and has established or is activelypursuing the 4.4 establishment of a reemployment insurancebenefit account. 4.5 Sec. 7. Minnesota Statutes 1998, section 268.035, 4.6 subdivision 12, is amended to read: 4.7 Subd. 12. [COVERED EMPLOYMENT.] "Covered employment" means 4.8 the following unless definedexcluded as "noncovered employment" 4.9 under subdivision 20: 4.10 (1) an employee's entire employment if: 4.11 (i) the employment is performed entirely in Minnesota; 4.12 (ii) the employment is performed primarily in Minnesota, 4.13 and the employment performed outside Minnesota is incidental to 4.14 the employment in Minnesota; or 4.15 (iii) the employment is not performed primarily in any one 4.16 state but some of the employment is performed in Minnesota and 4.17 the base of operations or the place from which the employment is 4.18 directed or controlled is in Minnesota; or the base of 4.19 operations or place from which the employment is directed or 4.20 controlled is not in any state in which part of the employment 4.21 is performed, but the employee's residence is in Minnesota; 4.22 (2) an employee's employment wherever performed within the 4.23 United States or Canada, if: 4.24 (i) the employment is not covered under the reemployment 4.25 insurance law of any other state or Canada; and 4.26 (ii) the place from which the employment is directed or 4.27 controlled is in Minnesota; 4.28 (3) the employment of an employee who is a citizen of the 4.29 United States, performed outside the United States, except in 4.30 Canada, in the employ of an American employer if: 4.31 (i) the employer's principal place of business in the 4.32 United States is located in Minnesota; 4.33 (ii) the employer has no place of business in the United 4.34 States, but the employer is an individual who is a resident of 4.35 Minnesota, or the employer is a corporation that is organized 4.36 under the laws of Minnesota, or the employer is a partnership or 5.1 a trust and the number of partners or trustees who are residents 5.2 of Minnesota is greater than the number who are residents of any 5.3 one other state; 5.4 (iii) none of the criteria of subclauses (i) and (ii) is 5.5 met but the employer has elected coverage in Minnesota, or the 5.6 employer having failed to elect coverage in any state, a 5.7 claimant has made an application for benefits under section 5.8 268.07, based on the employment; 5.9 (iv) an "American employer," for the purposes of this 5.10 subdivision, means an individual who is a resident of the United 5.11 States, or a partnership if two-thirds or more of the partners 5.12 are residents of the United States, or a trust, if all of the 5.13 trustees are residents of the United States, or a corporation 5.14 organized under the laws of the United States, or of any state; 5.15 or 5.16 (v) as used in this subdivision, the term "United States" 5.17 includes the states, the District of Columbia, the Commonwealth 5.18 of Puerto Rico, and the Virgin Islands; 5.19 (4) all employment performed by an officer or member of the 5.20 crew of an American vessel on or in connection with the vessel, 5.21 if the operating office ,from which the operations of the vessel 5.22 operating on navigable waters within, or within and without, the 5.23 United States are ordinarily and regularly supervised, managed, 5.24 directed, and controlled is in Minnesota; and 5.25 (5) for the purposes of satisfying disqualifications under 5.26 section 268.095, subdivision 10, "covered employment" shall 5.27 include covered employment under a similarreemployment 5.28 insurance law of any other state or employment covered under a 5.29 reemployment insurance systemprogram established by an act of 5.30 Congress ; and5.31 (6) periods for which an individual receives back pay are5.32 periods of "covered employment," except for the satisfying of5.33 disqualifications under section 268.095, subdivision 10. 5.34 Sec. 8. Minnesota Statutes 1998, section 268.035, 5.35 subdivision 14, is amended to read: 5.36 Subd. 14. [EMPLOYER.] "Employer" means any of the 6.1 following which has had one or more employees during the current 6.2 or the prior calendar year: 6.3 (1) any individual or type of organization, resident or 6.4 nonresident, for profit or nonprofit, religious, charitable, or 6.5 educational, including any partnership, limited liability 6.6 company, trust, estate, or corporation, domestic or foreign, or 6.7 the receiver, trustee in bankruptcy, trustee or successor of any 6.8 of the foregoing, or the legal representative of a deceased 6.9 person; 6.10 (2) any government entity, state or federal, foreign or 6.11 domestic, Indian tribe, including any subdivision thereof and 6.12 any instrumentality thereof owned wholly or in part; 6.13 (3) any organization or person that is considered an6.14 employer under United States Code, title 26, section 3306(a) of6.15 the Federal Unemployment Tax Act;6.16 (4)(3) any organization or person that has elected, under 6.17 section 268.042, to be subject to sections 268.03 to 268.23; 6.18 (5)(4) a joint venture composed of one or more employers; 6.19 (6)(5) any private ornonprofit organization or government 6.20 agency providing or authorizing the hiring of homeworkers, 6.21 personal care attendants, or other individuals performing 6.22 similar services in a private home is the employer of the 6.23 homeworker, attendant, or similar worker whether 6.24 the organization or agency pays the employee directly or 6.25 provides funds to the recipient of the services to pay for the 6.26 services. This clause does not apply to the state of Minnesota 6.27 or any county that provides federal, state, or local funds to a 6.28 child care provider either directly or indirectly through a 6.29 parent who is a child care assistance recipient; or 6.30 (7)(6) each individual employed to perform or assist in 6.31 performing the work of any agent or employee shall be considered 6.32 to be employed by that employer whether the individual was hired 6.33 or paid directly by that employer or by the agent or employee, 6.34 provided the employer had actual or constructive knowledge of 6.35 the work. 6.36 Sec. 9. Minnesota Statutes 1998, section 268.035, 7.1 subdivision 15, is amended to read: 7.2 Subd. 15. [EMPLOYMENT.] "Employment" means service 7.3 performed by: 7.4 (1) an individual who is considered an employee under the 7.5 common law of employer-employee and not considered an 7.6 independent contractor; 7.7 (2) an officer of a corporation; 7.8 (3) a member of a limited liability company who is 7.9 considered an employee under the common law of 7.10 employer-employee; or 7.11 (4) an individual who performs services for a person for 7.12 compensation, as: 7.13 (i) an agent-driver or commission-driver engaged in 7.14 distributing meat products, vegetable products, fruit products, 7.15 beverages, or laundry or dry cleaning services , for a principal; 7.16 or 7.17 (ii) a traveling or city salesperson, other than as an 7.18 agent-driver or commission-driver, engaged upon afull-time 7.19 basisin the solicitation on behalf of , andthe transmission to,7.20 a principal (except for sideline sales activities on behalf of7.21 some otherperson ), of orders from wholesalers, retailers, 7.22 contractors, or operators of hotels, restaurants, or other 7.23 similar establishments for merchandise for resale or supplies 7.24 for use in their business operations. 7.25 This clause shall apply only if the contract of service 7.26 provides that substantially all of the services are to be 7.27 performed personally by the individual, and the services are 7.28 part of a continuing relationship with the person for whom the 7.29 services are performed, and the individual does not have a 7.30 substantial investment in facilities used in connection with the 7.31 performance of the services (, other than facilities for 7.32 transportation ); or7.33 (5) an individual whose service is considered employment7.34 under United States Code, title 26, section 3306(c), of the7.35 Federal Unemployment Tax Act. 7.36 Sec. 10. Minnesota Statutes 1998, section 268.035, 8.1 subdivision 18, is amended to read: 8.2 Subd. 18. [FUND.] "Fund" means the Minnesota reemployment 8.3 insurance trust fund established by section 268.194. 8.4 Sec. 11. Minnesota Statutes 1998, section 268.035, 8.5 subdivision 20, is amended to read: 8.6 Subd. 20. [NONCOVERED EMPLOYMENT.] "Noncovered employment" 8.7 means: 8.8 (1) employment for the United States government or an 8.9 instrumentality thereof, including military service; 8.10 (2) employment for an Indian, an Indian-controlled 8.11 employer, and Indian tribe, or any wholly controlled 8.12 subsidiaries or subdivisions, if the employment is performed on 8.13 an Indian reservation or Indian Trust Land; 8.14 (3) employment for a state, other than Minnesota, or a 8.15 political subdivision or instrumentality thereof; 8.16 (4) employment for a foreign government; 8.17 (5) employment for an instrumentality wholly owned by a 8.18 foreign government, if the employment is of a character similar 8.19 to that performed in foreign countries by employees of the 8.20 United States government or an instrumentality thereof and the 8.21 United States Secretary of State has certified that the foreign 8.22 government grants an equivalent exemption to similar employment 8.23 performed in the foreign country by employees of the United 8.24 States government and instrumentalities thereof; 8.25 (6) employment with respect to which reemployment insurance8.26 benefits are payable under a system established by an act of8.27 Congresscovered under United States Code, title 45, section 8.28 351, the Railroad Unemployment Insurance Act; 8.29 (7) employment covered by a reciprocal arrangement between 8.30 the commissioner and another state or the federal government 8.31 pursuant towhich provides that all employment performed by an 8.32 individual for an employer during the period covered by the 8.33 reciprocal arrangement is considered performed entirely within 8.34 another state; 8.35 (8) employment for a religious, charitable, education, or8.36 other organization described in United States Code, title 26,9.1 section 501(c)(3) of the federal Internal Revenue Code and9.2 exempt from income tax under section 501(a), but only if the9.3 organization did not have one or more individuals in employment9.4 for some portion of a day in each of 20 different weeks, whether9.5 or not such weeks were consecutive, within either the current or9.6 the prior calendar year, regardless of whether they were9.7 employed at the same time;9.8 (9)(8) employment for a church or convention or 9.9 association of churches, or an organization operated primarily 9.10 for religious purposes that is operated, supervised, controlled, 9.11 or principally supported by a church or convention or 9.12 association of churches described in United States Code, title 9.13 26, section 501(c)(3) of the federal Internal Revenue Code and 9.14 exempt from income tax under section 501(a); 9.15 (10)(9) employment of a duly ordained , commissioned,or 9.16 licensed minister of a church in the exercise of a ministry or 9.17 by a member of a religious order in the exercise of duties 9.18 required by the order, for Minnesota or a political subdivision 9.19 or an organization described in United States Code, title 26, 9.20 section 501(c)(3) of the federal Internal Revenue Code and 9.21 exempt from income tax under section 501(a); 9.22 (11)(10) employment of an individual receiving 9.23 rehabilitation of "sheltered" work in a facility conducted for 9.24 the purpose of carrying out a program of rehabilitation for 9.25 individuals whose earning capacity is impaired by age or 9.26 physical or mental deficiency or injury or a program providing 9.27 "sheltered" work for individuals who because of an impaired 9.28 physical or mental capacity cannot be readily absorbed in the 9.29 competitive labor market. This clause applies only to services 9.30 performed for Minnesota or a political subdivision or an 9.31 organization described in United States Code, title 26, section 9.32 501(c)(3) of the federal Internal Revenue Code and exempt from 9.33 income tax under section 501(a) in a facility certified by the 9.34 rehabilitation services branch of the department or in a day 9.35 training or habilitation program licensed by the department of 9.36 human services; 10.1 (12)(11) employment of an individual receiving work relief 10.2 or work training as part of an unemployment work relief or work 10.3 training program assisted or financed in whole or in part by any 10.4 federal agency or an agency of a state or political subdivision 10.5 thereof. This clause applies only to employment for Minnesota 10.6 or a political subdivision or an organization described in 10.7 United States Code, title 26, section 501(c)(3) of the federal 10.8 Internal Revenue Code and exempt from income tax under section 10.9 501(a). This clause shall not apply to programs that require 10.10 reemployment insurance coverage for the participants; 10.11 (13) employment in any calendar quarter for any10.12 organization exempt from income tax under United States Code,10.13 title 26, section 501(a) or 521 of the federal Internal Revenue10.14 Code except a trust described in section 401(a), if the10.15 compensation for the employment is less than $50;10.16 (14)(12) employment for Minnesota or a political 10.17 subdivision if the service isas an elected official, a member 10.18 of a legislative body, or a member of the judiciary; 10.19 (15)(13) employment as a member of the Minnesota national 10.20 guard or air national guard; 10.21 (16)(14) employment for Minnesota, a political 10.22 subdivision, or instrumentality thereof, as an employee serving 10.23 only on a temporary basis in case of fire, storm, snow,10.24 earthquake,flood, tornado, or similar emergency; 10.25 (17)(15) employment as an election official or election 10.26 worker for Minnesota or a political subdivision, but only if the 10.27 compensation for that employment was less than $1,000 in a 10.28 calendar year; 10.29 (18)(16) employment for Minnesota that is a major 10.30 nontenuredpolicy making or advisory position in the 10.31 unclassified service, including those positions established 10.32 pursuant to section 43A.08, subdivision 1a; 10.33 (19) employment in a policy making position for Minnesota10.34 or a political subdivision, the performance of the duties that10.35 ordinarily does not require more than eight hours per week;10.36 (20)(17) employment for a political subdivision of 11.1 Minnesota that is a nontenured major nontenuredpolicy making or 11.2 advisory position; 11.3 (21)(18) domestic serviceemployment in a private 11.4 household, local college club, or local chapter of a college 11.5 fraternity or sorority performed for a person, only if the wages 11.6 paid in any calendar quarter in either the current or preceding 11.7 calendar year to all individuals employedin domestic service11.8 employment totaled less than $1,000. 11.9 "Domestic serviceemployment" includes all service for an11.10 individualin the operation and maintenance of a private 11.11 household, for a local college club, or local chapter of a 11.12 college fraternity or sorority as distinguished from service as 11.13 an employee in the pursuit of an employer's trade , occupation,11.14 profession, enterprise, or vocationor business; 11.15 (22)(19) employment of an individual by a son, daughter, 11.16 or spouse, and employment of a child under the age of 18 by the 11.17 child's father or mother; 11.18 (23)(20) employment of an inmate of a custodial or penal 11.19 institution; 11.20 (24)(21) employment for a school, college, or university 11.21 by a student who is enrolled and is regularly attending classes 11.22 at the school, college, or university; 11.23 (25)(22) employment of an individual who is enrolled as a 11.24 student in a full-time program at a nonprofit or public 11.25 educational institution that normallymaintains a regular 11.26 faculty and curriculum and normallyhas a regularly organized 11.27 body of students in attendance at the place where its 11.28 educational activities are carried on, taken for credit at the 11.29 institution, that combines academic instruction with work 11.30 experience, if the employment is an integral part of the 11.31 program, and the institution has so certified to the employer, 11.32 except that this clause shall not apply to employment in a 11.33 program established for or on behalf of an employer or group of 11.34 employers; 11.35 (26)(23) employment of university, college, or 11.36 professional school students in an internship or other training 12.1 program with the city of St. Paul or the city of Minneapolis 12.2 pursuant to Laws 1990, chapter 570, article 6, section 3; 12.3 (27)(24) employment for a hospital by a patient of the 12.4 hospital. "Hospital" means an institution that has been 12.5 licensed , certified, or approvedby the department of health as 12.6 a hospital; 12.7 (28)(25) employment as a student nurse for a hospital or a 12.8 nurses' training school by an individual who is enrolled and is 12.9 regularly attending classes in aan accredited nurses' training 12.10 school chartered and approved pursuant to state law; 12.11 (29)(26) employment as an intern for a hospital by an 12.12 individual who has completed a four-year course in aan 12.13 accredited medical school chartered and approved pursuant to12.14 state law; 12.15 (30)(27) employment as an insurance agent or as an12.16 insurance solicitorsalesperson, by other than a corporate 12.17 officer, if all the compensation for the employment is solely by 12.18 way of commission. The word "insurance" shall include an 12.19 annuity and an optional annuity; 12.20 (31)(28) employment as an officer of a township mutual 12.21 insurance company or farmer's mutual insurance company operating 12.22 pursuant to chapter 67A; 12.23 (32)(29) employment as a real estate salesperson, by other 12.24 than a corporate officer, if all the compensation for the 12.25 employment is solely by way of commission; 12.26 (33)(30) employment as a direct seller as defined in 12.27 United States Code, title 26, section 3508; 12.28 (34)(31) employment of an individual under the age of 18 12.29 in the delivery or distribution of newspapers or shopping news, 12.30 not including delivery or distribution to any point for 12.31 subsequent delivery or distribution; 12.32 (35)(32) casual laboremployment performed for an 12.33 individual, other than domestic employment under clause (18), 12.34 that does not in the course of thepromote or advance that 12.35 employer's trade or business; 12.36 (36)(33) employment in "agricultural employment" unless 13.1 considered "covered agricultural employment" under subdivision 13.2 11; or 13.3 (37)(34) if theemployment during one-half or more of any 13.4 pay period constituteswas covered employment, all the 13.5 employment for the pay period shall be considered covered 13.6 employment; but if the employment performedduring more than 13.7 one-half of any pay period does not constitute coveredthe 13.8 employment was noncovered employment, then noneall of the 13.9 employment for the pay period shall be considered covered13.10 noncovered employment. "Pay period" means a period of not more 13.11 than a calendar month for which a payment or compensation is 13.12 ordinarily made to the employee by the employer. 13.13 Sec. 12. Minnesota Statutes 1998, section 268.035, is 13.14 amended by adding a subdivision to read: 13.15 Subd. 21a. [REEMPLOYMENT ASSISTANCE TRAINING.] (a) A 13.16 claimant is in "reemployment assistance training" when: 13.17 (1) reasonable and suitable employment for the claimant 13.18 does not exist in the labor market area and it is necessary that 13.19 the claimant receive training in order to obtain suitable 13.20 employment; 13.21 (2) the curriculum, facilities, staff, and other essentials 13.22 are adequate to achieve the training objective; 13.23 (3) the training is vocational in nature or short term 13.24 academic training vocationally directed to an occupation or 13.25 skill for which there are reasonable employment opportunities 13.26 available to the claimant; 13.27 (4) the training course is considered full time by the 13.28 training provider; and 13.29 (5) the claimant is making satisfactory progress in the 13.30 training. 13.31 (b) Full-time training provided through the dislocated 13.32 worker program, the Trade Act of 1974, as amended, or the North 13.33 American Free Trade Agreement shall be considered "reemployment 13.34 assistance training," if that training course is in accordance 13.35 with the requirements of that program. 13.36 (c) A claimant will be considered in reemployment 14.1 assistance training only if the training course has actually 14.2 started or is scheduled to start within 30 calendar days. 14.3 Sec. 13. Minnesota Statutes 1998, section 268.035, 14.4 subdivision 24, is amended to read: 14.5 Subd. 24. [TAXABLE WAGES.] (a) "Taxable wages" means those 14.6 wages paid to an employee in covered employment each calendar 14.7 year up to an amount equal to 60 percent of the state's average 14.8 annual wage, rounded to the nearest $100$1,000. 14.9 (b) Taxable wages includes the amount of wages paid for 14.10 covered employment by the employer's predecessor in this state14.11 or under the reemployment insurance law of any other state. Any14.12 credit given for amounts reported under the reemployment14.13 insurance law of another state shall be limited to that state's14.14 taxable wage basewhen there has been an experience rating 14.15 record transfer under section 268.051, subdivision 4. 14.16 Sec. 14. Minnesota Statutes 1998, section 268.035, 14.17 subdivision 30, is amended to read: 14.18 Subd. 30. [WAGES PAID.] (a) "Wages paid" means the amount 14.19 of wages whichthat have been actually paid or whichthat have 14.20 been credited to or set apart for the employeeso that payment 14.21 and disposition is under the control of the employee. Wage 14.22 payments delayed beyond theirthe regularly scheduled pay date 14.23 are considered " actuallywages paid" on the missed pay 14.24 date. Back pay shall be considered "wages paid" on the date of 14.25 actual payment. Any wages earned but not paid with no scheduled 14.26 date of payment shall be considered " actuallywages paid" on the 14.27 last day services are performed inof employment before14.28 separation. 14.29 (b) Wages paid shall not include wages earned but not paid 14.30 except as provided for in this subdivision. 14.31 Sec. 15. Minnesota Statutes 1998, section 268.035, 14.32 subdivision 32, is amended to read: 14.33 Subd. 32. [WEEKLY BENEFIT AMOUNT.] "Weekly benefit amount" 14.34 means the amount of benefits computed under section 268.07, that14.35 a claimant would be entitled to receive for a week, if totally14.36 unemployed and eligiblesubdivision 2, paragraph (b). 15.1 Sec. 16. Minnesota Statutes 1998, section 268.042, 15.2 subdivision 3, is amended to read: 15.3 Subd. 3. [ELECTION AGREEMENTS; TERMINATION POWERS OF15.4 COMMISSIONER.] (a) An organization or person, not defined as an15.5 employer, that files with the commissioner a written election to15.6 become an employer, shall, with the written approval of the15.7 commissioner, become an employer for not less than two calendar15.8 years to the same extent as all other employers, as of the date15.9 stated in the approval. The organization or person shall cease15.10 to be an employer as of the first day of January of any calendar15.11 year, only, if at least 30 calendar days prior to the first day15.12 of January, the organization or person has filed with the15.13 commissioner a written notice to that effect.15.14 (b)Any employer that has servicesemployment performed for 15.15 it that dodoes not constitute employment andcovered 15.16 employment, may file with the commissioner a written election 15.17 that all such serviceemployment, in one or more distinct 15.18 establishments or places of business, shall be considered 15.19 covered employment for not less than two calendar years. Upon 15.20 the written approval of the commissioner, the 15.21 servicesemployment shall constitute covered employment from and 15.22 after the date stated in the approval. The servicesemployment 15.23 shall cease to be considered covered employment as of the first 15.24 day of January of any calendar year only if at least 30 calendar 15.25 days prior to the first day of January the employer has filed 15.26 with the commissioner a written notice to that effect. 15.27 (c)(b) The commissioner must terminate any election 15.28 agreement under this subdivision upon 30 calendar days' notice, 15.29 if the employer fails to pay all taxes due or payments in lieu 15.30 of taxes due the fund. 15.31 Sec. 17. Minnesota Statutes 1998, section 268.045, is 15.32 amended to read: 15.33 268.045 [EMPLOYER TAX OR REIMBURSABLE ACCOUNTS.] 15.34 (a) The commissioner shall maintain a separatetax account 15.35 for each taxpaying employer and a reimbursable account for each 15.36 employer that is liable for payments in lieu of taxes if that 16.1 employer has employees in covered employment in the current or 16.2 the prior calendar year, except as provided in this section, and 16.3 shall charge the account for any benefits determined chargeable 16.4 to the employer under section 268.047 and shall credit the tax 16.5 account with all the taxes paid, or if the employer is liable 16.6 for payments in lieu of taxes, shall credit the reimbursable 16.7 account with the payments made. 16.8 (b) Two or more related corporations concurrently employing 16.9 the same employees and compensating those employees through a 16.10 common paymaster that is one of the corporations may apply to 16.11 the commissioner to establish a common paymaster tax account 16.12 that shall be the tax account of the common paymaster 16.13 corporation. If approved, the separate tax accounts shall be 16.14 maintained, but the employees compensated through the common 16.15 paymaster shall be reported as employees of the common paymaster 16.16 corporation. The corporations using the common paymaster tax 16.17 account shall be jointly and severally liable for any unpaid 16.18 taxes, penalties, and interest owing from the common 16.19 paymaster tax account. 16.20 (c) Two or more employers having 50 percent or more common 16.21 ownership and compensating employees through a single payer that 16.22 is one of the employers may apply to the commissioner for a 16.23 merging of the experience rating records of the employers into a 16.24 single joint tax account. 16.25 If approved, the joint tax account shall be effective on 16.26 that date assigned by the commissioner and shall remain in 16.27 effect for not less than two calendar years, and continuing 16.28 unless written notice terminating the joint tax account is filed 16.29 with the commissioner. The termination shall be effective on 16.30 January 1 next following the filing of the written notice of 16.31 termination. 16.32 The employers in the joint tax account shall be jointly and 16.33 severally liable for any unpaid taxes, penalties, and interest 16.34 owing from the joint tax account. 16.35 (d) Two or more employers that are liable for payments in 16.36 lieu of taxes may apply to the commissioner for the 17.1 establishment of a group reimbursable account for the purpose of 17.2 sharing the cost of benefits charged based upon wage credits 17.3 from all employers in the group. The application shall identify 17.4 and authorize a group representative to act as the group's agent 17.5 for the purposes of the reimbursable account. If approved, the 17.6 commissioner shall establish a group reimbursable account for 17.7 the employers effective as of the beginning of the calendar year 17.8 that the application is received. The reimbursable account 17.9 shall remain in effect for not less than two calendar years and 17.10 thereafter until terminated at the discretion of the 17.11 commissioner or upon application by the group at least 30 17.12 calendar days prior to the end of the two year period or 30 17.13 calendar days prior to January 1 of any following calendar 17.14 year. Each employer in the group shall be jointly and severally 17.15 liable for payments in lieu of taxes for all benefits paid based 17.16 upon wage credits from all employers in the group during the 17.17 period the group reimbursable account was in effect. 17.18 Sec. 18. Minnesota Statutes 1998, section 268.047, 17.19 subdivision 1, is amended to read: 17.20 Subdivision 1. [GENERAL RULE.] Benefits paid to a claimant 17.21 pursuant to a reemployment insurance account, including 17.22 extended, additional, and shared work benefits, shall be charged 17.23 to the tax or reimbursable account of the claimant's base period 17.24 employer as and when paid except as provided in subdivisions 2 17.25 and 3. The amount of benefits chargeablecharged to each base 17.26 period employer's tax or reimbursable account shall bearbe the 17.27 same ratio topercentage of the total amount of benefits paid to17.28 a claimantas the percentage of wage credits the claimant was17.29 paid byfrom the employer bear tois of the total amount of wage 17.30 credits the claimant was paid byfrom all the claimant's base 17.31 period employers. 17.32 In making computations under this subdivision, the amount 17.33 of wage credits, if not a multiple of $1whole dollar, shall be 17.34 computed to the nearest multiple of $1whole dollar. 17.35 Sec. 19. Minnesota Statutes 1998, section 268.047, 17.36 subdivision 2, is amended to read: 18.1 Subd. 2. [EXCEPTIONS TO CHARGES FOR ALL EMPLOYERS.] 18.2 Benefits paid to a claimantshall not be charged to the tax 18.3 account of a taxpaying base period employer or to 18.4 the reimbursable account of a base period employer that is 18.5 liable for payments in lieu of taxes under the following18.6 conditionswhen: 18.7 (1) the claimant was discharged from the employment because 18.8 of grossaggravated employment misconduct as determined under 18.9 section 268.095. This clauseexception shall apply only to 18.10 benefits paid for weeksperiods after the claimant's discharge 18.11 from employment; or18.12 (2) a claimant's discharge from that employment was18.13 required byoccurred because a law mandating a background check,18.14 or the claimant's discharge from that employment wasrequired by18.15 law because of a criminal convictionremoval of the claimant 18.16 from the position the claimant held; or18.17 (3) the employer :18.18 (i)provided regularly scheduled part-time employment to 18.19 the claimant during the claimant's base period ;18.20 (ii) during the claimant's benefit year,and continues to 18.21 provide the claimant with regularly scheduled part-time 18.22 employment approximatingduring the benefit year of at least 90 18.23 percent of the part-time employment provided the claimant by18.24 that employerin the base period, or forand is an involved 18.25 employer because of the claimant's loss of other employment. 18.26 This exception shall terminate effective the first week that the 18.27 employer fails to meet the benefit year employment requirements. 18.28 This exception shall apply to educational institutions without 18.29 consideration of the period between academic years or terms; 18.30 (4) the employer is a fire department or firefighting 18.31 corporation or operator of a life-support transportation 18.32 service, and continues to provide employment for the claimant as 18.33 a volunteer firefighter or a volunteer ambulance service 18.34 personnel during the benefit year on the same basis that 18.35 employment was provided in the base period; and18.36 (iii) is an involved employer because of the claimant's19.1 loss of other employment. TheThis exception to chargesshall 19.2 terminate effective the first week in the claimant's benefit19.3 yearthat the employer fails to meet the provisions of subclause19.4 (ii)benefit year employment requirements; 19.5 This clause shall apply to educational institution19.6 employers without consideration of the period between academic19.7 years or terms; or19.8 (4)(5) the claimant's unemployment from this employer was 19.9 directly caused by a major natural disaster declared by the19.10 president, if the claimant would have been eligible for federal19.11 disaster unemployment assistance with respect to that19.12 unemployment but for the claimant's receipt of reemployment19.13 insurance benefits; or19.14 (5) the claimant's unemployment from this employer was19.15 directly caused bya direct result of the condemnation of 19.16 property by a governmental agency, a fire, flood, or act of God19.17 nature, where 7025 percent or more of the employees employed in19.18 at the affected location, including the claimant, became 19.19 unemployed as a result and the employer substantially reopens19.20 its operations in that same area within 18 months. Benefits19.21 This exception shall be charged to the employernot apply where 19.22 the unemployment is caused bywas a direct result of the willful19.23 intentional act of the employer or a person acting on behalf of 19.24 the employer; or19.25 (6) the benefits were paid by another state as a result of 19.26 the transferring of wage credits under a combined wage 19.27 arrangement provided for in section 268.131; or19.28 (7) on a second reemployment insurance account established19.29 pursuant to section 268.07, subdivision 3, where the employer19.30 provided 90 percent or more of the wage credits in the19.31 claimant's prior base period and the claimant did not perform19.32 services for the employer during the second base period; or19.33 (8)the claimant left or partially or totally lost19.34 employmentstopped working because of a strike or otherlabor 19.35 dispute at the claimant's primary place of employment if the 19.36 employer was not a party to the strike orlabor dispute; or 20.1 (9)(8) the benefits were determined overpaid benefits 20.2 under section 268.18. 20.3 Sec. 20. Minnesota Statutes 1998, section 268.047, 20.4 subdivision 3, is amended to read: 20.5 Subd. 3. [EXCEPTIONS TO CHARGES FOR TAXPAYING EMPLOYERS.] 20.6 Benefits paid to a claimantshall not be charged to the tax 20.7 account of a taxpaying base period employer under the following20.8 conditionswhen: 20.9 (1) the claimant's wage credits from that employer are less 20.10 than $500; 20.11 (2) the claimant quit the employment, unless it was 20.12 determined under section 268.095, to have been because of a good 20.13 reason caused by the employer or because the employer notified 20.14 the claimant of discharge within 30 calendar days. This clause20.15 exception shall apply only to benefits paid for periods after 20.16 the claimant's quitting the employment; or 20.17 (3) the employer discharged the claimant from employment 20.18 because of employment misconduct as determined under section 20.19 268.095. This clauseexception shall apply only to benefits 20.20 paid for periods after the claimant's discharge from employment ;. 20.21 (4) the employer discharged the claimant from employment20.22 because of reasons resulting directly from the claimant's20.23 serious illness, that was determined not misconduct under20.24 section 268.095, provided the employer made a reasonable effort20.25 to retain the claimant in employment in spite of the claimant's20.26 serious illness; or20.27 (5) the claimant avoided or failed to accept an offer from20.28 the employer of suitable reemployment, as determined under20.29 section 268.095, or avoided or failed to accept an offer of20.30 reemployment with substantially the same or better hourly wages20.31 and conditions of employment as were previously provided by that20.32 employer. This clause shall only apply to benefits paid for20.33 periods after the claimant's refusal or avoidance.20.34 (6) the claimant was held not disqualified from benefits20.35 under section 268.095 solely because of the application of20.36 section 268.105, subdivision 3a, paragraph (d).21.1 Sec. 21. Minnesota Statutes 1998, section 268.047, 21.2 subdivision 4, is amended to read: 21.3 Subd. 4. [FEDERAL REIMBURSED BENEFITS NOT CHARGED.] 21.4 NotwithstandingRegardless of subdivision 1, no employer's 21.5 account shall be charged for benefits for which the reemployment21.6 insurancefund is reimbursed by the federal government. 21.7 Sec. 22. Minnesota Statutes 1998, section 268.048, is 21.8 amended to read: 21.9 268.048 [BENEFITS NOT CHARGED IN WELFARE-TO-WORK.] 21.10 (a) The commissioner shall, prior to computing a tax rate, 21.11 remove benefit charges from the tax account of a taxpaying 21.12 employer if the claimant to whom those benefits were paid was: 21.13 (1) a primary wage earner who was a recipient of cash 21.14 benefits under a Minnesota welfare program in the calendar 21.15 quarter or immediately preceding calendar quarter that wages 21.16 were first paid by that employer; 21.17 (2) paid wages by that employer in no more than two 21.18 calendar quarters; and 21.19 (3) paid wages by that employer of less than $3,000. 21.20 (b) This section shall only apply to benefit charges21.21 accruing after July 1, 1997.Paragraph (a), clauses (2) and 21.22 (3), shall apply to any calendar quarter and is not limited to 21.23 quarters in the claimant's base period. 21.24 (c)If the commissioner finds that an employer discharged 21.25 the claimant, or engaged in the employment practice of 21.26 discharging workers, in order to meet the requirements of 21.27 paragraph (a), clauses (2) and (3), this section shall not 21.28 apply. In addition, the employer's action shall constitute 21.29 employer misconduct and the penalties under section 268.184 21.30 shall be assessed. 21.31 Sec. 23. Minnesota Statutes 1998, section 268.051, 21.32 subdivision 1, is amended to read: 21.33 Subdivision 1. [PAYMENTS.] (a) Taxes shall accrue and 21.34 become payable by each employer for each calendar year that the 21.35 employer paid wages to employees in covered employment, except 21.36 for: 22.1 (1) nonprofit corporationsorganizations that elect to make 22.2 payments in lieu of taxes as provided in section 268.053; and 22.3 (2) the state of Minnesota and political subdivisions, 22.4 unless they elect to pay taxes as provided in section 268.052. 22.5 Each employer shall pay taxes quarterly, at the employer's 22.6 assigned tax rate, on the taxable wages paid to each employee. 22.7 The taxes shall be paid to the fund on or before the last day of 22.8 the month following the end of the calendar quarter. 22.9 (b) The tax may be paid in an amount to the nearest whole 22.10 dollar. 22.11 (c) When the tax for any calendar quarter is less than $1, 22.12 the tax shall be disregarded. 22.13 Sec. 24. Minnesota Statutes 1998, section 268.051, 22.14 subdivision 2, is amended to read: 22.15 Subd. 2. [COMPUTATION OF TAX RATES.] (a) For each calendar 22.16 year the commissioner shall compute the tax rate of 22.17 each taxpaying employer that qualifies for an experience rating 22.18 by adding the minimum tax rate to the employer's experience 22.19 rating. 22.20 (b) The minimum tax rate shall be six-tenths of one percent 22.21 if the amount in the fund is less than $200,000,000 on June 30 22.22 of the prior calendar year; or five-tenths of one percent if the 22.23 fund is more than $200,000,000 but less than $225,000,000; or 22.24 four-tenths of one percent if the fund is more than $225,000,000 22.25 but less than $250,000,000; or three-tenths of one percent if 22.26 the fund is more than $250,000,000 but less than $275,000,000; 22.27 or two-tenths of one percent if the fund is $275,000,000 but 22.28 less than $300,000,000; or one-tenth of one percent if the fund 22.29 is $300,000,000 or more. 22.30 (c) For the purposes of this subdivision the fund shall not 22.31 include any money advancedborrowed from the federal 22.32 unemployment trust fund pursuant to section 268.194, subdivision 22.33 6. 22.34 Sec. 25. Minnesota Statutes 1998, section 268.051, 22.35 subdivision 3, is amended to read: 22.36 Subd. 3. [COMPUTATION OF ANA TAXPAYING EMPLOYER'S 23.1 EXPERIENCE RATING.] (a) For each calendar year, the commissioner 23.2 shall compute an experience rating for aneach taxpaying 23.3 employer who has been subject to this chapter for at least the 23.4 12 calendar months prior to July 1 of the prior calendar year. 23.5 The experience rating shall be the ratio obtained by 23.6 dividing 1-1/4 times125 percent of the total benefits charged 23.7 to the employer's tax account during the period the employer has 23.8 been subject to this chapter, but not less than the 12 ormore 23.9 than the 60 calendar months ending on June 30 of the prior 23.10 calendar year, by the employer's total taxable payroll for the 23.11 same period. 23.12 (b) For purposes of paragraph (a), only that taxable 23.13 payroll upon which taxes have been paid on or before September 23.14 30 of the prior calendar year may be used in computing an 23.15 employer's experience rating. 23.16 (c) The experience rating shall be computed to the nearest 23.17 one-tenth of a percent, to a maximum of 8.9 percent. 23.18 Sec. 26. Minnesota Statutes 1998, section 268.051, 23.19 subdivision 4, is amended to read: 23.20 Subd. 4. [EXPERIENCE RATING RECORD TRANSFER.] (a) When an 23.21 employer acquires the organization, trade or business or 23.22 substantially all the assets of another employer, and there is 23.23 25 percent or more common ownership, directly or indirectly, 23.24 between the predecessor and successor, the experience rating 23.25 record of the predecessor employer shall be transferred as of 23.26 the date of acquisition to the successor employer for the 23.27 purpose of computing a tax rate. 23.28 (b) When an employer acquires a distinct severable portion 23.29 of the organization, trade, business, or assets that is less 23.30 than substantially all of the employing enterprises of another 23.31 employer, and there is 25 percent or more common ownership, 23.32 directly or indirectly, between the predecessor and successor, 23.33 the successor employer shall acquire the experience rating 23.34 record attributable to the portion it acquired, and the 23.35 predecessor employer shall retain the experience rating record 23.36 attributable to the portion that it has retained, if (1) the 24.1 successor makes a written request to apply for the transfer of 24.2 the experience rating record attributable to the severable 24.3 portion acquired from the predecessor within 180 calendar days 24.4 from the date of acquisition, and (2) files an application 24.5 within the time and in the manner prescribed by the commissioner 24.6 that furnishes sufficient information to substantiate the 24.7 severable portion and to assign the appropriate total and 24.8 taxable wages and benefit charges to the successor for 24.9 experience rating purposes. 24.10 (c) The term "common ownership" for purposes of this 24.11 subdivision includes ownership by a spouse, parent, child, 24.12 brother, sister, aunt, uncle, niece, nephew, or first cousin, by 24.13 birth or by marriage. 24.14 (d) If the successor employer under paragraphs (a) and (b) 24.15 had an experience rating record at the time of the acquisition, 24.16 the transferred record of the predecessor shall be combined with 24.17 the successor's record for purposes of computing a tax rate. 24.18 (e) If there has been a transfer of an experience rating 24.19 record under paragraph (a) or (b), employment with a predecessor 24.20 employer shall not be considered to have been terminated if 24.21 similar employment is offered by the successor employer and 24.22 accepted by the employee. 24.23 (f) The commissioner, upon the commissioner's own motion or 24.24 upon application of an employer shall determine if an employer 24.25 is a successor within the meaning of this subdivision and shall 24.26 send the determination to the employer by mail or electronic 24.27 transmission. The determination shall be final unless an appeal 24.28 is filed by the employer within 30 calendar days after the 24.29 sending of the determination. Proceedings on the appeal shall 24.30 be conducted in accordance with section 268.105. 24.31 (g) The commissioner may, as the result of any 24.32 determination or decision regarding succession or nonsuccession, 24.33 recompute the tax rate of all employers affected by the 24.34 determination or decision for any year, including the year of 24.35 the acquisition and subsequent years, that is affected by the 24.36 transfer or nontransfer of part or all of the experience rating 25.1 record. This paragraph does not apply to rates that have become 25.2 final before the filing of a written request to apply for the 25.3 transfer of a severable portion of the experience rating record 25.4 under paragraph (b). 25.5 (h) The experience rating record for purposes of this 25.6 subdivision shall consist of those factors whichthat make up an 25.7 experience rating, without the 12-month minimum required under 25.8 subdivision 3. 25.9 (i) If the commissioner finds that a transaction was done, 25.10 in whole or in part, to avoid an experience rating record or the 25.11 transfer of an experience rating record, the commissioner may 25.12 transfer all or part of the experience rating record to an25.13 employer notwithstandingregardless of the requirements or 25.14 limitations of paragraph (a). This shall include the 25.15 transferring of employees from the payroll of an employer with a 25.16 higher experience rating record to the payroll of an employer 25.17 with a lower experience rating record. 25.18 (j) Regardless of paragraph (a), if there is an acquisition 25.19 or merger of a publicly held corporation by or with another 25.20 publicly held corporation the experience rating records of the 25.21 corporations shall be combined as of the date of acquisition or 25.22 merger for the purpose of computing a tax rate. 25.23 Sec. 27. Minnesota Statutes 1998, section 268.051, 25.24 subdivision 5, is amended to read: 25.25 Subd. 5. [TAX RATE FOR NEW EMPLOYERS.] (a) Each taxpaying 25.26 employer that does not qualify for an experience rating under 25.27 subdivision 3, paragraph (a), except employers in the25.28 constructiona high experience rating industry, shall be 25.29 assigned a tax rate the higher of (1) one percent, or (2) the 25.30 state's average cost rate ; to a maximum of 5-4/10 percent. For 25.31 purposes of this paragraph, the state's average cost rate shall 25.32 be computed annually and shall be derivedby dividing the total 25.33 amount of benefits paid all claimants during the 60 consecutive25.34 calendar months prior to July 1 of each year by the total 25.35 taxable wages of all taxpaying employers during the same 25.36 period. This rate for new employers shall be applicable for the 26.1 calendar year following the computation date. 26.2 (b) Each taxpaying employer in the constructiona high 26.3 experience rating industry that does not qualify for an 26.4 experience rating under subdivision 3, paragraph (a), shall be 26.5 assigned a tax rate , the higher of (1) one percent, or (2) the26.6 state's average cost rate for construction employers to a26.7 maximumof 8.98.0 percent, plus the applicable minimum tax 26.8 rate. For purposes of this paragraph, the state's average cost26.9 rate shall be computed annually and shall be derived by dividing26.10 the total amount of benefits paid to claimants of construction26.11 industry employers during the 60 consecutive calendar months26.12 prior to July 1 of each year by the total taxable wages of26.13 construction industry employers during the same period. This26.14 rate shall be applicable for the calendar year following the26.15 computation date.26.16 An employer is considered in the constructionto be in a 26.17 high experience rating industry if: 26.18 (1) the employer is within division C of the Standard26.19 Industrial Classification Manual issued by the United States26.20 Office of Management and Budget, except as excluded by rules26.21 adopted by the commissioner.engaged in residential, commercial, 26.22 or industrial construction, including general contractors; 26.23 (2) the employer is engaged in sand, gravel, or limestone 26.24 mining; 26.25 (3) the employer is engaged in the manufacturing of 26.26 concrete, concrete products, or asphalt; or 26.27 (4) the employer is engaged in road building, repair, or 26.28 resurfacing, including bridge and tunnels and residential and 26.29 commercial driveways and parking lots. 26.30 Sec. 28. Minnesota Statutes 1998, section 268.051, 26.31 subdivision 8, is amended to read: 26.32 Subd. 8. [SOLVENCY ASSESSMENT.] (a) If the fund balance is 26.33 less than $150,000,000 on June 30 of any year, a solvency 26.34 assessment on taxpaying employers will be in effect for the 26.35 following calendar year. The taxpaying employer shall pay 26.36 quarterly a solvency assessment of ten percent of the taxes due. 27.1 (b) The solvency assessment shall be placed into a special 27.2 account from which the commissioner shall pay any interest 27.3 accruing on any advanceloan from the federal unemployment trust 27.4 fund provided for under section 268.194, subdivision 6. If the 27.5 commissioner determines that the balance in this special account 27.6 is more than is necessary to pay the interest on any advance, 27.7 the commissioner shall pay to the fund the amount in excess of 27.8 that necessary to pay the interest on any advance. 27.9 Sec. 29. Minnesota Statutes 1998, section 268.052, is 27.10 amended to read: 27.11 268.052 [PAYMENT TO FUND BY STATE AND POLITICAL 27.12 SUBDIVISIONS.] 27.13 Subdivision 1. [PAYMENTS TO FUND BY STATE AND POLITICAL27.14 SUBDIVISIONS.] In lieu of taxes payable on a quarterly basis, 27.15 the state of Minnesota or its political subdivisions shall pay 27.16 into the reemployment insurancefund the amount of benefits 27.17 charged to its reimbursable account under section 268.047. 27.18 Payments in the amount of benefits charged to the reimbursable 27.19 account during a calendar quarter shall be made on or before the 27.20 last day of the month nextfollowing the month in whichthat the 27.21 notice of benefits charged is mailed to the employersent 27.22 pursuant to section 268.047, subdivision 5. Past due 27.23 payments in lieu of taxes shall be subject to the same interest 27.24 charges and collection procedures that apply to past due taxes. 27.25 Subd. 2. [ELECTION BY STATE OR POLITICAL SUBDIVISION TO BE 27.26 A TAXPAYING EMPLOYER.] (a) The state or political subdivision 27.27 may elect to be a taxpaying employer for any calendar year if 27.28 a writtennotice of election is filed with the commissioner27.29 within 30 calendar days following January 1 of that calendar 27.30 year. Upon election, the state or political subdivision shall 27.31 be assigned the new employer tax rate under section 268.051, 27.32 subdivision 5, for the calendar year of the election and until 27.33 it qualifies for an experience rating under section 268.051, 27.34 subdivision 3. 27.35 (b) An election shall be for a minimum period of twothree 27.36 calendar years immediatelyfollowing the effective date of the 28.1 election and continue unless a writtennotice terminating the 28.2 election is filed with the commissionernot later than 30 28.3 calendar days prior tobefore the beginning of the calendar 28.4 year. The termination shall be effective at the beginning of 28.5 the next calendar year. A termination of election shall be 28.6 allowed only if the state or political subdivision has a zero 28.7 experience rating and has no benefit charges to its tax account 28.8 that have not yet been used in computing an experience rating 28.9 under section 268.051, subdivision 3. 28.10 (b)(c) The method of payments to the reemployment28.11 insurancefund under subdivisions 3 and 4 shall apply to all 28.12 contributionstaxes paid by or due from the state or political 28.13 subdivision that elects to be taxpaying employers under this 28.14 subdivision. 28.15 (d) The commissioner may allow a notice of election or a 28.16 notice terminating election to be filed by mail or electronic 28.17 transmission. 28.18 Subd. 3. [METHOD OF PAYMENT BY STATE TO FUND.] To 28.19 discharge its obligationsliability, the state and its wholly 28.20 owned instrumentalities shall pay the reemployment insurance28.21 fund as follows: 28.22 (a)(1) Every self-sustaining department, institution and 28.23 wholly owned instrumentality of the stateshall pay intothe 28.24 fund the amounts the commissioner shall certify has been paid28.25 from the fund that were charged to its accountin accordance 28.26 with subdivision 1. For the purposes of this clause a 28.27 "self-sustaining department, institution or wholly owned 28.28 instrumentality" is one in whichwhere the dedicated income and 28.29 revenue substantially offsets its cost of operation. 28.30 (b)(2) Every partially self-sustaining department, 28.31 institution and wholly owned instrumentality of the stateshall 28.32 pay intothe fund thethat same proportion of the sumamount 28.33 that the commissioner certifies has been paid from the fundhas 28.34 been charged to its employer account as the proportion of the 28.35 total of its income and revenue bearsis to its annual cost of 28.36 operation. 29.1 (c)(3) Every department, institution or wholly owned 29.2 instrumentality of the state whichthat is not self-sustaining 29.3 shall pay tothe fund the amount the commissioner certifies has29.4 been paid from the fund which were charged to their accountsto 29.5 the extent funds are available from appropriated funds. 29.6 (d)(4) The departments, institutions and wholly owned 29.7 instrumentalities of the state, including the University of 29.8 Minnesota, whichthat have money available shall immediatelypay 29.9 the fund for benefits paid which were charged to their accounts29.10 upon receiving notification from the commissioner of the charges29.11 in accordance with subdivision 1. If a claimant was paid by a29.12 department, institution or wholly owned instrumentalityduring 29.13 the claimant'sbase period from a special or administrative29.14 account or fundprovided by law, the payment intoto the fund 29.15 shall be made from the special or administrativeaccount or fund29.16 with the approval of the department of administration and the 29.17 amounts are hereby appropriated. 29.18 (e)(5) For those departments, institutions and wholly 29.19 owned instrumentalities of the state whichthat cannot 29.20 immediatelypay the fund for benefits that were charged to their29.21 accounts, the commissioner shall certify on November 1 of each 29.22 calendar year to the departmentcommissioner of finance the 29.23 unpaid balances due and owing. Upon receipt of the 29.24 certification, the commissioner of the departmentof finance 29.25 shall include the unpaid balances in the biennial budget 29.26 submitted to the legislature. 29.27 Subd. 4. [METHOD OF PAYMENT BY POLITICAL SUBDIVISION TO29.28 FUND.] A political subdivision or instrumentality thereof is 29.29 authorized and directed to pay its obligations under this29.30 chapterliabilities by moneysmoney collected from taxes or 29.31 other revenues. Every political subdivision authorized to levy 29.32 taxes may include in its tax levy the amount necessary to pay 29.33 its obligationsliabilities. If the taxes authorized to be 29.34 levied under this subdivisioncause the total amount of taxes 29.35 levied to exceed any limitation upon the power of a political 29.36 subdivision to levy taxes, the political subdivision may levy 30.1 taxes in excess of the limitations in the amounts necessary to 30.2 meet its obligation under this chapterliability. The 30.3 expenditures authorized shall not be included in computing the 30.4 cost of government as defined in any home rule charter of any30.5 city. The governing body of a municipality, for the purpose of 30.6 meeting its liabilities under this chapter, in the event of a 30.7 deficit, may issue its obligations payable in not more than two 30.8 years, in an amount that may cause its indebtedness to exceed 30.9 any statutory or charter limitations, without an election, and 30.10 may levy taxes in the manner provided in section 475.61. 30.11 Sec. 30. Minnesota Statutes 1998, section 268.053, is 30.12 amended to read: 30.13 268.053 [PAYMENT TO FUND BY NONPROFIT 30.14 CORPORATIONSORGANIZATIONS.] 30.15 Subdivision 1. [ELECTION.] (a) Any nonprofit organization 30.16 that is determined to be an employerhas employees in covered 30.17 employment shall pay taxes on a quarterly basis pursuant to 30.18 section 268.051 unless it elects to make payments in lieu of 30.19 taxes to the reemployment insurancefund the amount of benefits 30.20 charged to the employer'sits employer account under section 30.21 268.047. 30.22 (1) Any nonprofitThe organization may elect to become30.23 liable formake payments in lieu of taxes for a period of not 30.24 less than twothree calendar years beginning with the date that 30.25 the organization was determined to be an employer with covered 30.26 employment by filing a writtennotice of election with the30.27 commissionernot later than 30 calendar days immediately30.28 followingafter the date of the determination. 30.29 (2)(b) Any nonprofit organization that makes an election 30.30 will continue to be liable for payments in lieu of taxes until 30.31 it files with the commissionera writtennotice terminating its 30.32 election not later than 30 calendar days prior tobefore the 30.33 beginning of the calendar year for whichthe termination shall30.34 firstis to be effective. 30.35 (c) A nonprofit organization that has been making payments 30.36 in lieu of taxes that files a notice of termination of election 31.1 shall be assigned the new employer tax rate under section 31.2 268.051, subdivision 5, for the calendar year of the termination 31.3 of election and until it qualifies for an experience rating 31.4 under section 268.051, subdivision 3. 31.5 (3)(d) Any nonprofit organization that has been paying 31.6 taxes may changeelect to makingmake payments in lieu of taxes 31.7 by filing with the commissioner not laterno less than 30 31.8 calendar days prior tobefore January 1 of any calendar year a 31.9 writtennotice of election to become liable for payments in lieu31.10 of taxes. An election shall be allowed only if the nonprofit 31.11 organization has a zero experience rating and has no benefit 31.12 charges to its tax account that have not yet been used in 31.13 computing an experience rating under section 268.051, 31.14 subdivision 3. The election shall not be terminable by the 31.15 organization for that and the next calendar year. 31.16 (4)(e) The commissioner may for good cause extend the 31.17 period that a notice of election, or a notice of termination, 31.18 must be filed and may permit an election to be retroactive. 31.19 (f) The commissioner may allow a notice of election or 31.20 notice terminating election to be filed by mail or electronic 31.21 transmission. 31.22 (5)Subd. 2. [DETERMINATION AND APPEAL.] The commissioner 31.23 shall notify each nonprofit organization by mail or electronic 31.24 transmission of any determination of its status as an employer 31.25 with covered employment and of the effective date of any 31.26 election or termination of election. The determinations shall 31.27 be final unless a writtenan appeal is filed within 30 calendar 31.28 days after mailingsending of the determination. Proceedings on 31.29 the appeal shall be conducted in accordance with section 268.105. 31.30 (b)Subd. 3. [PAYMENTS.] (a) Payments in lieu of taxes, in 31.31 the amount of benefits charged to the employer'sreimbursable 31.32 account, during a calendar quarter, shall be made on or before 31.33 the last day of the month nextfollowing the month in whichthat 31.34 the notice of benefits charged is mailed to the employersent 31.35 pursuant to section 268.047, subdivision 5. 31.36 (c)(b) Past due payments in lieu of taxes shall be subject 32.1 to the same interest charges and collection procedures that 32.2 apply to past due taxes. 32.3 (d)(c) If any nonprofit organization is delinquent in 32.4 making payments in lieu of taxes, the commissioner may terminate 32.5 the organization's election to make payments in lieu of taxes as 32.6 of the beginning of the next calendar year, and the termination 32.7 shall be effective for that and the following calendar year. A 32.8 nonprofit organization that has its election terminated under 32.9 this paragraph shall be assigned the new employer tax rate under 32.10 section 268.051, subdivision 5, until the organization qualifies 32.11 for an experience rating under section 268.051, subdivision 3. 32.12 (e)Subd. 4. [APPLICATION.] For purposes of 32.13 this subdivisionsection, a nonprofit organization is an 32.14 organization, or group of organizations, described in United 32.15 States Code, title 26, section 501(c)(3) of the Internal Revenue 32.16 Code that is exempt from income tax under section 501(a) of the32.17 code. 32.18 Sec. 31. Minnesota Statutes 1998, section 268.057, 32.19 subdivision 4, is amended to read: 32.20 Subd. 4. [COSTS.] Any employer whichperson that fails to 32.21 make and submit reports orpay any taxes or, payment in lieu of 32.22 taxes, or benefit overpayment, including interest and penalties, 32.23 when due is liable to the departmentfor any filing fees, 32.24 recording fees, sheriff fees, costs incurred by referral to any 32.25 public or private collection agency outside the department, or 32.26 litigation costs incurred in the collection of the amounts 32.27 due or obtaining the reports. 32.28 If any check or money order, in payment of any amount due 32.29 under this chapter, is not honored when presented for payment, 32.30 the employer will be assesseda fee of $20 which is in addition32.31 to any other fees provided by this chapter. The fee$25 shall 32.32 be assessed regardless of the amount of the check or money order32.33 or the reason for nonpayment with the exception of processing32.34 errors made by a financial institution. 32.35 Costs due under this subdivisioncollected shall be paid to32.36 the department andcredited to the administration fundaccount. 33.1 Sec. 32. Minnesota Statutes 1998, section 268.057, 33.2 subdivision 10, is amended to read: 33.3 Subd. 10. [PRIORITIES UNDER LEGAL DISSOLUTIONS OR 33.4 DISTRIBUTIONS.] In the event of any distribution of an 33.5 employer's assets pursuant to an order of any court under the33.6 laws of this state, including any receivership, assignment for 33.7 benefit of creditors, adjudicated insolvency, composition,or 33.8 similar proceeding, taxes then or thereafter due shall be paid 33.9 in full prior to all other claims except claims for wages of not 33.10 more than $250 to each claimant$1,000 per former employee, 33.11 earned within six months of the commencement of the 33.12 proceedings. In the event of an employer's adjudication in 33.13 bankruptcy , judicially confirmed extension proposal, or33.14 composition,under thefederal Bankruptcy Act of 1898, as33.15 amendedlaw, taxes then or thereafter due shall be entitled 33.16 to suchthe priority as isprovided in that actlaw for taxes 33.17 due any state of the United States. 33.18 Sec. 33. Minnesota Statutes 1998, section 268.058, is 33.19 amended to read: 33.20 268.058 [ TAX AND PAYMENT IN LIEU OF TAXESLIEN, LEVY, 33.21 SETOFF, AND CIVIL ACTION.] 33.22 Subdivision 1. [LIEN.] (a) Any taxes, benefit 33.23 overpayments, or payments in lieu of taxes due under this33.24 chapter andincluding interest and, penalties imposed with33.25 respect thereto, and costs shall become a lien upon all the 33.26 property, within this state, both real and personal, of the 33.27 person liable therefor, from the date of assessment of the tax,33.28 benefit overpayment, or payment in lieu of taxes. The term 33.29 "date of assessment" means the date a report was due or the33.30 paymentthe obligation was due date of the notice of benefits33.31 charged to a payment in lieu of taxes account. 33.32 (b) (1)The lien imposed by this sectionis not enforceable 33.33 against any purchaser, mortgagee, pledgee, holder of a Uniform 33.34 Commercial Code security interest, mechanic's lien, or judgment 33.35 lien creditor, until a notice of lien has been filed by the33.36 commissioner in the office ofwith the county recorder of the 34.1 county in whichwhere the property is situated, or in the case 34.2 of personal property belonging to an individual who is not a34.3 resident of the state, or which is a corporation, partnership,34.4 or other organization,a nonresident person in the office of the 34.5 secretary of state. When the filing of thenotice of lien 34.6 is made in the office offiled with the county recorder, the fee 34.7 for filing and indexing shall be as prescribedprovided in 34.8 sections 272.483 and 272.484. 34.9 (2)(c) Notices of liens, lien renewals, and lien releases, 34.10 in a form prescribed by the commissioner of economic security, 34.11 may be filed with the county recorder or the secretary of state 34.12 by mail, personal delivery, or by electronic transmission by the34.13 commissioner or a delegateinto the computerized filing system 34.14 of the secretary of state authorizedunder section 336.9-411. 34.15 The secretary of state shall, on any notice filed with that 34.16 office, transmit the notice electronically to the office of the34.17 appropriate county recorder , if that is the place of filing, in34.18 the county or counties shown on the computer entry. The filing 34.19 officer, whether the county recorder or the secretary of state, 34.20 shall endorse and index a printout of the notice in the same34.21 manneras if the notice had been mailed or delivered. 34.22 (3)(d) County recorders and the secretary of state shall 34.23 enter information relative toon lien notices, renewals, and 34.24 releases filed in their officesinto the central database of the 34.25 secretary of state. For notices filed electronically with the 34.26 county recorders, the date and time of receipt of the notice and 34.27 county recorder's file number, and for notices filed 34.28 electronically with the secretary of state, the secretary of 34.29 state's recording information, must be entered by the filing34.30 officerinto the central database before the close of the 34.31 working day following the day of the original data entry by the 34.32 departmentcommissioner. 34.33 (c)(e) The lien imposed on personal property by this34.34 section, even though properly filed, is not enforceable against 34.35 a purchaser with respect toof tangible personal property 34.36 purchased at retail or as against thepersonal property listed 35.1 as exempt in sections 550.37, 550.38, and 550.39. 35.2 (d)(f) A notice of taxlien filed pursuant to this section35.3 has priority over any security interest arising under chapter 35.4 336, article 9, whichthat is perfected prior in time to the 35.5 lien imposed by this sectionsubdivision, but only if: 35.6 (1) the perfected security interest secures property not in 35.7 existence at the time the notice of taxlien is filed; and 35.8 (2) the property comes into existence after the 35.9 45th calendar day following the day on whichthe notice of tax35.10 lien is filed, or after the secured party has actual notice or 35.11 knowledge of the taxlien filing, whichever is earlier. 35.12 (e)(g) The lien imposed by this sectionshall be 35.13 enforceable from the time the lien arises and for ten years from 35.14 the date of filing the notice of lien. A notice of lien may be 35.15 renewed by the commissionerbefore theexpiration of the35.16 ten-year periodfor an additional ten years. The delinquent35.17 employer must receive notice of the renewal.35.18 (f)(h) The lien imposed by this sectionshall be 35.19 enforceable by levy as authorized inunder subdivision 82 or by 35.20 judgment lien foreclosure as authorized inunder chapter 550. 35.21 Subd. 2. [LIMITATION FOR HOMESTEAD PROPERTY.](i) The lien 35.22 may be imposed by this section is a lienupon property defined 35.23 as homestead property in chapter 510 . The lienbut may be 35.24 enforced only upon the sale, transfer, or conveyance of the 35.25 homestead property. 35.26 (j) The commissioner may sell and assign to a third party 35.27 the commissioner's right of redemption in specific real property 35.28 for liens filed under this subdivision. The assignee shall be 35.29 limited to the same rights of redemption as the commissioner, 35.30 except that in a bankruptcy proceeding, the assignee does not 35.31 obtain the commissioner's priority. Any proceeds from the sale 35.32 of the right of redemption shall be credited to the contingent 35.33 account. Any sale shall be by written agreement signed by an 35.34 attorney who is a classified employee of the department 35.35 designated by the commissioner for that purpose. 35.36 Subd. 3.2. [LEVY.] (a) If any tax or, payment in lieu of 36.1 taxes payable to the department, or benefit overpayment, 36.2 including interest, penalties, and costs, is not paid when due, 36.3 the amount may be collected by the commissioner , a duly36.4 authorized representative, or by the sheriff of any county to36.5 whom the commissioner has issued a warrant, who mayby direct 36.6 levy upon all property and rights of property of the person 36.7 liable for the tax or payment in lieu of taxes, (amount due 36.8 except that which isexempt from execution pursuant tounder 36.9 section 550.37 ), or property on which there is a lien provided36.10 by subdivision 1. The terms "tax or payment in lieu of taxes"36.11 shall include any penalty, interest, and costs. The term "levy" 36.12 includes the power of distraint and seizure by any 36.13 means. Before a levy is made or warrant issued, notice and36.14 demand for payment of the amount due shall be given to the36.15 person liable for the tax or payment in lieu of taxes at least36.16 ten days prior to the levy or issuing of a warrant.36.17 (b) UponIn addition to a direct levy, the commissioner 36.18 issuingmay issue a warrant ,to the sheriff of any county who 36.19 shall proceed within 60 calendar days to levy upon the property 36.20 or rights to property of the employerdelinquent person within 36.21 the employer'scounty, except the homestead and household goods36.22 of the employer and property of the employer not liable to36.23 attachment, garnishment, or sale on any final process issued36.24 from any courtthat exempt under the provisions ofsection 36.25 550.37 , and. The sheriff shall sell so much thereof as is36.26 requiredthat property necessary to satisfy the tax, payment in36.27 lieu of taxes, interest, and penaltiestotal amount due, 36.28 together with the commissioner's and sheriff's costs. The sales 36.29 shall , as to their manner,be governed by the law applicable to 36.30 sales of like property on execution issued against property upon36.31 of a judgment of a court of record. The proceeds of the sales,36.32 less the sheriff's costs, shall be turned over to the36.33 commissioner, who shall retain a part thereof as is required to36.34 satisfy the tax, payment in lieu of taxes, interest, penalties,36.35 and costs, and pay over any balance to the employer.36.36 (c) Notice and demand for payment of the total amount due 37.1 shall be mailed to the delinquent person at least ten calendar 37.2 days prior to action being taken under paragraphs (a) and (b). 37.3 (c)(d) If the commissioner has reason to believe that 37.4 collection of the tax or payment in lieu of taxesamount due is 37.5 in jeopardy, notice and demand for immediate payment of the37.6 amountmay be made by the commissioner. If the tax or payment37.7 in lieu of taxestotal amount due is not paid, the commissioner 37.8 may proceed to collect by direct levy or issue a warrant without 37.9 regard to the ten-dayten calendar day period provided herein. 37.10 (d)(e) In making the execution ofexecuting the levy and37.11 in collecting the tax or payment in lieu of taxes due, the 37.12 commissioner shall have all of the powers provided in chapter 37.13 550 and inor any other law for purposes of effecting anthat 37.14 provides for execution against property in this state. The sale 37.15 of property levied upon and the time and manner of 37.16 redemption therefromshall be as provided in chapter 550. The 37.17 seal of the court , subscribed by the court administrator, as37.18 provided in section 550.04,shall not be required. The levy for37.19 collection of taxes or payments in lieu of taxesmay be made 37.20 whether or not the commissioner has commenced a legal action for 37.21 collection of the amount. 37.22 (e)(f) Where a jeopardy assessment orany otherassessment 37.23 has been made by the commissioner, the property seized for 37.24 collection of the tax or payment in lieu of taxestotal amount 37.25 due shall not be sold until any determination of liability ,37.26 rate, or benefit chargeshas become final. No sale shall be 37.27 made unless the tax or payment in lieu of taxes remaina portion 37.28 of the amount due remains unpaid for a period of more than 37.29 30 calendar days after the determination of liability becomes 37.30 final. Seized property may be sold at any time if: 37.31 (1) the employerdelinquent person consents in writing to 37.32 the sale; or 37.33 (2) the commissioner determines that the property is 37.34 perishable or may become greatly reduced in price or value by 37.35 keeping, or that the property cannot be kept without great 37.36 expense. 38.1 (f)(g) Where a levy has been made to collect taxes or38.2 payments in lieu of taxes pursuant to this subdivisionthe 38.3 amount due and the property seized is properly included in a 38.4 formal proceeding commenced under sections 524.3-401 to 38.5 524.3-505 and maintained under full supervision of the court, 38.6 the property shall not be sold until the probate proceedings are 38.7 completed or until the court soorders. 38.8 (g)(h) The property seized shall be returned by the38.9 commissionerif the owner: 38.10 (1) gives a surety bond equal to the appraised value of the 38.11 owner's interest in the property, as determined by the 38.12 commissioner, or 38.13 (2) deposits with the commissioner security in a form and 38.14 amount asthe commissioner deemsconsiders necessary to insure 38.15 payment of the liability , but not more than twice the liability. 38.16 (h) Notwithstanding any other law to the contrary,(i) If a 38.17 levy or sale pursuant to this sectionwould irreparably injure 38.18 rights in property whichthat the court determines to be38.19 superior to rights of the state in the property, the district38.20 court may grant an injunction to prohibit the enforcement of the 38.21 levy or to prohibit the sale. 38.22 (i)(j) Any person who fails or refuses to surrender 38.23 without reasonable cause any property or rights to property 38.24 subject to levy upon demand by the commissionershall be 38.25 personally liable to the departmentin an amount equal to the 38.26 value of the property or rights not so surrendered, but not 38.27 exceeding the amount of tax or payment in lieu of taxes for the38.28 collection of which the levy has been made. Any amount38.29 recovered under this subdivision shall be credited against the38.30 tax or payment in lieu of taxes liability for the collection of38.31 which the levy was made. The term "person" includes an officer38.32 or employee of a corporation or a member or employee of a38.33 partnership who, as an officer, employee, or member is under a38.34 duty to surrender the property or rights to property or to38.35 discharge the obligationdue. 38.36 (j) Any action taken by the commissioner pursuant to this39.1 subdivision shall not constitute an election by the department39.2 to pursue a remedy to the exclusion of any other remedy.39.3 (k) AfterIf the commissioner has seized the property of 39.4 any personindividual, that personindividual may, upon giving 39.5 48 hours notice to the commissioner and to the court, bring a 39.6 claim for equitable relief before the district court for the 39.7 release of the property to the employerupon terms and 39.8 conditions asthe court may deemconsiders equitable. 39.9 (l) Any person in control or possession of (or obligated39.10 with respect to)property or rights to property subject to levy39.11 upon which a levy has been made who , upon demand by the39.12 commissioner,surrenders the property or rights to property, or 39.13 who pays a liability under this subdivisionthe amount due shall 39.14 be discharged from any obligation or liability to the person 39.15 liable for the payment of the delinquent tax or payment in lieu39.16 of taxesamount due with respect to the property or rights to 39.17 property so surrendered or paid. 39.18 (m) Notwithstanding any other provisions of law to the39.19 contrary,The notice of any levy authorized by this sectionmay 39.20 be served personally or by mail or by delivery by an employee or39.21 agent of the department. 39.22 (n) It shall be lawful forThe commissioner tomay release 39.23 the levy upon all or part of the property or rights to property 39.24 levied upon if the commissioner determines that the release will 39.25 facilitate the collection of the liability, but the release 39.26 shall not operate toprevent any subsequent levy. If the 39.27 commissioner determines that property has been wrongfully levied 39.28 upon, it shall be lawful forthe commissioner toshall return: 39.29 (1) the specific property levied upon, at any time; or 39.30 (2) an amount of money equal to the amount of money levied 39.31 upon, at any time before the expiration of nine months from the 39.32 date of levy. 39.33 (o) Notwithstanding section 52.12, a levy by the39.34 commissioner made pursuant to the provisions of this section39.35 upon an employer'sa person's funds on deposit in a financial 39.36 institution located in this state, shall have priority over any 40.1 unexercised right of setoff of the financial institution to 40.2 apply the levied funds toward the balance of an outstanding loan 40.3 or loans owed by the employerperson to the financial 40.4 institution. A claim by the financial institution that it 40.5 exercised its right to setoff prior to the levy by the40.6 commissionermust be substantiated by evidence of the date of 40.7 the setoff, and shall beverified by the sworn statement of a40.8 responsiblean affidavit from a corporate officer of the 40.9 financial institution. Furthermore,For purposes of determining 40.10 the priority of any levy madeunder this sectionsubdivision, 40.11 the levy shall be treated as if it were an execution made40.12 pursuant tounder chapter 550. 40.13 Subd. 4.3. [RIGHT OF SETOFF.] (a) Upon certification by 40.14 the commissioner to the commissioner of finance, or to any state 40.15 agency whichthat disburses its own funds, that an employera 40.16 person has an uncontested delinquent tax or payment in lieu of40.17 taxesa liability owed to the departmentunder this chapter, 40.18 including interest, penalties, and costs, and that the state has 40.19 purchased personal services, supplies, contract services, or 40.20 property from said employerthat person, the commissioner of 40.21 finance or the state agency shall apply to the delinquent tax or40.22 payment in lieu of taxes liability fundsset off and pay to the 40.23 commissioner an amount sufficient to satisfy the unpaid 40.24 liability from funds appropriated for payment of saidthe 40.25 obligation of the state or any of its agencies that are due and40.26 owing the employerotherwise due the person. The credit shall40.27 not be made againstNo amount shall be set off from any funds 40.28 exempt under section 550.37 or thosefunds oweddue an 40.29 individual employerwho receives assistance under chapter 256. 40.30 (b) All funds, whether general or dedicated, shall be 40.31 subject to setoff in the manner provided in this subdivision.40.32 Transfer of funds in payment of the obligations of the state or40.33 any of its agencies to an employer and any actions for the funds40.34 shall be had against the commissioner on the issue of the tax or40.35 payment in lieu of taxes liability. Nothing in this section40.36 shall be construed to limit the previously existing right of the41.1 state or any of its agencies to setoff. 41.2 NotwithstandingRegardless of any law to the contrary, the 41.3 commissioner shall have first priority to setoff from any funds 41.4 owed byotherwise due from the department to a 41.5 delinquent employerperson. 41.6 Subd. 5.4. [COLLECTION BY CIVIL ACTION.] (a) In addition41.7 to all other collection methods authorized, ifAny employer is41.8 delinquent on any payment oftaxes or, payment in lieu of taxes, 41.9 or benefit overpayment, including interest due thereon or, 41.10 penalties for failure to file a tax report and other reports as41.11 required by this chapter or by any rule of the commissioner, the41.12 amount due, or costs, may be collected by civil action in the 41.13 name of the state of Minnesota , and any money recovered shall be41.14 credited to the funds provided for under those sections. Any41.15 employer adjudged delinquent shall pay the costs of the action. 41.16 Civil actions brought under this subdivision shall be heard as 41.17 provided under section 16D.14. No action for the collection of41.18 taxes, interest thereon, or penalties shall be commenced more41.19 than six years after the taxes have been reported by the41.20 employer or determined by the commissioner to be due and41.21 payable.In any action, judgment shall be entered against any41.22 employerin default for the relief demanded in the complaint 41.23 without proof, together with costs and disbursements, upon the 41.24 filing of an affidavit of default. 41.25 (b) Any employerperson that is not a resident of this 41.26 state and any resident employerperson removed from this state, 41.27 shall be considered to appoint the secretary of state as its 41.28 agent and attorneyfor the acceptance of process in any civil 41.29 action under this subdivision. In instituting an action against41.30 any employer,. The commissioner shall file process with the 41.31 secretary of state, together with a payment of a fee of $15 and 41.32 that service shall be considered sufficient service upon the41.33 employer,and shall have the same force and validity as if 41.34 served upon the employerpersonally within this state. The41.35 commissioner shall sendNotice of the service of process, 41.36 together with a copy of the process, shall be sent by certified 42.1 mail ,to the employer at itsperson's last known address. The42.2 commissioner'sAn affidavit of compliance with the provisions of42.3 this sectionsubdivision, and a copy of the notice of service 42.4 shall be appended to the original of the process and filed in 42.5 the court. 42.6 (c) No court filing fees, docketing fees, or release of 42.7 judgment fees may be assessed against the state for actions 42.8 pursuant to this subdivision. 42.9 Subd. 6.5. [INJUNCTION FORBIDDEN.] No suit shall42.10 lieinjunction or other legal action to enjoinprevent the 42.11 assessment or collection of any tax or, payment in lieu of taxes 42.12 imposed by this chapter, or the, or benefit overpayment, 42.13 including interest and, penalties imposed thereby, and costs 42.14 shall be allowed. 42.15 Sec. 34. Minnesota Statutes 1998, section 268.0625, is 42.16 amended to read: 42.17 268.0625 [ REEMPLOYMENT INSURANCE TAX CLEARANCES;42.18 ISSUANCESREVOCATIONS OF BUSINESS LICENSES.] 42.19 Subdivision 1. [ REEMPLOYMENT INSURANCE CLEARANCE42.20 REQUIREDNOTICE OF DEBT TO LICENSING AUTHORITY.] The state of 42.21 Minnesota or a political subdivision of the statemay not issue, 42.22 transfer, or renew, and must revoke a license for the conduct of 42.23 any profession, trade, or business, if the commissioner notifies 42.24 the licensing authority that the applicantlicensee owes the42.25 statedelinquent taxes, payments in lieu of taxes, or benefit 42.26 overpayments . The commissioner may not notify the licensing42.27 authority unless the applicant owes, including interest, 42.28 penalties, and costs, of $500 or more to the reemployment42.29 insurance fund. A licensing authority that has received such a 42.30 notice from the commissionermay issue, transfer, renew, or not 42.31 revoke the applicant'slicense only if (a) the commissioner42.32 issues a reemployment insurance tax clearance certificate; and42.33 (b) the commissioner or the applicant forwards a copy of the42.34 clearance tothe licensing authority has received a copy of the 42.35 debt clearance certificate issued by the commissioner. 42.36 Subd. 2. [ ISSUANCE OFDEBT CLEARANCE CERTIFICATE.] The 43.1 commissioner may issue a reemployment insurance taxa debt 43.2 clearance certificate only if: 43.3 (a)(1) the applicant does not owe the statelicensee has 43.4 fully paid any delinquent taxes, payments in lieu of taxes, or 43.5 benefit overpayments, including interest, penalties, and costs; 43.6 or 43.7 (b)(2) the applicantlicensee has entered into a payment43.8 an agreement to liquidate the delinquent taxes, payments in lieu43.9 of taxes, or benefit overpaymentspay the total amount due and 43.10 is current with all the terms of that paymentagreement. 43.11 Subd. 3. [DEFINITION.] For the purposes of this 43.12 section, "applicant""licensee" means: 43.13 (a)(1) an individual if the license is issued to or in the 43.14 name of an individual, or the corporation, limited liability 43.15 company, or partnership if the license is issued to or in the 43.16 name of a corporation, limited liability company, or 43.17 partnership; or 43.18 (b)(2) an officer of a corporation, manager of a limited 43.19 liability company, or a member of a partnership, or an 43.20 individual who is liable for the delinquent taxes, payments in 43.21 lieu of taxes, or benefit overpayments, either for the 43.22 entity for whichthat the license is at issue or for another 43.23 entity for whichthat the liability was incurred, or personally 43.24 as a licensee. In the case of a license transfer, "applicant"43.25 means"Licensee" includes both the transferor and the transferee 43.26 of the license . "Applicant" also meansand any holder of a 43.27 license. 43.28 Subd. 3.4. [NOTICE AND RIGHT TO HEARING.] At least 43.29 30 calendar days before the commissioner notifies a licensing 43.30 authority pursuant to subdivision 1, a notice and demand for43.31 payment of the amount dueof action under this section shall be 43.32 givenmailed to the applicantlicensee. If the 43.33 applicantlicensee disputes the amount dueaction, 43.34 the applicantlicensee must request a hearing in writingappeal 43.35 within 30 calendar days after the mailing of the notice and43.36 demand for paymentto the applicant'slicensee's last known 44.1 address. The only issue on any appeal is whether the 44.2 commissioner has complied with the requirements of this 44.3 section. Proceedings on the appeal of the amount dueshall be 44.4 conducted in accordance with section 268.105. 44.5 Subd. 4.5. [LICENSING AUTHORITY; DUTIES.] Upon request of44.6 the commissioner, the licensing authority mustshall provide the 44.7 commissioner with a list of all applicantslicensees, including 44.8 the name, address, business name and address, social security 44.9 number, and business identification number of each applicant. 44.10 The commissioner may request from a licensing authoritya list 44.11 of the applicantslicensees no more than once each calendar year. 44.12 NotwithstandingRegardless of section 268.19, the commissioner 44.13 may release information necessary to accomplish the purpose of44.14 this section. 44.15 Subd. 5. [OTHER REMEDIES.] Any action taken by the44.16 commissioner pursuant to this section is not an election by the44.17 commissioner to pursue a remedy to the exclusion of any other44.18 remedy.44.19 Sec. 35. Minnesota Statutes 1998, section 268.064, is 44.20 amended to read: 44.21 268.064 [LIABILITY OF SUCCESSORFOR DEBTS UPON 44.22 ACQUISITION.] 44.23 Subdivision 1. [ACQUISITION OF ORGANIZATION, TRADE, OR44.24 BUSINESS, OR ASSETS.] Any individual or organization, whether or44.25 not an employer, whichperson who acquires all or part of the 44.26 organization, trade, orbusiness or all or part of theassets 44.27 thereoffrom an employer, is jointly and severally liable, in an 44.28 amount not to exceed the reasonable value of that part of the 44.29 organization, trade, orbusiness or assets acquired, for the 44.30 taxes due and unpaid by the employer , and. The amount of 44.31 liability shall, in addition, be a lien against the property or 44.32 assets soacquired whichand shall be prior to all other 44.33 unrecorded liens. This subdivisionsection does not apply to 44.34 sales in the normal course of the employer's business. 44.35 Subd. 2. [REASONABLE VALUE.] The commissioner, upon the 44.36 commissioner's own motion or upon application of the potential45.1 successoracquiring person, shall determine the reasonable value 45.2 of the organization, trade, orbusiness or assets acquired by45.3 the successorbased on available information. The determination 45.4 shall be final unless the successoracquiring person, within 30 45.5 calendar days after the sending ofbeing sent the determination 45.6 to the successorby mail or electronic transmission, files an 45.7 appeal. Proceedings on the appeal shall be conducted in 45.8 accordance with section 268.105. 45.9 Subd. 3. [STATEMENT OF AMOUNT DUE.] Prior to the date of 45.10 acquisition, the commissioner shall furnish the potential45.11 successoracquiring person with a writtenstatement of the 45.12 predecessor'staxes due and unpaid , on record as of the date of45.13 issuance, onlyupon the written request of the 45.14 potential successoracquiring person and the written release of 45.15 the predecessorobligor. No release is required after the date 45.16 of acquisition. 45.17 Subd. 4. [ADDITIONAL REMEDY.] The remedy provided by this45.18 section is in addition to all other existing remedies against45.19 the employer or a successor and is not an election by the45.20 department to pursue this remedy to the exclusion of any other45.21 remedy.45.22 Sec. 36. Minnesota Statutes 1998, section 268.065, is 45.23 amended to read: 45.24 268.065 [LIABILITY OF THIRD PARTIES TO ASSURE PAYMENT OF45.25 AMOUNTS DUE FROM CONTRACTORS,SUBCONTRACTORS ,AND EMPLOYEE 45.26 LEASING FIRMS.] 45.27 Subdivision 1. [ CONTRACTORSSUBCONTRACTORS.] A contractor ,45.28 who is or becomes an employer under this chapter,who contracts 45.29 with any subcontractor , who is or becomes an employer under this45.30 chapter,shall guarantee the payment of all the taxes, interest, 45.31 penalties, and collection costs whichthat are due or become due 45.32 from the subcontractor with respect to taxable wages paid for45.33 employmenton the contract by: 45.34 (a)(1) withholding sufficient money on the contract; or 45.35 (b)(2) requiring the subcontractor to provide a good and45.36 sufficient bond guaranteeing the payment of all taxes, interest, 46.1 penalties, and collection costs whichthat may become due. 46.2 The contractor may make a written request for verification 46.3 that the subcontractor has paid the taxes due 60 calendar days 46.4 after the due date for filing the tax report that includes the 46.5 final wages paid for servicesemployment performed under the 46.6 contract. If department records show thatthe subcontractor has 46.7 paid the taxes for the period covered by the contract, 46.8 the departmentcommissioner may release the contractor from its 46.9 liability under this subdivision. 46.10 The words "contractor" and "subcontractor" include 46.11 individuals, partnerships, firms, or corporations, or other 46.12 association of persons engaged in the construction industry. 46.13 Subd. 2. [EMPLOYEE LEASING FIRMS.] A person whose work 46.14 force consists of 50 percent or more of workers provided by 46.15 employee leasing firms, is directlyjointly and severally liable 46.16 for the payment of all theunpaid taxes, penalties, interest, 46.17 and collection costs whichthat are due or become due fromon 46.18 the wages paid for employmenton the contract , unless the46.19 contract requireswith the employee leasing firm to provide a46.20 good and sufficient bond guaranteeing the payment of all taxes,46.21 penalties, interest, and collection costs which may become due. 46.22 "Employee leasing firm" means an employer that provides its 46.23 employees to other firms,persons , and employerswithout 46.24 severing its employer-employee relationship with the worker for 46.25 the services performed for the lessee. 46.26 Subd. 3. [DETERMINATION OF LIABILITY.] An official46.27 designated byThe commissioner shall make an initiala 46.28 determination as to the liability under this section. The 46.29 determination shall be final unless the contractor or person 46.30 found to be liable files a writtenan appeal within 30 calendar 46.31 days after mailing of notice ofbeing sent the determination to46.32 the person's last known addressby mail or electronic 46.33 transmission. Proceedings on the appeal shall be conducted in 46.34 accordance with section 268.105. 46.35 Sec. 37. Minnesota Statutes 1998, section 268.067, is 46.36 amended to read: 47.1 268.067 [COMPROMISE AGREEMENTS.] 47.2 (a) The commissioner may compromise in whole or in part any 47.3 action, determination, or decision that affects only an employer 47.4 and not a claimant, and that has become finaloccurred during 47.5 the prior 24 months. 47.6 (b) The commissioner may at any time compromise delinquent 47.7 employer taxes, payments in lieu of taxes, interest, penalties, 47.8 and costs. 47.9 (c) Any compromise under paragraphs (a) and (b)shall be by 47.10 written agreementorder signed by the employer and the47.11 commissioner.47.12 The commissioner shall enter into a compromise agreement47.13 only if it is in the best interest of the state of Minnesota.47.14 The agreement must set forth the reason and all the terms. The47.15 agreement must be approved byan attorney who is a regularly47.16 salariedclassified employee of the department and who has been47.17 designated by the commissioner for that purpose. 47.18 (d) Any compromise order must set out all the terms and the 47.19 reason for the order and must be in the best interest of the 47.20 state of Minnesota. 47.21 Sec. 38. [268.0675] [NO ELECTION OF REMEDY.] 47.22 Use of any remedy under this chapter for the collection of 47.23 any delinquent taxes, payments in lieu of taxes, or benefit 47.24 overpayment, including penalties, interest, and costs, shall not 47.25 constitute an election of remedy to the exclusion of any other 47.26 available remedy. 47.27 Sec. 39. Minnesota Statutes 1998, section 268.068, is 47.28 amended to read: 47.29 268.068 [NOTICE TO WORKERS.] 47.30 Each employer shall post and maintain printed statements of 47.31 an individual's right to apply for reemployment insurance47.32 benefits in places readily accessible to individualsworkers in 47.33 the employer's service. SuchThe printed statements mustshall 47.34 be supplied by the commissioner at no cost to an employer. 47.35 Sec. 40. Minnesota Statutes 1998, section 268.069, is 47.36 amended to read: 48.1 268.069 [PAYMENT OF BENEFITS.] 48.2 Subdivision 1. [REQUIREMENTS.] (a)The commissioner shall 48.3 pay reemployment insurancebenefits from the Minnesota48.4 reemployment insurancefund to a claimant who has met each of 48.5 the following requirements: 48.6 (1) the claimant has filed an application for benefits and 48.7 established a reemployment insurancebenefit account in 48.8 accordance with section 268.07; 48.9 (2) the claimant is not subject to a disqualification from 48.10 benefits under section 268.095; 48.11 (3) the claimant has met all of the ongoing weekly 48.12 eligibility requirements under section 268.08sections 268.085 48.13 and 268.086; and48.14 (4) the claimant does not have an outstanding overpayment 48.15 of benefits, including any penalties or interest, under section 48.16 268.18; and 48.17 (5) the claimant is not subject to a denial of benefits 48.18 under section 268.182. 48.19 Subd. 2. [BENEFITS PAID FROM STATE FUNDS.] (b)Benefits 48.20 are paid from state funds and shall not be considered paid from 48.21 any special insurance plan, nor as paid by an employer. An 48.22 application for benefits shall not be considered a claim against 48.23 an employer but shall be considered a request for benefits from 48.24 the fund. The commissioner shall determinehas the 48.25 responsibility for the proper payment of benefits regardless of 48.26 the level of interest or participation by a claimant or an 48.27 employer in any determination or appeal. A claimant's 48.28 entitlement to benefits shall be determined based upon that 48.29 information available without regard to any common law burden of 48.30 proof, and any agreement between a claimant and an employer 48.31 shall not be binding on the commissioner in determining a 48.32 claimant's entitlement. Any obligation on an employer as a48.33 result of benefits charged to the employer is to the fund only.48.34 There shall be no presumption of entitlement or nonentitlement 48.35 to benefits. 48.36 Subd. 3. [COMMON LAW.] There shall be no equitable or 49.1 common law denial or allowance of benefits. 49.2 Sec. 41. Minnesota Statutes 1998, section 268.07, is 49.3 amended to read: 49.4 268.07 [ REEMPLOYMENT INSURANCEBENEFIT ACCOUNT.] 49.5 Subdivision 1. [APPLICATION FOR BENEFITS; DETERMINATION OF 49.6 BENEFIT ACCOUNT.] (a) An application for reemployment insurance49.7 benefits may be madefiled in person, by mail, by telephone, or 49.8 by electronic transmission as the commissioner shall 49.9 require. The commissioner may by rule adopt other requirements49.10 for an application.The claimant must provide all requested 49.11 information in the manner required. If the claimant fails to 49.12 provide all requested information, the communication shall not 49.13 be considered an application for benefits. 49.14 (b) The commissioner shall promptlyexamine each 49.15 application for benefits to determine the base period, the 49.16 benefit year, the weekly benefit amount payableavailable, if 49.17 any, and the maximum amount of benefits payableavailable, if 49.18 any. The determination shall be known as the determination 49.19 of reemployment insurancebenefit account. A determination 49.20 of reemployment insurancebenefit account mustshall 49.21 be promptlysent to the claimant and all base period employers, 49.22 by mail or electronic transmission. 49.23 (c) If a base period employer failed todid not provide 49.24 wage information for the claimant as requiredprovided for in 49.25 section 268.044, the commissioner shall accept a claimant 49.26 certification as to wage credits, based upon the claimant's 49.27 records, and issue a determination of reemployment insurance49.28 benefit account. 49.29 (d) (1)The commissioner may, at any time within 24 months 49.30 from the establishment of a reemployment insurancebenefit 49.31 account, reconsider any determination of reemployment49.32 insurancebenefit account and make a redetermination if the 49.33 commissioner finds that the determination was incorrect for any 49.34 reason. A redetermination of reemployment insurance account49.35 shall be promptly sent to the claimant and all base period 49.36 employers, by mail or electronic transmission. 50.1 (2)If a redetermination of reemployment insurancebenefit 50.2 account reduces the weekly benefit amount or maximum amount of 50.3 benefits payableavailable, any benefits that have been paid 50.4 greater than the claimant was redetermined entitled is 50.5 considered an overpayment subject toof benefits under section 50.6 268.18, subdivision 1. 50.7 Subd. 2. [BENEFIT ACCOUNT REQUIREMENTS AND WEEKLY BENEFIT 50.8 AMOUNT AND MAXIMUM AMOUNT OF BENEFITS.] (a) To establish 50.9 a reemployment insurancebenefit account, a claimant must have: 50.10 (1) wage credits in two or more calendar quarters of the50.11 claimant's base period;50.12 (2) minimum total wage credits equal to or greater than the50.13 high quarter wage credits multiplied by 1.25;50.14 (3)high quarter wage credits of not less thanat 50.15 least $1,000; and 50.16 (2) wage credits, in other than the high quarter, of at 50.17 least $250. 50.18 (b) If the commissioner finds thata claimant has 50.19 established a reemployment insurancebenefit account, the weekly 50.20 benefit amount payableavailable during the claimant'sbenefit 50.21 year shall be the higher of: 50.22 (1) 50 percent of the claimant's average weekly wage during 50.23 the claimant'sbase period, to a maximum of 66-2/3 percent of 50.24 the state's average weekly wage; or 50.25 (2) 50 percent of the claimant's average weekly wage during 50.26 the high quarter, to a maximum of the higher of $331 or 50 50.27 percent of the state's average weekly wage. 50.28 The claimant's average weekly wage under clause (1) shall 50.29 be computed by dividing the claimant'stotal wage credits by 50.30 52. The claimant's average weekly wage under clause (2) shall 50.31 be computed by dividing the claimant'shigh quarter wage credits 50.32 by 13. 50.33 (c) The state's maximum weekly benefit amount and the 50.34 claimant's weekly benefit amount and maximum amount of benefits 50.35 shall be computed torounded down to the nearestnext lowest 50.36 whole dollar. 51.1 (d) The maximum amount of benefits payableavailable on any 51.2 reemployment insurancebenefit account shall equal one-thirdbe 51.3 33-1/3 percent of the claimant's total wage credits rounded to51.4 the next lower dollar, not to exceedto a maximum of 26 times 51.5 the claimant's weekly benefit amount. 51.6 Subd. 3. [SECOND BENEFIT ACCOUNT REQUIREMENTS.] To 51.7 establish a second reemployment insurancebenefit account 51.8 following the expiration of a benefit year on a 51.9 prior reemployment insurancebenefit account, a claimant must 51.10 have sufficient wage credits to establish a reemployment51.11 insurancebenefit account under subdivision 2 and must have 51.12 performed services in covered employment after the effective 51.13 date of the prior reemployment insurancebenefit account. The 51.14 wages paid for that employment must equal not less than eight 51.15 times the weekly benefit amount of the prior reemployment51.16 insurancebenefit account. A reemployment insurancebenefit 51.17 account established sufficiently in advance of 51.18 anticipated unemploymentloss of employment to make the 51.19 limitations of this subdivision ineffective shall not be 51.20 allowed. The purpose of this subdivision is to prevent a 51.21 claimant from establishing more than one reemployment insurance51.22 benefit account as a result of one separation fromloss of 51.23 employment. 51.24 Subd. 3a. [RIGHT OF APPEAL.] (a) A determination or 51.25 redetermination of a reemployment insurancebenefit account 51.26 shall be final unless a claimant or base period employer within 51.27 30 calendar days after the sending of the determination or 51.28 redetermination files an appeal. Every determination or 51.29 redetermination of a reemployment insurancebenefit account 51.30 shall contain a prominent statement indicating in clear language 51.31 the method of appealing, the time within which the appeal must51.32 be made, andthe consequences of not appealing. Proceedings on 51.33 the appeal shall be conducted in accordance with section 268.105. 51.34 (b) Any claimant or base period employer may appeal from a 51.35 determination or redetermination of a reemployment insurance51.36 benefit account on the issue of whether services performed 52.1 constitute employment and covered employment. Proceedings on 52.2 the appeal shall be conducted in accordance with section 268.105. 52.3 Subd. 3b. [LIMITATIONS.] (a) A reemployment insurance52.4 benefit account shall be established effective the Sunday of the 52.5 calendar week that the application for reemployment insurance52.6 benefits was madefiled. If an individual attempted to make52.7 file an application for a reemployment insurance52.8 accountbenefits, but was prevented from makingfiling an 52.9 application by the department, the reemployment insurance52.10 benefit account shall be establishedeffective the Sunday of the 52.11 calendar week the individual first attempted to makefile an 52.12 application. 52.13 (b) A reemployment insurancebenefit account, once 52.14 established, may later be withdrawn andonly if: 52.15 (1) a new application for benefits is filed and a new 52.16 benefit account is established only ifat the time of the 52.17 withdrawal; and 52.18 (2) the claimant has not been credited withserved a 52.19 waiting week under section 268.085, subdivision 1, clause (3). 52.20 A determination or amended determination pursuant to 52.21 section 268.101, that was issued before the withdrawal of 52.22 the reemployment insurancebenefit account, shall remain in 52.23 effect and shall not be voided by the withdrawal of 52.24 the reemployment insurancebenefit account. A determination of 52.25 disqualification requiring subsequent earnings to satisfy the 52.26 disqualification under section 268.095, subdivision 10, shall 52.27 apply to the weekly benefit amount on the new benefit account. 52.28 (c) A reemployment insurance account shall not be52.29 establishedAn application for benefits shall not be allowed 52.30 prior to the Sunday following the expiration of the benefit year 52.31 on a prior reemployment insurancebenefit account. Except as 52.32 allowed under paragraph (b), a claimant may establish only one 52.33 benefit account each 52 calendar weeks. 52.34 (d) All benefits shall be payableavailable from the fund 52.35 only for weeks occurring during the claimant's benefit year. 52.36 Sec. 42. Minnesota Statutes 1998, section 268.085, is 53.1 amended to read: 53.2 268.085 [ELIGIBILITY REQUIREMENTS.] 53.3 Subdivision 1. [ELIGIBILITY CONDITIONS.] A claimant shall 53.4 be eligible to receive benefits for any week in the claimant's53.5 benefit year onlyif: 53.6 (1) the claimant has madean active benefit account and has 53.7 filed a continued claimrequest for benefits in person, by mail,53.8 by telephone, or by electronic transmission as the commissioner53.9 shall require. The commissioner may by rule adopt other53.10 requirements for a continued claimfor that week pursuant to 53.11 section 268.086; 53.12 (2) the claimant was able to work and was available for 53.13 employment, and was actively seeking suitable employment. The 53.14 claimant's weekly benefit amount shall be reduced one-fifth for 53.15 each day the claimant is unable to work or is unavailable for 53.16 employment. 53.17 Benefits shall not be denied by application ofThis clause 53.18 shall not apply to a claimant who is in reemployment assistance 53.19 training with the approval of the commissioner. 53.20 AThe requirement that the claimant serving as a juror53.21 shallbe considered asavailable for employment and actively 53.22 seeking suitable employment onshall not apply each day the 53.23 claimant is on jury duty; 53.24 (3) the claimant has served a waiting period of one week 53.25 that the claimant is otherwise entitled to some amount of 53.26 benefits. This clause shall not apply if the claimant would 53.27 have been entitled to federal disaster unemployment assistance 53.28 because of a disaster in Minnesota, but for the claimant's 53.29 establishment of a reemployment insurancebenefit account under 53.30 section 268.07; and 53.31 (4) the claimant has been participating in reemployment 53.32 assistance services, such as job search assistance servicesand 53.33 resume writing classes, if the claimant has been 53.34 determined likely to exhaust benefits andin need of 53.35 reemployment assistance services pursuant to a profiling system53.36 establishedby the commissioner, unless there is justifiable54.1 good cause for the claimant's failure to participate. 54.2 Subd. 2. [NOT ELIGIBLE.] A claimant shall not be eligible 54.3 to receive benefits for any week: 54.4 (1) that occurs before the establishmenteffective date of 54.5 a reemployment insurancebenefit account; 54.6 (2) that occurs in a period when the claimant is a student 54.7 in attendance at, or on vacation from a secondary 54.8 school including the period between academic years or terms; 54.9 (3) that the claimant is incarcerated or performing court 54.10 ordered community service. The claimant's weekly benefit amount 54.11 shall be reduced by one-fifth for each day the claimant is 54.12 incarcerated or performing court ordered community service; 54.13 (4) that the claimant is on a voluntary leave of absence, 54.14 including a requested period of paid or unpaid vacation. A 54.15 leave of absence is voluntary when work, that the claimant can 54.16 perform, is available with the claimant's employer, but the 54.17 claimant chooses not to work. A claimant unemployedwho is not 54.18 working as a result of a vacation period assigned by an employer 54.19 under: (i) a uniform vacation shutdown, (ii) a collective 54.20 bargaining agreement, or (iii) an established employer policy, 54.21 shall not be considered on a voluntary leave of54.22 absenceineligible under this clause; 54.23 (5) that the claimant is performing services 32 hours or 54.24 more, in employment, covered employment, noncovered employment, 54.25 or self-employment , or volunteer workregardless of the amount 54.26 of any earnings; or 54.27 (6) with respect to which the claimant is receiving, has 54.28 received, or has filed a claiman application for reemployment 54.29 insurance benefits under any federal law or the law of any other 54.30 state , or the federal government, but not including any federal54.31 or state benefits that are merely supplementary to those54.32 provided for under this chapter; provided that. If the 54.33 appropriate agency finally determines that the claimant is not 54.34 entitled to the benefits, this clause shall not apply. 54.35 Subd. 3. [DEDUCTIBLE PAYMENTS.] (a) A claimant shall not 54.36 be eligible to receive benefits for any week with respect to 55.1 which the claimant is receiving, has received, or has filed a55.2 claimfor payment in an amount equal to or in excess of the 55.3 claimant's weekly benefit amount in the form of: 55.4 (1) termination,a severance , or dismissalpayment or wages55.5 in lieu of notice whether legally required or not. This clause 55.6 shall apply to the first four weeks of payment and to one-half 55.7 of the total number of any additional weeks of payment. This 55.8 clause shall be applied to the period immediately following the 55.9 last day of employment. The number of weeks of payment shall be 55.10 determined as follows: 55.11 (i) if the payments are made periodically, the total of the 55.12 payments to be received shall be divided by the claimant's last 55.13 level of regular weekly pay from the employer; or 55.14 (ii) if the payment is made in a lump sum, that sum shall 55.15 be divided by the claimant's last level of regular weekly pay 55.16 from the employer; 55.17 (2) vacation allowancepay, paid directly by thean 55.18 employer for a period of requested vacation, includingvacation 55.19 periods assigned by the employer under: (i) a collective 55.20 bargaining agreement, (ii) established employer policy, or (iii) 55.21 uniform vacation shutdown; or55.22 (3) compensation for loss of wages under the workers' 55.23 compensation law of this state or any other state or under a 55.24 similar law of the United States, or compensation for loss of 55.25 wages under any other insurance or fund established andpaid for55.26 in whole or in part by thean employer; or55.27 (4) pension, retirement, or annuity payments from any plan 55.28 contributed to by a base period employer including the United 55.29 States government, except social security benefits aswhich are 55.30 provided for in subdivision 4. The base period employer 55.31 contributed to the plan if the contribution is excluded from the 55.32 definition of wages under section 268.035, subdivision 29, 55.33 clause (1), or United States Code, title 26, section 3121, 55.34 clause (2), of the Federal Insurance Contribution Act. 55.35 If the claimant receives a lump sum pension payment, that 55.36 sum shall be divided by the claimant's last level of regular 56.1 weekly pay to determine the number of weeks of payment. The 56.2 number of weeks of payment shall be applied to the period 56.3 immediately following the last day of employment. A claimant 56.4 shall not be considered to have received the lump sum payment if 56.5 the claimant immediately deposits that payment in a qualified 56.6 pension plan or account; or 56.7 (5) holiday pay or sick pay, paid directly by an employer. 56.8 (b) If the deductible payment under this subdivisionis 56.9 less than the claimant's weekly benefit amount, the claimant56.10 shall be entitled to receive for that week, if otherwise56.11 eligible,benefits shall be reduced by the amount of the payment 56.12 ; provided, further, that. If the computation of reduced 56.13 benefits is not a whole dollar, it shall be rounded down to the 56.14 next lowest dollar. 56.15 (c) If the appropriate agency of this state or any other56.16 state or the federal governmentfinally determines that the 56.17 claimant is not entitled to payments, this subdivision shall not 56.18 apply. If the computation of reduced benefits is not a whole56.19 dollar, it shall be rounded down to the next lower dollar.56.20 Subd. 4. [SOCIAL SECURITY BENEFITS.] (a) Any claimant aged 56.21 62 or over shall be required to state at the time of makingwhen 56.22 filing an application for a reemployment insurance account56.23 benefits and when makingfiling continued claimsrequests for 56.24 benefits whether the claimant is receiving, has filed for, or 56.25 intends to file for, primary social security old age or 56.26 disability benefits for any week during the benefit year , and if56.27 so. 56.28 (b) There shall be deducted from thea claimant's weekly 56.29 benefit amount otherwise payable for that week,50 percent of 56.30 the weekly equivalent of the primary social security old age 56.31 benefit the claimant has received, has filed for, or intends to 56.32 file for, with respect to that week. 56.33 (b) In addition to paragraph (a),(c) a claimant shall be 56.34 ineligible for benefits for any week with respect to which the 56.35 claimant is receiving, has received, or has filed a claimfor 56.36 primary social security disability benefits , unless the social57.1 security administration has approved the payment of disability57.2 benefits while the claimant was employed. 57.3 (d) Information from the Social Security Administration 57.4 shall be considered conclusive, absent specific evidence showing 57.5 that the information was erroneous. 57.6 (c)(e) Any claimant who receives primary social security 57.7 old age or disability benefits , that would cause the claimant to57.8 be ineligible under this subdivision,for weeksperiods that the 57.9 claimant receivedhas been paid reemployment insurance benefits 57.10 shall be considered overpaid those reemployment insurance 57.11 benefits under section 268.18, subdivision 1. 57.12 Subd. 5. [DEDUCTIBLE EARNINGS.] (a) If the claimant has 57.13 earnings , including holiday pay,with respect to any week, from 57.14 employment, covered employment, noncovered employment, 57.15 self-employment, or volunteer work, equal to or in excess of the 57.16 claimant's weekly benefit amount, the claimant shall be 57.17 ineligible for benefits for that week. 57.18 (b) If the claimant has earnings, including holiday pay,57.19 with respect to any week, that is less than the claimant's 57.20 weekly benefit amount, from employment, covered employment, 57.21 noncovered employment, self-employment, or volunteer work, that57.22 is less than the claimant's weekly benefit amount,that amount 57.23 over the following shall be deducted from the claimant'sweekly 57.24 benefit amount: 57.25 (1) that amount in excess of $50 if the claimant's earnings57.26 were $200 or less, and that amount in excess of25 percent of 57.27 the claimant'searnings if those earnings were more than $200or 57.28 $50, whichever is higher; and 57.29 (2) that amount in excess of$200 for earnings from service 57.30 in the National Guard or a United States military reserve unit. 57.31 The resulting benefit, if not a whole dollar, shall be 57.32 rounded to the next lower dollar. 57.33 (c) No deduction shall be made from a claimant's weekly 57.34 benefit amount for earnings from service as a volunteer 57.35 firefighter or volunteer ambulance service personnel. No 57.36 deduction shall be made for jury duty pay. 58.1 (d) The claimant may report deductible earnings on 58.2 continued claimsrequests for benefits at the nearest whole 58.3 dollar amount. 58.4 (e) Earnings shall not include any money considered a 58.5 deductible payment under subdivision 3, but shall include all 58.6 other money considered wages and any other money considered 58.7 earned income under state and federal law for income tax 58.8 purposes. 58.9 Subd. 6. [RECEIPT OF BACK PAY.] (a) Back pay received by a 58.10 claimant with respect to any weeksweek occurring in the 104 58.11 weeks prior to the payment of the back pay shall be deducted 58.12 from benefits paid for those weeksthat week. 58.13 The amount deducted shall not reduce the benefits that the58.14 claimant is otherwise eligible for that week below zero. If the58.15 amount of benefits after the deduction of back pay is not a58.16 whole dollar amount, it shall be rounded to the next lower58.17 dollar.58.18 If an arbitration award, administrative or judicial 58.19 decision, or negotiated settlement that provides for back pay 58.20 does not specify the period with respect to which it is paid, 58.21 the back pay shall be applied to the period immediately 58.22 following the last day of employment. 58.23 (b) If the back pay awarded the claimantis reduced by the 58.24 amount of benefits that have been paid, the amountsamount of 58.25 back pay withheld shall be: 58.26 (a)(1) paid by the employer intoto the fund within 30 58.27 calendar days of the awardand aresubject to the same 58.28 collection procedures that apply to past due taxes under this58.29 chapter; 58.30 (b)(2) applied to benefit overpayments resulting from the 58.31 payment of the back pay; and 58.32 (c)(3) credited to the claimant'smaximum amount of 58.33 benefits payableavailable to the claimant in a benefit year 58.34 that includes the weeks for which back pay was deducted. 58.35 Benefit(c) Charges for those weeksto the employer's tax 58.36 or reimbursable account under section 268.047 for benefits paid 59.1 the claimant shall be removed from the employer's account as of59.2 in the calendar quarter thatthe fund receives payment. 59.3 (d) Payments to the fund under this subdivision shall be 59.4 considered as made by the claimant. 59.5 Subd. 7. [SCHOOL EMPLOYEES.] (a) No wage credits in any 59.6 amount from any employment with any educational institution or 59.7 institutions earned whilein an instructional, research, or59.8 principal administrativeany capacity may be used for benefit 59.9 purposes for any week beginningduring athe period between two 59.10 successive academic years or terms , or during a period between59.11 two regular but not successive terms,if: 59.12 (1) the claimant had employment in any instructional,59.13 research, or principal administrative capacityfor any 59.14 educational institution or institutions in the first of the59.15 prior academic yearsyear or termsterm; and 59.16 (2) there is a contract or areasonable assurance that the 59.17 claimant will have employment in any instructional, research, or59.18 principal administrative capacityfor any educational 59.19 institution or institutions in the second of thefollowing 59.20 academic yearsyear or termsterm, that is not substantially 59.21 similar toless favorable than the employment of the firstprior 59.22 academic yearsyear or terms;term. 59.23 (b) With respect to employment in any capacity other than59.24 those described in paragraph (a), including educational59.25 assistants, benefits shall not be paid based upon wage credits59.26 from any educational institution or institutions for any week59.27 beginning during a period between two successive academic years59.28 or terms if the claimant was employed in the first academic year59.29 or term by any educational institution or institutions and there59.30 is reasonable assurance that the claimant will be employed under59.31 similar terms and conditions by any educational institution or59.32 institutions in the second academic year or term.59.33 (b) Paragraph (a) shall not apply to a claimant who has, at 59.34 the end of the prior academic year or term, had an agreement for 59.35 a definite period of employment between academic years or 59.36 terms shall be eligible for any weeks within that periodin 60.1 other than an instructional, research, or principal 60.2 administrative capacity and the educational institution or 60.3 institutions failfailed to provide that employment. 60.4 (c) If benefits are denied to any claimant under this60.5 paragraph (a) who was employed in the prior academic year or 60.6 term in other than an instructional, research, or principal 60.7 administrative capacity and the claimantwho was not offered an 60.8 opportunity to perform the employment in the second of the60.9 following academic yearsyear or term, the claimant shall be 60.10 entitled to retroactive benefits for each week during the period 60.11 between academic years or terms that the claimant filed a timely 60.12 continued claimrequest for benefits, but benefits were denied 60.13 solely because of thisparagraph ;(a). 60.14 (c) With respect to employment described in60.15 (d) An educational assistant shall not be considered to be 60.16 in an instructional, research, or principal administrative 60.17 capacity. 60.18 (e) Paragraph (a) or (b), benefits based upon wage credits60.19 from any educational institution or institutionsshall not be60.20 paid for any week beginning during an established and60.21 customaryapply to any vacation period or holiday recess if the 60.22 claimant was employed in the periodimmediately before the 60.23 vacation period or holiday recess, and there is a reasonable 60.24 assurance that the claimant will be employed in the period60.25 immediately following the vacation period or holiday recess ;. 60.26 (d) Paragraphs (a), (b), and (c)(f) This subdivision shall 60.27 apply to employment with an educational service agency if the 60.28 claimant performed the services at an educational institution or 60.29 institutions. For purposes of this paragraph,"Educational 60.30 service agency" means a governmental agency or entity 60.31 established and operated exclusively for the purpose of 60.32 providing services to one or more educational institutions ;60.33 (e) Paragraphs (a) to (d). This subdivision shall also 60.34 apply to employment with Minnesota or a political subdivision, 60.35 or a nonprofit organization, if the services are provided to or 60.36 on behalf of an educational institution or institutions. 61.1 (f)(g) Paragraphs (a) , (b),and (c)(e) shall apply 61.2 beginning the Sunday of the week that there is a contract or61.3 reasonable assurance of employment. 61.4 (g)(h) Employment with multiple education institutions 61.5 shall be aggregated for purposes of application of this 61.6 subdivision. 61.7 (h)(i) If all of the claimant's employment with any 61.8 educational institution or institutions during the prior 61.9 academic year or term consisted of on-call employment, and the 61.10 claimant has a reasonable assurance of any on-call employment 61.11 with any educational institution or institutions for the 61.12 following academic year or term, it shall not be considered 61.13 substantially less favorable employment. 61.14 (j) Paragraph (a) shall also apply to the period between 61.15 two regular but not successive terms. 61.16 (k) A "reasonable assurance" may be written, oral, implied, 61.17 or established by custom or practice. 61.18 (l) An "educational institution" is an educational entity 61.19 operated by Minnesota or a political subdivision or an 61.20 instrumentality thereof, or an educational organization 61.21 described in United States Code, title 26, section 501(c)(3) of 61.22 the federal Internal Revenue Code, and exempt from income tax 61.23 under section 501(a). 61.24 Subd. 8. [SERVICES FOR SCHOOL CONTRACTORS.] Wage credits 61.25 from an employer are subject to subdivision 7, paragraphs (b)61.26 and (c),if: 61.27 (1) the employment was provided pursuant to a contract 61.28 between the employer and an educational institutionelementary 61.29 or secondary school; and 61.30 (2) the contract was for services that the educational61.31 institutionelementary or secondary school could have had 61.32 performed by its employees ; and61.33 (3) the claimant was notified in writing of the provisions61.34 of this subdivision prior to or at the time of beginning the61.35 employment. 61.36 Subd. 9. [BUSINESS OWNERS.] Wage credits from an employer 62.1 may not be used for benefit purposes by any claimant who: 62.2 (1) individually, jointly, or in combination with the 62.3 claimant's spouse, parent, or child owns or controls directly or 62.4 indirectly 25 percent or more interest in the employer, or is 62.5 the spouse, parent, or minor child of any individual who owns or 62.6 controls directly or indirectly 25 percent or more interest in 62.7 the employer; and 62.8 (2) is not permanently separated from employment. 62.9 This subdivision is effective when the claimant has been 62.10 paid four times the claimant's weekly benefit amount in the 62.11 current benefit year. 62.12 Subd. 10. [ SEASONALRECREATIONAL OR TOURIST INDUSTRY 62.13 EMPLOYMENT.] (a) If a claimant has wage credits from seasonal62.14 recreational or tourist industry employment, benefits shall 62.15 be payableavailable only if the claimant can establish 62.16 a reemployment insurancebenefit account under section 268.07, 62.17 subdivision 2, excluding the wage credits from seasonal62.18 recreational or tourist industry employment. For purposes of62.19 This subdivision , "seasonal employment" meansapplies only to 62.20 employment with a single employer in the recreation or tourist62.21 industrythat is available with the employer for 15 consecutive 62.22 weeks or less each calendar year. 62.23 (b) Wage credits from seasonalrecreational or tourist 62.24 industry employment may not be used for benefit purposes during 62.25 weeks outside the normal employment season. 62.26 Subd. 11. [ PROFESSIONALATHLETES AND COACHES.] Benefits 62.27 shall not be paid to a claimant on the basis of any wage credits 62.28 from employment that substantiallyconsists of coaching or 62.29 participating in sports or athletic events or training or 62.30 preparing to participate for any week that beginsduring the 62.31 period between two successive sport seasons, (or similar periods 62.32 ), if: 62.33 (1) the claimant was so employed in the firstprior season 62.34 (or similar period ), and 62.35 (2) there is a reasonable assurance that the claimant will 62.36 be so employed in the following season (or similar 63.1 periods)period. 63.2 Subd. 12. [ALIENS.] (a) An alien shall be ineligible for 63.3 benefits for any week the alien is not authorized to work in the 63.4 United States under federal law. Information from the 63.5 Immigration and Naturalization Service shall be considered 63.6 conclusive, absent specific evidence that the information was 63.7 erroneous. 63.8 (b) Benefits shall not be paid on the basis of wage credits 63.9 earned by an alien unless the alien (1) was lawfully admitted 63.10 for permanent residence at the time of the employment, (2) was 63.11 lawfully present for the purposes of the employment, or (3) was 63.12 permanently residing in the United States under color of law at 63.13 the time of the employment including section 212(d)(5) of the63.14 Immigration and Nationality Act. 63.15 (c) Any data orinformation required of claimants applying 63.16 for benefits to determine eligibility because of their alien 63.17 status shall be uniformlyrequired from all claimants. 63.18 Subd. 13. [SUSPENSION FROM EMPLOYMENT.] (a) A claimant who 63.19 has been suspended from employment without pay for 30 calendar 63.20 days or less, as a result of employment misconduct as defined 63.21 under section 268.095, subdivision 6, shall be ineligible for 63.22 benefits beginning the Sunday of the week that the claimant was 63.23 suspended and continuing for the duration of the suspension. 63.24 (b) A suspension from employment without pay for more than 63.25 30 calendar days shall be considered a discharge from employment 63.26 under section 268.095, subdivision 5. 63.27 (c) A suspension from employment with pay, regardless of 63.28 duration, shall not be considered a separation from employment 63.29 and the claimant shall be ineligible for benefits for the 63.30 duration of the suspension with pay. 63.31 Subd. 14. [ABLE TO WORK DEFINED.] "Able to work" means a 63.32 claimant has the physical and mental ability to perform the 63.33 usual duties of the claimant's customary occupation or the usual 63.34 duties of other suitable employment. 63.35 Subd. 15. [AVAILABLE FOR EMPLOYMENT DEFINED.] (a) 63.36 "Available for employment" means a claimant is ready and willing 64.1 to accept employment in the labor market area. The attachment 64.2 to the work force must be genuine. There must be no 64.3 restrictions, either self-imposed or created by circumstances, 64.4 temporary or permanent, that prevent accepting employment. 64.5 (b) To be considered "available for employment," a student 64.6 must be willing to quit school to accept employment that would 64.7 conflict with school attendance. 64.8 (c) A claimant who is absent from the labor market area for 64.9 personal reasons, other than to search for work, is not 64.10 "available for employment." 64.11 (d) A claimant who has restrictions on the hours of the day 64.12 or days of the week that the claimant can or will work, that are 64.13 not normal for the claimant's usual occupation or other 64.14 employment, is not "available for employment." A claimant whose 64.15 usual occupation is normally performed during the daytime must 64.16 be available for daytime work even though the claimant 64.17 customarily worked the night shift. 64.18 (e) A claimant must have transportation throughout the 64.19 labor market area to be considered "available for employment." 64.20 Subd. 16. [ACTIVELY SEEKING SUITABLE EMPLOYMENT DEFINED.] 64.21 (a) "Actively seeking suitable employment" means those 64.22 reasonable, diligent efforts an individual in similar 64.23 circumstances would make if genuinely interested in obtaining 64.24 suitable employment under the existing conditions in the labor 64.25 market area. Limiting the search to positions that are not 64.26 available or are above the claimant's training, experience, and 64.27 qualifications is not "actively seeking suitable employment." 64.28 (b) To be considered "actively seeking suitable employment" 64.29 a claimant shall, when reasonable, contact those employers from 64.30 whom the claimant was laid off due to lack of work and request 64.31 suitable employment. 64.32 (c) If reasonable prospects of suitable employment in the 64.33 claimant's usual or customary occupation do not exist, the 64.34 claimant must actively seek other suitable employment to be 64.35 considered "actively seeking suitable employment." This applies 64.36 to a claimant who is seasonally unemployed. 65.1 (d) A claimant who is seeking employment only through a 65.2 union is not actively seeking suitable employment unless the 65.3 claimant is in an occupation where it is required by union rule 65.4 that all the hiring in that locality is done through the union. 65.5 The claimant must be a union member in good standing, registered 65.6 with the union for employment, and in compliance with other 65.7 union rules to be considered "actively seeking suitable 65.8 employment." 65.9 Sec. 43. [268.086] [CONTINUED REQUEST FOR BENEFITS ON AN 65.10 ACTIVE BENEFIT ACCOUNT.] 65.11 Subdivision 1. [ACTIVE BENEFIT ACCOUNT.] (a) A benefit 65.12 account shall be considered active only when a claimant files 65.13 continued requests for benefits in the manner and within the 65.14 time periods prescribed. A benefit account shall be considered 65.15 inactive if a claimant stops filing a continued request or fails 65.16 to file a continued request within the time period required. 65.17 The benefit account shall be considered inactive as of the 65.18 Sunday following the last week or biweekly period for which a 65.19 continued request has been timely filed. 65.20 (b) A benefit account that is inactive shall be reactivated 65.21 the Sunday of the week that the claimant makes a contact with 65.22 the department to do so, in the manner prescribed by the 65.23 commissioner for reactivating that claimant's benefit account. 65.24 Subd. 2. [CONTINUED REQUEST FOR BENEFITS DEFINED.] A 65.25 continued request for benefits is a certification by a claimant, 65.26 done on a weekly or biweekly basis as prescribed by the 65.27 commissioner, on the claimant's eligibility for benefits under 65.28 section 268.085 for a specific week or two-week period. A 65.29 continued request shall include information on possible issues 65.30 of disqualification in accordance with section 268.101, 65.31 subdivision 1, paragraph (c). 65.32 Subd. 3. [METHODS FOR FILING CONTINUED REQUESTS FOR 65.33 BENEFITS.] (a) The commissioner shall designate to each claimant 65.34 one of the following methods for filing a continued request: 65.35 (1) by telephone under subdivision 4; 65.36 (2) by electronic transmission under subdivision 5; 66.1 (3) by mail under subdivision 6; or 66.2 (4) by in-person interview under subdivision 7. 66.3 (b) The method designated by the commissioner shall be the 66.4 only method allowed for filing a continued request by that 66.5 claimant. A claimant may ask that one of the other allowed 66.6 methods be designated and the commissioner shall consider 66.7 inconvenience to the claimant as well as administrative capacity 66.8 in determining whether to allow a claimant to change the 66.9 designated method for filing a continued request for benefits. 66.10 Subd. 4. [CONTINUED REQUEST FOR BENEFITS BY 66.11 TELEPHONE.] (a) A continued request by telephone shall be made 66.12 to a telephone number required by the commissioner for that 66.13 claimant. In order to constitute a continued request, all 66.14 information asked for, including information authenticating that 66.15 the caller is the claimant, must be provided. If all of the 66.16 information asked for is not provided, the communication shall 66.17 not constitute a continued request for benefits. 66.18 The telephone communication must be made on the date 66.19 required for the claimant for filing a continued request for 66.20 benefits by telephone. 66.21 (b) If the telephone continued request for benefits is not 66.22 filed on the date required, a continued request by telephone 66.23 shall be accepted if the claimant files the continued request by 66.24 telephone within 14 days following the week in which the date 66.25 required occurred. If the continued request by telephone is not 66.26 filed within 14 days following the week in which the date 66.27 required occurred, the telephone continued request shall not be 66.28 accepted and the claimant shall be ineligible for benefits for 66.29 the period covered by the continued request and the benefit 66.30 account shall be considered inactive, unless the claimant shows 66.31 good cause for failing to file the continued request by 66.32 telephone within the time period requested. 66.33 Subd. 5. [CONTINUED REQUEST FOR BENEFITS BY ELECTRONIC 66.34 TRANSMISSION.] (a) A continued request for benefits by 66.35 electronic transmission shall be filed to that electronic mail 66.36 address or Internet address prescribed by the commissioner for 67.1 that claimant. In order to constitute a continued request, all 67.2 information asked for, including information authenticating that 67.3 the claimant is sending the transmission, must be provided in 67.4 the format required. If all of the information asked for is not 67.5 provided, the communication shall not constitute a continued 67.6 request for benefits. 67.7 The electronic transmission communication must be filed on 67.8 the date required for the claimant for filing a continued 67.9 request by electronic transmission. 67.10 (b) If the electronic transmission continued request is not 67.11 filed on the date required, a continued request by electronic 67.12 transmission shall be accepted if the claimant files the 67.13 continued request by electronic transmission within 14 days 67.14 following the week in which the date required occurred. If the 67.15 continued request by electronic transmission is not filed within 67.16 14 days following the week in which the date required occurred, 67.17 the electronic continued request shall not be accepted and the 67.18 claimant shall be ineligible for benefits for the period covered 67.19 by the continued request and the benefit account shall be 67.20 considered inactive, unless the claimant shows good cause for 67.21 failing to file the continued request by electronic transmission 67.22 within the time period required. 67.23 Subd. 6. [CONTINUED REQUEST FOR BENEFITS BY MAIL.] (a) A 67.24 continued request for benefits by mail shall be on a form 67.25 prescribed by the commissioner. The form, in order to 67.26 constitute a continued request, must be totally completed and 67.27 signed by the claimant. 67.28 The form must be filed on the date required for the 67.29 claimant for filing a continued request by mail, in an envelope 67.30 with postage prepaid thereon, and sent to the address required 67.31 by the commissioner for that claimant. 67.32 (b) If the mail continued request for benefits is not filed 67.33 on the date required, a continued request shall be accepted if 67.34 the form is filed by mail within 14 days following the week in 67.35 which the date required occurred. If the form is not filed 67.36 within 14 days following the week in which the date required 68.1 occurred, the form shall not be accepted and the claimant shall 68.2 be ineligible for benefits for the period covered by the 68.3 continued request for benefits and the benefit account shall be 68.4 considered inactive, unless the claimant shows good cause for 68.5 failing to file the form by mail within the time period required. 68.6 (c) If the claimant has been designated to file a continued 68.7 request for benefits by mail, a claimant may submit the form by 68.8 facsimile transmission on the day otherwise required for 68.9 mailing, or within 14 days following the week in which the date 68.10 required occurred. A form submitted by facsimile transmission 68.11 shall be sent only to the telephone number assigned for that 68.12 purpose. 68.13 (d) A claimant who has been designated to file a continued 68.14 request by mail may personally deliver a continued request form 68.15 only to the location to which the form was otherwise required to 68.16 be mailed. 68.17 Subd. 7. [IN-PERSON CONTINUED REQUEST FOR BENEFITS.] The 68.18 commissioner may require any claimant who has been designated to 68.19 make a continued request for benefits by mail, by telephone, by 68.20 electronic transmission, or by mail to appear for a personal 68.21 interview at a place, time, and date designated, during which a 68.22 written continued request for benefits form shall be completed 68.23 and submitted by the claimant. 68.24 A claimant shall be ineligible for benefits for the week or 68.25 biweekly period covered by a continued request and the benefit 68.26 account shall be considered inactive if the claimant fails, 68.27 without good cause, to comply with the requirement that the 68.28 claimant appear for a personal interview and at that time 68.29 complete and submit a written continued request form. 68.30 Subd. 8. [GOOD CAUSE.] A continued request for benefits 68.31 that is not filed within the time periods required by this 68.32 section shall be accepted only for those weeks that the claimant 68.33 has "good cause" for not filing within the time periods required. 68.34 Subd. 9. [GOOD CAUSE DEFINED.] "Good cause" for purposes 68.35 of this section is a compelling substantial reason that would 68.36 have prevented a reasonable person acting with due diligence 69.1 from filing a continued request for benefits within the time 69.2 periods required. 69.3 "Good cause" shall not include forgetfulness, loss of the 69.4 continued request form, having returned to work, or inability to 69.5 file a continued request for benefits by the method designated 69.6 if the claimant was aware of the inability and did not make 69.7 diligent effort to have the method of filing a continued request 69.8 changed by the commissioner. "Good cause" shall not include 69.9 having previously made an attempt to file a continued request 69.10 for benefits but where the communication was not considered a 69.11 continued request because the claimant failed to submit all 69.12 required information. 69.13 Sec. 44. Minnesota Statutes 1998, section 268.095, is 69.14 amended to read: 69.15 268.095 [DISQUALIFICATION PROVISIONS.] 69.16 Subdivision 1. [QUIT.] A claimant who quitsquit 69.17 employment shall be disqualified from all benefits except when: 69.18 (1) unlessthe claimant quit the employment because of a 69.19 good reason caused by the employer; 69.20 (2) unlessthe claimant quit the employment to accept other 69.21 covered employment that provided substantially higher wages or69.22 substantiallybetter terms and conditions of employment or both, 69.23 but the claimant did not work long enough at the other 69.24 employment to have sufficient subsequent earnings to satisfy the 69.25 disqualification that would otherwise be imposed; 69.26 (3) unlessthe claimant quit the employment within 30 69.27 calendar days of beginning the employment because the employment 69.28 was unsuitable for the claimant; 69.29 (4) unlessthe employment was unsuitable for the claimant 69.30 and the claimant quit to enter approvedreemployment assistance 69.31 training; 69.32 (5) unlessthe employment was part time and the claimant 69.33 had full-time employment in the base period, that the claimant 69.34 separated from because of nondisqualifying reasons, sufficient 69.35 to meet the minimum requirements to establish a reemployment69.36 insurancebenefit account under section 268.07; or70.1 (6) unlessthe claimant quit because the employer notified 70.2 the claimant that the claimant was going to be laid off due to 70.3 lack of work within 30 calendar days. A claimant who quit 70.4 employment within 30 calendar days of a notified date of layoff 70.5 due to lack of work shall be disqualified from benefits through 70.6 the end of the week that includes the scheduled date of layoff; 70.7 or 70.8 (7) the claimant quit the employment because the claimant's 70.9 serious illness or injury made it medically necessary that the 70.10 claimant quit, provided that the claimant made reasonable 70.11 efforts to remain in that employment in spite of the serious 70.12 illness or injury. 70.13 Reasonable efforts to remain in that employment are those a 70.14 reasonable individual would make if interested in remaining with 70.15 the employer and require that the claimant inform the employer 70.16 of the serious illness or injury and request accommodation. 70.17 A claimant who quit employment because ofIf the claimant's 70.18 serious illness ofis chemical dependency, the claimant has not 70.19 made reasonable efforts to remain in that employment if the 70.20 claimant has previously been professionallydiagnosed as 70.21 chemically dependent, or has previously voluntarily submitted to70.22 had treatment for chemical dependency, and has failed to make 70.23 consistent efforts to control the chemical dependency. 70.24 Subd. 2. [QUIT DEFINED.] (a) A quit from employment occurs 70.25 when the decision to end the employment was, at the time the 70.26 employment ended, the employee's. 70.27 (b) An employee who has been notified that the employee 70.28 will be discharged in the future, who chooses to end the 70.29 employment while employment in any capacity is still available, 70.30 shall be considered to have quit the employment. 70.31 (c) An employee who seeks to withdraw a previously 70.32 submitted notice of quitting shall be considered to have quit 70.33 the employment if the employer does not agree that the notice 70.34 may be withdrawn. 70.35 Subd. 3. [GOOD REASON CAUSED BY THE EMPLOYER DEFINED.] (a) 70.36 A good reason caused by the employer for quitting is a reason: 71.1 (1) that is directly related to the employment and for 71.2 which the employer is responsible; and 71.3 (2) that is significant and would compel an average, 71.4 reasonable worker to quit and become unemployed rather than 71.5 remaining in the employment. 71.6 (b) If a claimant was subjected to adverse working 71.7 conditions by the employer, the claimant must complain to the 71.8 employer and give the employer a reasonable opportunity to 71.9 correct the adverse working conditions before that may be 71.10 considered a good reason caused by the employer for quitting. 71.11 (c) A substantial adverse change in the wages, hours, or 71.12 other terms of employment by the employer shall be considered a 71.13 good reason caused by the employer for quitting unless the 71.14 change occurred because of the claimant's employment misconduct. 71.15 (d) Notification of discharge in the future, including a 71.16 layoff due to lack of work, shall not be considered a good 71.17 reason caused by the employer for quitting. 71.18 (e) A claimant has a good reason caused by the employer for 71.19 quitting if it results from sexual harassment of which the 71.20 employer was aware, or should have been aware, and the employer 71.21 failed to take timely and appropriate action. Sexual harassment 71.22 means unwelcome sexual advances, requests for sexual favors, 71.23 sexually motivated physical contact or other conduct or 71.24 communication of a sexual nature when: 71.25 (1) the claimant's submission to the conduct or 71.26 communication is made a term or condition of the employment; 71.27 (2) the claimant's submission to or rejection of the 71.28 conduct or communication is the basis for decisions affecting 71.29 employment; or 71.30 (3) the conduct or communication has the purpose or effect 71.31 of substantially interfering with a claimant's work performance 71.32 or creating an intimidating, hostile, or offensive working 71.33 environment and the employer knows or should know of the71.34 existence of the harassment and fails to take timely and71.35 appropriate action. 71.36 (f) The definition of a good reason caused by the employer 72.1 for quitting employment provided by this subdivision shall be 72.2 exclusive. 72.3 Subd. 4. [DISCHARGE.] A claimant who iswas discharged 72.4 from employment by an employer shall not be disqualified from 72.5 any benefits except when: 72.6 (1) unlessthe claimant was discharged because of 72.7 employment misconduct that interfered with and adversely72.8 affected that employment. This clause shall not apply if:; or 72.9 (i) the misconduct was a direct result of the claimant's72.10 serious illness provided that the claimant made reasonable72.11 efforts to remain in that employment in spite of the serious72.12 illness.72.13 Reasonable efforts to remain in that employment require72.14 that the claimant inform the employer of the serious illness and72.15 request accommodation.72.16 If the misconduct was a direct result of the claimant's72.17 serious illness of chemical dependency, the claimant has not72.18 made reasonable efforts to remain in that employment if the72.19 claimant has previously been professionally diagnosed chemically72.20 dependent or the claimant has previously voluntarily submitted72.21 to treatment for chemical dependency and has failed to make72.22 consistent efforts to control the chemical dependency.72.23 This subclause shall not apply if the misconduct was a72.24 violation of section 169.121, 169.1211, or 169.123; or72.25 (ii) the employment was part time and the claimant had72.26 full-time employment in the base period, that the claimant72.27 separated from because of nondisqualifying reasons, sufficient72.28 to meet the minimum requirements to establish a reemployment72.29 insurance account under section 268.07;72.30 (2) unlessthe claimant was discharged because of 72.31 grossaggravated employment misconduct that interfered with and72.32 adversely affected that employment. 72.33 Subd. 4a. [AGGRAVATED EMPLOYMENT MISCONDUCT DEFINED.] For 72.34 the purpose of this clausesection, " grossaggravated employment 72.35 misconduct" means: 72.36 (i)(1) the commission of any act, on the job or off the 73.1 job, that amountswould amount to a gross misdemeanor or felony 73.2 if the act interfered with or adversely affected the employment; 73.3 or 73.4 (ii)(2) for an employee of a facility as defined in 73.5 section 626.5572, grossaggravated employment misconduct 73.6 includes an act of patient or resident abuse, financial 73.7 exploitation, or recurring or serious neglect, as defined in 73.8 section 626.5572 and applicable rules. 73.9 If a claimant is convicted of a gross misdemeanor or felony 73.10 for the same act or actsfor which the claimant was discharged, 73.11 it is grossaggravated employment misconduct ; or. 73.12 (3) if the claimant was discharged because the claimant73.13 gave notice of intention to quit the employment within 3073.14 calendar days. This clause shall be effective only through the73.15 end of the calendar week that includes the intended date of73.16 quitting. Thereafter the separation from employment shall be73.17 considered a quit of employment by the claimant, and a73.18 disqualification, if any, shall begin with the Sunday of the73.19 week following the week that includes the intended date of73.20 quitting.73.21 Subd. 5. [DISCHARGE DEFINED.] (a) A discharge from 73.22 employment occurs when any words or actions by an employer would 73.23 lead a reasonable employee to believe that the employee's73.24 services are no longer desired by theemployer will no longer 73.25 allow the employee to work for the employer in any capacity. A 73.26 layoff due to lack of work shall be considered a discharge. A 73.27 suspension from employment without pay of more than 30 calendar 73.28 days shall be considered a discharge. 73.29 (b) An employee who gives notice of intention to quit the 73.30 employment and is not allowed by the employer to work the entire 73.31 notice period shall be considered discharged from the employment 73.32 as of the date the employer will no longer allow the employee to 73.33 work. If the discharge occurs within 30 calendar days prior to 73.34 the intended date of quitting, then, as of the intended date of 73.35 quitting, the separation from employment shall be considered a 73.36 quit from employment subject to subdivision 1. 74.1 Subd. 6. [EMPLOYMENT MISCONDUCT DEFINED.] (a) Employment 74.2 misconduct ismeans: 74.3 (1) any intentional conduct showing a disregard of:, on the 74.4 job or off the job, that 74.5 (1) the employer's interest;74.6 (2)disregards the standards of behavior that an employer 74.7 has the right to expect of the employee ;or 74.8 (3)disregards the employee's duties and obligations to the 74.9 employer .; or 74.10 Misconduct also includes(2) negligent or indifferent 74.11 conduct by an employee demonstrating, on the job or off the job, 74.12 that demonstrates a substantial lack of concern for the 74.13 employment. 74.14 (b) Inefficiency, inadvertence, simple unsatisfactory 74.15 conduct, orpoor performance as a resultbecause of inability or 74.16 incapacity, or absence because of illness or injury with proper 74.17 notice to the employer, are not employment misconduct. 74.18 (c) Any conduct in violation of paragraph (a), clause (1) 74.19 or (2), that was a result of the claimant's chemical dependency 74.20 is employment misconduct if the claimant has previously been 74.21 diagnosed chemically dependent or had treatment for chemical 74.22 dependency, and has failed to make consistent efforts to control 74.23 the chemical dependency. 74.24 (d) A driving offense in violation of section 169.121, 74.25 169.1211, or 169.123 that interferes with or adversely affects 74.26 the employment is employment misconduct. 74.27 (e) The definition of employment misconduct provided by 74.28 this subdivision shall be exclusive. 74.29 Subd. 7. [ACT OR OMISSIONS AFTER SEPARATION.] Except as 74.30 provided for under subdivision 8, a claimant shall not be 74.31 disqualified from benefits under this section for any acts or 74.32 omissions occurring after the claimant's separation from 74.33 employment with the employer. A layoff due to lack of work is 74.34 considered a separation from employment. 74.35 Subd. 8. [OFFERS OF EMPLOYMENT.] (a) A claimant shall be 74.36 disqualified from all benefits if the claimant, without good 75.1 cause: 75.2 (1) failed to apply for available, suitable employment of 75.3 which the claimant was advised by the commissioner or an 75.4 employer; 75.5 (2) failed to accept suitable employment when offered; or 75.6 (3) avoided an offer of suitable employment. 75.7 (b) The claimant shall not be disqualified from benefits75.8 under paragraph (a) if the claimant"Good cause" is a reason 75.9 that would cause a reasonable individual who wants suitable 75.10 employment to fail to apply for, accept, or avoid suitable 75.11 employment. Good cause includes: 75.12 (1) wasthe claimant is employed in other suitable 75.13 employment; 75.14 (2) the claimant is in approvedreemployment assistance 75.15 training; or75.16 (2)(3) the claimant formerly worked for the employer and 75.17 the claimant's last separation fromloss of employment with the75.18 employeroccurred prior to the commencement of a strike or other75.19 labor dispute, was permanent or for an indefinite period, and 75.20 the claimant failed to apply for or accept reemploymentthe 75.21 employment because a strike or otherlabor dispute was in 75.22 progress at the establishment where the claimant was previously75.23 employed by that employer; or 75.24 (4) the claimant formerly worked for the employer and quit 75.25 that employment because of a good reason caused by the employer. 75.26 Subd. 9. [SUITABLE EMPLOYMENT DEFINED.] (a) Suitable 75.27 employment ismeans employment in the claimant's labor market 75.28 area that is reasonably related to the claimant's 75.29 qualifications. In determining whether any employment is 75.30 suitable for a claimant, the degree of risk involved to the 75.31 health and safety, physical fitness, prior training, experience, 75.32 length of unemployment, prospects for securing localemployment 75.33 in the claimant's customary occupation, and the distance of the 75.34 employment from the claimant's residence shall be considered. 75.35 (b) NoIn determining what is suitable employment, primary 75.36 consideration shall be given to the temporary or permanent 76.1 nature of the claimant's separation from employment and whether 76.2 the claimant has favorable prospects of finding employment in 76.3 the claimant's usual or customary occupation at the claimant's 76.4 past wage level within a reasonable period of time. 76.5 If prospects are unfavorable, employment at lower skill or 76.6 wage levels is suitable if the claimant is reasonably suited for 76.7 the employment because of education, training, work experience, 76.8 or ability. 76.9 The total compensation must be considered, including the 76.10 wage rate, hours of employment, method of payment, overtime 76.11 practices, bonuses, incentive payments, and fringe benefits. 76.12 (c) When potential employment is at a rate of pay lower 76.13 than the claimant's former rate, consideration must be given to 76.14 the length of the claimant's unemployment and the proportion of 76.15 difference in the rates. Employment that may not be suitable 76.16 because of lower wages during the early weeks of the claimant's 76.17 unemployment may become suitable as the duration of unemployment 76.18 lengthens. 76.19 (d) For a claimant seasonally unemployed, suitable 76.20 employment includes temporary work in a lower skilled occupation 76.21 that pays average gross weekly wages equal to or more than 150 76.22 percent of the claimant's weekly benefit amount. 76.23 (e) If a majority of the claimant's wage credits were 76.24 earned from part-time employment, part-time employment in a 76.25 position with comparable skills and comparable hours that pays 76.26 average gross weekly wages equal to or more than 150 percent of 76.27 the claimant's weekly benefit amount shall be considered 76.28 suitable employment. 76.29 (f) To determine suitability of employment in terms of 76.30 shifts, the arrangement of hours in addition to the total number 76.31 of hours is to be considered. Employment on a second, third, 76.32 rotating, or split shift is suitable employment if it is 76.33 customary in the occupation in the labor market area. 76.34 (g) Employment shall not be considered suitable if: 76.35 (1) the position offered is vacant due directly tobecause 76.36 of a strike, lockout, or otherlabor dispute; 77.1 (2) the wages, hours, or other conditions of employment are 77.2 substantially less favorable than those prevailing for similar 77.3 employment in the localitylabor market area; or 77.4 (3) as a condition of becoming employed, the claimant would 77.5 be required to join a company union or to resign from or refrain 77.6 from joining any bona fide labor organization. 77.7 Subd. 10. [DISQUALIFICATION DURATION.] (a) A 77.8 disqualification from the payment of all benefits under 77.9 subdivisions 1, 4, and 8 shall be for the duration of the 77.10 claimant's unemployment and until the end of the calendar week 77.11 that the claimant had total earnings in subsequent covered 77.12 employment of eight times the claimant's weekly benefit amount. 77.13 (b) Any disqualification imposed under subdivisions 1 and 4 77.14 shall begin on the Sunday of the week that the claimant became 77.15 separated from employment. Any disqualification imposed under 77.16 subdivision 8 shall begin on the Sunday of the week the claimant 77.17 failed to apply for, accept, or avoided employment. 77.18 (c) NotwithstandingIn addition to paragraph (a), if the 77.19 claimant was discharged from employment because of gross77.20 aggravated employment misconduct, the disqualification shall be77.21 for the duration of the claimant's unemployment and until the77.22 end of the calendar week that the claimant had total earnings in77.23 subsequent covered employment of 12 times the claimant's weekly77.24 benefit amount. In addition,wage credits from that employment 77.25 shall be canceled. 77.26 Subd. 11. [APPLICATION.] This section shall apply to: 77.27 (1) all covered employment, full time or part time, 77.28 temporary or of limited duration, permanent or of indefinite 77.29 duration, that occurred during the base period, the period 77.30 between the end of the base period and the effective date of the 77.31 reemployment insurancebenefit account, or the benefit year, 77.32 except as provided for in subdivisionssubdivision 1, clause 77.33 (5); and 4, clause (1)(ii);or 77.34 (2) all covered employment occurring in this state, and 77.35 employment covered under a reemployment insurance program, (i) 77.36 of any other state or (ii) established by an act of Congress. 78.1 Subd. 12. [LABOR DISPUTE.] (a) A claimant who has left or78.2 partially or totally lost employment with an employerstopped 78.3 working because of a strike or otherlabor dispute at the 78.4 establishment where the claimant is or wasemployed shall be 78.5 disqualified from benefits: 78.6 (1) until the end of the calendar week that the strike or78.7 labor dispute was in active progress if the claimant is 78.8 participating in or directly interested in the strike orlabor 78.9 dispute; or 78.10 (2) until the end of the calendar week that the strike or78.11 labor dispute commencedbegan if the claimant is not 78.12 participating in or directly interested in the strike orlabor 78.13 dispute. 78.14 Participation includes theany failure or refusal by a 78.15 claimant, voluntarily or involuntarily, to accept and perform 78.16 available and customary work at the establishment. 78.17 (b) A claimant who has left or partially or totally lost78.18 employment with an employerstopped working because of a 78.19 jurisdictional controversy between two or more labor 78.20 organizations at the establishment where the claimant is or was78.21 employed shall be disqualified for benefits until the end of the 78.22 calendar week that the jurisdictional controversy was in 78.23 progress. 78.24 (c) A claimant shall not be disqualified from benefits 78.25 under this subdivision if: 78.26 (1) the claimant becomes unemployedstops working because 78.27 of a strike caused byan employer's willfulintentional failure 78.28 to observe the terms of the safety and health section of a union 78.29 contract or failure to comply with an official citation for a 78.30 violation of federal andor state laws involving occupational 78.31 safety and health; 78.32 (2) the claimant becomes unemployedstops working because 78.33 of a lockout; or 78.34 (3) the claimant is discharged during the period of78.35 negotiation andprior to the commencementbeginning of a strike78.36 or otherlabor dispute. 79.1 (d) A quit from employment by the claimant during the time 79.2 that the strike or otherlabor dispute is in active progress at 79.3 the establishment shall not be considered toterminate the 79.4 claimant's participation in or direct interest in the strike or79.5 otherlabor dispute for purposes of this subdivision. 79.6 (e) For the purpose of this subdivision, the term "labor 79.7 dispute" shall have the same definition as provided in section 79.8 179.01, subdivision 7. 79.9 Sec. 45. Minnesota Statutes 1998, section 268.101, is 79.10 amended to read: 79.11 268.101 [DETERMINATIONS ON DISQUALIFICATION AND 79.12 ELIGIBILITY.] 79.13 Subdivision 1. [NOTIFICATION.] (a) UponIn an application 79.14 for a reemployment insurance accountbenefits, each claimant 79.15 shall report the names of all employers and the reasons for no 79.16 longer working for all employers during the claimant's last 30 79.17 days of employment. If the reason reported for no longer 79.18 working for any of those employers is other than a layoff due to 79.19 lack of work, that shall raise an issue of disqualification that 79.20 the department shall determine. A claimant's failure to report 79.21 the name of an employer, or giving an incorrect reason for no 79.22 longer working for an employer, shall be considered a violation 79.23 of section 268.182, paragraph (b). 79.24 In an application, the claimant shall provide all 79.25 information necessary to determine the claimant's eligibility 79.26 for benefits under section 268.085. 79.27 (b) Upon establishment of a reemployment insurancebenefit 79.28 account, the commissioner shall notify, by mail or electronic 79.29 transmission, all employers the claimant was employed by during 79.30 the claimant's last 30 days of employment prior to making an 79.31 application and all base period employers and determined 79.32 successors to those employers under section 268.051, subdivision 79.33 4. An employer shall have ten calendar days after the sending 79.34 of the notice to make a protestraise, in a manner prescribed by 79.35 the commissioner raising, any issue of disqualification or any 79.36 issue of eligibility. An employer shall be informed of the 80.1 effect that failure to timely protestraise an issue may have on 80.2 the employer charges under section 268.047. A protest madeAn 80.3 issue raised more than ten calendar days after sending of the 80.4 notice shall be considered untimely. 80.5 (c) Each claimant shall report any employment, loss of 80.6 employment, and offers of employment received, during those 80.7 weeks the claimant madefiled continued claimsrequests for 80.8 benefits pursuant to section 268.086. Each claimant who 80.9 stops makingfiling continued claimsrequests during the benefit 80.10 year and later begins makingfiling continued claimsrequests 80.11 during that same benefit year shall report the name of any 80.12 employer the claimant worked for during the period between 80.13 the makingfiling of continued claimsrequests, up to a period 80.14 of the last 30 days of employment, and the reason the claimant 80.15 stopped working for the employer. The claimant shall report any 80.16 offers of employment during the period between the makingfiling 80.17 of continued claimsrequests for benefits. Those employers from 80.18 which the claimant has reported a loss of employment or an offer 80.19 of employment pursuant to this paragraph shall be notified by 80.20 mail or electronic transmission. An employer shall have ten 80.21 calendar days after the sending of the notice to make a80.22 protestraise, in a manner prescribed by the 80.23 commissioner raising, any issue of disqualification or any issue 80.24 of eligibility. An employer shall be informed of the effect 80.25 that failure to timely protestraise an issue may have on the 80.26 employer charges under section 268.047. A protest madeAn issue 80.27 raised more than ten calendar days after sending of the notice 80.28 shall be considered untimely. 80.29 (d) The purpose for requiring the claimant to report the 80.30 name of all employers and the reason for no longer working for 80.31 all employers during the claimant's "last 30 days of employment" 80.32 under paragraphs (a) and (c) is for the commissioner to obtain 80.33 information from a claimant onraising all issues that may have 80.34 the potential of disqualifying the claimant from benefits under 80.35 section 268.095. If the reason given by the claimant for no 80.36 longer working for an employer is a discharge,other than a 81.1 layoff due to lack of work, the claimant shall be required to 81.2 state all the facts about the cause of the dischargefor no 81.3 longer working for the employer, if known. 81.4 Subd. 2. [DISQUALIFICATION DETERMINATION.] (a) The 81.5 commissioner shall promptlydetermine any issue of 81.6 disqualification timely raised by a timely protest madeby an 81.7 employer, and mail to the claimant and that employer at the last 81.8 known address a determination of disqualification or a 81.9 determination of nondisqualification, as is appropriate. The 81.10 determination shall set forthstate the effect on employer 81.11 charges under section 268.047. 81.12 (b) The commissioner shall promptlydetermine any issue of 81.13 disqualification raised by information obtainedrequired from a 81.14 claimant pursuant tounder subdivision 1, paragraph (a) or (c), 81.15 and mail to the claimant and employer at the last known address 81.16 a determination of disqualification or a determination of 81.17 nondisqualification, as is appropriate. The determination shall 81.18 set forthstate the effect on employer charges under section 81.19 268.047. A determination shall be made pursuant to this 81.20 paragraph only on those issues involving the claimant's last 30 81.21 days of employment and shall be made even if a notified employer 81.22 has not raised the issue of disqualification. 81.23 (c) The commissioner shall promptlydetermine any untimely 81.24 issue of disqualification raised by an untimely protest madeby 81.25 an employer and mail to the claimant and that employer at the 81.26 last known address a determination of disqualification or a 81.27 determination of nondisqualification as is appropriate. The 81.28 determination shall set forthstate the effect on employer 81.29 charges under section 268.047. Notwithstanding section 268.095,81.30 any disqualification imposed as a result of determination issued81.31 pursuant to this paragraph shall begin the Sunday two weeks81.32 following the week that the untimely protest was made.81.33 Notwithstanding any provisions to the contraryIf the employer 81.34 did not employ the claimant during the claimant's last 30 days 81.35 of employment prior to the claimant's application for benefits, 81.36 but only employed the claimant for periods prior to that, 82.1 any relief ofexception to employer charges as a result of a82.2 determination issued pursuant to this paragraphunder section 82.3 268.047, subdivisions 2 and 3, shall begin the Sunday two weeks 82.4 following the week that the untimely protestissue was made82.5 raised. 82.6 (d) If any time within 24 months from the establishment of 82.7 a reemployment insurancebenefit account the commissioner finds 82.8 that a claimant failed to report any employment, loss of 82.9 employment, or offers of employment that were required to be 82.10 provided by the claimant under this section, the commissioner 82.11 shall promptlydetermine any issue of disqualification on that 82.12 loss of employment or offer of employment and mail to the 82.13 claimant and involved employer at the last known address a 82.14 determination of disqualification or a determination of 82.15 nondisqualification, as is appropriate. The determination shall 82.16 set forthstate the effect on employer charges under section 82.17 268.047. 82.18 This paragraph shall not apply if the involved employer was82.19 notified and given the opportunity to protest pursuant to82.20 subdivision 1, paragraph (b) or (c).82.21 This paragraph shall not prevent the imposition of any 82.22 penalty under section 268.18, subdivision 2, or 268.182. 82.23 (e) An issue of disqualification shall be determined based 82.24 upon that information required of a claimant, any information 82.25 that may be obtained from a claimant or employer, and 82.26 information from any other source, without regard to any common 82.27 law burden of proof. 82.28 (f) A determination of disqualification or a determination 82.29 of nondisqualification shall be final unless an appeal is filed 82.30 by the claimant or notified employer within 30 calendar days 82.31 after mailing. The determination shall contain a prominent 82.32 statement indicating in clear language the method of appealing,82.33 the time within which an appeal must be made, andthe 82.34 consequences of not appealing. Proceedings on the appeal shall 82.35 be conducted in accordance with section 268.105. 82.36 (f)(g) An issue of disqualification for purposes of this 83.1 section shall include any reason for no longer working for an 83.2 employer other than a layoff due to lack of work, any question 83.3 of a disqualification from benefits under section 268.095, any 83.4 question of an exception to disqualification under section 83.5 268.095, any question of benefit charge to an employer under 83.6 section 268.047, and any question of an otherwise imposed 83.7 disqualification that a claimant has had subsequent earnings83.8 sufficient to satisfy the disqualificationsatisfied under 83.9 section 268.095, subdivision 10. 83.10 (g) Notwithstanding(h) Regardless of the requirements of 83.11 this subdivision, the commissioner is not required to mail to a 83.12 claimant a determination of nondisqualificationwhere the 83.13 claimant has had subsequent earnings sufficient to83.14 satisfysatisfied any otherwise potential disqualification under 83.15 section 268.095, subdivision 10. 83.16 Subd. 3. [ELIGIBILITY DETERMINATION.] (a) The commissioner 83.17 shall promptlydetermine any issue of eligibility raised by a83.18 timely protest madeby an employer, whether timely or untimely, 83.19 and mail to the claimant and that employer at the last known 83.20 address a determination of eligibility or a determination of 83.21 ineligibility, as is appropriate. 83.22 (b) The commissioner shall promptlydetermine any issue of 83.23 eligibility raised by information obtained from a claimant and 83.24 mail to the claimant and any involved employerat the last known 83.25 address a determination of eligibility or a determination of 83.26 ineligibility, as is appropriate. A determination shall be made 83.27 pursuant to this paragraph even if a notified employer has not 83.28 raised the issue of eligibility. 83.29 (c) The commissioner shall promptly determine any issue of83.30 eligibility raised by an untimely protest made by an employer83.31 and mail to the claimant and that employer at the last known83.32 address a determination of eligibility or a determination of83.33 ineligibility, as is appropriate. Any denial of benefits83.34 imposed as a result of determination issued pursuant to this83.35 paragraph shall begin the Sunday two weeks following the week83.36 that the untimely protest was made.84.1 (d)If any time within 24 months from the establishment of 84.2 a reemployment insurancebenefit account the commissioner finds 84.3 the claimant failed to provide, on an application for benefits 84.4 or on a continued request for benefits, requested 84.5 information regarding the claimant'son an issue of eligibility 84.6 for benefits, the commissioner shall determine the issue of 84.7 eligibility and mail to the claimant and any involved employer84.8 at the last known address a determination of eligibility or a 84.9 determination of ineligibility, as is appropriate. 84.10 This paragraph shall not apply if the involved employer was84.11 notified, was aware, or should have been aware of the issue of84.12 eligibility at the time of notification, and was given the84.13 opportunity to protest pursuant to subdivision 1, paragraph (b)84.14 or (c).84.15 This paragraph shall not prevent the imposition of a 84.16 penalty under section 268.18, subdivision 2, or 268.182. 84.17 (e)(d) A determination of eligibility or determination of 84.18 ineligibility shall be final unless an appeal is filed by the 84.19 claimant or notified employer within 30 calendar days after 84.20 mailing. The determination shall contain a prominent statement 84.21 indicating in clear language the method of appealing, the time84.22 within which an appeal must be made, andthe consequences of not 84.23 appealing. Proceedings on the appeal shall be conducted in 84.24 accordance with section 268.105. 84.25 (f)(e) An issue of eligibility for purposes of this 84.26 section shall include any question ofregarding the denial or 84.27 allowing of benefits under sections 268.085, 268.086, 268.115, 84.28 268.125, 268.135, and 268.155. 84.29 (f) Only if an employer raised the issue of eligibility 84.30 shall the employer be: (1) mailed the determination of 84.31 eligibility or a determination of ineligibility, or (2) 84.32 considered an involved employer for purposes of an appeal under 84.33 section 268.105. 84.34 Subd. 3a. [DIRECT HEARING.] NotwithstandingRegardless of 84.35 any provision of sections 268.03 to 268.23, the commissioner or 84.36 a reemployment insurance judge may refer any issue of 85.1 disqualification, any issue of eligibility, or any other 85.2 issue under sections 268.035 to 268.23, directly for hearing in 85.3 accordance with section 268.105, subdivision 1. The status of 85.4 the issue shall be the same as if a determination had been made 85.5 and an appeal filed. 85.6 Subd. 4. [AMENDED DETERMINATION.] Unless an appeal has 85.7 been filed, the commissioner, on the commissioner's own motion, 85.8 may reconsider a determination of disqualification or 85.9 nondisqualification or a determination of eligibility or 85.10 ineligibility that has not become final and issue an amended 85.11 determination. An amended determination shall not be done at85.12 the request of a claimant or an employer.Any amended 85.13 determination shall be mailed to the claimant and any involved 85.14 employer at the last known address. Any amended determination 85.15 shall be final unless an appeal is filed by the claimant or 85.16 notified employer within 30 calendar days after mailing. 85.17 Proceedings on the appeal shall be conducted in accordance with 85.18 section 268.105. 85.19 Subd. 5. [ PROMPTBENEFIT PAYMENT.] If a determination or 85.20 amended determination awardsallows benefits to a claimant, the 85.21 benefits shall be promptlypaid regardless of any appeal period 85.22 or any appeal having been filed. 85.23 Subd. 6. [OVERPAYMENT.] A determination or amended 85.24 determination that holds a claimant disqualified or ineligible 85.25 for benefits for periods a claimant has been paid benefits is 85.26 considered an overpayment of those benefits subject tounder 85.27 section 268.18, subdivision 1. 85.28 Subd. 7. [EMPLOYER INFORMATION; ABSOLUTE PRIVILEGE.] (a) 85.29 Regardless of any provision of law to the contrary, an employer 85.30 may provide the commissioner with information on a claimant so 85.31 that the commissioner can determine a claimant's entitlement to 85.32 benefits under sections 268.03 to 268.23. 85.33 (b) Information obtained pursuant to sections 268.03 to 85.34 268.23, in order to determine a claimant's entitlement to 85.35 benefits, shall be absolutely privileged and shall not be made 85.36 the subject matter or the basis for any civil proceeding, 86.1 administrative, or judicial. 86.2 Sec. 46. Minnesota Statutes 1998, section 268.103, is 86.3 amended by adding a subdivision to read: 86.4 Subd. 4. [PROTESTS BY TELEPHONE AND ELECTRONIC 86.5 TRANSMISSION.] This section shall apply to the filing of 86.6 protests to those determinations and notices that require a 86.7 protest and affirmation procedure prior to an appeal. 86.8 Sec. 47. Minnesota Statutes 1998, section 268.105, is 86.9 amended to read: 86.10 268.105 [ REEMPLOYMENT INSURANCEHEARINGS; APPEALS.] 86.11 Subdivision 1. [HEARING.] (a) Upon appeal the department 86.12 shall set a time and place for a de novo evidentiary hearing and 86.13 givemail notice to any involved claimant and any involved 86.14 employer written notice, by mail,not less than ten calendar 86.15 days prior to the date of the hearing. 86.16 (b) The evidentiary hearing shall be conducted by a 86.17 reemployment insurance judge without regard to any common law 86.18 burden of proof as an evidence gathering inquiry and not an 86.19 adversarial proceeding. The commissioner shall by ruleadopt a86.20 procedure by which reemployment insurance judges hear and decide86.21 appeals, subject to further appeal to the commissionerrules on 86.22 evidentiary hearings. The rules need not conform to common law 86.23 or statutory rules of evidence and other technical rules of 86.24 procedure. The writtenA report of any employee of the 86.25 department, except a determination, made in the regular course 86.26 of the performance ofthe employee's duties, shall be competent 86.27 evidence of the facts contained in it. 86.28 (c) After the conclusion of the hearing, upon the evidence 86.29 presentedobtained, the reemployment insurance judge shall 32. 86.34 Subd. 2. [REEMPLOYMENT INSURANCE JUDGES.](d) The 86.35 commissioner shall designate regular salariedclassified 86.36 employees of the department as impartialreemployment insurance 87.1 judges to conduct evidentiary hearings on appeals. The 87.2 commissioner or authorized representative may personally hear or 87.3 transfer to another reemployment insurance judge any proceedings 87.4 pending before a reemployment insurance judge. Any proceedings 87.5 removed to the commissioner or authorized representative shall 87.6 be heard in accordance with this subdivision 1. 87.7 Subd. 3.2. [COMMISSIONER REVIEW.] (a) Within 30 calendar 87.8 days after mailing of the reemployment insurance judge's 87.9 decision, any involved partyclaimant or involved employer may 87.10 appeal and obtain a de novo review by the commissioner or an 87.11 authorized representative. The commissioner within the same 87.12 period of time may on the commissioner's own motion order a de 87.13 novo review of a decision. 87.14 (b) The authorized representative of the commissioner shall 87.15 be an attorney who is a classified employee of the department. 87.16 The authority to act on behalf of the commissioner under this 87.17 section shall be by specific written delegation filed with the 87.18 secretary of state. 87.19 (c) Upon de novo review, the commissioner shall, on the 87.20 basis of thethat evidence submitted at the hearing before the87.21 reemployment insurance judgeunder subdivision 1, make findings 87.22 of fact and decision, or remand the matter back to a 87.23 reemployment insurance judge for the taking of additional 87.24 evidence and the making of new findings and decision based on 87.25 all the evidence. The commissioner may disregardshall, 87.26 independent of the findings of fact and decision of the 87.27 reemployment insurance judge and, examine the evidence and 87.28 make anythose findings of fact as the evidence may, in the 87.29 judgment of the commissioner require, and make anythat decision 87.30 as the facts found by the commissioner require. 87.31 (d) The commissioner may conduct a de novo review without 87.32 argument by any involved party, or the commissioner may allow 87.33 written argument. The commissioner shall not, except for 87.34 purposes of deciding whether to remand a matter to a 87.35 reemployment insurance judge for a further evidentiary hearing, 87.36 consider any evidence that was not submitted at the hearing 88.1 before the reemployment insurance judge. 88.2 (c)(e) The commissioner shall mail to any involved party 88.3 the commissioner's findings of fact and decision. The decision 88.4 of the commissioner is the final department decision. Unless 88.5 judicial review is sought as provided byunder subdivision 7, 88.6 the decision of the commissioner shall become final 30 calendar 88.7 days after mailing. 88.8 Subd. 3. [WITHDRAWAL OF APPEAL.] (a) Any appeal that is 88.9 pending a decision before a reemployment insurance judge or the 88.10 commissioner may be withdrawn by the appealing person, or an 88.11 authorized representative of that person, upon filing of a 88.12 notice of withdrawal. 88.13 (b) The appeal shall, by written order, be dismissed if a 88.14 notice of withdrawal is filed, unless the commissioner, by 88.15 written order, directs that further adjudication is required for 88.16 a proper result. 88.17 (c) A notice of withdrawal may be filed by mail, by 88.18 telephone, or if the commissioner allows, by electronic 88.19 transmission. 88.20 Subd. 3a. [DECISIONS.] (a) If a reemployment insurance 88.21 judge's decision or the commissioner's decision awardsallows 88.22 benefits to a claimant, the benefits shall be promptlypaid 88.23 regardless of any appeal period or any appeal having been filed. 88.24 (b) If a reemployment insurance judge's decision modifies 88.25 or reverses a determination awardingallowing benefits to a 88.26 claimant, any benefits paid pursuant to the determination is 88.27 considered an overpayment of those benefits subject tounder 88.28 section 268.18, subdivision 1. 88.29 (c) If a commissioner's decision modifies or reverses a 88.30 reemployment insurance judge's decision awardingallowing 88.31 benefits to a claimant, any benefits paid pursuant to the 88.32 reemployment insurance judge's decision is considered an 88.33 overpayment of those benefits subject tounder section 268.18, 88.34 subdivision 1. 88.35 (d) If the commissioner affirms a reemployment insurance 88.36 judge's decision on an issue of disqualification that awards89.1 allows benefits to a claimant, the commissioner's decision, if 89.2 finally reversed by the Minnesota Court of Appeals or the 89.3 Supreme Court of Minnesota, shall not result in a 89.4 disqualification of the claimant from benefits under section 89.5 268.095. 89.6 (e) If the commissioner, pursuant to subdivision 32, 89.7 remands a matter to a reemployment insurance judge for the 89.8 taking of additional evidence, the prior reemployment insurance 89.9 judge's decision shall continue to be enforced until new 89.10 findings of fact and decision are made by a reemployment 89.11 insurance judge. 89.12 Subd. 4. [TESTIMONIAL POWERS.] In the discharge of the89.13 duties imposed by this section,The reemployment insurance 89.14 judge, the commissioner, or authorized representative, may 89.15 administer oaths and affirmations, take depositions, certify to89.16 official acts,and issue subpoenas to compel the attendance of 89.17 witnesses and the production of books, papers, correspondence,89.18 memoranda,documents and other recordspersonal property 89.19 considered necessary as evidence in connection with the subject 89.20 matter of thean evidentiary hearing. The subpoenas shall be 89.21 enforceable through the district court in the district in which89.22 that the subpoena is issued. Witnesses subpoenaed, other than 89.23 an involved claimant or involved employer or officers and 89.24 employees of an involved employer, subpoenaed pursuant to this89.25 sectionshall be allowed feespaid by the commissioner the same 89.26 aswitness fees as in a civil action in district court. These89.27 fees shall be considered a part of the expense of administering89.28 this chapter.89.29 Subd. 5. [USE OF INFORMATION.] (a) All testimony at 89.30 any evidentiary hearing conducted pursuant to subdivision 1 89.31 shall be recorded. A copy of any recorded testimony and 89.32 exhibits received into evidence at the hearing shall, upon 89.33 request, or upon directive of the commissioner, be furnished to 89.34 a party at no cost during the time period for filing an appeal 89.35 to the commissioner or while such an appeal is pending. If 89.36 requested, the representative of acommissioner shall make 90.1 available a device for listening to the recording if an appeal 90.2 is pending before the commissioner under subdivision 2. 90.3 (b) Regardless of any provision of law to the contrary, if 90.4 recorded testimony and exhibits received into evidence at the 90.5 evidentiary hearing are not requested during the time period for 90.6 filing an appeal to the commissioner, or while such an appeal is 90.7 pending, that testimony and other evidence shall later be made 90.8 available to an involved party only pursuant to a court order. 90.9 A subpoena shall not be considered a court order. 90.10 (c) Testimony obtained under subdivision 1, may not be used 90.11 or considered for any purpose, including impeachment, in any 90.12 civil, administrative, or contractual proceeding, except by a 90.13 local, state, or federal human rights agency with enforcement 90.14 powers, unless the proceeding is initiated by the department. 90.15 (c)(d) No findings of fact or decision issued by a 90.16 reemployment insurance judge or the commissioner may be held 90.17 conclusive or binding or used as evidence in any separate or 90.18 subsequent action in any other forum, except proceedings 90.19 provided for under this chapter, regardless of whether the 90.20 action involves the same or related parties or involves the same 90.21 facts. 90.22 Subd. 6. [REPRESENTATION; FEES.] (a) In any proceeding 90.23 under these sections, a partyunder subdivision 1 or 2, a 90.24 claimant or involved employer may be represented by any agent. 90.25 (b) Except for services provided by an attorney-at-law, a 90.26 claimant shall not be charged fees or, costs, or disbursements 90.27 of any kind in a proceeding before a reemployment insurance 90.28 judge, the commissioner, or by any court or any of its90.29 officersthe Minnesota court of appeals, or supreme court of 90.30 Minnesota. 90.31 Subd. 7. [ COURT OF APPEALS; ATTORNEY FOR COMMISSIONER90.32 JUDICIAL REVIEW.] (a) The Minnesota court of appeals mayshall, 90.33 by writ of certiorari to the commissioner, review anythe 90.34 decision of the commissioner provided a petition for the writ is 90.35 filed with the court and a copy is served upon the commissioner 90.36 and any other involved party within 30 calendar days of the 91.1 mailing of the commissioner's decision. 91.2 (b) Any involvedemployer ,petitioning for a writ of 91.3 certiorari shall pay to the court the required filing fee and 91.4 upon the service of the writ shall furnish a cost bond to the 91.5 commissioner in accordance with the rules of civil appellate 91.6 procedure. If the employer requests a written transcript of the 91.7 testimony received at the evidentiary hearing conducted pursuant 91.8 to subdivision 1, the employer shall pay to the commissioner the 91.9 cost of preparing the transcript. 91.10 (c) Upon review beforeissuance by the Minnesota court of 91.11 appeals of a writ of certiorari as a result of a claimant's 91.12 petition, the commissioner shall , if requested,furnish to the 91.13 claimant at no cost a written transcript of the testimony 91.14 received at the evidentiary hearing conducted pursuant to 91.15 subdivision 1, and, if requested, a copy of all exhibits entered 91.16 into evidence. No filing fee or cost bond shall be required of 91.17 a claimant petitioning the Minnesota court of appeals for a writ 91.18 of certiorari. 91.19 (c)(d) The commissioner shall be considered to be athe 91.20 primary responding party to any judicial action involving any91.21 the commissioner's decision and the case title shall be, "In Re 91.22 the matter of: (named petitioner) and the commissioner of 91.23 economic security." The commissioner may be represented by any91.24 qualifiedan attorney who is a regular salariedclassified 91.25 employee of the department and has beendesignated by the 91.26 commissioner for that purpose or, at the commissioner's request,91.27 by the attorney general. 91.28 Sec. 48. Minnesota Statutes 1998, section 268.115, is 91.29 amended to read: 91.30 268.115 [EXTENDED BENEFITS.] 91.31 Subdivision 1. [DEFINITIONS.] AsThe terms used in this 91.32 section , unless the context clearly requires otherwiseshall 91.33 have the following meaning: 91.34 (1) [EXTENDED BENEFIT PERIOD.]"Extended benefit period" 91.35 means a period whichthat lasts for a minimum of 13 weeks and 91.36 that: 92.1 (a)(i) Begins with the third week after a week for which92.2 there is a state "on" indicator; and 92.3 (b)(ii) Ends with either of the following weeks, whichever92.4 occurs later:the third week after the first week for which92.5 there is a state "off" indicator ; or the 13th consecutive week92.6 of the period;. 92.7 Provided, thatNo extended benefit period may begin before 92.8 the 14th week following the end of a prior extended benefit 92.9 period which was in effect with respect to this state. 92.10 (2) [STATE "ON" INDICATOR.]There is a "state 'on' 92.11 indicator" for this statefor a week if the commissioner92.12 determines, in accordance with the regulations of the United92.13 States Secretary of Labor, that: 92.14 (i) for the period consisting of suchthat week and the 92.15 immediately precedingprior 12 weeks, the rate of insured 92.16 unemployment (not seasonally adjusted) under this law: 92.17 (a) equaled or exceeded 120 percent of the average of 92.18 suchthe rates for the corresponding 13-week period ending in 92.19 each of the precedingprior two calendar years, and 92.20 (b) equaled or exceededwas five percent .or more; or 92.21 The determination of whether there has been a state "on"92.22 indicator beginning any extended benefit period may be made as92.23 provided in clauses (a) and (b) above or a "state 'on'92.24 indicator" shall exist if the rate described in clause (b)92.25 (b) equaled or exceeded six percent irrespective of whether92.26 the percentage requirement provided by clause (a) is met or92.27 exceeded.; or 92.28 (ii) The United States Secretary of Labor determines that 92.29 the average rate of seasonally adjusted total unemployment in 92.30 Minnesota for the most recent three months for which data is 92.31 published equals or exceeds 6.5 percent and this rate equals or 92.32 exceeds 110 percent of the rate of the corresponding three-month 92.33 period in either of the prior two calendar years. 92.34 (3) [STATE "OFF" INDICATOR.]There is a "state 'off' 92.35 indicator" for this statefor a week if: 92.36 (i) under clause (2)(i), for the period consisting of93.1 suchthat week and the immediately precedingprior 12 weeks, 93.2 the rate of insured unemployment is less than six percent and93.3 the requirements for a "state 'on' indicator" under clause (2)93.4 are not satisfied; or 93.5 (ii) under clause (2)(ii) the requirements for a "state 93.6 'on' indicator" are not satisfied. 93.7 (4) [RATE OF INSURED UNEMPLOYMENT.]"Rate of insured 93.8 unemployment," for purposes of clauses (2) and (3),means the 93.9 percentage derived by dividing the average weekly number of 93.10 individualsclaimants filing claimscontinued requests for 93.11 regular benefits in this state for weeks of unemployment with93.12 respect tothe most recent 13 consecutive week13-week period ,93.13 as determined by the commissioner on the basis of the93.14 commissioner's reports to the United States Secretary of Labor,93.15 by the average monthly covered employment covered under this law93.16 for the first four of the most recentlast six completed 93.17 calendar quarters endingbefore the end of suchthat 13-week 93.18 period. 93.19 (5) [REGULAR BENEFITS.]"Regular benefits" means 93.20 benefits payableavailable to an individual under this law or93.21 under any other state law (including benefits payable to federal93.22 civilian employees and to ex-servicemen pursuant to United93.23 States Code, title 5, chapter 85)a claimant other than extended 93.24 benefits and additional benefits. 93.25 (6) [EXTENDED BENEFITS.] "Extended benefits" means benefits93.26 (including benefits payable to federal civilian employees and to93.27 ex-servicemen pursuant to United States Code, title 5, chapter93.28 85) payable to an individual under the provisions of this93.29 section for weeks of unemployment in the individual's93.30 eligibility period.93.31 (7) [ADDITIONAL BENEFITS.] "Additional benefits" means93.32 benefits payable to exhaustees by reason of conditions of high93.33 unemployment or by reason of other special factors under the93.34 provisions of any state law.93.35 (8) [ELIGIBILITY PERIOD.]"Eligibility period" of an93.36 individualfor a claimant means the period consisting of the 94.1 weeks remaining in the individual'sclaimant's benefit year 94.2 which begin in anwithin the extended benefit period and, if the 94.3 benefit year ends within suchthe extended benefit period, any 94.4 weeks thereafter which beginin suchthe extended benefit period. 94.5 (9)(7) [EXHAUSTEE.]"Exhaustee" means an individuala 94.6 claimant who, with respect to any week of unemploymentin the 94.7 individual'seligibility period: 94.8 (a) the benefit year having not expired has received , prior94.9 to such week, all ofthe maximum amount of regular benefits that 94.10 were available under this law or any other state law (including94.11 dependents' allowances and benefits payable to federal civilian94.12 employees and ex-servicemen under United States Code, title 5,94.13 chapter 85) in the individual's current benefit year that94.14 includes such week;94.15 Provided, that, for the purposes of this paragraph, an94.16 individual shall be considered to have received all of the94.17 regular benefits that were available to the individual although94.18 as a result of a pending appeal with respect to wage credits94.19 that were not considered in the original monetary determination94.20 in the individual's benefit year, the individual may94.21 subsequently be determined to be entitled to added regular94.22 benefitssection 268.07; or94.23 (b) the individual'sbenefit year having expired prior to94.24 such week, has no, orinsufficient , wages and/or employment on94.25 the basis of which the individual couldwage credits to 94.26 establish a new benefit year that would include such week or94.27 having established a benefit year that includes such week, the94.28 individual is precluded from receiving regular compensation by94.29 reason of: (i) a state law provision which meets the94.30 requirements of section 3304 (a) (7) of the Internal Revenue94.31 Code of 1954, or (ii) a disqualification determination which94.32 canceled wage credits or totally reduced benefit rights, or94.33 (iii) benefits are not payable by reason of a seasonal94.34 limitation in a state reemployment insurance benefits94.35 lawaccount; and 94.36 (c) has no right to any type of reemployment insurance 95.1 benefits or allowances, as the case may be,under the Railroad95.2 Unemployment Insurance Act, the Trade Expansion Act of 1962, the95.3 Automotive Products Act of 1965 and suchlaw of any other state 95.4 or under federal laws as are specified in regulations issued by95.5 the United States Secretary of Labor; and has not receivedand 95.6 is not seekingreceiving reemployment insurance benefits under 95.7 the unemployment compensationlaw of Canada ; but if the95.8 individual is seeking such benefits and the appropriate agency95.9 finally determines that the individual is not entitled to95.10 benefits under such law the individual is considered an95.11 exhaustee. 95.12 (10) [STATE LAW.] "State law" means the reemployment95.13 insurance benefits law of any state, approved by the United95.14 States Secretary of Labor under section 3304 of the Internal95.15 Revenue Code of 1954.95.16 Subd. 2. [EFFECT OF STATE LAW PROVISIONS RELATING TO95.17 REGULAR BENEFITS ON CLAIMS FOR, AND THE PAYMENT OF, EXTENDED95.18 BENEFITS.] Except when the result would be inconsistent with the95.19 other provisions of this section, as provided in the rules of95.20 the commissioner, the provisions of this chapter which apply to95.21 claims for, or the payment of, regular benefits shall apply to95.22 claims for, and the payment of, extended benefits.95.23 Subd. 3. [ ELIGIBILITYREQUIREMENTS FOR EXTENDED BENEFITS.] 95.24 If an extended benefit period is in effect, a claimant shall 95.25 be eligible to receivepaid extended benefits with respect to95.26 from the fund for any week in the claimant's eligibility 95.27 period onlyif with respect to that weekthe claimant: 95.28 (1) is an "exhaustee" as defined in subdivision 1,95.29 paragraph (9); 95.30 (2) has satisfied the same requirements of this lawas 95.31 those for the receipt ofregular benefits that are applicable to95.32 claimants claiming extended benefits, including not being95.33 subject to a disqualification for the receipt of benefitsunder 95.34 section 268.069; and95.35 (3) has , during the claimant's base period earnedwage 95.36 credits available for benefit purposesof not less than 40 times 96.1 the claimant'sweekly benefit amount as determined pursuant to96.2 section 268.07, subdivision 2.; and 96.3 (4) is not subject to a denial of extended benefits under 96.4 subdivision 9. 96.5 Subd. 4. [WEEKLY EXTENDED BENEFIT AMOUNT.] The weekly 96.6 extended benefit amount payable to an individual for a week of96.7 total unemployment in the individual's eligibility periodshall 96.8 be an amount equal tothe same as the weekly benefit amount 96.9 payable during the individual's applicable benefit yearof 96.10 regular benefits. 96.11 Subd. 5. [ TOTAL EXTENDED BENEFITMAXIMUM AMOUNT OF 96.12 EXTENDED BENEFITS.] The total extended benefitmaximum amount 96.13 payable to any eligible individual with respect to the96.14 individual's applicable benefit yearof extended benefits 96.15 available to a claimant shall be 50 percent of the totalmaximum 96.16 amount of regular benefits which were payable under this96.17 lawavailable in the applicablebenefit year , provided that at96.18 the expiration of the benefit year, the individual's remaining96.19 balance of extended benefits shall be reduced, but not below96.20 zero, by the product arrived at by multiplying the individual's96.21 weekly extended benefit amount by the number of weeks in the96.22 individual's expired benefit year for which any trade96.23 readjustment allowance was paid pursuant to sections 231 to 23496.24 of the Trade Act of 1974, as amended. If the total rate of 96.25 unemployment computed under subdivision 1, clause (2)(ii), 96.26 equaled or exceeded eight percent, the maximum amount of 96.27 extended benefits available shall be 80 percent of the maximum 96.28 amount of regular benefits available in the benefit year. 96.29 Subd. 6. [ BEGINNING AND TERMINATION OF EXTENDED BENEFIT96.30 PERIODPUBLIC ANNOUNCEMENT.] (a)Whenever an extended benefit 96.31 period is to become effective in this statebegin as a result of 96.32 a state "on" indicator, or an extended benefit period is to be96.33 terminated in this stateend as a result of a state "off" 96.34 indicator the commissioner shall make an appropriate public 96.35 announcement. 96.36 (b) Computations required by the provisions of subdivision97.1 1, paragraph (4), shall be made by the commissioner, in97.2 accordance with regulations prescribed by the United States97.3 Secretary of Labor.97.4 Subd. 7. [ EFFECT OFFEDERAL LAW.] IfThis section is 97.5 enacted to conform to the requirements of United States Code, 97.6 title 26, section 3304, the Federal-State Extended Unemployment 97.7 Compensation Act of 1970 isas amended so as to authorize this97.8 state to pay benefits for an extended benefit period in a manner97.9 other than that currently provided by this section, then, and in97.10 such case, all the terms and conditions contained in the amended97.11 provisions of such federal law shall become a part of this97.12 section to the extent necessary to authorize the payment of97.13 benefits to eligible individuals as permitted under such amended97.14 provision, provided that the federal share continues to be at97.15 least 50 percent of the extended benefits paid to individuals97.16 under the extended benefit program. The commissioner shall also97.17 pay benefits at the earliest possible date in the manner allowed97.18 by the Federal-State Unemployment Compensation Act of 1970, as97.19 amended through January 1, 1975, the provisions of which shall97.20 become a part of this section to the extent necessary to97.21 authorize the payment of benefits to eligible individualsand 97.22 the applicable federal regulations. 97.23 Subd. 8. [INTERSTATE CLAIMSCLAIMANTS.] An individualA 97.24 claimant residing in a state other than Minnesota shall notbe 97.25 eligible for only the first two weeks of extended benefits for97.26 any weekif :97.27 (a) Extended benefits are payable for that week pursuant to97.28 an interstate claim filed in any state underthe claimant's 97.29 benefit account was established pursuant to the interstate 97.30 benefit payment plan ;and 97.31 (b)no extended benefit period is in effect for the week in 97.32 that state. This subdivision shall not apply to the first two97.33 weeks for which extended benefits are payable pursuant to an97.34 interstate claim filed under the interstate benefit payment plan97.35 to the individual from the extended benefit account established97.36 for the individual with respect to the benefit year.98.1 Subd. 9. [ ELIGIBILITY REQUIREMENTSDENIAL 98.2 PROVISIONS.] Notwithstanding the provisions of subdivision98.3 2,(a) A claimant shall be ineligible for the payment ofdenied 98.4 extended benefits for any week in the claimant's eligibility 98.5 period if during that week the claimant failed to accept any 98.6 offer of suitable employment, failed to apply for any suitable 98.7 employment to whichthat the claimant was referred to by the 98.8 commissioner, or failed to actively seek suitable employment. 98.9 Any claimant who has been found ineligible for extended98.10 benefits for any week by reason of this subdivisionThe denial 98.11 shall also be denied benefitscontinue until the claimant has 98.12 been employed in covered employment in each of four subsequent 98.13 weeks, whether or not consecutive, and has earned remuneration98.14 had earnings from that covered employment of not less than four 98.15 times the claimant's extendedweekly benefit amount. 98.16 (b) For the purpose of this subdivision "suitable 98.17 employment" means any employment whichthat is within the 98.18 claimant's capabilities and whichthat has a gross average 98.19 weekly remuneration payable whichwage that exceeds the sum of98.20 theclaimant's weekly benefit amount as determined under98.21 subdivision 4 plus the amount, if any, of supplemental98.22 reemployment insurance benefits, as defined in section 501(c)98.23 (17) (D) of the Internal Revenue Code of 1954, as amended,98.24 payable to the claimant for that week. The employment must pay 98.25 wages not less than the higher of the federal minimum wage 98.26 without regard to any exemption, or the applicable state minimum 98.27 wage. 98.28 (c) No claimant shall be denied extended benefits for 98.29 failure to accept an offer of or apply for any suitable 98.30 employment if: 98.31 (a)(1) the position was not offered to the claimant in 98.32 writing or; 98.33 (2) the position was not listed with employmentthe job 98.34 service; 98.35 (b) the failure could not result in a denial of benefits98.36 under the definition of suitable employment for regular benefit99.1 claimants in section 268.095 to the extent that the criteria of99.2 suitability is not inconsistent with this subdivision;or 99.3 (c)(3) the claimant furnishes satisfactory evidence to the99.4 commissionerthat prospects for obtaining employment in the 99.5 claimant's customary occupation within a reasonably short period 99.6 are good. If the evidence furnishedis found to besatisfactory 99.7 for this purpose, the determination of whether any employment is 99.8 suitable for the claimantshall be made in accordance with the 99.9 definition of suitable employment in section 268.095,99.10 subdivision 9, paragraph (a), without regard to the definition99.11 or special disqualification specified in this99.12 subdivision268.035, subdivision 23a. 99.13 No employment shall be found to be suitable employment for99.14 a claimant which would not be suitable employment under section99.15 268.095, subdivision 9, paragraph (b).99.16 (d) For the purpose of this subdivision a claimant is 99.17 "actively seeking suitable employment" during any weekonly if 99.18 the claimant has engaged in a systematic and sustained effort to 99.19 obtain employment during the week, and the claimant furnishes 99.20 tangible evidence of engaging inthat effort during the week. 99.21 Subd. 10. [JOB SERVICE REFERRAL.] The employmentjob 99.22 service shall refer any claimant entitled towho is filing 99.23 continued requests for extended benefits under this sectionto 99.24 any employment whichthat is suitable employment for that99.25 claimantunder thissubdivision 9. 99.26 Sec. 49. Minnesota Statutes 1998, section 268.125, 99.27 subdivision 1, is amended to read: 99.28 Subdivision 1. [ADDITIONAL BENEFITS; WHEN AVAILABLE.] 99.29 Additional reemployment insurancebenefits are authorized99.30 available if: 99.31 (1) at a facility that had 100 or more employees for at99.32 least six months during the prior 12 months, the employer 99.33 reduced operations, resulting within a one-month period in the 99.34 layoff of 50 percent or more of the facility's work force 99.35 amounting to 50 or more employees, including reductions caused 99.36 as a result of a major natural disaster declared by the 100.1 president; 100.2 (2) the employer has no expressed plan to resume operations 100.3 that would lead to the reemployment of those employees at any100.4 timein the immediate future; and 100.5 (3) the seasonally adjusted unemployment rate in the county 100.6 that the facility is located was ten percent or more during the 100.7 month of the reduction or any of the three months before or 100.8 after the month of the reduction. 100.9 Sec. 50. Minnesota Statutes 1998, section 268.125, 100.10 subdivision 4, is amended to read: 100.11 Subd. 4. [WEEKLY BENEFIT AMOUNT.] A claimant's weekly 100.12 additional benefit amount shall be the same as the claimant's 100.13 weekly benefit amount during the current benefit year under 100.14 section 268.07. 100.15 Sec. 51. Minnesota Statutes 1998, section 268.125, 100.16 subdivision 5, is amended to read: 100.17 Subd. 5. [MAXIMUM AMOUNT OF BENEFITS PAYABLE.] The maximum 100.18 amount of additional benefits payableavailable in the 100.19 claimant's benefit year shall be 13 timesone half of the 100.20 claimant's weekly benefitmaximum amount of regular benefits 100.21 available under section 268.07, subdivision 2. Extended 100.22 benefits paid and benefits paid to a claimantunder any state or100.23 federal law other than regular benefits under section 268.07100.24 shall be deducted from the maximum amount of additional benefits 100.25 available. 100.26 Sec. 52. Minnesota Statutes 1998, section 268.135, is 100.27 amended to read: 100.28 268.135 [SHARED WORK PLAN.] 100.29 Subdivision 1. [ SHARED WORK PLAN;DEFINITIONS.] For 100.30 purposes of this section , the following terms have the meanings100.31 given: 100.32 (a)(1) "Affected employee" means an individualemployee 100.33 who was continuously employed as a member of the affected group, 100.34 by the shared work employer,for at least six months prior to100.35 application, on a full-time basis, prior to submission of the 100.36 shared work plan. 101.1 (b)(2) "Affected group" means five or more employees 101.2 designated by the employer to participate in a shared work plan. 101.3 (c) "Shared work employer" means an employer with a shared101.4 work plan in effect.101.5 (d)(3) "Shared work plan" or "plan" means an employer's 101.6 voluntary,written plan for reducing unemployment,under which a 101.7 specifiedgroup of employees shares the work remaining after101.8 theirwhose normal weekly hours of work are reduced, in order to 101.9 prevent employees from being laid off due to lack of work. 101.10 (e) "Approved shared work plan" or "approved plan" means an101.11 employer's shared work plan which meets the requirement of this101.12 section.101.13 (f)(4) "Normal weekly hours of work" means the number of 101.14 hours in a week that the employee normally would work for the 101.15 shared work employer or 40 hours, whichever is less. 101.16 Subd. 2. [PARTICIPATION.] (a) An employer wishing to 101.17 participate in the shared work unemploymentbenefit program 101.18 shall submit a signed,written shared work plan to the 101.19 commissioner for approval. The commissioner may give written101.20 approval ofapprove a shared work plan only if it: 101.21 (1) specifies the employees in the affected group; 101.22 (2) applies to only one affected group; 101.23 (3) includes a certified statement by the employer that 101.24 each individualemployee specified in the affected group is an 101.25 affected employee; 101.26 (4) includes a certified statement by the employer that for 101.27 the duration of the plan the reduction in normal weekly hours of 101.28 work of the employees in the affected group is instead of 101.29 layoffs whichthat otherwise would result in at least atas 101.30 large a reduction in the total normal weekly hours of work; 101.31 (5) specifies an expiration date whichthat is no more than 101.32 one year from the date the employer submits the plan for 101.33 approval; 101.34 (6) specifies that fringe benefits, such as health and 101.35 retirement, available to the employees in the affected group are 101.36 not reduced beyond the percentage of reduction in hours of work; 102.1 and 102.2 (7) is approved in writing by the collective bargaining 102.3 agent for each collective bargaining agreement whichthat covers 102.4 any employee in the affected group. 102.5 (b) The commissioner shall establishset the beginning and 102.6 ending dates of an approved shared work plan. 102.7 (c) The commissioner shall approve or disapprovemail to 102.8 the employer a written determination approving or disapproving 102.9 the plan within 15 calendar days of its receipt. The102.10 commissioner shall notify the employer of the reasons for102.11 disapproval of a shared work plan within ten days of the102.12 determination.Determinations of the commissionerare final. 102.13 (d) Disapproval of a plan may be reconsidered upon102.14 application of the employer orat the discretion of the 102.15 commissioner. Approval of a shared work plan may be revoked by102.16 the commissioner when it is established thatif the approval was 102.17 based, in whole or in part, upon information in the plan which102.18 is eitherthat was false or substantiallymisleading. 102.19 Subd. 3. [ELIGIBILITY.] (a) NotwithstandingRegardless of 102.20 any other provision of this chapter, an individuala claimant is 102.21 unemployed andeligible to receive shared work benefits with 102.22 respect to any week if the commissioner finds that: 102.23 (1) during the week the individualclaimant is employed as 102.24 a member of an affected group in an approveda plan whichthat 102.25 was approved prior to the week and is in effect for the week; 102.26 and 102.27 (2) during the week the individual'snormal weekly hours of 102.28 work were reduced, in accordance with an approvedthe plan, at 102.29 least 20 percent but not more than 40 percent, with a 102.30 corresponding reduction in wages. 102.31 (b) Shared work benefits shall not be paid to an eligible102.32 individuala claimant beyond one benefit year under an approved102.33 plan or modification of an approved plan. 102.34 (c) The total amount of regular benefits and shared work 102.35 benefits paid to an individuala claimant in a benefit year 102.36 shall not exceed the maximum benefitamount establishedof 103.1 regular benefits available. 103.2 (d) An otherwise eligible individualclaimant shall not be 103.3 denied shared work benefits under this sectionbecause of the 103.4 application of any provision of this chapterrelating to 103.5 availability for workemployment, active search for work103.6 employment, or refusal to apply for or accept worksuitable 103.7 employment from other than the individual'sclaimant's shared 103.8 work employer. 103.9 Subd. 4. [WEEKLY BENEFIT AMOUNT.] (a) An individualA 103.10 claimant who is eligible for shared work benefits under this103.11 sectionshall be paid , with respect to any week of unemployment,103.12 a weekly shared work reemployment insurance benefits amount.103.13 Thean amount shall beequal to the individual'sregular weekly 103.14 benefit amount multiplied by the nearest full percentage of 103.15 reduction of the individual'sclaimant's regular weekly hours of 103.16 work as set forthin the employer'splan. The benefit payment, 103.17 if not a multiple of $1whole dollar shall be rounded to the 103.18 next lower dollar. 103.19 (b) The deductible earnings provisions of section 268.085, 103.20 subdivision 5, shall not apply to earnings from the shared work 103.21 employer of an individuala claimant eligible for payments under103.22 this sectionshared work benefits unless the resulting payment103.23 amount would be less than the regular weekly benefit payment for103.24 whichamount the individualclaimant would otherwise be eligible 103.25 for without regard to shared work reemployment insurance103.26 benefits. 103.27 (c) An individualA claimant shall not be eligible for 103.28 shared work benefits payable under this sectionfor any week in103.29 which paid workthat employment is performed for the shared work 103.30 employer in excess of the reduced hours set forth in 103.31 the approvedplan. 103.32 Sec. 53. Minnesota Statutes 1998, section 268.145, is 103.33 amended to read: 103.34 268.145 [INCOME TAX WITHHOLDING.] 103.35 Subdivision 1. [NOTIFICATION.] (a) Upon filing an 103.36 application for a reemployment insurance accountbenefits, the 104.1 claimant shall be informed that: 104.2 (1) reemployment insurancebenefits are subject to federal 104.3 and state income tax; 104.4 (2) there are requirements for filing estimated tax 104.5 payments; 104.6 (3) the claimant may elect to have federal income tax 104.7 withheld from benefits; 104.8 (4) if the claimant elects to have federal income tax 104.9 withheld, the claimant may, in addition, elect to have Minnesota 104.10 state income tax withheld; and 104.11 (5) at any time during the benefit year the claimant may 104.12 change a prior election. 104.13 (b) If a claimant elects to have federal income tax 104.14 withheld, the commissioner shall deduct that percentage required104.15 by the Internal Revenue Code15 percent for federal income tax, 104.16 rounded to the nearest whole dollar. If a claimant , in addition104.17 to federal income tax withholding,also elects to have Minnesota 104.18 state income tax withheld, the commissioner shall make an 104.19 additional five percent deduction for Minnesotastate income 104.20 tax. Any amounts deducted or offset pursuant to sections 104.21 268.155, 268.156, 268.18, 268.182,and 268.184 have priority 104.22 over any amounts deducted under this section. Federal income 104.23 tax withholding has priority over Minnesotastate income tax 104.24 withholding. 104.25 (c) An election to have federal income tax, or federal and104.26 Minnesota stateincome tax ,withheld shall not be retroactive 104.27 and shall only apply to benefits paid after the election. 104.28 Subd. 2. [TRANSFER OF FUNDS.] The amount of any benefits 104.29 deducted under this section shall remain in the Minnesota104.30 reemployment insurancefund until transferred to the federal 104.31 Internal Revenue Service, or the Minnesotadepartment of 104.32 revenue, as an income tax payment on behalf of the claimant. 104.33 Subd. 3. [CORRECTION OF ERRORS.] Any error whichthat 104.34 resulted in underwithholding or overwithholding under this 104.35 section shall not be corrected retroactively. 104.36 Subd. 4. [FEDERAL REQUIREMENT.] The commissioner shall 105.1 follow all federal requirements for the deduction and 105.2 withholding of federal and Minnesota stateincome tax from 105.3 reemployment insurancebenefits. 105.4 Subd. 5. [ APPLICATIONEFFECT OF PAYMENTS.] This section105.5 applies to any payments under federal or state law as105.6 compensation, assistance, or allowance with respect to105.7 unemployment.Any amount deducted under this section shall be 105.8 considered as benefits paid to the claimant. 105.9 Sec. 54. Minnesota Statutes 1998, section 268.155, is 105.10 amended to read: 105.11 268.155 [CHILD SUPPORT INTERCEPT OF UNEMPLOYMENTDEDUCTED 105.12 FROM BENEFITS.] 105.13 Subdivision 1. [DEFINITIONS.] As used in this section 105.14 unless the context clearly requires otherwise: 105.15 (a) "Reemployment insurance" means any compensation payable105.16 under this chapter including amounts payable by the commissioner105.17 pursuant to an agreement under any federal law providing for105.18 compensation, assistance, or allowance with respect to105.19 unemployment;105.20 (b)(1) "Child support obligations" means obligations which105.21 that are being enforced by the public agency responsible fora 105.22 child support enforcementagency pursuant to a plan described in 105.23 United States Code, title 42, section 454, of the Social 105.24 Security Act whichthat has been approved by the secretary of 105.25 health and human services under part D of title IV of the Social 105.26 Security Act. This shall not include any type of spousal 105.27 maintenance or foster care payments; and 105.28 (c)(2) "Child support agency" means the public agency 105.29 responsible for child support enforcement pursuant to a plan105.30 described in section 454 of the Social Security Act. 105.31 Subd. 2. [NOTICE OF CLAIMUPON APPLICATION.] UponIn an 105.32 application for a reemployment insurance accountbenefits, the 105.33 claimant shall disclose whether or not the claimant owesif 105.34 child support obligations are owed and, if so, in what state and 105.35 county. If the claimant discloses that the claimant oweschild 105.36 support obligations are owed, and establishes a reemployment106.1 insurance account,the commissioner shall, if the claimant 106.2 establishes a benefit account, notify the child support agency 106.3 that the claimant has established a reemployment insurance106.4 account. 106.5 Subd. 3. [WITHHOLDING OF BENEFITS.] The commissioner shall 106.6 deduct and withhold from any reemployment insurancebenefits 106.7 payable to a claimant thatwho owes child support obligations: 106.8 (a) The amount specified by the claimant to the106.9 commissioner to be deducted and withheld under this section, if106.10 neither clause (b) or (c) is applicable; or106.11 (b)(1) the amount required pursuant to a proper order of a 106.12 court or administrative agency; or 106.13 (2) if clause (1) is not applicable, the amount determined 106.14 pursuant to an agreement submitted to the commissionerunder 106.15 United States Code, title 42, section 454 (20) (B) (i), of the 106.16 Social Security Act by the child support agency, unless (c) is106.17 applicable; or 106.18 (c) Any amount otherwise required to be so deducted and106.19 withheld from the unemployment compensation pursuant to "legal106.20 process" as defined in section 462(e) of the Social Security106.21 Act, properly served upon the commissioner.(3) if clause (1) 106.22 or (2) is not applicable, the amount specified by the claimant. 106.23 Subd. 4. [PAYMENT BY THE COMMISSIONER.] Any amount 106.24 deducted and withheld under subdivision 3shall be paid by the106.25 commissionerto the public agency responsible forchild support 106.26 enforcement.agency, 106.27 Subd. 5. [EFFECT OF PAYMENTS.] Any amount deducted and106.28 withheld under subdivision 3but shall for all purposes be 106.29 treated as if it were paid to the claimant as reemployment106.30 insurancebenefits and paid by the claimant to the public agency106.31 responsible forchild support enforcementagency in satisfaction 106.32 of the claimant's child support obligations. 106.33 Subd. 65. [ REIMBURSEMENTPAYMENT OF COSTS.] Appropriate106.34 arrangements shall be made for reimbursement byThe child 106.35 support agency forshall pay the administrativecosts incurred 106.36 by the commissioner underin the implementation and 107.1 administration of this subdivisionsection and sections 518.551 107.2 and 518.6111 which are attributable to child support obligations107.3 being enforced by the public agency responsible for child107.4 support enforcement. 107.5 Sec. 55. Minnesota Statutes 1998, section 268.18, is 107.6 amended to read: 107.7 268.18 [BENEFIT OVERPAYMENTS.] 107.8 Subdivision 1. [ ERRONEOUS PAYMENTSOVERPAYMENT DUE TO 107.9 ERROR.] (a) Any claimant who ,(1) by reason of the claimant's 107.10 own mistake, or through the(2) because of an error ofby any 107.11 individual engaged in the administration of this107.12 chapteremployee of the department, or (3) because of a 107.13 determination, redetermination, or amended determination issued 107.14 pursuant to section 268.07 or 268.101, or (4) because of an 107.15 appeal decision under section 268.105, has received any benefits 107.16 that the claimant was not entitled to, shall promptly repay the 107.17 benefits to the departmentfund. If the claimant fails to repay 107.18 the benefits, the commissioner shall, as soon as the erroneous 107.19 payment is discovered, determine the amount due and notify the 107.20 claimant in writing to repay the benefits. 107.21 (b) Unless the claimant files an appeal within 30 calendar 107.22 days after the mailing of the determination of overpayment to 107.23 the claimant's last known address, the determination shall 107.24 become final. Proceedings on the appeal shall be conducted in 107.25 accordance with section 268.105. A claimant may not 107.26 collaterally attack, by way of an appeal to an overpayment 107.27 determination, any prior determination issued pursuant to 107.28 section 268.07 or 268.101, or decision issued pursuant to 107.29 section 268.105, that has become final. 107.30 (c) If the claimant fails to repay the benefits, the 107.31 commissioner may deductoffset from any future benefits 107.32 otherwise payable to the claimant in the current or any107.33 subsequent benefit yearthe amount of the overpayment ,. Except 107.34 thatwhen the overpayment resulted because the claimant failed 107.35 to report deductible earnings or deductible payments, no 107.36 single deduction under this subdivisionoffset shall exceed 50 108.1 percent of the amount of the payment from which the deduction108.2 offset is made , or. The overpayment may also be collected by 108.3 the same methods as delinquent taxes. A determination of 108.4 overpayment shall state the methods of collection the 108.5 commissioner may use to recover the overpayment. 108.6 (d) If a claimant has been overpaid benefits under the law 108.7 of another state because of an error and that state certifies to108.8 the commissionerthat the claimant is liable under its law to 108.9 repay the benefits and requests the commissioner to recover the 108.10 overpayment, the commissioner may deductoffset from future 108.11 benefits otherwise payable to the claimant in the current or any108.12 subsequent benefit yearthe amount of overpayment, except that 108.13 no single deduction under this subdivisionoffset shall exceed 108.14 50 percent of the amount of the payment from which the deduction108.15 offset is made. 108.16 (e) Benefits paid for weeks more than three years prior to 108.17 the discovery of error are not erroneous paymentsoverpaid 108.18 benefits. 108.19 Subd. 2. [OVERPAYMENT DUE TO FRAUD.] (a) Any claimant who 108.20 receives benefits by knowingly and willfullyintentionally 108.21 misrepresenting, misstating, or failing to disclose any material 108.22 fact that would have made the claimant not entitled to those108.23 benefitshas committed fraud. After the discovery of facts 108.24 indicating fraud, the commissioner shall make a written 108.25 determination that the claimant was not entitled to benefits108.26 that wereobtained benefits by fraud and that the claimant must 108.27 promptly repay the benefits to the departmentfund. In 108.28 addition, the commissioner shall assess a penalty equal to 25 108.29 percent of the amount fraudulently obtained. If the claimant 108.30 had a prior overpayment due to fraud, the commissioner shall, on 108.31 the present overpayment, assess a penalty equal to 50 percent of 108.32 the amount fraudulently obtained. 108.33 (b) Unless the claimant files an appeal within 30 calendar 108.34 days after the mailing of the determination of overpayment by 108.35 fraud to the claimant's last known address, the determination 108.36 shall become final. Proceedings on the appeal shall be 109.1 conducted in accordance with section 268.105. 109.2 (c) If the claimant fails to repay the benefits, penalty, 109.3 and anyinterest assessed under subdivision 2b, the commissioner 109.4 shall deductoffset from future benefits otherwise payable to109.5 the claimant in the current or any subsequent benefit yearthe 109.6 amount of overpayment or. The total due may also be collected 109.7 by the same methods as delinquent taxes. A determination of 109.8 overpayment by fraud shall state the methods of collection the 109.9 commissioner may use to recover the overpayment. Money received 109.10 in repayment of fraudulently obtained benefits, penalties, and 109.11 interest shall first be applied to the benefits overpaid, then 109.12 to the penalty amount due, then to any interest due. Payments 109.13 made toward penalty and interest shall be credited to the 109.14 contingent account. 109.15 (d) If a claimant has been overpaid benefits under the law 109.16 of another state because of fraud and that state certifies to109.17 the commissionerthat the claimant is liable to repay the 109.18 benefits and requests the commissioner to recover the 109.19 overpayment, the commissioner may deductoffset from future 109.20 benefits otherwise payable to the claimant in the current or any109.21 subsequent benefit yearthe amount of overpayment. 109.22 (e) A determination of overpayment by fraud may be made at 109.23 any time. 109.24 Subd. 2b. [INTEREST.] (a) Beginning January 1, 2002, on 109.25 any benefits fraudulently obtained, as determinedand any 109.26 penalty amounts assessed under subdivision 2, the commissioner 109.27 shall have the discretion toassess interest at the rate of 109.28 1-1/2 percent per month on any overpaidamount that remains 109.29 unpaid 30 calendar days after the date of the determination of 109.30 overpayment by fraud. A determination of overpayment by fraud 109.31 shall state that interest mayshall be assessed. 109.32 (b) If this subdivision became effective after the date of 109.33 the determination of overpayment by fraud, or the determination 109.34 did not state that interest mayshall be assessed, interest 109.35 pursuant to this subdivision mayshall be assessed beginning 30 109.36 calendar days after written notification to the claimant. 110.1 Subd. 3a. [OFFSET OF FEDERAL BENEFITS.] The commissioner 110.2 is authorized to enter into reciprocal agreements with the 110.3 United States Secretary of Labor, whereby, overpayments of 110.4 benefits as determined under federal law, with respect to110.5 benefits under a federal program administered by Minnesota,may 110.6 be recovered by offset from benefits otherwise payable under110.7 this chapter or any federal program. As provided by reciprocal110.8 agreement,and benefit overpayments under subdivisions 1 and 2 110.9 may be recovered by offset from benefits otherwise payable under 110.10 a federal program. 110.11 Subd. 4. [CANCELLATION OF BENEFITS PAID THROUGH ERROR OR110.12 FRAUDOVERPAYMENTS.] (a) If benefits paid throughbecause of an 110.13 error are not repaid or deductedoffset from subsequent benefits 110.14 as provided for in subdivision 1 within six years after the date 110.15 of the determination of overpayment, the commissioner shall 110.16 cancel the overpayment balance, and no administrative or legal 110.17 proceedings shall be used to enforce collection of those amounts. 110.18 (b) If benefits paid as a result of fraud including 110.19 penalties and interest are not repaid or deductedoffset from 110.20 subsequent benefits as provided for in subdivision 2 within ten 110.21 years after the date of the determination of overpayment by 110.22 fraud, the commissioner shall cancel the overpayment balance and 110.23 any penalties and interest due, and no administrative or legal 110.24 proceeding shall be used to enforce collection of those amounts. 110.25 (c) The commissioner may cancel at any time benefits paid110.26 through error or fraudany overpayment, including penalties and 110.27 interest, that the commissioner determines areis uncollectible 110.28 due to death or bankruptcy. 110.29 Subd. 4a. [COURT FEES.] (a) If the commissioner is 110.30 required to pay any court fees in an attempt to enforce 110.31 collection of overpaid benefits, penalties, or interest, the 110.32 commissioner may add the amount of the court fees to the total 110.33 amount due. 110.34 (b) If a claimant who has been determined overpaid benefits 110.35 because of fraud seeks to have any portion of the debt 110.36 discharged under the federal bankruptcy code, and the 111.1 commissioner files an objection in bankruptcy court to the 111.2 discharge, the commissioner may add the commissioner's cost of 111.3 any court fees to the debt if the bankruptcy court does not 111.4 discharge the debt. 111.5 Subd. 5. [REMEDIES.] (a) Any method undertaken to recover 111.6 an overpayment of benefits, including any penalties and 111.7 interest, shall not be considered an election of a method of 111.8 recovery. 111.9 (b) Intervention or lack thereof, in whole or in part, in a 111.10 workers' compensation matter under section 176.361 shall not be 111.11 considered an election of a remedy and shall not prevent the 111.12 commissioner from determining any benefits overpaid under 111.13 subdivision 1 or 2 or taking action under section 268.182. 111.14 Subd. 6. [COLLECTION OF OVERPAYMENTS.] (a) The 111.15 commissioner may not compromise the amount that has been 111.16 determined overpaid under this section including penalties and 111.17 interest. 111.18 (b) The commissioner shall have discretion regarding the 111.19 use of any method of recovery of any overpayment under 111.20 subdivision 1. Regardless of any law to the contrary, the 111.21 commissioner shall not be required to refer any amount 111.22 determined overpaid under subdivision 1 to a public or private 111.23 collection agency, including agencies of this state. 111.24 (c) Amounts determined overpaid under subdivision 1 shall 111.25 not be considered a "debt" to the state of Minnesota for 111.26 purposes of any reporting requirements to the commissioner of 111.27 finance. 111.28 (d) A pending appeal under section 268.105 shall not toll 111.29 the assessment of interest, penalties, or collection of an 111.30 overpayment under this section. 111.31 Sec. 56. Minnesota Statutes 1998, section 268.182, is 111.32 amended to read: 111.33 268.182 [FALSE REPRESENTATIONS; CONCEALMENT OF FACTS; 111.34 PENALTY.] 111.35 (a) Whoever obtains, or attempts to obtain, or aids or 111.36 abets any individual to obtain by means of an intentional false 112.1 statement or representation, by intentional concealment of a 112.2 material fact, or by impersonation or other fraudulent means, 112.3 benefits that the individual is not entitled or benefits greater 112.4 than the individual is entitled under this chapter, or under the 112.5 law of any state or of the federal government, either personally 112.6 or for any other individual, is guilty of theft and shall be 112.7 sentenced pursuant to section 609.52. 112.8 (b) Any individual who violates paragraph (a)intentionally 112.9 makes a false statement or representation, who intentionally 112.10 fails to disclose a material fact, or who makes a false 112.11 statement or representation without a good faith belief as to 112.12 the correctness of the statement or representation, in order to 112.13 obtain or in an attempt to obtain benefits may be assessed an 112.14 administrative penalty of denial of benefits for one to 52 weeks 112.15 that the individual would otherwise be entitled to benefits. A 112.16 denial shall not apply to any week more than two years after the 112.17 week that the violation of paragraph (a)penalty was 112.18 determined. A written determination of denial shall be mailed 112.19 to the individual's last known address. Unless an appeal is 112.20 filed within 30 calendar days of mailing, the determination 112.21 shall be final. Proceeding on the appeal shall be conducted in 112.22 accordance with section 268.105. This paragraph shall not apply112.23 if prosecution is commenced under paragraph (a) or a penalty is112.24 imposed under section 268.18, subdivision 2.112.25 (c) Any employer or any officer or agent of an employer or 112.26 any other personindividual who makes a false statement or 112.27 representation knowing it to be false, or who knowingly fails to 112.28 disclose a material fact, to prevent or reduce the payment of 112.29 benefits to any claimant, is guilty of a gross misdemeanor 112.30 unless the benefit underpayment exceeds $500, in that case 112.31 the personindividual is guilty of a felony. 112.32 Sec. 57. Minnesota Statutes 1998, section 268.186, is 112.33 amended to read: 112.34 268.186 [RECORDS.] 112.35 (a) Each employer shall keep true and accurate records for 112.36 the periods of time and containing the information the 113.1 commissioner may require. For the purpose of determining113.2 compliance with this chapter, or for the purpose of collection113.3 of any amounts due underadministering this chapter, the 113.4 commissioner or any delegated representativehas the power to 113.5 examine, or cause to be examinedsupplied or copied, any books, 113.6 correspondence, papers, records, or memoranda whichthat are 113.7 relevant to making these determinations, whether the books, 113.8 correspondence, papers, records, or memoranda are the property 113.9 of or in the possession of the employer or any other person or113.10 corporationat any reasonable time and as often as may be 113.11 necessary. 113.12 (b) The commissioner or any delegated representativemay 113.13 make summaries, compilations, photographs, duplications, or 113.14 reproductions of any records, or reports that the commissioner 113.15 considers advisable for the effective and economical113.16 preservation of the information contained therein , and. Any 113.17 summaries, compilations, photographs, duplications, or 113.18 reproductions shall be admissible in any proceeding under this 113.19 chapter , if the original record or records would have been113.20 admissible. NotwithstandingRegardless of any restrictions 113.21 contained in section 16B.50, the commissioner is hereby113.22 authorized tomay duplicate records, reports, summaries, 113.23 compilations, instructions, determinations, or any other written 113.24 or recorded matter pertaining to the administration of the113.25 Minnesota Economic Security Lawthis chapter. 113.26 (c) NotwithstandingRegardless of any inconsistent113.27 provisions elsewherelaw to the contrary, the commissioner may 113.28 provide for the destruction or dispositionof any records, 113.29 reports, or reproductions thereof, or other papers in the113.30 commissioner's custody, that are more than two years old, the113.31 preservation of which isand that are no longer necessary for 113.32 determining employer liability or a claimant's benefit rights or 113.33 for any purpose necessary tothe properadministration of this 113.34 chapter, including any required audit , provided that. The 113.35 commissioner may provide for the destruction or disposition of 113.36 any record, report, or other paper in the commissioner's custody114.1 whichthat has been photographed, duplicated, or reproduced. 114.2 Sec. 58. Minnesota Statutes 1998, section 268.188, is 114.3 amended to read: 114.4 268.188 [SUBPOENAS; OATHS.] 114.5 (a) In the discharge of the duties imposed by sections114.6 268.03 to 268.23,The commissioner or any delegated114.7 representative,shall have power to administer oaths and 114.8 affirmations, take depositions, certify to official acts, and 114.9 issue subpoenas to compel the attendance of personsindividuals 114.10 and the production of books, papers, correspondence, memoranda,114.11 documents and other recordspersonal property necessary in 114.12 connection with the administration of thesesections 268.03 to 114.13 268.23. 114.14 (b) PersonsIndividuals subpoenaed, other than claimants or 114.15 officers and employees of an employer that is the subject of the 114.16 inquiry, subpoenaed pursuant to this subdivision,shall be 114.17 allowed fees the same as witness fees in civil actions in 114.18 district court. The fees need not be paid in advance. 114.19 (c) The subpoena shall be enforceable through the district 114.20 court in the district in whichthat the subpoena is issued. 114.21 Sec. 59. Minnesota Statutes 1998, section 268.192, 114.22 subdivision 2, is amended to read: 114.23 Subd. 2. [NO ASSIGNMENT OF BENEFITS; EXEMPTIONS.] Any 114.24 assignment, pledge, or encumbrance of any right tobenefits 114.25 which are or may become due or payable under sections 268.03 to114.26 268.23shall be void ; and such rights to. Benefits shall be 114.27 exempt from levy, execution, attachment, or any other remedy 114.28 provided for the collection of debt ; and benefits received by114.29 any individual so long as they are not mingled with other funds114.30 of the recipient shall be exempt from any remedy for the114.31 collection of all debts, except debts incurred for necessaries114.32 furnished to such individual or a spouse or dependents during114.33 the time when such individual was unemployed. Any waiver of any114.34 exemption provided for inthis subdivision shall be void. 114.35 Sec. 60. Minnesota Statutes 1998, section 268.194, is 114.36 amended to read: 115.1 268.194 [REEMPLOYMENT INSURANCE TRUST FUND.] 115.2 Subdivision 1. [ESTABLISHMENT ; HOW CONSTITUTED.] There is 115.3 hereby established as a special state fund, separate and apart 115.4 from all other public money or funds of this state, a 115.5 reemployment insurance trust fund, whichthat shall be 115.6 administered by the commissioner exclusively for the purpose of115.7 sections 268.03 to 268.23payment of benefits. This fund shall 115.8 consist of: 115.9 (1) all taxes collected under those sections; 115.10 (2) interest earned upon any money in the fund; 115.11 (3) Any property or securities acquired through the use of115.12 money belonging to the fundpayments in lieu of taxes paid by 115.13 nonprofit organizations and the state and political 115.14 subdivisions; 115.15 (4) All earnings of such property or securitiesvoluntary 115.16 payments under section 268.051, subdivision 7; 115.17 (5) any money received from the Federal Unemployment115.18 Account inas a loan from the federal unemployment trust fund in 115.19 accordance with Title XIIUnited States Code, title 42, section 115.20 1321, of the Social Security Act , as amended, and; 115.21 (6) any other money made available to the fund andreceived 115.22 pursuant to an agreement, between this state and any agency ofa 115.23 reciprocal benefit arrangement with the federal government or 115.24 any other state , for the payment of reemployment insurance115.25 benefits; 115.26 (7) all money recovered on overpaid benefits; 115.27 (6)(8) all money recovered on losses sustained by the 115.28 fund; 115.29 (9) all money received from the contingent account under 115.30 section 268.196, subdivision 3; 115.31 (7)(10) all money credited to the account of this115.32 stateMinnesota in the federal unemployment trust fund pursuant 115.33 to United States Code, title 42, section 9031103, of the Social 115.34 Security Act, as amendedalso known as the Reed Act; and 115.35 (8)(11) all money received for the fund from any other 115.36 source. 116.1 All money in the fund shall be mingled and undivided.116.2 Subd. 2. [COMMISSIONER OF FINANCE TO BE CUSTODIAN; 116.3 SEPARATE ACCOUNTS.] (a) The commissioner of finance shall be the 116.4 treasurer and custodian of the fund, administer the fund in 116.5 accordance with the directions of the commissioner, and issue 116.6 warrants upon it. The commissioner of finance shall maintain 116.7 within the fund three separate accounts: 116.8 (1) a clearing account; 116.9 (2) an unemployment trust fund account; and 116.10 (3) a benefit payment account. 116.11 All money payable to the fund, upon receipt by the 116.12 commissioner, shall be forwarded to the commissioner of finance 116.13 who shall immediately deposit the money in the clearing 116.14 account. All money in the clearing account, after clearance, 116.15 shall , except as otherwise provided,be immediatelydeposited to 116.16 the credit of theMinnesota's account of Minnesotain the 116.17 federal unemployment trust fund. Tax refunds payable pursuant 116.18 to section 268.057 may be paid from the clearing account or the 116.19 benefit payment account. 116.20 (b) The benefit payment account shall consist of all money 116.21 requisitioned from Minnesota's account in the federal 116.22 unemployment trust fund for the payment of benefits. Money in 116.23 the clearing and benefit payment accounts may be deposited by 116.24 the commissioner of finance, under the direction of the 116.25 commissioner, in any depository bank that general funds of 116.26 Minnesota may be deposited, but no public deposit insurance 116.27 charge or premium shall be paid out of the fund. Money in the 116.28 clearing and benefit payment accounts shall not be commingled116.29 with other state funds, but shallbe maintained in separate 116.30 accounts on the books of the depository bank. This money shall 116.31 be secured by the depository bank to the same extent and in the 116.32 same manner as required by the general depository law of 116.33 Minnesota ; and collateral pledged for this purpose shall be kept116.34 separate and distinct from any collateral pledged to secure116.35 other funds of Minnesota. All sums recovered for losses116.36 sustained by the fund shall be deposited in the fund. 117.1 Subd. 3. [ WITHDRAWALSEXCLUSIVE USE.] (1)(a) Money 117.2 requisitioned from Minnesota's account in the federal 117.3 unemployment trust fund shall be used exclusively for the 117.4 payment of benefits and for tax refunds pursuant to section 117.5 268.057, except that money credited to Minnesota's account 117.6 pursuant to United States Code, title 42, section 1103 of the 117.7 Social Security Act, shallalso known as the Reed Act, may be 117.8 used exclusivelyfor the payment of expenses of administration. 117.9 The commissioner shall from time to time requisition from the 117.10 federal unemployment trust fund the amounts , not exceeding the117.11 amount in Minnesota's account, the commissioner considers117.12 necessary for the payment of benefits and tax refunds for a 117.13 reasonable future period. Upon receipt the commissioner of 117.14 finance shall deposit the money in the benefit payment account 117.15 and issue warrants for the payment of benefits solely from the 117.16 benefit payment account. 117.17 (b) Expenditures of money in the benefit payment account 117.18 and tax refunds from the clearing account shall not be subject 117.19 to any provisions of law requiring specific appropriations or 117.20 other formal release by state officers. 117.21 (c) All warrants issued for the payment of benefits and tax 117.22 refunds shall bear the signature of the commissioner of finance 117.23 and the counter signature of the commissioner. 117.24 (2) Any balance of money requisitioned from the117.25 unemployment trust fund that remains unclaimed or unpaid in the117.26 benefit account after the expiration of the period for which the117.27 sums were requisitioned shall either be deducted from estimates117.28 for, and may be utilized for the payment of, benefits and117.29 refunds during following periods or, in the discretion of the117.30 commissioner, shall be redeposited in the federal unemployment117.31 trust fund, as provided in subdivision 2.117.32 Subd. 3a4. [REIMBURSEMENTS.] The commissioner is 117.33 authorized to make to other state or federal agencies and to 117.34 receive from other state or federal agencies, reimbursements 117.35 from or to the fund, in accordance with reciprocal arrangements 117.36 entered into pursuant to section 268.131. 118.1 Subd. 4. [DISPOSAL OF CERTAIN MONEY.] AnyMoney made118.2 available to the reemployment insurance fund andreceived 118.3 pursuant to ana reciprocal agreement between this state and any118.4 agency of the federal government or any other state for the118.5 payment of reemployment insurance benefitsshall be placed 118.6 directly in the benefit payment account of the unemployment118.7 trustfund. 118.8 Subd. 5. [ PAYMENT OF EXPENSES OF ADMINISTRATIONREED ACT 118.9 MONEY.] (1)(a) Money credited to the account of this state118.10 Minnesota in the federal unemployment trust fund by the118.11 secretary of the treasury of the United States of America118.12 pursuant to United States Code, title 42, section 9031103, of 118.13 the Social Security Act, also known as amendedthe Reed Act, may 118.14 be requisitioned and used for (1) the payment of benefits, or (2) 118.15 expenses incurred for the administration of Laws 1957, chapter118.16 883sections 268.03 to 268.23 pursuant to a specific 118.17 appropriation by the legislature ,. Any money used for the 118.18 payment of benefits may be restored for appropriation and use 118.19 for administrative expenses upon request of the governor to the 118.20 United States Secretary of Labor. 118.21 (b) Reed Act money may be used for expenses in the 118.22 administration of sections 268.03 to 268.23 provided that the 118.23 expenses are incurred and the money is requisitioned after the 118.24 enactment of an appropriation law whichthat: 118.25 (a)(1) specifies the amounts and the purposes for which 118.26 suchthe money is appropriated and the amounts appropriated118.27 therefor.; 118.28 (b)(2) Limits the period within which suchthe money may 118.29 be obligated to a period ending not more than two years after 118.30 the date of the enactment of the appropriation law ,; and 118.31 (c)(3) Limits the amount whichthat may be obligated 118.32 during any 12-month period beginning on July 1 and ending on the118.33 next June 30to an amount whichthat does not exceed the amount 118.34 by which (i)the aggregate of the amounts creditedtransferred 118.35 to the account of this stateMinnesota pursuant to section 903118.36 ofthe Social SecurityReed Act , as amended, during the same119.1 12-month period and the 34 preceding 12-month periods,exceeds 119.2 (ii)the aggregate of the amounts used pursuant to this 119.3 subdivision and charged against the amounts creditedtransferred 119.4 to the account of this state during any of such 35 12-month119.5 periodsMinnesota. For the purposes of this subdivision, 119.6 amounts used during any such 12-month period shall be charged119.7 against equivalent amounts which were first credited and which119.8 are not already so charged; except that no amount obligated for119.9 administration during any such 12-month period may be charged119.10 against any amount credited during such a 12-month period119.11 earlier than the 24th preceding such periodfor administration 119.12 shall be chargeable against the transferred amounts at the time 119.13 of the obligation. 119.14 (2) Money credited to the account of this state pursuant to119.15 section 903 of the Social Security Act, as amended, may not be119.16 withdrawn or used except for the payment of benefits and for the119.17 payment of expenses for the administration of Laws 1957, chapter119.18 883 and of public employment offices pursuant to this119.19 subdivision. Any moneys used for the payment of benefits may be119.20 restored for appropriation and use for administrative expenses119.21 upon request of the governor, under section 903(c) of the Social119.22 Security Act.119.23 (3)(c) Reed Act money requisitioned for the payment of 119.24 expenses of administration pursuant to this subdivision shall be119.25 deposited in the economic security administration fund, but,119.26 until expended,shall remain a part of the reemployment 119.27 insurance trust fund. The commissioner shall maintain a119.28 separate record of the deposit, obligation, expenditure, and119.29 return of funds so depositedaccount for the use of this money 119.30 in accordance with the standards established by the United 119.31 States Secretary of Labor. If any money so depositedis , for119.32 any reason,not to be expendedspent for the purpose for which 119.33 it was appropriated, or, if it remains unexpendedunspent at the 119.34 end of the period specified by the law appropriating suchthe 119.35 money, it shall be withdrawn andreturned to the secretary of119.36 the treasury of the United Statesfor credit to this state's120.1 Minnesota's account in the federal unemployment trust fund. 120.2 Subd. 6. [ ADVANCE ONBORROWING FEDERAL FUNDS.] (a) The 120.3 governor is hereby authorized, if necessary, to make application120.4 as may be necessary to secure an advance ofborrow funds from 120.5 the federal unemployment trust fund in accordance with United 120.6 States Code, title 42, section 1321 of the Social Security 120.7 Act in order to pay benefits. 120.8 (b) Any amount transferred to the fund under the terms of 120.9 any applicationloan shall be repayable as provided in United 120.10 States Code, title 42, sections 1101(d)(1), 1103(b)(2), and 1322 120.11 of the Social Security Act. 120.12 (c) Interest payable on any advanceloan shall be paid in 120.13 accordance with section 268.051, subdivision 8, paragraph (b). 120.14 Sec. 61. Minnesota Statutes 1998, section 268.196, is 120.15 amended to read: 120.16 268.196 [ECONOMIC SECURITY ADMINISTRATION FUNDACCOUNT.] 120.17 Subdivision 1. [ADMINISTRATION FUNDACCOUNT.] (a) There is 120.18 hereby created in the state treasury a special fundaccount to 120.19 be known as the economic security administration fundaccount. 120.20 All moneys which aremoney that is deposited or paid into this 120.21 fundaccount shall be continuously available to the commissioner 120.22 for expenditure in accordance with the provisions ofto 120.23 administer sections 268.03 to 268.23, and shall not lapse at any 120.24 time. The fundadministration account shall consist of: 120.25 (1) all moneysmoney received from the United States or any120.26 agency thereof, including the United States department of labor,120.27 and includefederal government to administer sections 268.03 to 120.28 268.23; 120.29 (2) any moneysmoney received from any agency of the United120.30 States or any other stateas compensation for services or 120.31 facilities supplied to such agency,the federal government or 120.32 any other state; 120.33 (3) any amounts received pursuant to any surety bond or120.34 insurance policy or from other sourcesfor losses sustained by 120.35 the economic security administration fundthis account or by 120.36 reason of damage to equipment or supplies purchased from moneys121.1 in such fund,; and 121.2 (4) any proceeds realizedfrom the sale or disposition of 121.3 any suchequipment or supplies whichthat may no longer be 121.4 necessary for the proper administration of those 121.5 sections. Notwithstanding any provision of this section, all121.6 money requisitioned and deposited in this fund pursuant to121.7 section 268.194, subdivision 5, shall remain part of the121.8 reemployment fund and shall be used only in accordance with the121.9 conditions specified in section 268.194, subdivision 5.121.10 (b) All moneysmoney in this fundaccount shall be 121.11 deposited, administered, and disbursed in the same manner and 121.12 under the same conditions and requirements as are provided by 121.13 law for the other special fundsaccounts in the state treasury. 121.14 The statecommissioner of finance, as treasurer and custodian of 121.15 this account, shall be liable on the treasurer's official bond121.16 for the faithful performance of duties in connection with the121.17 economic security administration fund provided for under these121.18 sections. Such liability on the official bond shall be121.19 effective immediately upon the enactment of this provision, and121.20 such liability shall exist in addition to any liability upon any121.21 separate bond existent on April 29, 1941, or which may be given121.22 in the future. All sums recovered on any surety bond for losses121.23 sustained by the economic security administration fund shall be121.24 deposited in this fundthis account. 121.25 (c) All money in this fund, except money received pursuant121.26 to section 268.194, subdivision 5, clause (3),account shall 121.27 be expendedspent solely for the purposes and in the amounts 121.28 found necessary by the United States Secretary of Labor for the 121.29 proper and efficient administration of the economic security121.30 programsections 268.03 to 268.23. 121.31 Subd. 2. [STATE TO REPLACE MONEY WRONGFULLY USED.] If any 121.32 money received under United States Code, title 42, section 501 121.33 of the Social Security Act or the Wagner-Peyser Act, are found 121.34 by the United States Secretary of Labor , because of any action121.35 or contingency,to have been lost or been expendedspent for 121.36 purposes other than, or in amounts in excess of, those found122.1 necessary by the secretary of laborfor the proper 122.2 administration of thesesections 268.03 to 268.23, the 122.3 commissioner may , with the approval of the commissioner of122.4 administration,replace the money from the contingent account. 122.5 If the money is not replaced from the contingent account, it is 122.6 the policy of this state that the money be replaced by money 122.7 appropriated for that purpose from the general funds of this 122.8 state. Upon receipt of a finding by the secretary of laborIf 122.9 not replaced from the contingent account, the commissioner shall 122.10 promptly report the amount required for replacement to the122.11 governor and the governor shall, at the earliest opportunity, 122.12 submit to the legislature a request for the appropriation of 122.13 that amount. 122.14 Subd. 3. [CONTINGENT ACCOUNT.] (a) There is hereby created 122.15 in the state treasury a special account, to be known as the 122.16 economic security contingent account, whichthat shall not lapse 122.17 nor revert to any other fund. SuchThis account shall consist 122.18 of all money appropriated therefor by the legislature, all money 122.19 in the form of interest and penalties collected pursuant to 122.20 sections 268.057 and, 268.18, and 268.184, all money received in 122.21 the form of voluntary contributions to this account, and any 122.22 interest thereonearned on the account. All money in suchthis 122.23 account shall be supplemental to all federal money that would be122.24 available to the commissioner but for the existence of this122.25 account. MoneysMoney in this account areis hereby 122.26 appropriated to the commissioner and shall be available to the 122.27 commissioner for suchthose expenditures asthe commissioner may122.28 deemconsiders necessary in connection with the administration 122.29 of sections 268.04268.03 to 268.23. 122.30 Whenever the commissioner expendsspends money from 122.31 saidthe contingent account for the proper and efficient122.32 administration of the Minnesota Economic Security Lawsections 122.33 268.03 to 268.23 for which funds have not yet beenmoney will 122.34 later be made available by the federal government, such money so122.35 withdrawn fromthe contingent account shall, when money is 122.36 available, be replaced as hereinafter provided. Upon the123.1 deposit inreimbursed from the economic securityadministration 123.2 fund of moneys which are received in reimbursement of payments123.3 made as above provided for said contingentaccount ,. The 123.4 commissioner shall certify to the state treasurercommissioner 123.5 of finance the amount of suchthe reimbursement and thereupon123.6 the state treasurercommissioner of finance shall transfer such123.7 that amount from the economic securityadministration fund123.8 account to saidthe contingent account. 123.9 (c) All money in this account shall be deposited, 123.10 administered, and disbursed in the same manner and under the 123.11 same conditions and requirements as is provided by law for the 123.12 other special accounts in the state treasury. The state123.13 treasurer shall be liable on the treasurer's official bond for123.14 the faithful performance of duties in connection with the123.15 economic security contingent account provided for herein.123.16 Notwithstanding anything to the contrary contained herein,On 123.17 June 30 of each year, except 1982,all amounts in excess of 123.18 $300,000 in this account shall be paid over to the reemployment 123.19 insurance trust fund established under section 268.194 and123.20 administered in accordance with the provisions set forth therein. 123.21 Sec. 62. Minnesota Statutes 1998, section 268.198, is 123.22 amended to read: 123.23 268.198 [ FREE EMPLOYMENTJOB SERVICE OFFICES.] 123.24 Subdivision 1. [ ACCEPTANCE OF FEDERAL ACTESTABLISHMENT.] 123.25 A state employment service is hereby established in the123.26 department.The commissioner shall establish and maintain free 123.27 public employmentjob service offices, in that number and in 123.28 those places as may be necessary for the purpose of providing 123.29 reemployment assistance services to claimants, as well as 123.30 performing the functions within the purview ofunder the 123.31 Wagner-Peyser Act, United States Code, title 29, chapter 4B123.32 section 49. 123.33 Subd. 2. [FINANCING.] All moneysmoney received by this 123.34 state under suchthe Wagner-Peyser Act of Congress referred to123.35 in subdivision 1shall be paid into the economic security 123.36 administration fund,account and expended solely for the 124.1 maintenance of state public employmentjob service offices. For 124.2 the purpose of establishing and maintaining free public 124.3 employmentjob service offices and promoting the use of their 124.4 facilities, the commissioner is authorized to enter into 124.5 agreements with the railroad retirement board orany other124.6 public agency of the United States or of this or any other state124.7 charged with the administration of any lawwhose purposes are 124.8 reasonably related to the purposes of sections 268.03 to 268.23124.9 the job service. 124.10 Subd. 3. [VETERANS REPRESENTATIVES.] As may be determined124.11 by the commissioner, based on a demonstrated need for the124.12 service,There shall be assigned by the commissionerto the 124.13 staff of each full functioning employmentthe job service office124.14 a veterans employment representative whose activitiesone or 124.15 more employees of the department who shall be devoted to124.16 dischargingperform the duties prescribedof a veterans 124.17 employment representative. The position of veterans employment 124.18 representative shall be filled by one or more employees of the124.19 department who areveterans as defined in section 197.447. 124.20 Sec. 63. Minnesota Statutes 1998, section 268.21, is 124.21 amended to read: 124.22 268.21 [NONLIABILITY OF STATE.] 124.23 (a) Benefits shall be considered to be due andpayable only 124.24 to the extent provided in this chapter and to the extent that 124.25 money is available in the reemployment insurancefund and 124.26 neither the state nor the commissioner shall be liable for any 124.27 amount in excess of such sumsthe money available in the fund. 124.28 (b) No person shall make any demand, bring any suit, or 124.29 other proceeding to recover from the state or the commissioner 124.30 any sum alleged to be due on a reemployment insurancebenefit 124.31 account after the expiration of two years from the effective 124.32 date of the reemployment insurancebenefit account. 124.33 Sec. 64. Minnesota Statutes 1998, section 268.23, is 124.34 amended to read: 124.35 268.23 [SEVERABLE.] 124.36 In the event that the United States Department of Labor 125.1 shall determinedetermines that any provision of sections 268.03 125.2 to 268.23, or any other provision of Minnesota Statutes relating 125.3 to the reemployment insurance program, is not in conformity with 125.4 various provisions of the Federal Internal Revenue Code orthe 125.5 Social Security Act then suchrequirements of federal law, the 125.6 provision shall have no force or effect for any purpose; but if 125.7 any suchonly a portion of the provision, or the application 125.8 thereofto any person or circumstances, is held invalidnot in 125.9 conformity, the remainder of said sectionsthe provision and the 125.10 application of suchthe provision to other persons or 125.11 circumstances shall not be affected thereby. 125.12 Sec. 65. Minnesota Statutes 1998, section 268.30, 125.13 subdivision 2, is amended to read: 125.14 Subd. 2. [APPLICATIONS.] Applications for a grant-in-aid 125.15 shall be made by the administering agency to the commissioner. 125.16 The grant-in-aid is contingent upon the agency having obtained 125.17 from the community in which the youth intervention program is 125.18 established local matching money two times the amount of the 125.19 grant that is sought. 125.20 The commissioner shall provide by rulethe application 125.21 form, procedures for making application form, criteria for 125.22 review of the application, and kinds of contributions in 125.23 addition to cash that qualify as local matching money. No grant 125.24 to any agency may exceed $50,000. 125.25 Sec. 66. [REVISOR'S INSTRUCTIONS.] 125.26 The revisor of statutes shall renumber each section of 125.27 Minnesota Statutes listed in column A with the number listed in 125.28 column B. The revisor shall also make necessary cross-reference 125.29 changes. 125.30 Column A Column B 125.31 268.182, paragraph (c) 268.184, paragraph (e) 125.32 268.095, subd. 9 268.035, subd. 23a 125.33 The term "reemployment insurance account" shall be changed 125.34 to "benefit account" in Minnesota Statutes, sections 268.03 to 125.35 268.23. 125.36 The term "reemployment insurance fund" shall be changed to 126.1 "reemployment compensation trust fund" wherever it appears in 126.2 Minnesota Statutes. 126.3 The term "notwithstanding" shall be changed to "regardless 126.4 of" in Minnesota Statutes, sections 268.03 to 268.23. 126.5 The term "reemployment insurance" shall be changed to 126.6 "reemployment compensation" wherever it appears in Minnesota 126.7 Statutes. 126.8 The term "claimant" shall be changed to "applicant" in 126.9 Minnesota Statutes, sections 268.03 to 268.23. 126.10 The term "claimants" shall be changed to "applicants" in 126.11 Minnesota Statutes, sections 268.03 to 268.23. 126.12 The term "a claimant's" shall be changed to "an 126.13 applicant's" in Minnesota Statutes, sections 268.03 to 268.23. 126.14 Sec. 67. [REPEALER.] 126.15 Minnesota Statutes 1998, sections 268.021; and 268.057, 126.16 subdivisions 8 and 9; and Minnesota Rules, parts 3305.0100; 126.17 3305.0200; 3305.0300; 3305.0400; 3305.0500; 3305.0600; 126.18 3305.0700; 3305.0800; 3305.0900; 3305.1100; 3310.1500; 126.19 3310.1600; 3310.1700; 3310.1800; 3310.1900; 3310.2000; 126.20 3310.2100; 3310.2200; 3310.5100; and 3310.5800, are repealed. 126.21 Sec. 68. [EFFECTIVE DATE.] 126.22 Section 3 is effective with applications for benefits filed 126.23 on and after July 1, 2000. 126.24 Section 13 is effective January 1, 2000. 126.25 Section 27 is effective January 1, 2001. 126.26 Section 41, subdivision 2, is effective July 1, 2000. 126.27 Section 42, subdivisions 7 and 8, are effective the day 126.28 following final enactment. 126.29 Sec. 69. [SUNSET.] 126.30 Section 22 expires July 1, 2002.