SF 1218

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 noncompliance 
  2.8   with a state or federal law or a collective bargaining agreement 
  2.9   as determined by an arbitration award, administrative or 
  2.10  judicial decision, or negotiated settlement.  The payment shall 
  2.11  be applied to the period immediately following the last day of 
  2.12  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 insurance benefit 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 the a base 
  2.25  period be extended as follows: 
  2.26     (i) if a claimant was compensated for a loss of work of 
  2.27  seven to 13 weeks, the original base period shall be extended to 
  2.28  include the one first four of the last six completed calendar 
  2.29  quarter quarters prior to the original base period effective 
  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 original base period shall be extended to 
  2.33  include the two first four of the last seven completed calendar 
  2.34  quarters prior to the original base period effective 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 original base period shall be extended to 
  3.1   include the three first four of the last eight completed 
  3.2   calendar quarters prior to the original base period effective 
  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 original base period shall be extended to 
  3.6   include the first four of the last nine completed calendar 
  3.7   quarters prior to the original base period effective date of the 
  3.8   benefit account; 
  3.9      (3) if the claimant qualifies for an extended a base period 
  3.10  under clause (2), but has insufficient wage credits to establish 
  3.11  a reemployment insurance benefit account, the claimant may 
  3.12  request an alternate a base period of the last four completed 
  3.13  calendar quarters prior to the date the claimant's reemployment 
  3.14  insurance benefit account is effective.  This alternate base 
  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 period 
  3.18  under clause (2), or alternate base period under clause (3) 
  3.19  shall include wage credits upon which a prior reemployment 
  3.20  insurance benefit 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 payable available to a claimant, as provided in 
  3.25  sections 268.03 to 268.23, with respect to the claimant's 
  3.26  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 insurance 
  3.31  benefit account is effective.  For a reemployment 
  3.32  insurance benefit account established effective any January 1, 
  3.33  April 1, July 1, or October 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 made filed an application for a reemployment insurance 
  4.3   account benefits and has established or is actively pursuing the 
  4.4   establishment of a reemployment insurance benefit 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 defined excluded 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 similar reemployment 
  5.28  insurance law of any other state or employment covered under a 
  5.29  reemployment insurance system program established by an act of 
  5.30  Congress; and 
  5.31     (6) periods for which an individual receives back pay are 
  5.32  periods of "covered employment," except for the satisfying of 
  5.33  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 an 
  6.14  employer under United States Code, title 26, section 3306(a) of 
  6.15  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 or nonprofit 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 a full-time 
  7.19  basis in the solicitation on behalf of, and the transmission to, 
  7.20  a principal (except for sideline sales activities on behalf of 
  7.21  some other person), 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); or 
  7.33     (5) an individual whose service is considered employment 
  7.34  under United States Code, title 26, section 3306(c), of the 
  7.35  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 insurance 
  8.26  benefits are payable under a system established by an act of 
  8.27  Congress covered 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 to which 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, or 
  8.36  other organization described in United States Code, title 26, 
  9.1   section 501(c)(3) of the federal Internal Revenue Code and 
  9.2   exempt from income tax under section 501(a), but only if the 
  9.3   organization did not have one or more individuals in employment 
  9.4   for some portion of a day in each of 20 different weeks, whether 
  9.5   or not such weeks were consecutive, within either the current or 
  9.6   the prior calendar year, regardless of whether they were 
  9.7   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 any 
 10.12  organization exempt from income tax under United States Code, 
 10.13  title 26, section 501(a) or 521 of the federal Internal Revenue 
 10.14  Code except a trust described in section 401(a), if the 
 10.15  compensation for the employment is less than $50; 
 10.16     (14) (12) employment for Minnesota or a political 
 10.17  subdivision if the service is as 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  nontenured policy 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 Minnesota 
 10.34  or a political subdivision, the performance of the duties that 
 10.35  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 nontenured policy making or 
 11.2   advisory position; 
 11.3      (21) (18) domestic service employment 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 employed in domestic service 
 11.8   employment totaled less than $1,000. 
 11.9      "Domestic service employment" includes all service for an 
 11.10  individual in 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 vocation or 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 normally maintains a regular 
 11.26  faculty and curriculum and normally has 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 approved by 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 a an 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 a an 
 12.13  accredited medical school chartered and approved pursuant to 
 12.14  state law; 
 12.15     (30) (27) employment as an insurance agent or as an 
 12.16  insurance solicitor salesperson, 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 labor employment performed for an 
 12.33  individual, other than domestic employment under clause (18), 
 12.34  that does not in the course of the promote 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 the employment during one-half or more of any 
 13.4   pay period constitutes was covered employment, all the 
 13.5   employment for the pay period shall be considered covered 
 13.6   employment; but if the employment performed during more than 
 13.7   one-half of any pay period does not constitute covered the 
 13.8   employment was noncovered employment, then none all of the 
 13.9   employment for the pay period shall be considered covered 
 13.10  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 state 
 14.11  or under the reemployment insurance law of any other state.  Any 
 14.12  credit given for amounts reported under the reemployment 
 14.13  insurance law of another state shall be limited to that state's 
 14.14  taxable wage base when 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 which that have been actually paid or which that have 
 14.20  been credited to or set apart for the employee so that payment 
 14.21  and disposition is under the control of the employee.  Wage 
 14.22  payments delayed beyond their the regularly scheduled pay date 
 14.23  are considered "actually wages 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 "actually wages paid" on the 
 14.27  last day services are performed in of employment before 
 14.28  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, that 
 14.35  a claimant would be entitled to receive for a week, if totally 
 14.36  unemployed and eligible subdivision 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 OF 
 15.4   COMMISSIONER.] (a) An organization or person, not defined as an 
 15.5   employer, that files with the commissioner a written election to 
 15.6   become an employer, shall, with the written approval of the 
 15.7   commissioner, become an employer for not less than two calendar 
 15.8   years to the same extent as all other employers, as of the date 
 15.9   stated in the approval.  The organization or person shall cease 
 15.10  to be an employer as of the first day of January of any calendar 
 15.11  year, only, if at least 30 calendar days prior to the first day 
 15.12  of January, the organization or person has filed with the 
 15.13  commissioner a written notice to that effect. 
 15.14     (b) Any employer that has services employment performed for 
 15.15  it that do does not constitute employment and covered 
 15.16  employment, may file with the commissioner a written election 
 15.17  that all such service employment, 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  services employment shall constitute covered employment from and 
 15.22  after the date stated in the approval.  The services employment 
 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 separate tax 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 chargeable charged to each base 
 17.26  period employer's tax or reimbursable account shall bear be the 
 17.27  same ratio to percentage of the total amount of benefits paid to 
 17.28  a claimant as the percentage of wage credits the claimant was 
 17.29  paid by from the employer bear to is of the total amount of wage 
 17.30  credits the claimant was paid by from 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 $1 whole dollar, shall be 
 17.34  computed to the nearest multiple of $1 whole 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 claimant shall 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 following 
 18.6   conditions when: 
 18.7      (1) the claimant was discharged from the employment because 
 18.8   of gross aggravated employment misconduct as determined under 
 18.9   section 268.095.  This clause exception shall apply only to 
 18.10  benefits paid for weeks periods after the claimant's discharge 
 18.11  from employment; or 
 18.12     (2) a claimant's discharge from that employment was 
 18.13  required by occurred because a law mandating a background check, 
 18.14  or the claimant's discharge from that employment was required by 
 18.15  law because of a criminal conviction removal of the claimant 
 18.16  from the position the claimant held; or 
 18.17     (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 approximating during the benefit year of at least 90 
 18.23  percent of the part-time employment provided the claimant by 
 18.24  that employer in the base period, or for and 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; and 
 18.36     (iii) is an involved employer because of the claimant's 
 19.1   loss of other employment.  The This exception to charges shall 
 19.2   terminate effective the first week in the claimant's benefit 
 19.3   year that the employer fails to meet the provisions of subclause 
 19.4   (ii) benefit year employment requirements; 
 19.5      This clause shall apply to educational institution 
 19.6   employers without consideration of the period between academic 
 19.7   years or terms; or 
 19.8      (4) (5) the claimant's unemployment from this employer was 
 19.9   directly caused by a major natural disaster declared by the 
 19.10  president, if the claimant would have been eligible for federal 
 19.11  disaster unemployment assistance with respect to that 
 19.12  unemployment but for the claimant's receipt of reemployment 
 19.13  insurance benefits; or 
 19.14     (5) the claimant's unemployment from this employer was 
 19.15  directly caused by a direct result of the condemnation of 
 19.16  property by a governmental agency, a fire, flood, or act of God 
 19.17  nature, where 70 25 percent or more of the employees employed in 
 19.18  at the affected location, including the claimant, became 
 19.19  unemployed as a result and the employer substantially reopens 
 19.20  its operations in that same area within 18 months.  Benefits 
 19.21  This exception shall be charged to the employer not apply where 
 19.22  the unemployment is caused by was a direct result of the willful 
 19.23  intentional act of the employer or a person acting on behalf of 
 19.24  the employer; or 
 19.25     (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; or 
 19.28     (7) on a second reemployment insurance account established 
 19.29  pursuant to section 268.07, subdivision 3, where the employer 
 19.30  provided 90 percent or more of the wage credits in the 
 19.31  claimant's prior base period and the claimant did not perform 
 19.32  services for the employer during the second base period; or 
 19.33     (8) the claimant left or partially or totally lost 
 19.34  employment stopped working because of a strike or other labor 
 19.35  dispute at the claimant's primary place of employment if the 
 19.36  employer was not a party to the strike or labor 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 claimant shall not be charged to the tax 
 20.7   account of a taxpaying base period employer under the following 
 20.8   conditions when: 
 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 clause 
 20.15  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 clause exception 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 employment 
 20.22  because of reasons resulting directly from the claimant's 
 20.23  serious illness, that was determined not misconduct under 
 20.24  section 268.095, provided the employer made a reasonable effort 
 20.25  to retain the claimant in employment in spite of the claimant's 
 20.26  serious illness; or 
 20.27     (5) the claimant avoided or failed to accept an offer from 
 20.28  the employer of suitable reemployment, as determined under 
 20.29  section 268.095, or avoided or failed to accept an offer of 
 20.30  reemployment with substantially the same or better hourly wages 
 20.31  and conditions of employment as were previously provided by that 
 20.32  employer.  This clause shall only apply to benefits paid for 
 20.33  periods after the claimant's refusal or avoidance. 
 20.34     (6) the claimant was held not disqualified from benefits 
 20.35  under section 268.095 solely because of the application of 
 20.36  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   Notwithstanding Regardless of subdivision 1, no employer's 
 21.5   account shall be charged for benefits for which the reemployment 
 21.6   insurance fund 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 charges 
 21.21  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 corporations organizations 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 advanced borrowed 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 AN A TAXPAYING EMPLOYER'S 
 23.1   EXPERIENCE RATING.] (a) For each calendar year, the commissioner 
 23.2   shall compute an experience rating for an each 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 times 125 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 or more 
 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 which that 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 an 
 25.13  employer notwithstanding regardless 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 the 
 25.28  construction a 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 derived by dividing the total 
 25.33  amount of benefits paid all claimants during the 60 consecutive 
 25.34  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 construction a 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) the 
 26.6   state's average cost rate for construction employers to a 
 26.7   maximum of 8.9 8.0 percent, plus the applicable minimum tax 
 26.8   rate.  For purposes of this paragraph, the state's average cost 
 26.9   rate shall be computed annually and shall be derived by dividing 
 26.10  the total amount of benefits paid to claimants of construction 
 26.11  industry employers during the 60 consecutive calendar months 
 26.12  prior to July 1 of each year by the total taxable wages of 
 26.13  construction industry employers during the same period.  This 
 26.14  rate shall be applicable for the calendar year following the 
 26.15  computation date.  
 26.16     An employer is considered in the construction to be in a 
 26.17  high experience rating industry if: 
 26.18     (1) the employer is within division C of the Standard 
 26.19  Industrial Classification Manual issued by the United States 
 26.20  Office of Management and Budget, except as excluded by rules 
 26.21  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 advance loan 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 POLITICAL 
 27.14  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 insurance fund 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 next following the month in which that the 
 27.21  notice of benefits charged is mailed to the employer sent 
 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 written notice of election is filed with the commissioner 
 27.29  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 two three 
 27.36  calendar years immediately following the effective date of the 
 28.1   election and continue unless a written notice terminating the 
 28.2   election is filed with the commissioner not later than 30 
 28.3   calendar days prior to before 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 reemployment 
 28.11  insurance fund under subdivisions 3 and 4 shall apply to all 
 28.12  contributions taxes 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 obligations liability, the state and its wholly 
 28.20  owned instrumentalities shall pay the reemployment insurance 
 28.21  fund as follows: 
 28.22     (a) (1) Every self-sustaining department, institution and 
 28.23  wholly owned instrumentality of the state shall pay into the 
 28.24  fund the amounts the commissioner shall certify has been paid 
 28.25  from the fund that were charged to its account in 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 which where 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 state shall 
 28.32  pay into the fund the that same proportion of the sum amount 
 28.33  that the commissioner certifies has been paid from the fund has 
 28.34  been charged to its employer account as the proportion of the 
 28.35  total of its income and revenue bears is to its annual cost of 
 28.36  operation. 
 29.1      (c) (3) Every department, institution or wholly owned 
 29.2   instrumentality of the state which that is not self-sustaining 
 29.3   shall pay to the fund the amount the commissioner certifies has 
 29.4   been paid from the fund which were charged to their accounts to 
 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, which that have money available shall immediately pay 
 29.9   the fund for benefits paid which were charged to their accounts 
 29.10  upon receiving notification from the commissioner of the charges 
 29.11  in accordance with subdivision 1.  If a claimant was paid by a 
 29.12  department, institution or wholly owned instrumentality during 
 29.13  the claimant's base period from a special or administrative 
 29.14  account or fund provided by law, the payment into to the fund 
 29.15  shall be made from the special or administrative account or fund 
 29.16  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 which that cannot 
 29.20  immediately pay the fund for benefits that were charged to their 
 29.21  accounts, the commissioner shall certify on November 1 of each 
 29.22  calendar year to the department commissioner of finance the 
 29.23  unpaid balances due and owing.  Upon receipt of the 
 29.24  certification, the commissioner of the department of 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 TO 
 29.28  FUND.] A political subdivision or instrumentality thereof is 
 29.29  authorized and directed to pay its obligations under this 
 29.30  chapter liabilities by moneys money 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 obligations liabilities.  If the taxes authorized to be 
 29.34  levied under this subdivision cause 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 chapter liability.  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 any 
 30.5   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  CORPORATIONS ORGANIZATIONS.] 
 30.15     Subdivision 1.  [ELECTION.] (a) Any nonprofit organization 
 30.16  that is determined to be an employer has 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 insurance fund the amount of benefits 
 30.20  charged to the employer's its employer account under section 
 30.21  268.047. 
 30.22     (1) Any nonprofit The organization may elect to become 
 30.23  liable for make payments in lieu of taxes for a period of not 
 30.24  less than two three 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 written notice of election with the 
 30.27  commissioner not later than 30 calendar days immediately 
 30.28  following after 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 commissioner a written notice terminating its 
 30.32  election not later than 30 calendar days prior to before the 
 30.33  beginning of the calendar year for which the termination shall 
 30.34  first is 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 change elect to making make payments in lieu of taxes 
 31.7   by filing with the commissioner not later no less than 30 
 31.8   calendar days prior to before January 1 of any calendar year a 
 31.9   written notice of election to become liable for payments in lieu 
 31.10  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 written an appeal is filed within 30 calendar 
 31.28  days after mailing sending 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's reimbursable 
 31.32  account, during a calendar quarter, shall be made on or before 
 31.33  the last day of the month next following the month in which that 
 31.34  the notice of benefits charged is mailed to the employer sent 
 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 subdivision section, 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 the 
 32.17  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 which person that fails to 
 32.21  make and submit reports or pay 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 department for 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 assessed a fee of $20 which is in addition 
 32.31  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 order 
 32.33  or the reason for nonpayment with the exception of processing 
 32.34  errors made by a financial institution.  
 32.35     Costs due under this subdivision collected shall be paid to 
 32.36  the department and credited to the administration fund account. 
 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 the 
 33.6   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, or 
 33.14  composition, under the federal Bankruptcy Act of 1898, as 
 33.15  amended law, taxes then or thereafter due shall be entitled 
 33.16  to such the priority as is provided in that act law 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 TAXES LIEN, 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 this 
 33.24  chapter and including interest and, penalties imposed with 
 33.25  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 the 
 33.30  payment the obligation was due date of the notice of benefits 
 33.31  charged to a payment in lieu of taxes account. 
 33.32     (b)(1) The lien imposed by this section is 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 the 
 33.36  commissioner in the office of with the county recorder of the 
 34.1   county in which where the property is situated, or in the case 
 34.2   of personal property belonging to an individual who is not a 
 34.3   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 the notice of lien 
 34.6   is made in the office of filed with the county recorder, the fee 
 34.7   for filing and indexing shall be as prescribed provided 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 the 
 34.13  commissioner or a delegate into the computerized filing system 
 34.14  of the secretary of state authorized under 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 the 
 34.17  appropriate county recorder, if that is the place of filing, in 
 34.18  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 same 
 34.21  manner as 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 to on lien notices, renewals, and 
 34.24  releases filed in their offices into 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 filing 
 34.30  officer into the central database before the close of the 
 34.31  working day following the day of the original data entry by the 
 34.32  department commissioner.  
 34.33     (c) (e) The lien imposed on personal property by this 
 34.34  section, even though properly filed, is not enforceable against 
 34.35  a purchaser with respect to of tangible personal property 
 34.36  purchased at retail or as against the personal property listed 
 35.1   as exempt in sections 550.37, 550.38, and 550.39. 
 35.2      (d) (f) A notice of tax lien filed pursuant to this section 
 35.3   has priority over any security interest arising under chapter 
 35.4   336, article 9, which that is perfected prior in time to the 
 35.5   lien imposed by this section subdivision, but only if:  
 35.6      (1) the perfected security interest secures property not in 
 35.7   existence at the time the notice of tax lien is filed; and 
 35.8      (2) the property comes into existence after the 
 35.9   45th calendar day following the day on which the notice of tax 
 35.10  lien is filed, or after the secured party has actual notice or 
 35.11  knowledge of the tax lien filing, whichever is earlier. 
 35.12     (e) (g) The lien imposed by this section shall 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 commissioner before the expiration of the 
 35.16  ten-year period for an additional ten years.  The delinquent 
 35.17  employer must receive notice of the renewal. 
 35.18     (f) (h) The lien imposed by this section shall be 
 35.19  enforceable by levy as authorized in under subdivision 8 2 or by 
 35.20  judgment lien foreclosure as authorized in under chapter 550.  
 35.21     Subd. 2.  [LIMITATION FOR HOMESTEAD PROPERTY.] (i) The lien 
 35.22  may be imposed by this section is a lien upon property defined 
 35.23  as homestead property in chapter 510.  The lien but 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 duly 
 36.4   authorized representative, or by the sheriff of any county to 
 36.5   whom the commissioner has issued a warrant, who may by 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 is exempt from execution pursuant to under 
 36.9   section 550.37), or property on which there is a lien provided 
 36.10  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 and 
 36.14  demand for payment of the amount due shall be given to the 
 36.15  person liable for the tax or payment in lieu of taxes at least 
 36.16  ten days prior to the levy or issuing of a warrant.  
 36.17     (b) Upon In addition to a direct levy, the commissioner 
 36.18  issuing may 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 employer delinquent person within 
 36.21  the employer's county, except the homestead and household goods 
 36.22  of the employer and property of the employer not liable to 
 36.23  attachment, garnishment, or sale on any final process issued 
 36.24  from any court that exempt under the provisions of section 
 36.25  550.37, and.  The sheriff shall sell so much thereof as is 
 36.26  required that property necessary to satisfy the tax, payment in 
 36.27  lieu of taxes, interest, and penalties total 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 upon 
 36.31  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 the 
 36.33  commissioner, who shall retain a part thereof as is required to 
 36.34  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 taxes amount due is 
 37.5   in jeopardy, notice and demand for immediate payment of the 
 37.6   amount may be made by the commissioner.  If the tax or payment 
 37.7   in lieu of taxes total 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-day ten calendar day period provided herein.  
 37.10     (d) (e) In making the execution of executing the levy and 
 37.11  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 in or any other law for purposes of effecting an that 
 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 therefrom shall be as provided in chapter 550.  The 
 37.17  seal of the court, subscribed by the court administrator, as 
 37.18  provided in section 550.04, shall not be required.  The levy for 
 37.19  collection of taxes or payments in lieu of taxes may 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 or any other assessment 
 37.23  has been made by the commissioner, the property seized for 
 37.24  collection of the tax or payment in lieu of taxes total amount 
 37.25  due shall not be sold until any determination of liability, 
 37.26  rate, or benefit charges has become final.  No sale shall be 
 37.27  made unless the tax or payment in lieu of taxes remain a 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 employer delinquent 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 or 
 38.2   payments in lieu of taxes pursuant to this subdivision the 
 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 so orders.  
 38.8      (g) (h) The property seized shall be returned by the 
 38.9   commissioner if 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 as the commissioner deems considers 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 section would irreparably injure 
 38.18  rights in property which that the court determines to be 
 38.19  superior to rights of the state in the property, the district 
 38.20  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 commissioner shall be 
 38.25  personally liable to the department in 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 the 
 38.28  collection of which the levy has been made.  Any amount 
 38.29  recovered under this subdivision shall be credited against the 
 38.30  tax or payment in lieu of taxes liability for the collection of 
 38.31  which the levy was made.  The term "person" includes an officer 
 38.32  or employee of a corporation or a member or employee of a 
 38.33  partnership who, as an officer, employee, or member is under a 
 38.34  duty to surrender the property or rights to property or to 
 38.35  discharge the obligation due.  
 38.36     (j) Any action taken by the commissioner pursuant to this 
 39.1   subdivision shall not constitute an election by the department 
 39.2   to pursue a remedy to the exclusion of any other remedy.  
 39.3      (k) After If the commissioner has seized the property of 
 39.4   any person individual, that person individual 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 employer upon terms and 
 39.8   conditions as the court may deem considers equitable. 
 39.9      (l) Any person in control or possession of (or obligated 
 39.10  with respect to) property or rights to property subject to levy 
 39.11  upon which a levy has been made who, upon demand by the 
 39.12  commissioner, surrenders the property or rights to property, or 
 39.13  who pays a liability under this subdivision the 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 lieu 
 39.16  of taxes amount 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 the 
 39.19  contrary, The notice of any levy authorized by this section may 
 39.20  be served personally or by mail or by delivery by an employee or 
 39.21  agent of the department. 
 39.22     (n) It shall be lawful for The commissioner to may 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 to prevent any subsequent levy.  If the 
 39.27  commissioner determines that property has been wrongfully levied 
 39.28  upon, it shall be lawful for the commissioner to shall 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 the 
 39.34  commissioner made pursuant to the provisions of this section 
 39.35  upon an employer's a 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 employer person 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 the 
 40.6   commissioner must be substantiated by evidence of the date of 
 40.7   the setoff, and shall be verified by the sworn statement of a 
 40.8   responsible an affidavit from a corporate officer of the 
 40.9   financial institution.  Furthermore, For purposes of determining 
 40.10  the priority of any levy made under this section subdivision, 
 40.11  the levy shall be treated as if it were an execution made 
 40.12  pursuant to under 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 which that disburses its own funds, that an employer a 
 40.16  person has an uncontested delinquent tax or payment in lieu of 
 40.17  taxes a liability owed to the department under 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 employer that person, the commissioner of 
 40.21  finance or the state agency shall apply to the delinquent tax or 
 40.22  payment in lieu of taxes liability funds set off and pay to the 
 40.23  commissioner an amount sufficient to satisfy the unpaid 
 40.24  liability from funds appropriated for payment of said the 
 40.25  obligation of the state or any of its agencies that are due and 
 40.26  owing the employer otherwise due the person.  The credit shall 
 40.27  not be made against No amount shall be set off from any funds 
 40.28  exempt under section 550.37 or those funds owed due an 
 40.29  individual employer who 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 or 
 40.33  any of its agencies to an employer and any actions for the funds 
 40.34  shall be had against the commissioner on the issue of the tax or 
 40.35  payment in lieu of taxes liability.  Nothing in this section 
 40.36  shall be construed to limit the previously existing right of the 
 41.1   state or any of its agencies to setoff.  
 41.2      Notwithstanding Regardless of any law to the contrary, the 
 41.3   commissioner shall have first priority to setoff from any funds 
 41.4   owed by otherwise due from the department to a 
 41.5   delinquent employer person. 
 41.6      Subd. 5. 4.  [COLLECTION BY CIVIL ACTION.] (a) In addition 
 41.7   to all other collection methods authorized, if Any employer is 
 41.8   delinquent on any payment of taxes 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 as 
 41.11  required by this chapter or by any rule of the commissioner, the 
 41.12  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 be 
 41.14  credited to the funds provided for under those sections.  Any 
 41.15  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 of 
 41.18  taxes, interest thereon, or penalties shall be commenced more 
 41.19  than six years after the taxes have been reported by the 
 41.20  employer or determined by the commissioner to be due and 
 41.21  payable.  In any action, judgment shall be entered against any 
 41.22  employer in 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 employer person that is not a resident of this 
 41.26  state and any resident employer person removed from this state, 
 41.27  shall be considered to appoint the secretary of state as its 
 41.28  agent and attorney for the acceptance of process in any civil 
 41.29  action under this subdivision.  In instituting an action against 
 41.30  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 the 
 41.33  employer, and shall have the same force and validity as if 
 41.34  served upon the employer personally within this state.  The 
 41.35  commissioner shall send Notice 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 its person's last known address.  The 
 42.2   commissioner's An affidavit of compliance with the provisions of 
 42.3   this section subdivision, 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 shall 
 42.10  lie injunction or other legal action to enjoin prevent 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  ISSUANCES REVOCATIONS OF BUSINESS LICENSES.] 
 42.19     Subdivision 1.  [REEMPLOYMENT INSURANCE CLEARANCE 
 42.20  REQUIRED NOTICE OF DEBT TO LICENSING AUTHORITY.] The state of 
 42.21  Minnesota or a political subdivision of the state may 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 applicant licensee owes the 
 42.25  state delinquent taxes, payments in lieu of taxes, or benefit 
 42.26  overpayments.  The commissioner may not notify the licensing 
 42.27  authority unless the applicant owes, including interest, 
 42.28  penalties, and costs, of $500 or more to the reemployment 
 42.29  insurance fund.  A licensing authority that has received such a 
 42.30  notice from the commissioner may issue, transfer, renew, or not 
 42.31  revoke the applicant's license only if (a) the commissioner 
 42.32  issues a reemployment insurance tax clearance certificate; and 
 42.33  (b) the commissioner or the applicant forwards a copy of the 
 42.34  clearance to the licensing authority has received a copy of the 
 42.35  debt clearance certificate issued by the commissioner. 
 42.36     Subd. 2.  [ISSUANCE OF DEBT CLEARANCE CERTIFICATE.] The 
 43.1   commissioner may issue a reemployment insurance tax a debt 
 43.2   clearance certificate only if:  
 43.3      (a) (1) the applicant does not owe the state licensee 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 applicant licensee has entered into a payment 
 43.8   an agreement to liquidate the delinquent taxes, payments in lieu 
 43.9   of taxes, or benefit overpayments pay the total amount due and 
 43.10  is current with all the terms of that payment agreement. 
 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 which that the license is at issue or for another 
 43.23  entity for which that 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 means and 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 for 
 43.31  payment of the amount due of action under this section shall be 
 43.32  given mailed to the applicant licensee.  If the 
 43.33  applicant licensee disputes the amount due action, 
 43.34  the applicant licensee must request a hearing in writing appeal 
 43.35  within 30 calendar days after the mailing of the notice and 
 43.36  demand for payment to the applicant's licensee'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 due shall be 
 44.4   conducted in accordance with section 268.105. 
 44.5      Subd. 4. 5.  [LICENSING AUTHORITY; DUTIES.] Upon request of 
 44.6   the commissioner, the licensing authority must shall provide the 
 44.7   commissioner with a list of all applicants licensees, 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 authority a list 
 44.11  of the applicants licensees no more than once each calendar year.
 44.12  Notwithstanding Regardless of section 268.19, the commissioner 
 44.13  may release information necessary to accomplish the purpose of 
 44.14  this section. 
 44.15     Subd. 5.  [OTHER REMEDIES.] Any action taken by the 
 44.16  commissioner pursuant to this section is not an election by the 
 44.17  commissioner to pursue a remedy to the exclusion of any other 
 44.18  remedy.  
 44.19     Sec. 35.  Minnesota Statutes 1998, section 268.064, is 
 44.20  amended to read: 
 44.21     268.064 [LIABILITY OF SUCCESSOR FOR DEBTS UPON 
 44.22  ACQUISITION.] 
 44.23     Subdivision 1.  [ACQUISITION OF ORGANIZATION, TRADE, OR 
 44.24  BUSINESS, OR ASSETS.] Any individual or organization, whether or 
 44.25  not an employer, which person who acquires all or part of the 
 44.26  organization, trade, or business or all or part of the assets 
 44.27  thereof from 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, or business 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 so acquired which and shall be prior to all other 
 44.33  unrecorded liens.  This subdivision section 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 potential 
 45.1   successor acquiring person, shall determine the reasonable value 
 45.2   of the organization, trade, or business or assets acquired by 
 45.3   the successor based on available information.  The determination 
 45.4   shall be final unless the successor acquiring person, within 30 
 45.5   calendar days after the sending of being sent the determination 
 45.6   to the successor by 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 potential 
 45.11  successor acquiring person with a written statement of the 
 45.12  predecessor's taxes due and unpaid, on record as of the date of 
 45.13  issuance, only upon the written request of the 
 45.14  potential successor acquiring person and the written release of 
 45.15  the predecessor obligor.  No release is required after the date 
 45.16  of acquisition. 
 45.17     Subd. 4.  [ADDITIONAL REMEDY.] The remedy provided by this 
 45.18  section is in addition to all other existing remedies against 
 45.19  the employer or a successor and is not an election by the 
 45.20  department to pursue this remedy to the exclusion of any other 
 45.21  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 OF 
 45.25  AMOUNTS DUE FROM CONTRACTORS, SUBCONTRACTORS, AND EMPLOYEE 
 45.26  LEASING FIRMS.] 
 45.27     Subdivision 1.  [CONTRACTORS SUBCONTRACTORS.] 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 this 
 45.30  chapter, shall guarantee the payment of all the taxes, interest, 
 45.31  penalties, and collection costs which that are due or become due 
 45.32  from the subcontractor with respect to taxable wages paid for 
 45.33  employment on 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 and 
 45.36  sufficient bond guaranteeing the payment of all taxes, interest, 
 46.1   penalties, and collection costs which that 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 services employment performed under the 
 46.6   contract.  If department records show that the subcontractor has 
 46.7   paid the taxes for the period covered by the contract, 
 46.8   the department commissioner 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 directly jointly and severally liable 
 46.16  for the payment of all the unpaid taxes, penalties, interest, 
 46.17  and collection costs which that are due or become due from on 
 46.18  the wages paid for employment on the contract, unless the 
 46.19  contract requires with the employee leasing firm to provide a 
 46.20  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 employers without 
 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 official 
 46.27  designated by The commissioner shall make an initial a 
 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 written an appeal within 30 calendar 
 46.31  days after mailing of notice of being sent the determination to 
 46.32  the person's last known address by 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 final occurred 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 agreement order signed by the employer and the 
 47.11  commissioner. 
 47.12     The commissioner shall enter into a compromise agreement 
 47.13  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.  The 
 47.15  agreement must be approved by an attorney who is a regularly 
 47.16  salaried classified employee of the department and who has been 
 47.17  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 insurance 
 47.32  benefits in places readily accessible to individuals workers in 
 47.33  the employer's service.  Such The printed statements must shall 
 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 insurance benefits from the Minnesota 
 48.4   reemployment insurance fund 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 insurance benefit 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 268.08 sections 268.085 
 48.13  and 268.086; and 
 48.14     (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 determine has 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 a 
 48.33  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 INSURANCE BENEFIT ACCOUNT.] 
 49.5      Subdivision 1.  [APPLICATION FOR BENEFITS; DETERMINATION OF 
 49.6   BENEFIT ACCOUNT.] (a) An application for reemployment insurance 
 49.7   benefits may be made filed 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 requirements 
 49.10  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 promptly examine each 
 49.15  application for benefits to determine the base period, the 
 49.16  benefit year, the weekly benefit amount payable available, if 
 49.17  any, and the maximum amount of benefits payable available, if 
 49.18  any.  The determination shall be known as the determination 
 49.19  of reemployment insurance benefit account.  A determination 
 49.20  of reemployment insurance benefit account must shall 
 49.21  be promptly sent to the claimant and all base period employers, 
 49.22  by mail or electronic transmission. 
 49.23     (c) If a base period employer failed to did not provide 
 49.24  wage information for the claimant as required provided 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 insurance 
 49.28  benefit account. 
 49.29     (d)(1) The commissioner may, at any time within 24 months 
 49.30  from the establishment of a reemployment insurance benefit 
 49.31  account, reconsider any determination of reemployment 
 49.32  insurance benefit 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 account 
 49.35  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 insurance benefit 
 50.2   account reduces the weekly benefit amount or maximum amount of 
 50.3   benefits payable available, any benefits that have been paid 
 50.4   greater than the claimant was redetermined entitled is 
 50.5   considered an overpayment subject to of 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 insurance benefit account, a claimant must have: 
 50.10     (1) wage credits in two or more calendar quarters of the 
 50.11  claimant's base period; 
 50.12     (2) minimum total wage credits equal to or greater than the 
 50.13  high quarter wage credits multiplied by 1.25; 
 50.14     (3) high quarter wage credits of not less than at 
 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 that a claimant has 
 50.19  established a reemployment insurance benefit account, the weekly 
 50.20  benefit amount payable available during the claimant's benefit 
 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's base 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's total wage credits by 
 50.30  52.  The claimant's average weekly wage under clause (2) shall 
 50.31  be computed by dividing the claimant's high 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 to rounded down to the nearest next lowest 
 50.36  whole dollar.  
 51.1      (d) The maximum amount of benefits payable available on any 
 51.2   reemployment insurance benefit account shall equal one-third be 
 51.3   33-1/3 percent of the claimant's total wage credits rounded to 
 51.4   the next lower dollar, not to exceed to 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 insurance benefit account 
 51.8   following the expiration of a benefit year on a 
 51.9   prior reemployment insurance benefit account, a claimant must 
 51.10  have sufficient wage credits to establish a reemployment 
 51.11  insurance benefit account under subdivision 2 and must have 
 51.12  performed services in covered employment after the effective 
 51.13  date of the prior reemployment insurance benefit 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 reemployment 
 51.16  insurance benefit account.  A reemployment insurance benefit 
 51.17  account established sufficiently in advance of 
 51.18  anticipated unemployment loss 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 insurance 
 51.22  benefit account as a result of one separation from loss of 
 51.23  employment. 
 51.24     Subd. 3a.  [RIGHT OF APPEAL.] (a) A determination or 
 51.25  redetermination of a reemployment insurance benefit 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 insurance benefit account 
 51.30  shall contain a prominent statement indicating in clear language 
 51.31  the method of appealing, the time within which the appeal must 
 51.32  be made, and the 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 insurance 
 51.36  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 insurance 
 52.4   benefit account shall be established effective the Sunday of the 
 52.5   calendar week that the application for reemployment insurance 
 52.6   benefits was made filed.  If an individual attempted to make 
 52.7   file an application for a reemployment insurance 
 52.8   account benefits, but was prevented from making filing an 
 52.9   application by the department, the reemployment insurance 
 52.10  benefit account shall be established effective the Sunday of the 
 52.11  calendar week the individual first attempted to make file an 
 52.12  application. 
 52.13     (b) A reemployment insurance benefit account, once 
 52.14  established, may later be withdrawn and only if: 
 52.15     (1) a new application for benefits is filed and a new 
 52.16  benefit account is established only if at the time of the 
 52.17  withdrawal; and 
 52.18     (2) the claimant has not been credited with served 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 insurance benefit account, shall remain in 
 52.23  effect and shall not be voided by the withdrawal of 
 52.24  the reemployment insurance benefit 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 be 
 52.29  established An 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 insurance benefit 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 payable available 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's 
 53.5   benefit year only if: 
 53.6      (1) the claimant has made an active benefit account and has 
 53.7   filed a continued claim request for benefits in person, by mail, 
 53.8   by telephone, or by electronic transmission as the commissioner 
 53.9   shall require.  The commissioner may by rule adopt other 
 53.10  requirements for a continued claim for 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 of This 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     A The requirement that the claimant serving as a juror 
 53.21  shall be considered as available for employment and actively 
 53.22  seeking suitable employment on shall 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 insurance benefit 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 services and 
 53.33  resume writing classes, if the claimant has been 
 53.34  determined likely to exhaust benefits and in need of 
 53.35  reemployment assistance services pursuant to a profiling system 
 53.36  established by the commissioner, unless there is justifiable 
 54.1   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 establishment effective date of 
 54.5   a reemployment insurance benefit 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 unemployed who 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 of 
 54.22  absence ineligible 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 work regardless 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 claim an 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 federal 
 54.31  or state benefits that are merely supplementary to those 
 54.32  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 a 
 55.2   claim for 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 dismissal payment or wages 
 55.5   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 allowance pay, paid directly by the an 
 55.18  employer for a period of requested vacation, including vacation 
 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; or 
 55.22     (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 and paid for 
 55.26  in whole or in part by the an employer; or 
 55.27     (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 as which 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 subdivision is 
 56.9   less than the claimant's weekly benefit amount, the claimant 
 56.10  shall be entitled to receive for that week, if otherwise 
 56.11  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 other 
 56.16  state or the federal government finally 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 whole 
 56.19  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 making when 
 56.22  filing an application for a reemployment insurance account 
 56.23  benefits and when making filing continued claims requests 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 if 
 56.27  so. 
 56.28     (b) There shall be deducted from the a 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 claim for 
 56.36  primary social security disability benefits, unless the social 
 57.1   security administration has approved the payment of disability 
 57.2   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 to 
 57.8   be ineligible under this subdivision, for weeks periods that the 
 57.9   claimant received has 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, that 
 57.22  is less than the claimant's weekly benefit amount, that amount 
 57.23  over the following shall be deducted from the claimant's weekly 
 57.24  benefit amount: 
 57.25     (1) that amount in excess of $50 if the claimant's earnings 
 57.26  were $200 or less, and that amount in excess of 25 percent of 
 57.27  the claimant's earnings if those earnings were more than $200 or 
 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 claims requests 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 weeks week 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 weeks that week. 
 58.13     The amount deducted shall not reduce the benefits that the 
 58.14  claimant is otherwise eligible for that week below zero.  If the 
 58.15  amount of benefits after the deduction of back pay is not a 
 58.16  whole dollar amount, it shall be rounded to the next lower 
 58.17  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 claimant is reduced by the 
 58.24  amount of benefits that have been paid, the amounts amount of 
 58.25  back pay withheld shall be: 
 58.26     (a) (1) paid by the employer into to the fund within 30 
 58.27  calendar days of the award and are subject to the same 
 58.28  collection procedures that apply to past due taxes under this 
 58.29  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's maximum amount of 
 58.33  benefits payable available 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 weeks to 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 of 
 59.2   in the calendar quarter that the 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 while in an instructional, research, or 
 59.8   principal administrative any capacity may be used for benefit 
 59.9   purposes for any week beginning during a the period between two 
 59.10  successive academic years or terms, or during a period between 
 59.11  two regular but not successive terms, if: 
 59.12     (1) the claimant had employment in any instructional, 
 59.13  research, or principal administrative capacity for any 
 59.14  educational institution or institutions in the first of the 
 59.15  prior academic years year or terms term; and 
 59.16     (2) there is a contract or a reasonable assurance that the 
 59.17  claimant will have employment in any instructional, research, or 
 59.18  principal administrative capacity for any educational 
 59.19  institution or institutions in the second of the following 
 59.20  academic years year or terms term, that is not substantially 
 59.21  similar to less favorable than the employment of the first prior 
 59.22  academic years year or terms; term.  
 59.23     (b) With respect to employment in any capacity other than 
 59.24  those described in paragraph (a), including educational 
 59.25  assistants, benefits shall not be paid based upon wage credits 
 59.26  from any educational institution or institutions for any week 
 59.27  beginning during a period between two successive academic years 
 59.28  or terms if the claimant was employed in the first academic year 
 59.29  or term by any educational institution or institutions and there 
 59.30  is reasonable assurance that the claimant will be employed under 
 59.31  similar terms and conditions by any educational institution or 
 59.32  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 period in 
 60.1   other than an instructional, research, or principal 
 60.2   administrative capacity and the educational institution or 
 60.3   institutions fail failed to provide that employment.  
 60.4      (c) If benefits are denied to any claimant under this 
 60.5   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 claimant who was not offered an 
 60.8   opportunity to perform the employment in the second of the 
 60.9   following academic years year 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 claim request for benefits, but benefits were denied 
 60.13  solely because of this paragraph; (a).  
 60.14     (c) With respect to employment described in 
 60.15     (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 credits 
 60.19  from any educational institution or institutions shall not be 
 60.20  paid for any week beginning during an established and 
 60.21  customary apply to any vacation period or holiday recess if the 
 60.22  claimant was employed in the period immediately 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 period 
 60.25  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 or 
 61.3   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 institution elementary 
 61.29  or secondary school; and 
 61.30     (2) the contract was for services that the educational 
 61.31  institution elementary or secondary school could have had 
 61.32  performed by its employees; and 
 61.33     (3) the claimant was notified in writing of the provisions 
 61.34  of this subdivision prior to or at the time of beginning the 
 61.35  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.  [SEASONAL RECREATIONAL OR TOURIST INDUSTRY 
 62.13  EMPLOYMENT.] (a) If a claimant has wage credits from seasonal 
 62.14  recreational or tourist industry employment, benefits shall 
 62.15  be payable available only if the claimant can establish 
 62.16  a reemployment insurance benefit account under section 268.07, 
 62.17  subdivision 2, excluding the wage credits from seasonal 
 62.18  recreational or tourist industry employment.  For purposes of 
 62.19  This subdivision, "seasonal employment" means applies only to 
 62.20  employment with a single employer in the recreation or tourist 
 62.21  industry that is available with the employer for 15 consecutive 
 62.22  weeks or less each calendar year. 
 62.23     (b) Wage credits from seasonal recreational 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.  [PROFESSIONAL ATHLETES AND COACHES.] Benefits 
 62.27  shall not be paid to a claimant on the basis of any wage credits 
 62.28  from employment that substantially consists of coaching or 
 62.29  participating in sports or athletic events or training or 
 62.30  preparing to participate for any week that begins during 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 first prior 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 the 
 63.14  Immigration and Nationality Act. 
 63.15     (c) Any data or information required of claimants applying 
 63.16  for benefits to determine eligibility because of their alien 
 63.17  status shall be uniformly required 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 quits quit 
 69.17  employment shall be disqualified from all benefits except when: 
 69.18     (1) unless the claimant quit the employment because of a 
 69.19  good reason caused by the employer; 
 69.20     (2) unless the claimant quit the employment to accept other 
 69.21  covered employment that provided substantially higher wages or 
 69.22  substantially better 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) unless the 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) unless the employment was unsuitable for the claimant 
 69.30  and the claimant quit to enter approved reemployment assistance 
 69.31  training; 
 69.32     (5) unless the 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 reemployment 
 69.36  insurance benefit account under section 268.07; or 
 70.1      (6) unless the 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 of If the claimant's 
 70.18  serious illness of is chemical dependency, the claimant has not 
 70.19  made reasonable efforts to remain in that employment if the 
 70.20  claimant has previously been professionally diagnosed as 
 70.21  chemically dependent, or has previously voluntarily submitted to 
 70.22  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 the 
 71.34  existence of the harassment and fails to take timely and 
 71.35  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 is was discharged 
 72.4   from employment by an employer shall not be disqualified from 
 72.5   any benefits except when: 
 72.6      (1) unless the claimant was discharged because of 
 72.7   employment misconduct that interfered with and adversely 
 72.8   affected that employment.  This clause shall not apply if:; or 
 72.9      (i) the misconduct was a direct result of the claimant's 
 72.10  serious illness provided that the claimant made reasonable 
 72.11  efforts to remain in that employment in spite of the serious 
 72.12  illness.  
 72.13     Reasonable efforts to remain in that employment require 
 72.14  that the claimant inform the employer of the serious illness and 
 72.15  request accommodation. 
 72.16     If the misconduct was a direct result of the claimant's 
 72.17  serious illness of chemical dependency, the claimant has not 
 72.18  made reasonable efforts to remain in that employment if the 
 72.19  claimant has previously been professionally diagnosed chemically 
 72.20  dependent or the claimant has previously voluntarily submitted 
 72.21  to treatment for chemical dependency and has failed to make 
 72.22  consistent efforts to control the chemical dependency. 
 72.23     This subclause shall not apply if the misconduct was a 
 72.24  violation of section 169.121, 169.1211, or 169.123; or 
 72.25     (ii) the employment was part time and the claimant had 
 72.26  full-time employment in the base period, that the claimant 
 72.27  separated from because of nondisqualifying reasons, sufficient 
 72.28  to meet the minimum requirements to establish a reemployment 
 72.29  insurance account under section 268.07; 
 72.30     (2) unless the claimant was discharged because of 
 72.31  gross aggravated employment misconduct that interfered with and 
 72.32  adversely affected that employment.  
 72.33     Subd. 4a.  [AGGRAVATED EMPLOYMENT MISCONDUCT DEFINED.] For 
 72.34  the purpose of this clause section, "gross aggravated employment 
 72.35  misconduct" means: 
 72.36     (i) (1) the commission of any act, on the job or off the 
 73.1   job, that amounts would 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, gross aggravated 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 acts for which the claimant was discharged, 
 73.11  it is gross aggravated employment misconduct; or. 
 73.12     (3) if the claimant was discharged because the claimant 
 73.13  gave notice of intention to quit the employment within 30 
 73.14  calendar days.  This clause shall be effective only through the 
 73.15  end of the calendar week that includes the intended date of 
 73.16  quitting.  Thereafter the separation from employment shall be 
 73.17  considered a quit of employment by the claimant, and a 
 73.18  disqualification, if any, shall begin with the Sunday of the 
 73.19  week following the week that includes the intended date of 
 73.20  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's 
 73.24  services are no longer desired by the employer 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 is means: 
 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, or poor performance as a result because 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 benefits 
 75.8   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) was the claimant is employed in other suitable 
 75.13  employment; 
 75.14     (2) the claimant is in approved reemployment assistance 
 75.15  training; or 
 75.16     (2) (3) the claimant formerly worked for the employer and 
 75.17  the claimant's last separation from loss of employment with the 
 75.18  employer occurred prior to the commencement of a strike or other 
 75.19  labor dispute, was permanent or for an indefinite period, and 
 75.20  the claimant failed to apply for or accept reemployment the 
 75.21  employment because a strike or other labor dispute was in 
 75.22  progress at the establishment where the claimant was previously 
 75.23  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 is means 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 local employment 
 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) No In 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 to because 
 76.36  of a strike, lockout, or other labor 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 locality labor 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) Notwithstanding In addition to paragraph (a), if the 
 77.19  claimant was discharged from employment because of gross 
 77.20  aggravated employment misconduct, the disqualification shall be 
 77.21  for the duration of the claimant's unemployment and until the 
 77.22  end of the calendar week that the claimant had total earnings in 
 77.23  subsequent covered employment of 12 times the claimant's weekly 
 77.24  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 insurance benefit account, or the benefit year, 
 77.32  except as provided for in subdivisions subdivision 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 or 
 78.2   partially or totally lost employment with an employer stopped 
 78.3   working because of a strike or other labor dispute at the 
 78.4   establishment where the claimant is or was employed shall be 
 78.5   disqualified from benefits: 
 78.6      (1) until the end of the calendar week that the strike or 
 78.7   labor dispute was in active progress if the claimant is 
 78.8   participating in or directly interested in the strike or labor 
 78.9   dispute; or 
 78.10     (2) until the end of the calendar week that the strike or 
 78.11  labor dispute commenced began if the claimant is not 
 78.12  participating in or directly interested in the strike or labor 
 78.13  dispute.  
 78.14     Participation includes the any 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 lost 
 78.18  employment with an employer stopped working because of a 
 78.19  jurisdictional controversy between two or more labor 
 78.20  organizations at the establishment where the claimant is or was 
 78.21  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 unemployed stops working because 
 78.27  of a strike caused by an employer's willful intentional 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 and or state laws involving occupational 
 78.31  safety and health; 
 78.32     (2) the claimant becomes unemployed stops working because 
 78.33  of a lockout; or 
 78.34     (3) the claimant is discharged during the period of 
 78.35  negotiation and prior to the commencement beginning of a strike 
 78.36  or other labor dispute.  
 79.1      (d) A quit from employment by the claimant during the time 
 79.2   that the strike or other labor dispute is in active progress at 
 79.3   the establishment shall not be considered to terminate the 
 79.4   claimant's participation in or direct interest in the strike or 
 79.5   other labor 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) Upon In an application 
 79.14  for a reemployment insurance account benefits, 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 insurance benefit 
 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 protest raise, 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 protest raise an issue may have on 
 80.2   the employer charges under section 268.047.  A protest made An 
 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 made filed continued claims requests for 
 80.8   benefits pursuant to section 268.086.  Each claimant who 
 80.9   stops making filing continued claims requests during the benefit 
 80.10  year and later begins making filing continued claims requests 
 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 making filing of continued claims requests, 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 making filing 
 80.17  of continued claims requests 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 a 
 80.22  protest raise, 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 protest raise an issue may have on the 
 80.26  employer charges under section 268.047.  A protest made An 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 on raising 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 discharge for no 
 81.3   longer working for the employer, if known. 
 81.4      Subd. 2.  [DISQUALIFICATION DETERMINATION.] (a) The 
 81.5   commissioner shall promptly determine any issue of 
 81.6   disqualification timely raised by a timely protest made by 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 forth state the effect on employer 
 81.11  charges under section 268.047. 
 81.12     (b) The commissioner shall promptly determine any issue of 
 81.13  disqualification raised by information obtained required from a 
 81.14  claimant pursuant to under 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 forth state 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 promptly determine any untimely 
 81.24  issue of disqualification raised by an untimely protest made by 
 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 forth state 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 issued 
 81.31  pursuant to this paragraph shall begin the Sunday two weeks 
 81.32  following the week that the untimely protest was made.  
 81.33  Notwithstanding any provisions to the contrary If 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 of exception to employer charges as a result of a 
 82.2   determination issued pursuant to this paragraph under section 
 82.3   268.047, subdivisions 2 and 3, shall begin the Sunday two weeks 
 82.4   following the week that the untimely protest issue was made 
 82.5   raised. 
 82.6      (d) If any time within 24 months from the establishment of 
 82.7   a reemployment insurance benefit 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 promptly determine 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 forth state the effect on employer charges under section 
 82.17  268.047. 
 82.18     This paragraph shall not apply if the involved employer was 
 82.19  notified and given the opportunity to protest pursuant to 
 82.20  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, and the 
 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 earnings 
 83.8   sufficient to satisfy the disqualification satisfied 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 nondisqualification where the 
 83.13  claimant has had subsequent earnings sufficient to 
 83.14  satisfy satisfied any otherwise potential disqualification under 
 83.15  section 268.095, subdivision 10.  
 83.16     Subd. 3.  [ELIGIBILITY DETERMINATION.] (a) The commissioner 
 83.17  shall promptly determine any issue of eligibility raised by a 
 83.18  timely protest made by 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 promptly determine any issue of 
 83.23  eligibility raised by information obtained from a claimant and 
 83.24  mail to the claimant and any involved employer at 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 of 
 83.30  eligibility raised by an untimely protest made by an employer 
 83.31  and mail to the claimant and that employer at the last known 
 83.32  address a determination of eligibility or a determination of 
 83.33  ineligibility, as is appropriate.  Any denial of benefits 
 83.34  imposed as a result of determination issued pursuant to this 
 83.35  paragraph shall begin the Sunday two weeks following the week 
 83.36  that the untimely protest was made. 
 84.1      (d) If any time within 24 months from the establishment of 
 84.2   a reemployment insurance benefit 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's on 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 employer 
 84.8   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 was 
 84.11  notified, was aware, or should have been aware of the issue of 
 84.12  eligibility at the time of notification, and was given the 
 84.13  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 time 
 84.22  within which an appeal must be made, and the 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 of regarding 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.] Notwithstanding Regardless 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 at 
 85.12  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.  [PROMPT BENEFIT PAYMENT.] If a determination or 
 85.20  amended determination awards allows benefits to a claimant, the 
 85.21  benefits shall be promptly paid 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 to under 
 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 INSURANCE HEARINGS; 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  give mail 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 rule adopt a 
 86.20  procedure by which reemployment insurance judges hear and decide 
 86.21  appeals, subject to further appeal to the commissioner rules 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 written A report of any employee of the 
 86.25  department, except a determination, made in the regular course 
 86.26  of the performance of the 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  presented obtained, the reemployment insurance judge shall mail 
 86.30  make written findings of fact and decision and mail those to all 
 86.31  involved parties.  The reemployment insurance judge's decision 
 86.32  is the final department decision unless a further appeal is 
 86.33  filed pursuant to subdivision 3 2. 
 86.34     Subd. 2.  [REEMPLOYMENT INSURANCE JUDGES.] (d) The 
 86.35  commissioner shall designate regular salaried classified 
 86.36  employees of the department as impartial reemployment 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 party claimant 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 the that evidence submitted at the hearing before the 
 87.21  reemployment insurance judge under 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 disregard shall, 
 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 any those findings of fact as the evidence may, in the 
 87.29  judgment of the commissioner require, and make any that 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 by under 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 awards allows 
 88.22  benefits to a claimant, the benefits shall be promptly paid 
 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 awarding allowing benefits to a 
 88.26  claimant, any benefits paid pursuant to the determination is 
 88.27  considered an overpayment of those benefits subject to under 
 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 awarding allowing 
 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 to under 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 awards 
 89.1   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 3 2, 
 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 the 
 89.13  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 to 
 89.16  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 records personal property 
 89.19  considered necessary as evidence in connection with the subject 
 89.20  matter of the an evidentiary hearing.  The subpoenas shall be 
 89.21  enforceable through the district court in the district in which 
 89.22  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 this 
 89.25  section shall be allowed fees paid by the commissioner the same 
 89.26  as witness fees as in a civil action in district court.  These 
 89.27  fees shall be considered a part of the expense of administering 
 89.28  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 a commissioner 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 party under 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 its 
 90.29  officers the Minnesota court of appeals, or supreme court of 
 90.30  Minnesota. 
 90.31     Subd. 7.  [COURT OF APPEALS; ATTORNEY FOR COMMISSIONER 
 90.32  JUDICIAL REVIEW.] (a) The Minnesota court of appeals may shall, 
 90.33  by writ of certiorari to the commissioner, review any the 
 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 involved employer, 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 before issuance 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 a the 
 91.20  primary responding party to any judicial action involving any 
 91.21  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 any 
 91.24  qualified an attorney who is a regular salaried classified 
 91.25  employee of the department and has been designated 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.] As The terms used in this 
 91.32  section, unless the context clearly requires otherwise shall 
 91.33  have the following meaning:  
 91.34     (1) [EXTENDED BENEFIT PERIOD.] "Extended benefit period" 
 91.35  means a period which that lasts for a minimum of 13 weeks and 
 91.36  that:  
 92.1      (a) (i) Begins with the third week after a week for which 
 92.2   there is a state "on" indicator; and 
 92.3      (b) (ii) Ends with either of the following weeks, whichever 
 92.4   occurs later: the third week after the first week for which 
 92.5   there is a state "off" indicator; or the 13th consecutive week 
 92.6   of the period;. 
 92.7      Provided, that No 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 state for a week if the commissioner 
 92.12  determines, in accordance with the regulations of the United 
 92.13  States Secretary of Labor, that:  
 92.14     (i) for the period consisting of such that week and the 
 92.15  immediately preceding prior 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  such the rates for the corresponding 13-week period ending in 
 92.19  each of the preceding prior two calendar years, and 
 92.20     (b) equaled or exceeded was 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 as 
 92.23  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 whether 
 92.26  the percentage requirement provided by clause (a) is met or 
 92.27  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 state for a week if: 
 92.36     (i) under clause (2)(i), for the period consisting of 
 93.1   such that week and the immediately preceding prior 12 weeks, 
 93.2   the rate of insured unemployment is less than six percent and 
 93.3   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  individuals claimants filing claims continued requests for 
 93.11  regular benefits in this state for weeks of unemployment with 
 93.12  respect to the most recent 13 consecutive week 13-week period, 
 93.13  as determined by the commissioner on the basis of the 
 93.14  commissioner's reports to the United States Secretary of Labor, 
 93.15  by the average monthly covered employment covered under this law 
 93.16  for the first four of the most recent last six completed 
 93.17  calendar quarters ending before the end of such that 13-week 
 93.18  period. 
 93.19     (5) [REGULAR BENEFITS.] "Regular benefits" means 
 93.20  benefits payable available to an individual under this law or 
 93.21  under any other state law (including benefits payable to federal 
 93.22  civilian employees and to ex-servicemen pursuant to United 
 93.23  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 benefits 
 93.26  (including benefits payable to federal civilian employees and to 
 93.27  ex-servicemen pursuant to United States Code, title 5, chapter 
 93.28  85) payable to an individual under the provisions of this 
 93.29  section for weeks of unemployment in the individual's 
 93.30  eligibility period. 
 93.31     (7) [ADDITIONAL BENEFITS.] "Additional benefits" means 
 93.32  benefits payable to exhaustees by reason of conditions of high 
 93.33  unemployment or by reason of other special factors under the 
 93.34  provisions of any state law. 
 93.35     (8) [ELIGIBILITY PERIOD.] "Eligibility period" of an 
 93.36  individual for a claimant means the period consisting of the 
 94.1   weeks remaining in the individual's claimant's benefit year 
 94.2   which begin in an within the extended benefit period and, if the 
 94.3   benefit year ends within such the extended benefit period, any 
 94.4   weeks thereafter which begin in such the extended benefit period.
 94.5      (9) (7) [EXHAUSTEE.] "Exhaustee" means an individual a 
 94.6   claimant who, with respect to any week of unemployment in the 
 94.7   individual's eligibility period: 
 94.8      (a) the benefit year having not expired has received, prior 
 94.9   to such week, all of the maximum amount of regular benefits that 
 94.10  were available under this law or any other state law (including 
 94.11  dependents' allowances and benefits payable to federal civilian 
 94.12  employees and ex-servicemen under United States Code, title 5, 
 94.13  chapter 85) in the individual's current benefit year that 
 94.14  includes such week; 
 94.15     Provided, that, for the purposes of this paragraph, an 
 94.16  individual shall be considered to have received all of the 
 94.17  regular benefits that were available to the individual although 
 94.18  as a result of a pending appeal with respect to wage credits 
 94.19  that were not considered in the original monetary determination 
 94.20  in the individual's benefit year, the individual may 
 94.21  subsequently be determined to be entitled to added regular 
 94.22  benefits section 268.07; or 
 94.23     (b) the individual's benefit year having expired prior to 
 94.24  such week, has no, or insufficient, wages and/or employment on 
 94.25  the basis of which the individual could wage credits to 
 94.26  establish a new benefit year that would include such week or 
 94.27  having established a benefit year that includes such week, the 
 94.28  individual is precluded from receiving regular compensation by 
 94.29  reason of:  (i) a state law provision which meets the 
 94.30  requirements of section 3304 (a) (7) of the Internal Revenue 
 94.31  Code of 1954, or (ii) a disqualification determination which 
 94.32  canceled wage credits or totally reduced benefit rights, or 
 94.33  (iii) benefits are not payable by reason of a seasonal 
 94.34  limitation in a state reemployment insurance benefits 
 94.35  law account; 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 Railroad 
 95.2   Unemployment Insurance Act, the Trade Expansion Act of 1962, the 
 95.3   Automotive Products Act of 1965 and such law of any other state 
 95.4   or under federal laws as are specified in regulations issued by 
 95.5   the United States Secretary of Labor; and has not received and 
 95.6   is not seeking receiving reemployment insurance benefits under 
 95.7   the unemployment compensation law of Canada; but if the 
 95.8   individual is seeking such benefits and the appropriate agency 
 95.9   finally determines that the individual is not entitled to 
 95.10  benefits under such law the individual is considered an 
 95.11  exhaustee. 
 95.12     (10) [STATE LAW.] "State law" means the reemployment 
 95.13  insurance benefits law of any state, approved by the United 
 95.14  States Secretary of Labor under section 3304 of the Internal 
 95.15  Revenue Code of 1954. 
 95.16     Subd. 2.  [EFFECT OF STATE LAW PROVISIONS RELATING TO 
 95.17  REGULAR BENEFITS ON CLAIMS FOR, AND THE PAYMENT OF, EXTENDED 
 95.18  BENEFITS.] Except when the result would be inconsistent with the 
 95.19  other provisions of this section, as provided in the rules of 
 95.20  the commissioner, the provisions of this chapter which apply to 
 95.21  claims for, or the payment of, regular benefits shall apply to 
 95.22  claims for, and the payment of, extended benefits. 
 95.23     Subd. 3.  [ELIGIBILITY REQUIREMENTS FOR EXTENDED BENEFITS.] 
 95.24  If an extended benefit period is in effect, a claimant shall 
 95.25  be eligible to receive paid extended benefits with respect to 
 95.26  from the fund for any week in the claimant's eligibility 
 95.27  period only if with respect to that week the 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 law as 
 95.31  those for the receipt of regular benefits that are applicable to 
 95.32  claimants claiming extended benefits, including not being 
 95.33  subject to a disqualification for the receipt of benefits under 
 95.34  section 268.069; and 
 95.35     (3) has, during the claimant's base period earned wage 
 95.36  credits available for benefit purposes of not less than 40 times 
 96.1   the claimant's weekly benefit amount as determined pursuant to 
 96.2   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 of 
 96.7   total unemployment in the individual's eligibility period shall 
 96.8   be an amount equal to the same as the weekly benefit amount 
 96.9   payable during the individual's applicable benefit year of 
 96.10  regular benefits. 
 96.11     Subd. 5.  [TOTAL EXTENDED BENEFIT MAXIMUM AMOUNT OF 
 96.12  EXTENDED BENEFITS.] The total extended benefit maximum amount 
 96.13  payable to any eligible individual with respect to the 
 96.14  individual's applicable benefit year of extended benefits 
 96.15  available to a claimant shall be 50 percent of the total maximum 
 96.16  amount of regular benefits which were payable under this 
 96.17  law available in the applicable benefit year, provided that at 
 96.18  the expiration of the benefit year, the individual's remaining 
 96.19  balance of extended benefits shall be reduced, but not below 
 96.20  zero, by the product arrived at by multiplying the individual's 
 96.21  weekly extended benefit amount by the number of weeks in the 
 96.22  individual's expired benefit year for which any trade 
 96.23  readjustment allowance was paid pursuant to sections 231 to 234 
 96.24  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 BENEFIT 
 96.30  PERIOD PUBLIC ANNOUNCEMENT.] (a) Whenever an extended benefit 
 96.31  period is to become effective in this state begin as a result of 
 96.32  a state "on" indicator, or an extended benefit period is to be 
 96.33  terminated in this state end 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 subdivision 
 97.1   1, paragraph (4), shall be made by the commissioner, in 
 97.2   accordance with regulations prescribed by the United States 
 97.3   Secretary of Labor. 
 97.4      Subd. 7.  [EFFECT OF FEDERAL LAW.] If This 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 is as amended so as to authorize this 
 97.8   state to pay benefits for an extended benefit period in a manner 
 97.9   other than that currently provided by this section, then, and in 
 97.10  such case, all the terms and conditions contained in the amended 
 97.11  provisions of such federal law shall become a part of this 
 97.12  section to the extent necessary to authorize the payment of 
 97.13  benefits to eligible individuals as permitted under such amended 
 97.14  provision, provided that the federal share continues to be at 
 97.15  least 50 percent of the extended benefits paid to individuals 
 97.16  under the extended benefit program.  The commissioner shall also 
 97.17  pay benefits at the earliest possible date in the manner allowed 
 97.18  by the Federal-State Unemployment Compensation Act of 1970, as 
 97.19  amended through January 1, 1975, the provisions of which shall 
 97.20  become a part of this section to the extent necessary to 
 97.21  authorize the payment of benefits to eligible individuals and 
 97.22  the applicable federal regulations. 
 97.23     Subd. 8.  [INTERSTATE CLAIMS CLAIMANTS.] An individual A 
 97.24  claimant residing in a state other than Minnesota shall not be 
 97.25  eligible for only the first two weeks of extended benefits for 
 97.26  any week if:  
 97.27     (a) Extended benefits are payable for that week pursuant to 
 97.28  an interstate claim filed in any state under the 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 two 
 97.33  weeks for which extended benefits are payable pursuant to an 
 97.34  interstate claim filed under the interstate benefit payment plan 
 97.35  to the individual from the extended benefit account established 
 97.36  for the individual with respect to the benefit year.  
 98.1      Subd. 9.  [ELIGIBILITY REQUIREMENTS DENIAL 
 98.2   PROVISIONS.] Notwithstanding the provisions of subdivision 
 98.3   2, (a) A claimant shall be ineligible for the payment of denied 
 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 which that 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 extended 
 98.10  benefits for any week by reason of this subdivision The denial 
 98.11  shall also be denied benefits continue 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 remuneration 
 98.14  had earnings from that covered employment of not less than four 
 98.15  times the claimant's extended weekly benefit amount. 
 98.16     (b) For the purpose of this subdivision "suitable 
 98.17  employment" means any employment which that is within the 
 98.18  claimant's capabilities and which that has a gross average 
 98.19  weekly remuneration payable which wage that exceeds the sum of 
 98.20  the claimant's weekly benefit amount as determined under 
 98.21  subdivision 4 plus the amount, if any, of supplemental 
 98.22  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 employment the job 
 98.34  service; 
 98.35     (b) the failure could not result in a denial of benefits 
 98.36  under the definition of suitable employment for regular benefit 
 99.1   claimants in section 268.095 to the extent that the criteria of 
 99.2   suitability is not inconsistent with this subdivision; or 
 99.3      (c) (3) the claimant furnishes satisfactory evidence to the 
 99.4   commissioner that prospects for obtaining employment in the 
 99.5   claimant's customary occupation within a reasonably short period 
 99.6   are good.  If the evidence furnished is found to be satisfactory 
 99.7   for this purpose, the determination of whether any employment is 
 99.8   suitable for the claimant shall 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 definition 
 99.11  or special disqualification specified in this 
 99.12  subdivision 268.035, subdivision 23a.  
 99.13     No employment shall be found to be suitable employment for 
 99.14  a claimant which would not be suitable employment under section 
 99.15  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 week only 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 in that effort during the week.  
 99.21     Subd. 10.  [JOB SERVICE REFERRAL.] The employment job 
 99.22  service shall refer any claimant entitled to who is filing 
 99.23  continued requests for extended benefits under this section to 
 99.24  any employment which that is suitable employment for that 
 99.25  claimant under this subdivision 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 insurance benefits are authorized 
 99.30  available if: 
 99.31     (1) at a facility that had 100 or more employees for at 
 99.32  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 any 
100.4   time in 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 payable available in the 
100.19  claimant's benefit year shall be 13 times one half of the 
100.20  claimant's weekly benefit maximum amount of regular benefits 
100.21  available under section 268.07, subdivision 2.  Extended 
100.22  benefits paid and benefits paid to a claimant under any state or 
100.23  federal law other than regular benefits under section 268.07 
100.24  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 meanings 
100.31  given: 
100.32     (a) (1) "Affected employee" means an individual employee 
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 to 
100.35  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 shared 
101.4   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   specified group of employees shares the work remaining after 
101.8   their whose 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 an 
101.11  employer's shared work plan which meets the requirement of this 
101.12  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 unemployment benefit program 
101.18  shall submit a signed, written shared work plan to the 
101.19  commissioner for approval.  The commissioner may give written 
101.20  approval of approve 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 individual employee 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 which that otherwise would result in at least at as 
101.30  large a reduction in the total normal weekly hours of work; 
101.31     (5) specifies an expiration date which that 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 which that covers 
102.4   any employee in the affected group. 
102.5      (b) The commissioner shall establish set the beginning and 
102.6   ending dates of an approved shared work plan. 
102.7      (c) The commissioner shall approve or disapprove mail to 
102.8   the employer a written determination approving or disapproving 
102.9   the plan within 15 calendar days of its receipt.  The 
102.10  commissioner shall notify the employer of the reasons for 
102.11  disapproval of a shared work plan within ten days of the 
102.12  determination.  Determinations of the commissioner are final. 
102.13     (d) Disapproval of a plan may be reconsidered upon 
102.14  application of the employer or at the discretion of the 
102.15  commissioner.  Approval of a shared work plan may be revoked by 
102.16  the commissioner when it is established that if the approval was 
102.17  based, in whole or in part, upon information in the plan which 
102.18  is either that was false or substantially misleading. 
102.19     Subd. 3.  [ELIGIBILITY.] (a) Notwithstanding Regardless of 
102.20  any other provision of this chapter, an individual a claimant is 
102.21  unemployed and eligible to receive shared work benefits with 
102.22  respect to any week if the commissioner finds that: 
102.23     (1) during the week the individual claimant is employed as 
102.24  a member of an affected group in an approved a plan which that 
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's normal weekly hours of 
102.28  work were reduced, in accordance with an approved the 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 eligible 
102.32  individual a claimant beyond one benefit year under an approved 
102.33  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 individual a claimant in a benefit year 
102.36  shall not exceed the maximum benefit amount established of 
103.1   regular benefits available. 
103.2      (d) An otherwise eligible individual claimant shall not be 
103.3   denied shared work benefits under this section because of the 
103.4   application of any provision of this chapter relating to 
103.5   availability for work employment, active search for work 
103.6   employment, or refusal to apply for or accept work suitable 
103.7   employment from other than the individual's claimant's shared 
103.8   work employer. 
103.9      Subd. 4.  [WEEKLY BENEFIT AMOUNT.] (a) An individual A 
103.10  claimant who is eligible for shared work benefits under this 
103.11  section shall be paid, with respect to any week of unemployment, 
103.12  a weekly shared work reemployment insurance benefits amount.  
103.13  The an amount shall be equal to the individual's regular weekly 
103.14  benefit amount multiplied by the nearest full percentage of 
103.15  reduction of the individual's claimant's regular weekly hours of 
103.16  work as set forth in the employer's plan.  The benefit payment, 
103.17  if not a multiple of $1 whole 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 individual a claimant eligible for payments under 
103.22  this section shared work benefits unless the resulting payment 
103.23  amount would be less than the regular weekly benefit payment for 
103.24  which amount the individual claimant would otherwise be eligible 
103.25  for without regard to shared work reemployment insurance 
103.26  benefits. 
103.27     (c) An individual A claimant shall not be eligible for 
103.28  shared work benefits payable under this section for any week in 
103.29  which paid work that employment is performed for the shared work 
103.30  employer in excess of the reduced hours set forth in 
103.31  the approved plan. 
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 account benefits, the 
104.1   claimant shall be informed that: 
104.2      (1) reemployment insurance benefits 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 required 
104.15  by the Internal Revenue Code 15 percent for federal income tax, 
104.16  rounded to the nearest whole dollar.  If a claimant, in addition 
104.17  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 Minnesota state 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 Minnesota state income tax 
104.24  withholding. 
104.25     (c) An election to have federal income tax, or federal and 
104.26  Minnesota state income 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 Minnesota 
104.30  reemployment insurance fund until transferred to the federal 
104.31  Internal Revenue Service, or the Minnesota department of 
104.32  revenue, as an income tax payment on behalf of the claimant. 
104.33     Subd. 3.  [CORRECTION OF ERRORS.] Any error which that 
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 state income tax from 
105.3   reemployment insurance benefits. 
105.4      Subd. 5.  [APPLICATION EFFECT OF PAYMENTS.] This section 
105.5   applies to any payments under federal or state law as 
105.6   compensation, assistance, or allowance with respect to 
105.7   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 UNEMPLOYMENT DEDUCTED 
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 payable 
105.16  under this chapter including amounts payable by the commissioner 
105.17  pursuant to an agreement under any federal law providing for 
105.18  compensation, assistance, or allowance with respect to 
105.19  unemployment; 
105.20     (b) (1) "Child support obligations" means obligations which 
105.21  that are being enforced by the public agency responsible for a 
105.22  child support enforcement agency pursuant to a plan described in 
105.23  United States Code, title 42, section 454, of the Social 
105.24  Security Act which that 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 plan 
105.30  described in section 454 of the Social Security Act.  
105.31     Subd. 2.  [NOTICE OF CLAIM UPON APPLICATION.] Upon In an 
105.32  application for a reemployment insurance account benefits, the 
105.33  claimant shall disclose whether or not the claimant owes if 
105.34  child support obligations are owed and, if so, in what state and 
105.35  county.  If the claimant discloses that the claimant owes child 
105.36  support obligations are owed, and establishes a reemployment 
106.1   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 insurance 
106.4   account. 
106.5      Subd. 3.  [WITHHOLDING OF BENEFITS.] The commissioner shall 
106.6   deduct and withhold from any reemployment insurance benefits 
106.7   payable to a claimant that who owes child support obligations: 
106.8      (a) The amount specified by the claimant to the 
106.9   commissioner to be deducted and withheld under this section, if 
106.10  neither clause (b) or (c) is applicable; or 
106.11     (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 commissioner under 
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) is 
106.17  applicable; or 
106.18     (c) Any amount otherwise required to be so deducted and 
106.19  withheld from the unemployment compensation pursuant to "legal 
106.20  process" as defined in section 462(e) of the Social Security 
106.21  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 3 shall be paid by the 
106.25  commissioner to the public agency responsible for child support 
106.26  enforcement. agency, 
106.27     Subd. 5.  [EFFECT OF PAYMENTS.] Any amount deducted and 
106.28  withheld under subdivision 3 but shall for all purposes be 
106.29  treated as if it were paid to the claimant as reemployment 
106.30  insurance benefits and paid by the claimant to the public agency 
106.31  responsible for child support enforcement agency in satisfaction 
106.32  of the claimant's child support obligations. 
106.33     Subd. 6 5.  [REIMBURSEMENT PAYMENT OF COSTS.] Appropriate 
106.34  arrangements shall be made for reimbursement by The child 
106.35  support agency for shall pay the administrative costs incurred 
106.36  by the commissioner under in the implementation and 
107.1   administration of this subdivision section and sections 518.551 
107.2   and 518.6111 which are attributable to child support obligations 
107.3   being enforced by the public agency responsible for child 
107.4   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 PAYMENTS OVERPAYMENT 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 of by any 
107.11  individual engaged in the administration of this 
107.12  chapter employee 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 department fund.  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 deduct offset from any future benefits 
107.32  otherwise payable to the claimant in the current or any 
107.33  subsequent benefit year the amount of the overpayment,.  Except 
107.34  that when the overpayment resulted because the claimant failed 
107.35  to report deductible earnings or deductible payments, no 
107.36  single deduction under this subdivision offset shall exceed 50 
108.1   percent of the amount of the payment from which the deduction 
108.2   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 to 
108.8   the commissioner that 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 deduct offset from future 
108.11  benefits otherwise payable to the claimant in the current or any 
108.12  subsequent benefit year the amount of overpayment, except that 
108.13  no single deduction under this subdivision offset shall exceed 
108.14  50 percent of the amount of the payment from which the deduction 
108.15  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 payments overpaid 
108.18  benefits. 
108.19     Subd. 2.  [OVERPAYMENT DUE TO FRAUD.] (a) Any claimant who 
108.20  receives benefits by knowingly and willfully intentionally 
108.21  misrepresenting, misstating, or failing to disclose any material 
108.22  fact that would have made the claimant not entitled to those 
108.23  benefits has 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 benefits 
108.26  that were obtained benefits by fraud and that the claimant must 
108.27  promptly repay the benefits to the department fund.  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 any interest assessed under subdivision 2b, the commissioner 
109.4   shall deduct offset from future benefits otherwise payable to 
109.5   the claimant in the current or any subsequent benefit year the 
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 to 
109.17  the commissioner that the claimant is liable to repay the 
109.18  benefits and requests the commissioner to recover the 
109.19  overpayment, the commissioner may deduct offset from future 
109.20  benefits otherwise payable to the claimant in the current or any 
109.21  subsequent benefit year the 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 determined and any 
109.26  penalty amounts assessed under subdivision 2, the commissioner 
109.27  shall have the discretion to assess interest at the rate of 
109.28  1-1/2 percent per month on any overpaid amount 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 may shall 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 may shall be assessed, interest 
109.35  pursuant to this subdivision may shall 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 to 
110.5   benefits under a federal program administered by Minnesota, may 
110.6   be recovered by offset from benefits otherwise payable under 
110.7   this chapter or any federal program.  As provided by reciprocal 
110.8   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 OR 
110.12  FRAUD OVERPAYMENTS.] (a) If benefits paid through because of an 
110.13  error are not repaid or deducted offset 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 deducted offset 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 paid 
110.26  through error or fraud any overpayment, including penalties and 
110.27  interest, that the commissioner determines are is 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 apply 
112.23  if prosecution is commenced under paragraph (a) or a penalty is 
112.24  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 person individual 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 person individual 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 determining 
113.2   compliance with this chapter, or for the purpose of collection 
113.3   of any amounts due under administering this chapter, the 
113.4   commissioner or any delegated representative has the power to 
113.5   examine, or cause to be examined supplied or copied, any books, 
113.6   correspondence, papers, records, or memoranda which that 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 or 
113.10  corporation at any reasonable time and as often as may be 
113.11  necessary. 
113.12     (b) The commissioner or any delegated representative may 
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 economical 
113.16  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 been 
113.20  admissible.  Notwithstanding Regardless of any restrictions 
113.21  contained in section 16B.50, the commissioner is hereby 
113.22  authorized to may duplicate records, reports, summaries, 
113.23  compilations, instructions, determinations, or any other written 
113.24  or recorded matter pertaining to the administration of the 
113.25  Minnesota Economic Security Law this chapter. 
113.26     (c) Notwithstanding Regardless of any inconsistent 
113.27  provisions elsewhere law to the contrary, the commissioner may 
113.28  provide for the destruction or disposition of any records, 
113.29  reports, or reproductions thereof, or other papers in the 
113.30  commissioner's custody, that are more than two years old, the 
113.31  preservation of which is and that are no longer necessary for 
113.32  determining employer liability or a claimant's benefit rights or 
113.33  for any purpose necessary to the proper administration 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 custody 
114.1   which that 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 sections 
114.6   268.03 to 268.23, The commissioner or any delegated 
114.7   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 persons individuals 
114.10  and the production of books, papers, correspondence, memoranda, 
114.11  documents and other records personal property necessary in 
114.12  connection with the administration of these sections 268.03 to 
114.13  268.23. 
114.14     (b) Persons Individuals 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 which that 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 to benefits 
114.25  which are or may become due or payable under sections 268.03 to 
114.26  268.23 shall 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 by 
114.29  any individual so long as they are not mingled with other funds 
114.30  of the recipient shall be exempt from any remedy for the 
114.31  collection of all debts, except debts incurred for necessaries 
114.32  furnished to such individual or a spouse or dependents during 
114.33  the time when such individual was unemployed.  Any waiver of any 
114.34  exemption provided for in this 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, which that shall be 
115.6   administered by the commissioner exclusively for the purpose of 
115.7   sections 268.03 to 268.23 payment 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 of 
115.12  money belonging to the fund payments 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 securities voluntary 
115.16  payments under section 268.051, subdivision 7; 
115.17     (5) any money received from the Federal Unemployment 
115.18  Account in as a loan from the federal unemployment trust fund in 
115.19  accordance with Title XII United 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 and received 
115.22  pursuant to an agreement, between this state and any agency of a 
115.23  reciprocal benefit arrangement with the federal government or 
115.24  any other state, for the payment of reemployment insurance 
115.25  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 this 
115.32  state Minnesota in the federal unemployment trust fund pursuant 
115.33  to United States Code, title 42, section 903 1103, of the Social 
115.34  Security Act, as amended also 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 immediately deposited to 
116.16  the credit of the Minnesota's account of Minnesota in 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 commingled 
116.29  with other state funds, but shall be 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 kept 
116.34  separate and distinct from any collateral pledged to secure 
116.35  other funds of Minnesota.  All sums recovered for losses 
116.36  sustained by the fund shall be deposited in the fund.  
117.1      Subd. 3.  [WITHDRAWALS EXCLUSIVE 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, shall also known as the Reed Act, may be 
117.8   used exclusively for 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 the 
117.11  amount in Minnesota's account, the commissioner considers 
117.12  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 the 
117.25  unemployment trust fund that remains unclaimed or unpaid in the 
117.26  benefit account after the expiration of the period for which the 
117.27  sums were requisitioned shall either be deducted from estimates 
117.28  for, and may be utilized for the payment of, benefits and 
117.29  refunds during following periods or, in the discretion of the 
117.30  commissioner, shall be redeposited in the federal unemployment 
117.31  trust fund, as provided in subdivision 2. 
117.32     Subd. 3a 4.  [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.] Any Money made 
118.2   available to the reemployment insurance fund and received 
118.3   pursuant to an a reciprocal agreement between this state and any 
118.4   agency of the federal government or any other state for the 
118.5   payment of reemployment insurance benefits shall be placed 
118.6   directly in the benefit payment account of the unemployment 
118.7   trust fund.  
118.8      Subd. 5.  [PAYMENT OF EXPENSES OF ADMINISTRATION REED ACT 
118.9   MONEY.] (1) (a) Money credited to the account of this state 
118.10  Minnesota in the federal unemployment trust fund by the 
118.11  secretary of the treasury of the United States of America 
118.12  pursuant to United States Code, title 42, section 903 1103, of 
118.13  the Social Security Act, also known as amended the 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, chapter 
118.16  883 sections 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 which that: 
118.25     (a) (1) specifies the amounts and the purposes for which 
118.26  such the money is appropriated and the amounts appropriated 
118.27  therefor.; 
118.28     (b) (2) Limits the period within which such the 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 which that may be obligated 
118.32  during any 12-month period beginning on July 1 and ending on the 
118.33  next June 30 to an amount which that does not exceed the amount 
118.34  by which (i) the aggregate of the amounts credited transferred 
118.35  to the account of this state Minnesota pursuant to section 903 
118.36  of the Social Security Reed Act, as amended, during the same 
119.1   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 credited transferred 
119.4   to the account of this state during any of such 35 12-month 
119.5   periods Minnesota.  For the purposes of this subdivision, 
119.6   amounts used during any such 12-month period shall be charged 
119.7   against equivalent amounts which were first credited and which 
119.8   are not already so charged; except that no amount obligated for 
119.9   administration during any such 12-month period may be charged 
119.10  against any amount credited during such a 12-month period 
119.11  earlier than the 24th preceding such period for 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 to 
119.15  section 903 of the Social Security Act, as amended, may not be 
119.16  withdrawn or used except for the payment of benefits and for the 
119.17  payment of expenses for the administration of Laws 1957, chapter 
119.18  883 and of public employment offices pursuant to this 
119.19  subdivision.  Any moneys used for the payment of benefits may be 
119.20  restored for appropriation and use for administrative expenses 
119.21  upon request of the governor, under section 903(c) of the Social 
119.22  Security Act.  
119.23     (3) (c) Reed Act money requisitioned for the payment of 
119.24  expenses of administration pursuant to this subdivision shall be 
119.25  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 a 
119.28  separate record of the deposit, obligation, expenditure, and 
119.29  return of funds so deposited account 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 deposited is, for 
119.32  any reason, not to be expended spent for the purpose for which 
119.33  it was appropriated, or, if it remains unexpended unspent at the 
119.34  end of the period specified by the law appropriating such the 
119.35  money, it shall be withdrawn and returned to the secretary of 
119.36  the treasury of the United States for credit to this state's 
120.1   Minnesota's account in the federal unemployment trust fund.  
120.2      Subd. 6.  [ADVANCE ON BORROWING FEDERAL FUNDS.] (a) The 
120.3   governor is hereby authorized, if necessary, to make application 
120.4   as may be necessary to secure an advance of borrow 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 application loan 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 advance loan 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 FUND ACCOUNT.] 
120.17     Subdivision 1.  [ADMINISTRATION FUND ACCOUNT.] (a) There is 
120.18  hereby created in the state treasury a special fund account to 
120.19  be known as the economic security administration fund account.  
120.20  All moneys which are money that is deposited or paid into this 
120.21  fund account shall be continuously available to the commissioner 
120.22  for expenditure in accordance with the provisions of to 
120.23  administer sections 268.03 to 268.23, and shall not lapse at any 
120.24  time.  The fund administration account shall consist of: 
120.25     (1) all moneys money received from the United States or any 
120.26  agency thereof, including the United States department of labor, 
120.27  and include federal government to administer sections 268.03 to 
120.28  268.23; 
120.29     (2) any moneys money received from any agency of the United 
120.30  States or any other state as 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 or 
120.34  insurance policy or from other sources for losses sustained by 
120.35  the economic security administration fund this account or by 
120.36  reason of damage to equipment or supplies purchased from moneys 
121.1   in such fund,; and 
121.2      (4) any proceeds realized from the sale or disposition of 
121.3   any such equipment or supplies which that may no longer be 
121.4   necessary for the proper administration of those 
121.5   sections.  Notwithstanding any provision of this section, all 
121.6   money requisitioned and deposited in this fund pursuant to 
121.7   section 268.194, subdivision 5, shall remain part of the 
121.8   reemployment fund and shall be used only in accordance with the 
121.9   conditions specified in section 268.194, subdivision 5. 
121.10     (b) All moneys money in this fund account 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 funds accounts in the state treasury.  
121.14  The state commissioner of finance, as treasurer and custodian of 
121.15  this account, shall be liable on the treasurer's official bond 
121.16  for the faithful performance of duties in connection with the 
121.17  economic security administration fund provided for under these 
121.18  sections.  Such liability on the official bond shall be 
121.19  effective immediately upon the enactment of this provision, and 
121.20  such liability shall exist in addition to any liability upon any 
121.21  separate bond existent on April 29, 1941, or which may be given 
121.22  in the future.  All sums recovered on any surety bond for losses 
121.23  sustained by the economic security administration fund shall be 
121.24  deposited in this fund this account. 
121.25     (c) All money in this fund, except money received pursuant 
121.26  to section 268.194, subdivision 5, clause (3), account shall 
121.27  be expended spent 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 security 
121.30  program sections 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 action 
121.35  or contingency, to have been lost or been expended spent for 
121.36  purposes other than, or in amounts in excess of, those found 
122.1   necessary by the secretary of labor for the proper 
122.2   administration of these sections 268.03 to 268.23, the 
122.3   commissioner may, with the approval of the commissioner of 
122.4   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 labor If 
122.9   not replaced from the contingent account, the commissioner shall 
122.10  promptly report the amount required for replacement to the 
122.11  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, which that shall not lapse 
122.17  nor revert to any other fund.  Such This 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 thereon earned on the account.  All money in such this 
122.23  account shall be supplemental to all federal money that would be 
122.24  available to the commissioner but for the existence of this 
122.25  account.  Moneys Money in this account are is hereby 
122.26  appropriated to the commissioner and shall be available to the 
122.27  commissioner for such those expenditures as the commissioner may 
122.28  deem considers necessary in connection with the administration 
122.29  of sections 268.04 268.03 to 268.23.  
122.30     Whenever the commissioner expends spends money from 
122.31  said the contingent account for the proper and efficient 
122.32  administration of the Minnesota Economic Security Law sections 
122.33  268.03 to 268.23 for which funds have not yet been money will 
122.34  later be made available by the federal government, such money so 
122.35  withdrawn from the contingent account shall, when money is 
122.36  available, be replaced as hereinafter provided.  Upon the 
123.1   deposit in reimbursed from the economic security administration 
123.2   fund of moneys which are received in reimbursement of payments 
123.3   made as above provided for said contingent account,.  The 
123.4   commissioner shall certify to the state treasurer commissioner 
123.5   of finance the amount of such the reimbursement and thereupon 
123.6   the state treasurer commissioner of finance shall transfer such 
123.7   that amount from the economic security administration fund 
123.8   account to said the 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 state 
123.13  treasurer shall be liable on the treasurer's official bond for 
123.14  the faithful performance of duties in connection with the 
123.15  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 and 
123.20  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 EMPLOYMENT JOB SERVICE OFFICES.] 
123.24     Subdivision 1.  [ACCEPTANCE OF FEDERAL ACT ESTABLISHMENT.] 
123.25  A state employment service is hereby established in the 
123.26  department.  The commissioner shall establish and maintain free 
123.27  public employment job 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 of under the 
123.31  Wagner-Peyser Act, United States Code, title 29, chapter 4B 
123.32  section 49. 
123.33     Subd. 2.  [FINANCING.] All moneys money received by this 
123.34  state under such the Wagner-Peyser Act of Congress referred to 
123.35  in subdivision 1 shall be paid into the economic security 
123.36  administration fund, account and expended solely for the 
124.1   maintenance of state public employment job service offices.  For 
124.2   the purpose of establishing and maintaining free public 
124.3   employment job 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 or any other 
124.6   public agency of the United States or of this or any other state 
124.7   charged with the administration of any law whose purposes are 
124.8   reasonably related to the purposes of sections 268.03 to 268.23 
124.9   the job service. 
124.10     Subd. 3.  [VETERANS REPRESENTATIVES.] As may be determined 
124.11  by the commissioner, based on a demonstrated need for the 
124.12  service, There shall be assigned by the commissioner to the 
124.13  staff of each full functioning employment the job service office 
124.14  a veterans employment representative whose activities one or 
124.15  more employees of the department who shall be devoted to 
124.16  discharging perform the duties prescribed of a veterans 
124.17  employment representative.  The position of veterans employment 
124.18  representative shall be filled by one or more employees of the 
124.19  department who are veterans 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 and payable only 
124.24  to the extent provided in this chapter and to the extent that 
124.25  money is available in the reemployment insurance fund and 
124.26  neither the state nor the commissioner shall be liable for any 
124.27  amount in excess of such sums the 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 insurance benefit 
124.31  account after the expiration of two years from the effective 
124.32  date of the reemployment insurance benefit 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 determine determines 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 or the 
125.5   Social Security Act then such requirements of federal law, the 
125.6   provision shall have no force or effect for any purpose; but if 
125.7   any such only a portion of the provision, or the application 
125.8   thereof to any person or circumstances, is held invalid not in 
125.9   conformity, the remainder of said sections the provision and the 
125.10  application of such the 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 rule the 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.