2nd Engrossment - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to reemployment insurance; making technical 1.3 and administrative changes; providing civil and 1.4 criminal penalties; providing for a waiver from 1.5 certain waiting periods for certain individuals; 1.6 amending Minnesota Statutes 1996, sections 268.0111, 1.7 by adding a subdivision; 268.022, subdivision 1; 1.8 268.04, subdivisions 5, 15, 17, 25, and by adding 1.9 subdivisions; 268.06, subdivisions 1, 3a, 6, 8, 8a, 1.10 18, 19, 20, 21, 22, 24, 25, 26, 27, 28, 29, and 31; 1.11 268.07, subdivisions 2, 3, 3a, and 3b; 268.071, 1.12 subdivisions 3, 6, and 9; 268.08, subdivisions 1, 2, 1.13 3, 3a, 3b, 10, and by adding a subdivision; 268.09, 1.14 subdivision 3, and by adding subdivisions; 268.101, 1.15 subdivisions 2, 3, 4, and by adding a subdivision; 1.16 268.105; 268.11, subdivision 3; 268.12, subdivisions 8 1.17 and 9a; 268.121; 268.14, subdivision 1; 268.16, 1.18 subdivision 2; 268.161, subdivisions 4, 6, and 7; 1.19 268.167; 268.18, subdivisions 1, 2, 3, 4, 6, and by 1.20 adding a subdivision; and 268.21; proposing coding for 1.21 new law in Minnesota Statutes, chapter 268; repealing 1.22 Minnesota Statutes 1996, sections 268.026; 268.04, 1.23 subdivisions 8, 13, 14, 20, 21, 32, and 35; 268.06, 1.24 subdivisions 2, 4, 5, 30, and 33; 268.073, subdivision 1.25 7; 268.09, subdivisions 1, 2, 4, 5, 6, 7, and 8; 1.26 268.12, subdivisions 2, 4, 5, 7, and 11; 268.14, 1.27 subdivisions 3 and 4; 268.16, subdivision 8; 268.161, 1.28 subdivision 3; 268.165; and 268.18, subdivision 5. 1.29 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.30 Section 1. Minnesota Statutes 1996, section 268.0111, is 1.31 amended by adding a subdivision to read: 1.32 Subd. 3a. [DEPARTMENT.] "Department" means the department 1.33 of economic security. 1.34 Sec. 2. Minnesota Statutes 1996, section 268.022, 1.35 subdivision 1, is amended to read: 1.36 Subdivision 1. [DETERMINATION AND COLLECTION OF SPECIAL 1.37 ASSESSMENT.] (a) In addition to all other contributions, 2.1 assessments, and payment obligations under chapter 268, each 2.2 employer, except an employer making payments in lieu of 2.3 contributions
under section 268.06, subdivision 25, 26, 27, or2.4 28,is liable for a special assessment levied at the rate of 2.5 one-tenth of one percent per year on all taxable wages for2.6 purposes of the contribution payable under section 268.06,2.7 subdivision 2, as defined in section 268.04, subdivision 252.8 25b. SuchThe assessment shall become due and be paid by each 2.9 employer to the department of economic securityon the same 2.10 schedule and in the same manner as other contributions required2.11 by section 268.06. 2.12 (b) The special assessment levied under this section shall 2.13 not affect the computation of any other contributions, 2.14 assessments, or payment obligations due under this chapter. 2.15 (c) Notwithstanding any provision to the contrary, if on 2.16 June 30 of any year the unobligated balance of the special 2.17 assessment fund under this section is greater than $30,000,000, 2.18 the special assessment for the following year only shall be 2.19 levied at a rate of 1/20th of one percent on all taxable wages 2.20 identified for this purpose under this subdivision. 2.21 Sec. 3. Minnesota Statutes 1996, section 268.04, 2.22 subdivision 5, is amended to read: 2.23 Subd. 5. [CALENDAR QUARTER.] "Calendar quarter" means the 2.24 period of three consecutive calendar months ending on March 31, 2.25 June 30, September 30, or December 31 , excluding any calendar2.26 quarter or portion thereof which occurs prior to January 1,2.27 1937, or the equivalent thereof, as the commissioner may by rule2.28 prescribe. 2.29 Sec. 4. Minnesota Statutes 1996, section 268.04, is 2.30 amended by adding a subdivision to read: 2.31 Subd. 12a. [INDEPENDENT CONTRACTOR/CONSTRUCTION.] A worker 2.32 doing commercial or residential building construction or 2.33 improvement, in the public or private sector, performing 2.34 services in the course of the trade, business, profession, or 2.35 occupation of the employing unit, shall be considered an 2.36 employee under the law of master and servant and not an 3.1 "independent contractor" under subdivision 12, clause (1)(d) 3.2 unless the worker meets all the following conditions: 3.3 (1) maintains a separate business with the independent 3.4 contractor's own office, equipment, materials, and other 3.5 facilities; 3.6 (2) holds or has applied for a federal employer 3.7 identification number; 3.8 (3) operates under contracts to perform specific services 3.9 or work for specific amounts of money under which the 3.10 independent contractor controls the means of performing the 3.11 services or work; 3.12 (4) incurs the main expenses related to the service or work 3.13 that the independent contractor performs under contract; 3.14 (5) is responsible for the satisfactory completion of work 3.15 or services that the independent contractor contracts to perform 3.16 and is liable for a failure to complete the work or service; 3.17 (6) receives compensation for work or service performed 3.18 under a contract on a commission or per job or competitive bid 3.19 basis and not on any other basis; 3.20 (7) may realize a profit or suffer a loss under contracts 3.21 to perform work or service; 3.22 (8) has continuing or recurring business liabilities or 3.23 obligations; and 3.24 (9) the success or failure of the independent contractor's 3.25 business depends on the relationship of business receipts to 3.26 expenditures. 3.27 Sec. 5. Minnesota Statutes 1996, section 268.04, 3.28 subdivision 15, is amended to read: 3.29 Subd. 15. [FILING; FILED.] "Filing" or "filed" means the 3.30 delivery of any document to the commissioner or any of the 3.31 commissioner's agents or representatives, or the depositing of 3.32 the samedocument in the United States mail properly addressed 3.33 to the department with postage prepaid thereon, in which case 3.34 the samedocument shall have beenbe considered filed on the day 3.35 indicated by the cancellation mark of the United States Post3.36 Office DepartmentPostal Service. 4.1 If, where allowed, an application, protest, appeal, or 4.2 other required action is made by telephone or electronic 4.3 transmission, it shall be considered filed on the day received 4.4 by the department. 4.5 Sec. 6. Minnesota Statutes 1996, section 268.04, 4.6 subdivision 17, is amended to read: 4.7 Subd. 17. [INSURED WORK.] "Insured work" means employment 4.8 for employers as defined in this section, except that for the 4.9 purposes of interstate reciprocal benefit payment arrangements4.10 and the clearingsatisfying of disqualifications under this law, 4.11 the term "insured work" shall mean employment ininclude insured 4.12 work under this law ora similar law of any other state or 4.13 employment covered under the Railroad Unemployment Compensation 4.14 Act, and United States Code, title 5, chapter 85. Periods for 4.15 which an individual receives back pay are periods of insured 4.16 work for benefit purposes, except for the clearingsatisfying of 4.17 disqualifications under this chapter. 4.18 Sec. 7. Minnesota Statutes 1996, section 268.04, is 4.19 amended by adding a subdivision to read: 4.20 Subd. 22a. [STATE'S AVERAGE ANNUAL AND AVERAGE WEEKLY 4.21 WAGE.] (a) On or before June 30 of each year, the commissioner 4.22 shall calculate the state's average annual wage and the state's 4.23 average weekly wage in the following manner: 4.24 (1) The sum of the total monthly employment reported by all 4.25 employers subject to this law for the previous calendar year 4.26 shall be divided by 12 to calculate the average monthly 4.27 employment. 4.28 (2) The sum of the total wages reported by all employers 4.29 subject to this law for the previous calendar year shall be 4.30 divided by the average monthly employment to calculate the 4.31 state's average annual wage. 4.32 (3) The state's average annual wage shall be divided by 52 4.33 to calculate the state's average weekly wage. 4.34 (b) For purposes of contributions under section 268.06, 4.35 subdivision 1, the state's average annual wage shall apply to 4.36 the calendar year succeeding the calculation. 5.1 (c) For purposes of calculating the maximum weekly benefit 5.2 amount payable on any reemployment insurance account under 5.3 section 268.07, subdivision 2, paragraph (c), the state's 5.4 average weekly wage shall apply to the 12-month period beginning 5.5 July 1 of the calendar year of the calculation. 5.6 Sec. 8. Minnesota Statutes 1996, section 268.04, 5.7 subdivision 25, is amended to read: 5.8 Subd. 25. [WAGES.] "Wages" means all remuneration for 5.9 services, including commissions; bonuses; back pay as of the 5.10 date of payment; tips and gratuities paid to an employee by a 5.11 customer of an employer and accounted for by the employee to the 5.12 employer; sickness and accident disability payments, except as 5.13 otherwise provided in this subdivision; and the cash value of 5.14 all remuneration in any medium other than cash, except that such5.15 the term shall not include: 5.16 (a) For the purpose of determining contributions payable5.17 under section 268.06, subdivision 2, that part of the5.18 remuneration which exceeds, for each calendar year, the greater5.19 of $7,000 or that part of the remuneration which exceeds 605.20 percent of the average annual wage rounded to the nearest $1005.21 computed in accordance with the provisions of clause (j), paid5.22 to an individual by an employer or the employer's predecessor5.23 with respect to covered employment in this state or under the5.24 reemployment insurance law of any other state. Credit for5.25 remuneration reported under the reemployment insurance law of5.26 another state is limited to that state's taxable wage base. If5.27 the term "wages" as contained in the Federal Unemployment Tax5.28 Act is amended to include remuneration in excess of the amount5.29 required to be paid hereunder to an individual by an employer5.30 under the federal act for any calendar year, wages for the5.31 purposes of sections 268.03 to 268.23 shall include remuneration5.32 paid in a calendar year up to an amount equal to the dollar5.33 limitation specified in the Federal Unemployment Tax Act. For5.34 the purposes of this clause, the term "employment" shall include5.35 service constituting employment under any employment security5.36 law of another state or of the federal government;6.1 (b)The amount of any payment made to, or on behalf of, an 6.2 employee under a plan or system established by an employer which6.3 that makes provision for employees generally or for a class or 6.4 classes of employees (including any amount paid by an employer 6.5 for insurance or annuities, or into a fund, to provide for any6.6 sucha payment), on account of (1) retirement or (2) medical and 6.7 hospitalization expenses in connection with sickness or accident 6.8 disability, or (3) death, provided the employee has not the 6.9 option to receive, instead of provision for sucha death 6.10 benefit, any part of suchthe payment, or if suchthe death 6.11 benefit is insured, any part of the insurance premium (or6.12 contributions to premiums)paid by the employer and has not the6.13 no right, under the provisions of the plan or system or policy 6.14 of insurance providing for such death benefit,to assign such6.15 the benefit, or to receive acash considerationin lieu of such6.16 a benefit either upon withdrawal from the plan or 6.17 system providing for such benefitor upon termination of such6.18 the plan or system or policy of insurance or of employment 6.19 with suchthe employer; 6.20 (c)(b) The payment by an employer (without deduction from 6.21 the remuneration of the employee) (1) of the tax imposed upon an 6.22 employee under section 3101 of the federal Internal Revenue 6.23 Code, or (2) of any payment required from an employee under a 6.24 state reemployment insurance law, with respect to remuneration 6.25 paid to an employee for domestic service in a private home of 6.26 the employer or for agricultural labor; 6.27 (d)(c) Any payments made to a former employee during the 6.28 period of active military service in the armed forces of the 6.29 United States by suchthe employer, whether legally required or 6.30 not; 6.31 (e)(d) Any payment made to, or on behalf of, an employee 6.32 or beneficiary (1) from or to a trust described in section 401(a) 6.33 of the federal Internal Revenue Code whichthat is exempt from 6.34 tax under section 501(a) of suchthe code at the time of such6.35 the payment unless suchthe payment is made to an employee of 6.36 the trust as remuneration for services rendered as an employee 7.1 and not as a beneficiary of the trust, or (2) under or to an 7.2 annuity plan whichthat, at the time of suchthe payment is a 7.3 plan described in section 403(a) of the federal Internal Revenue 7.4 Code; 7.5 (f)(e) Sickness or accident disability payments made by 7.6 the employer after the expiration of six calendar months 7.7 following the last calendar month in which the individual worked 7.8 for the employer; 7.9 (g)(f) Disability payments made under the provisions of 7.10 any workers' compensation law; 7.11 (h)(g) Sickness or accident disability payments made by a 7.12 third party payer such as an insurance company; 7.13 (i)(h) Payments made into a fund, or for the purchase of 7.14 insurance or an annuity, to provide for sickness or accident 7.15 disability payments to employees pursuant to a plan or system 7.16 established by the employer whichthat provides for the 7.17 employer's employees generally or for a class or classes of 7.18 employees; 7.19 (j) On or before July 1 of each year the commissioner shall7.20 determine the average annual wage paid by employers subject to7.21 sections 268.03 to 268.23 in the following manner:7.22 (1) The sum of the total monthly employment reported for7.23 the previous calendar year shall be divided by 12 to determine7.24 the average monthly employment;7.25 (2) The sum of the total wages reported for the previous7.26 calendar year shall be divided by the average monthly employment7.27 to determine the average annual wage.7.28 The average annual wage determined shall be effective for7.29 the calendar year next succeeding the determination;7.30 (k)(i) Nothing in this subdivision , other than clause (a),7.31 shall exclude from the term "wages" any payment made under any 7.32 type of salary reduction agreement, including payments made 7.33 under a cash or deferred arrangement and cafeteria plan, as 7.34 defined in sections 401(k) and 125, respectively, of the federal 7.35 Internal Revenue Code, to the extent that the employee has the 7.36 option to receive the payment in cash. 8.1 Sec. 9. Minnesota Statutes 1996, section 268.04, is 8.2 amended by adding a subdivision to read: 8.3 Subd. 25b. [TAXABLE WAGES.] (a) "Taxable wages" means 8.4 those wages paid to an employee each calendar year up to an 8.5 amount equal to 60 percent of the state's average annual wage, 8.6 rounded to the nearest $100. 8.7 (b) Taxable wages includes the amount of wages paid by the 8.8 employer's predecessor in this state or under the reemployment 8.9 insurance law of any other state. Any credit given for amounts 8.10 reported under the reemployment insurance law of another state 8.11 shall be limited to that state's taxable wage base. 8.12 Sec. 10. [268.047] [BENEFITS CHARGED TO EMPLOYER.] 8.13 Subdivision 1. [GENERAL RULE.] Benefits paid to a claimant 8.14 pursuant to a reemployment insurance account, including 8.15 extended, additional, and shared work benefits, shall be charged 8.16 to the account of the claimant's base period employer as and 8.17 when paid except as provided in subdivisions 2 and 3. The 8.18 amount of benefits chargeable to each base period employer's 8.19 account shall bear the same ratio to the total benefits paid to 8.20 a claimant as the wage credits the claimant was paid by the 8.21 employer bear to the total amount of wage credits the claimant 8.22 was paid by all the claimant's base period employers. 8.23 In making computations under this subdivision, the amount 8.24 of wage credits, if not a multiple of $1, shall be computed to 8.25 the nearest multiple of $1. 8.26 Subd. 2. [EXCEPTIONS TO CHARGES FOR ALL 8.27 EMPLOYERS.] Benefits paid to a claimant shall not be charged to 8.28 the account of a contributing base period employer or to the 8.29 account of a base period employer that is liable for payments in 8.30 lieu of contributions under the following conditions: 8.31 (a) the claimant was discharged from the employment because 8.32 of gross misconduct as determined under section 268.09, 8.33 subdivision 10, clause (2). This paragraph shall apply only to 8.34 benefits paid for weeks occurring subsequent to the claimant's 8.35 discharge from employment; 8.36 (b) a claimant's discharge from that employment was 9.1 required by a law mandating a background check, or the 9.2 claimant's discharge from that employment was required by law 9.3 because of a criminal conviction; 9.4 (c) the employer: 9.5 (1) provided regularly scheduled part-time employment to 9.6 the claimant during the claimant's base period; 9.7 (2) during the claimant's benefit year, continues to 9.8 provide the claimant with regularly scheduled employment 9.9 approximating 90 percent of the employment provided the claimant 9.10 by that employer in the base period, or, for a fire department 9.11 or firefighting corporation or operator of a life-support 9.12 transportation service, continues to provide employment for a 9.13 volunteer firefighter or a volunteer ambulance service personnel 9.14 on the same basis that employment was provided in the base 9.15 period; and 9.16 (3) is an involved employer because of the claimant's loss 9.17 of other employment. The exception to charges shall terminate 9.18 effective the first week in the claimant's benefit year that the 9.19 employer fails to meet the provisions of clause (2); 9.20 (d) the claimant's unemployment: 9.21 (1) was directly caused by a major natural disaster 9.22 declared by the president pursuant to Section 102(2) of the 9.23 Disaster Relief Act of 1974, United States Code, title 42, 9.24 section 5122(2), if the claimant would have been eligible for 9.25 disaster unemployment assistance with respect to that 9.26 unemployment but for the claimant's receipt of reemployment 9.27 insurance benefits; or 9.28 (2) was directly caused by the condemnation of property by 9.29 a governmental agency, a fire, flood, or act of God where 70 9.30 percent or more of the employees employed in the affected 9.31 location became unemployed as a result and the employer 9.32 substantially reopens its operations in that same area within 18 9.33 months. Benefits shall be charged to the employer where the 9.34 unemployment is caused by the willful act of the employer or a 9.35 person acting on behalf of the employer; 9.36 (e) the benefits were paid by another state as a result of 10.1 the transferring of wage credits under a federally combined wage 10.2 agreement provided for in section 268.13; 10.3 (f) on a second reemployment insurance account established 10.4 pursuant to section 268.07, subdivision 3, where the employer 10.5 provided 90 percent or more of the wage credits in the 10.6 claimant's preceding base period and the claimant did not 10.7 perform services for the employer during the subsequent base 10.8 period; 10.9 (g) the claimant left or partially or totally lost 10.10 employment because of a strike or other labor dispute at the 10.11 claimant's primary place of employment if the employer was not a 10.12 party to the particular strike or labor dispute; or 10.13 (h) the benefits were determined overpaid benefits under 10.14 section 268.18. 10.15 Subd. 3. [EXCEPTIONS TO CHARGES FOR CONTRIBUTING 10.16 EMPLOYERS.] Benefits paid to a claimant shall not be charged to 10.17 the account of a contributing base period employer under the 10.18 following conditions: 10.19 (a) the claimant's wage credits from that employer are less 10.20 than $500; 10.21 (b) the claimant quit the employment, unless it was 10.22 determined under section 268.09, subdivisions 1a and 9, to have 10.23 been because of a good reason caused by the employer. This 10.24 paragraph shall apply only to benefits paid for periods 10.25 occurring subsequent to the claimant's quitting the employment; 10.26 (c) the employer discharged the claimant from employment 10.27 because of misconduct as determined pursuant to section 268.09, 10.28 subdivisions 10 and 12. This paragraph shall apply only to 10.29 benefits paid for periods occurring subsequent to the claimant's 10.30 discharge from employment; 10.31 (d) the employer discharged the claimant from employment 10.32 because of reasons resulting directly from the claimant's 10.33 serious illness provided the employer made a reasonable effort 10.34 to retain the claimant in employment in spite of the claimant's 10.35 serious illness; or 10.36 (e) the claimant avoided or failed to accept an offer of 11.1 suitable reemployment, or reemployment that offered 11.2 substantially the same or better hourly wages or conditions of 11.3 employment, or both, as were previously provided by that 11.4 employer. This paragraph shall apply to benefits paid for weeks 11.5 occurring after the claimant's refusal or avoidance. 11.6 Subd. 4. [FEDERAL REIMBURSED BENEFITS NOT 11.7 CHARGED.] Notwithstanding subdivision 1, no employer's account 11.8 shall be charged for benefits for which the reemployment 11.9 insurance fund is reimbursed by the federal government. 11.10 Sec. 11. Minnesota Statutes 1996, section 268.06, 11.11 subdivision 1, is amended to read: 11.12 Subdivision 1. [PAYMENTS.] (1)(a) Contributions shall 11.13 accrue and become payable by each employer for each calendar 11.14 year in whichthat the employer is subject to sections 268.03 to11.15 268.23 with respect to wages paid (as defined in section 268.04,11.16 subdivision 25a) for employmentthis chapter, except for: (1) 11.17 nonprofit corporations as provided in section 268.053, and (2) 11.18 the state and political subdivisions as provided in section 11.19 268.052. Each employer shall pay contributions quarterly, at 11.20 the employer's assigned contribution rate, on the taxable wages 11.21 paid to each employee. SuchThe contributions shall become due11.22 andbe paid by each employerto the department of economic11.23 security for the fund in accordance with such rules as the11.24 commissioner may prescribe, and shall not be deducted, in whole11.25 or in part, from the wages of individuals in such employer's11.26 employMinnesota reemployment insurance fund on or before the 11.27 last day of the month following the end of the calendar quarter. 11.28 No rule of the commissioner shall be put in force which will11.29 permit the payment of such contributions at a time or under11.30 conditions which will not allow the employer to take credit for11.31 such contribution against the tax imposed by section 3301 of the11.32 Internal Revenue Code.11.33 (2) In(b) The payment of anycontribution , a fractional11.34 part of a cent shallmay be disregarded unless it amounts to11.35 one-half cent or more in which case it shall be increased to one11.36 centpaid in an amount to the nearest whole dollar. 12.1 (3)(c) When the contribution rate applied to an employer's12.2 taxable payroll for any given calendar quarter results in a12.3 computedcontribution offor any calendar quarter is less than 12.4 $1, the contribution shall be disregarded. 12.5 Sec. 12. Minnesota Statutes 1996, section 268.06, 12.6 subdivision 3a, is amended to read: 12.7 Subd. 3a. [RATE FOR NEW EMPLOYERS.] Notwithstanding the12.8 provisions of subdivision 2,(a) Each employer , who becomes12.9 subject to this law,that does not qualify for an experience 12.10 rating, except employers in the construction industry, shall pay12.11 contributions at abe assigned a contribution rate : (a) Not12.12 exceeding 5-4/10 percent, that isthe higher of (1) one 12.13 percent andor (2) the state's five-yearbenefit cost rate for12.14 the 60 consecutive month period immediately preceding July 1 of12.15 each year for each employer, except employers in the12.16 construction industry; to a maximum of 5-4/10 percent. For 12.17 purposes of this clauseparagraph, the state's five-yearbenefit 12.18 cost rate shall be computed annually and shall be derived by 12.19 dividing the total dollar amount of benefits paid to claimants12.20 under this lawduring the 60 consecutive calendar months 12.21 immediately preceding July 1 of each year by the total dollar12.22 amount oftaxable wages subject to contributions under this law12.23 of all contributing employers during the same period. TheThis 12.24 rate so determinedshall be applicable for the calendar year 12.25 next succeeding eachthe computation date. 12.26 (b) Each employer in the construction industry who becomes12.27 subject to this chapterthat does not qualify for an experience 12.28 rating shall pay contributions at abe assigned a contribution 12.29 rate, not exceeding the maximum contribution rate for all12.30 employers as provided under subdivision 8, that isthe higher of 12.31 (1) one percent, or (2) the state's five-yearbenefit cost rate 12.32 for construction employers for the 60 consecutive month period12.33 immediately preceding July 1 of each yearto a maximum of 9.0 12.34 percent. For purposes of this clauseparagraph, the 12.35 state's five-yearbenefit cost rate shall be computed annually 12.36 and shall be derived by dividing the total dollar amount of 13.1 benefits paid to claimants of construction industry employers 13.2 during the 60 consecutive calendar months immediately preceding 13.3 July 1 of each year by the total dollar amount oftaxable wages 13.4 of construction industry employers subject to contributions13.5 during the same period. TheThis rate so determinedshall be 13.6 applicable for the calendar year next succeeding eachthe 13.7 computation date. 13.8 For purposes of this subdivision an employer is in the 13.9 construction industry if assigned an industrial classification13.10 the employer is within division C of the Standard Industrial 13.11 Classification Manual issued by the United States Office of 13.12 Management and Budget as determined by the tax branch of the13.13 department, except as excluded by rules adopted by the 13.14 commissioner. 13.15 Sec. 13. Minnesota Statutes 1996, section 268.06, 13.16 subdivision 6, is amended to read: 13.17 Subd. 6. [COMPUTATION OF EACH EMPLOYER'S EXPERIENCE 13.18 RATIORATING.] The commissioner shall compute an 13.19 experience ratiorating for each employer whose account has been13.20 chargeable with benefits during the 60 consecutive calendar13.21 months immediately preceding July 1 of the preceding calendar13.22 year except that, for any employerwho has notbeen subject to 13.23 the Minnesota economic security lawthis chapter for a period of13.24 time sufficient to meet the 60 consecutive months requirement,13.25 the commissioner shall compute an experience ratio if the13.26 employer's account has been chargeable with benefits duringat 13.27 least the 1215 consecutive calendar months immediately 13.28 preceding July 1 of the preceding calendar year. SuchThe 13.29 experience ratiorating shall be the quotientratio obtained by 13.30 dividing 1-1/4 times the total benefits charged to the 13.31 employer's account during the period the account has been13.32 chargeableemployer has been subject to this chapter but not 13.33 less than the 1215 or more than the 60 consecutive calendar 13.34 months ending on June 30 of the preceding calendar year by the 13.35 employer's total taxable payroll for the same period on which 13.36 all contributions due have been paid to the department of14.1 economic securityon or before October 31 of the preceding 14.2 calendar year. SuchThe experience ratiorating shall be 14.3 computed to the nearest one-tenth of a percent. 14.4 Sec. 14. Minnesota Statutes 1996, section 268.06, 14.5 subdivision 8, is amended to read: 14.6 Subd. 8. [ DETERMINATIONCOMPUTATION OF CONTRIBUTION 14.7 RATES.] (a) For each calendar year the commissioner 14.8 shall determinecompute the contribution rate of each employer 14.9 by adding the minimum contribution rate to the employer's 14.10 experience ratiorating. 14.11 (b) The minimum rate for all employers shall be14.12 eight-tenths of one percent for 1988; seven-tenths of one14.13 percent for 1989; and six-tenths of one percent for 1990.The 14.14 minimum contribution rate for all employers in 1991 and14.15 thereaftershall be six-tenths of one percent if the amount in 14.16 the reemployment insurance fund is less than $200,000,000 on 14.17 June 30 of the preceding calendar year; or five-tenths of one 14.18 percent if the fund is more than $200,000,000 but less than 14.19 $225,000,000; or four-tenths of one percent if the fund is more 14.20 than $225,000,000 but less than $250,000,000; or three-tenths of 14.21 one percent if the fund is more than $250,000,000 but less than 14.22 $275,000,000; or two-tenths of one percent if the fund is 14.23 $275,000,000 but less than $300,000,000; or one-tenth of one 14.24 percent if the fund is $300,000,000 or more. 14.25 (c) The maximum contribution rate for all employersshall 14.26 be 8.0 percent in 1988; 8.5 percent in 1989;9.0 percent in 199014.27 and thereafter. 14.28 (d) For the purposes of this sectionsubdivision the 14.29 reemployment insurance fund shall not include any money advanced 14.30 from the federal Unemployment Account in theunemployment trust 14.31 fund in accordance with Title XII of the Social Security Act, as14.32 amended. 14.33 Sec. 15. Minnesota Statutes 1996, section 268.06, 14.34 subdivision 8a, is amended to read: 14.35 Subd. 8a. [SOLVENCY ASSESSMENT.] (a) If the fund balance 14.36 is greater than $75,000,000 but less than $150,000,000 on June 15.1 30 of any year, a solvency assessment will be in effect for the 15.2 following calendar year. Each employer, except those making 15.3 payments in lieu of contributions under subdivisions 25, 26, 27,15.4 and 28,shall pay a quarterly solvency assessment of ten percent 15.5 multiplied by the contributions paid or due and payable for each 15.6 calendar quarter in that year. Quarterly contributions and the 15.7 solvency assessment payments shall be combined and will be 15.8 computed notwithstanding the maximum contribution rate 15.9 established in subdivision 3a or 8, by multiplying the quarterly 15.10 taxable payroll by the assigned contribution rate multiplied by 15.11 1.10. 15.12 (b) If the fund balance is less than $75,000,000 on June 30 15.13 of any year, a solvency assessment will be in effect for the 15.14 following calendar year. Each employer, except those making 15.15 payments in lieu of contributions under subdivisions 25, 26, 27,15.16 and 28, shall pay a quarterly solvency assessment of 15 percent 15.17 multiplied by the contributions paid or due and payable for each 15.18 calendar quarter in that year. Quarterly contributions and the 15.19 solvency assessment payments shall be combined and will be 15.20 computed notwithstanding the maximum contribution rate 15.21 established in subdivision 3a or 8, by multiplying the quarterly 15.22 taxable payroll by the assigned contribution rate multiplied by 15.23 1.15 rounded to the nearest one-hundredth of a percent. 15.24 Sec. 16. Minnesota Statutes 1996, section 268.06, 15.25 subdivision 18, is amended to read: 15.26 Subd. 18. [NOTICE TO EMPLOYEROF BENEFITS CHARGED.] (a) 15.27 The commissioner shall mail to the last known address of each 15.28 employer a quarterly notice of the benefits whichthat have been 15.29 charged to the employer's account , as determined by the15.30 department. Unless reviewed in the manner hereinafter provided,15.31 a written protest is filed within 30 calendar days from the date 15.32 of mailing of the notice, the charges set forth in suchthe 15.33 notice , or as modified by a redetermination, a decision of a15.34 reemployment insurance judge, or the commissioner,shall be 15.35 final and shall be used in determining the contribution rates15.36 for all years in which the charges occur within the employer's16.1 experience period and shallnot be subject to collateral attack 16.2 by way of review of a contribution rate determinationnotice, 16.3 application for adjustment or refund, or otherwise. 16.4 (b) Upon receipt of a protest, the commissioner shall 16.5 review the charges on the notice and determine whether there has 16.6 been an error in the charging of the employer's account. The 16.7 commissioner shall either affirm or make a redetermination of 16.8 the charges, and a notice of affirmation or redetermination 16.9 shall be mailed to the employer. 16.10 (c) The affirmation or redetermination shall be final 16.11 unless the employer files a written appeal within 30 calendar 16.12 days after the date of mailing. Proceedings on the appeal shall 16.13 be conducted in accordance with section 268.105. 16.14 (d) An employer may not collaterally attack, by way of a 16.15 protest to a notice of benefits charged, any prior determination 16.16 or decision holding that benefits shall be charged to the 16.17 employer's account, that has become final. 16.18 (e) The commissioner may at any time upon the 16.19 commissioner's own motion correct a clerical error that resulted 16.20 in charges to an employer's account. 16.21 Sec. 17. Minnesota Statutes 1996, section 268.06, 16.22 subdivision 19, is amended to read: 16.23 Subd. 19. [NOTICE OF CONTRIBUTION RATE.] (a) The 16.24 commissioner shall mail to the last known address of each 16.25 employer notice of the employer's contribution rate as 16.26 determined for any calendar year pursuant to this section. Such16.27 The notice shall contain the contribution rate ,and the factors 16.28 used in determining the individualemployer's experience rating ,16.29 and such other information as the commissioner may prescribe. 16.30 Unless changed by the procedure provided in this subdivisiona 16.31 protest of the rate is made, the assigned rate as initially16.32 determined or as changed by a redetermination by the tax branch16.33 of this department, a decision of a reemployment insurance16.34 judge, or the commissionershall be final except for fraud and 16.35 shall be the rate upon which contributions shall be computed16.36 paid for the calendar year for which suchthe rate was assigned ,17.1 and. The contribution rate shall not be subject to collateral 17.2 attack for any errors, clerical or otherwise, whetherby way of 17.3 claim for adjustment or refund, or otherwise. 17.4 (b) If the legislature, subsequent to the mailing of the 17.5 contribution rate, changes any of the factors used to determine 17.6 the contributionrate of any employer for any year subsequent to17.7 the original mailing of such notice for the year, the earlier 17.8 notice shall be void. The noticeA new contribution rate based 17.9 on the new factors shall be deemed to be the only notice of rate17.10 of contributions for that year and shall be subject to the same17.11 finality, redetermination, and review procedures as provided17.12 abovecomputed and mailed to the employer. 17.13 Sec. 18. Minnesota Statutes 1996, section 268.06, 17.14 subdivision 20, is amended to read: 17.15 Subd. 20. [PROTEST, REVIEW, REDETERMINATION, APPEAL.] A17.16 review of the charges made to an employer's account as set forth17.17 in the notice of charges referred to in subdivision 18 and(a) A 17.18 review of an employer's contribution rate as set forth in the17.19 notice of the employer's rate for any calendar year as provided17.20 in subdivision 19,may be hadobtained by the employer byfiling 17.21 with the commissioner a written protest setting forth reasons17.22 thereforwithin 30 calendar days from the date of the mailing of 17.23 the notice of charges orcontribution rate notice to the 17.24 employer. The date shall appear on the notice.Upon receipt of 17.25 the protest, the commissioner shall refer the matter to an17.26 official designated by the commissioner toreview the charges17.27 appearing on the notice appealed from or the computations of the17.28 protesting employer'scontribution rate , as the case may be,to 17.29 determine whether or not there has been any clerical error or 17.30 error in computation in either case. The officialcommissioner 17.31 shall either affirm or make a redetermination rectifying the17.32 charges orof the rate as the case may be,and a notice of the 17.33 affirmation or redetermination shall immediatelybe mailed to 17.34 the employer. If the employer is not satisfied withThe 17.35 affirmation or redetermination ,shall be final unless the 17.36 employer mayfiles a written appeal by filing a written notice18.1 with the departmentwithin 30 calendar days after the date of 18.2 mailing appearing upon the redetermination. Proceedings on the 18.3 appeal shall be conducted in accordance with section 268.105. 18.4 (b) The commissioner may at any time upon the 18.5 commissioner's own motion correct any clerical error of the18.6 department resulting in charges against an employer's account or18.7 any error in the computation or the assignment of an employer's 18.8 contribution rate. 18.9 Sec. 19. Minnesota Statutes 1996, section 268.06, 18.10 subdivision 21, is amended to read: 18.11 Subd. 21. [ SEPARATE ACCOUNT FOR EACHEMPLOYER 18.12 ACCOUNTS.] (1)(a) The commissioner shall maintain a separate 18.13 account for each employer, except as provided in clause (2)this 18.14 section, and shall charge the account for any benefits 18.15 determined chargeable to the employer under section 268.047 and 18.16 shall credit anthe account with all the contributions paid by18.17 an employer. Nothing in sections 268.03 to 268.23 shall be18.18 construed to grant any employer or individuals in the employer's18.19 service prior claims or rights to the amounts paid by the18.20 employer into the fund, or if the employer is liable for 18.21 payments in lieu of contributions, the payments made. 18.22 (2)(b) Two or more related corporations concurrently 18.23 employing the same individualemployees and compensating the18.24 individualthose employees through a common paymaster which is 18.25 one of the corporations may apply to the commissioner to 18.26 establish a jointcommon paymaster account or to merge their18.27 several individual accounts into a joint accountthat shall be 18.28 the account of the common paymaster corporation. Upon approval18.29 of the applicationIf approved, a joint account shall be18.30 maintained as if it constituted a single employer's accountthe 18.31 separate accounts shall be maintained, but the employees 18.32 compensated through the common paymaster shall be reported as 18.33 employees of the common paymaster corporation. The corporations 18.34 using the common paymaster account shall be jointly and 18.35 severally liable for any unpaid contributions, penalties, and 18.36 interest owing from the common paymaster account. The 19.1 commissioner may prescribe rules as tofor the establishment, 19.2 maintenance and termination of jointcommon paymaster accounts. 19.3 (c) Two or more employing units having 50 percent or more 19.4 common ownership and compensating employees through a single 19.5 payee that is one of the employing units may apply to the 19.6 commissioner for a merging of the experience rating records of 19.7 the employing units into a single joint account. 19.8 If approved, the joint account shall be effective on that 19.9 date assigned by the commissioner and shall remain in effect for 19.10 not less than two calendar years, and continuing unless written 19.11 notice terminating the joint account is filed with the 19.12 commissioner. The termination shall be effective on January 1 19.13 next following the filing of the written notice of termination. 19.14 The employing units in the joint account shall be jointly 19.15 and severally liable for any unpaid contributions, penalties, 19.16 and interest owing from the joint account. 19.17 Sec. 20. Minnesota Statutes 1996, section 268.06, 19.18 subdivision 22, is amended to read: 19.19 Subd. 22. [ EMPLOYMENTEXPERIENCE RATING RECORD TRANSFER.] 19.20 (a) When an employing unit succeeds to or acquires the 19.21 organization, trade or business or substantially all the assets 19.22 of another employing unit whichthat at the time of the 19.23 acquisition was an employer subject to this law, and 19.24 continues suchthe organization, trade or business, the 19.25 experience rating record of the predecessor employer shall be 19.26 transferred as of the date of acquisition to the successor 19.27 employer for the purpose of computation of a contribution rate 19.28 determination. 19.29 (b) When an employing unit succeeds to or acquires a 19.30 distinct severable portion of the organization, trade, business, 19.31 or assets whichthat is less than substantially all of the 19.32 employing enterprises of another employing unit, the successor 19.33 employing unit shall acquire the experience rating record 19.34 attributable to the portion to which it has succeeded, and the 19.35 predecessor employing unit shall retain the experience rating 19.36 record attributable to the portion whichthat it has retained, 20.1 if (1) the successor continues the organization, trade, or 20.2 business of the portion acquired, (2) the successor makes a 20.3 written request to file an application for the transfer of the 20.4 experience rating record for the severable portion acquired from 20.5 the predecessor (3) and within 90 days from the date of mailing 20.6 the application is mailedto the last known address of the20.7 successor the successor and predecessor employing unitsjointly 20.8 sign and file a properly completed, writtenan application as 20.9 prescribed by the commissioner that furnishes the commissioner20.10 withsufficient information to substantiate the severable 20.11 portion and to assign the appropriate total and taxable wages 20.12 and benefit charges to the successor for experience rating 20.13 purposes. Previously assigned contribution rates that have20.14 become final in accordance with subdivision 19 prior to the20.15 filing of the written request to file an application shall not20.16 be affected by the transfer.20.17 (c) If the successor employer under paragraphs (a) and (b) 20.18 had an experience rating record at the time of the acquisition, 20.19 the transferred record of the predecessor shall be combined with 20.20 the successor's record for purposes of computation of a 20.21 contribution rate. 20.22 (d) If there has been a transfer of an experience rating 20.23 record under paragraph (a) or (b), employment with a predecessor 20.24 employer shall not be deemed to have been terminated if similar 20.25 employment is offered by the successor employer and accepted by 20.26 the employee. 20.27 (d) An official, designated by(e) The commissioner, upon 20.28 the official'scommissioner's own motion or upon application of 20.29 an employing unit shall determine if an employing unit is a 20.30 successor within the meaning of this subdivision and shall 20.31 mail notice of suchthe determination to the last known address 20.32 of the employing unit. The determination shall be final unless 20.33 a written appeal is filed by the employing unit within 20.34 30 calendar days after mailing of the notice ofdetermination. 20.35 Proceedings on the appeal shall be conducted in accordance with 20.36 section 268.105. 21.1 (e) Notwithstanding subdivision 19,(f) The commissioner 21.2 mayshall, as the result of any determination or decision 21.3 regarding succession or nonsuccession, recompute 21.4 the contribution rate of all employers affected by the 21.5 determination or decision for any year, including the year of 21.6 the acquisition or succession and subsequent years, that is 21.7 affected by the transfer or nontransfer of part or all of the 21.8 experience rating record under this subdivision. This paragraph 21.9 does not apply to rates that have become final in accordance21.10 with subdivision 19prior to the filing of a written request to 21.11 file an application for the transfer of a severable portion of 21.12 the experience rating record as provided in paragraph (b). 21.13 (g) The experience rating record for purposes of this 21.14 subdivision shall consist of those factors which make up an 21.15 experience rating, without the 15-month minimum. 21.16 Sec. 21. Minnesota Statutes 1996, section 268.06, 21.17 subdivision 24, is amended to read: 21.18 Subd. 24. [ VOLUNTARY CONTRIBUTIONSCONTRIBUTION RATE 21.19 BUYDOWN.] Notwithstanding any inconsistent provisions of law(a) 21.20 Any employer who has been assigned a contribution rate pursuant21.21 to subdivisions 4, 6, and 8based upon an experience rating may, 21.22 for the calendar year 1967, or any calendar year thereafter,21.23 upon the voluntary payment of an amount equivalent to any 21.24 portion or all of the benefits charged to the employer's account 21.25 during the period ending June 30 of the preceding year used for21.26 the purpose of computing an employer's experience ratio as21.27 authorized by said subdivisions 4, 6, and 8, plus a surcharge of 21.28 25 percent, obtain a cancellation of benefits charged to the 21.29 account during such periodequal to suchthe payment so21.30 voluntarilymade, less the surcharge. Upon the payment of such21.31 voluntary contribution, plus a surcharge of 25 percent of such21.32 benefit charged, within the applicable period prescribed by the21.33 provisions of this subdivision, the commissioner shall cancel21.34 the benefits equal to such payment, excluding the 25 percent21.35 surcharge, so voluntarily made andcompute a new experience 21.36 ratiorating for suchthe employer, and determine a new 22.1 contribution rate. The employer then shall be assigned the22.2 contribution rate applicable to the category within which the22.3 recomputed experience ratio is included.22.4 Such(b) Voluntary payments may be made only during the 22.5 30-day30 calendar day period immediately following the date of 22.6 mailing to the employerof the notice of contribution rate. as22.7 prescribed in this section; provided that the commissioner may22.8 extend this period if the commissioner finds that the employer's22.9 failure to make such payment within such 30-day period was for22.10 good cause; and provided further that notwithstanding any of the22.11 foregoing provisions of this subdivision, in no event shall any22.12 new experience ratio be computed for any employer or a22.13 contribution rate be reduced as a result of any such voluntary22.14 payment which is made after the expiration of the 120-day period22.15 commencing with the first day of the calendar year for which22.16 such rate is effective.This period may be extended, upon a 22.17 showing of good cause, but in no event shall a voluntary payment 22.18 be allowed after 120 calendar days immediately following the 22.19 beginning of the calendar year for which the contribution rate 22.20 is effective. 22.21 (c) Voluntary contributionspayments made within the time 22.22 required time limitswill not be refunded unless a request is 22.23 made in writing at the time of payment that the department22.24 refund the voluntary contribution if it does not result in a22.25 lower ratewithin 30 calendar days after mailing of the notice 22.26 of the new contribution rate. 22.27 When all or a part of the benefits charged to an employer's22.28 account are for the unemployment of 75 percent or more of the22.29 employees in an employing unit and the unemployment is caused by22.30 closure of the business by the condemnation of property by a22.31 governmental agency, or damages to the unit by fire, flood, wind22.32 or other act of God, the employer may obtain a cancellation of22.33 benefits incurred because of that unemployment in the manner22.34 provided by this subdivision without being subject to the22.35 surcharge of 25 percent otherwise required.22.36 Sec. 22. Minnesota Statutes 1996, section 268.06, 23.1 subdivision 25, is amended to read: 23.2 Subd. 25. [PAYMENTS TO FUND BY STATE AND POLITICAL 23.3 SUBDIVISIONS IN LIEU OF CONTRIBUTIONS.] In lieu of contributions 23.4 required of employers under this law, the state of Minnesota or 23.5 its political subdivisions governed by this lawshall pay into 23.6 the reemployment insurance fund an amount equivalent tothe 23.7 amount of benefits charged , and as to weeks of unemployment23.8 beginning after January 1, 1979, all of the extended benefits23.9 paid based on wages paid by the state of Minnesota or such23.10 political subdivisions. If benefits paid an individual are23.11 based on wages paid by both the state of Minnesota or such23.12 political subdivisions and one or more other employers, the23.13 amount payable by the state of Minnesota or such political23.14 subdivisions to the fund shall bear the same ratio to total23.15 benefits paid to the individual as the base-period wages paid to23.16 the individual by the state of Minnesota or such political23.17 subdivisions bear to the total amount of base-period wages paid23.18 to the individual by all base-period employers. The amount of23.19 payment required under this subdivision shall be ascertained by23.20 the commissioner at least four times per yearto its account. 23.21 Payments in the amount of benefits charged to the account during 23.22 a calendar quarter shall be made and become dueon or before the 23.23 last day of the month next following the month in which the 23.24 notice of benefits charged is mailed to the employer. Past due 23.25 payments of amounts determined due under this subdivisionshall 23.26 be subject to the same interest charges and collection 23.27 procedures that apply to past due contributions under sections23.28 268.16 and 268.161. 23.29 Sec. 23. Minnesota Statutes 1996, section 268.06, 23.30 subdivision 26, is amended to read: 23.31 Subd. 26. [ REIMBURSEMENT OF FUND BY STATEMETHOD OF 23.32 PAYMENT BY STATE TO FUND.] To facilitate thedischarge by the23.33 state of Minnesota andits wholly owned instrumentalities of23.34 theirobligations under subdivision 25 of this section, the 23.35 state and its wholly owned instrumentalities shall reimbursepay 23.36 the reemployment insurance fund as provided in the following24.1 clausesfollows: 24.2 (1)(a) Every self-sustaining department, institution and 24.3 wholly owned instrumentality of the state shall pay into the 24.4 reemployment insurancefund suchthe amounts asthe department24.5 of economic securitycommissioner shall certify has been paid 24.6 from the fund to eligible individualsthat were charged to its 24.7 account. For the purposes of this clause a "self-sustaining 24.8 department, institution or wholly owned instrumentality" is one 24.9 in which the dedicated income and revenue substantially offsets 24.10 its cost of operation. 24.11 (2)(b) Every partially self-sustaining department, 24.12 institution and wholly owned instrumentality of the state shall 24.13 pay into the reemployment insurancefund suchthe proportion of 24.14 the sum whichthat the department of economic security24.15 commissioner certifies has been paid from the fund to eligible24.16 individualsas the total of its income and revenue bears to its 24.17 annual cost of operation. 24.18 (3)(c) Every department, institution or wholly owned 24.19 instrumentality of the state which is not self-sustaining shall 24.20 pay to the reemployment insurancefund such sums asthe 24.21 department of economic securityamount the commissioner 24.22 certifies havehas been paid from the fund to eligible24.23 individualswhich were charged to their accounts to the extent 24.24 funds are available from appropriated funds. 24.25 (4)(d) The departments, institutions and wholly owned 24.26 instrumentalities of the state, including the University of 24.27 Minnesota, which have money available shall immediately 24.28 reimbursepay the reemployment insurancefund for benefits paid 24.29 which were charged to their accounts upon receiving notification 24.30 from the department of economic securitycommissioner of such24.31 the charges. If an individual to whom benefits were paida 24.32 claimant was paid by a department, institution or wholly owned 24.33 instrumentality during the individual'sclaimant's base period 24.34 from a special or administrative account or fund provided by 24.35 law, the payment into the reemployment insurancefund shall be 24.36 made from suchthe special or administrative account or fund 25.1 with the approval of the department of administration and such25.2 the amounts are hereby appropriated. 25.3 (5)(e) For those departments, institutions and wholly 25.4 owned instrumentalities of the state which cannot immediately 25.5 reimbursepay the reemployment insurancefund for benefits that 25.6 were charged to their accounts, the commissioner of economic25.7 securityshall certify on November 1 of each calendar year to 25.8 the department of finance as tothe unpaid balances due and 25.9 owing. Upon receipt of the certification the commissioner of 25.10 the department of finance shall include suchthe unpaid balances 25.11 in the biennial budget to besubmitted to the legislature. 25.12 Sec. 24. Minnesota Statutes 1996, section 268.06, 25.13 subdivision 27, is amended to read: 25.14 Subd. 27. [METHOD OF PAYMENT BY POLITICAL SUBDIVISION TO 25.15 FUND.] Effective January 1, 1974,A political subdivision or 25.16 instrumentality thereof is herebyauthorized and directed to pay 25.17 its obligations under subdivision 25this chapter by moneys 25.18 collected from taxes or other revenues. Each andEvery 25.19 political subdivision authorized to levy taxes may include in 25.20 its tax levy the amount necessary to pay suchits obligations. 25.21 If the taxes authorized to be levied under this subdivision 25.22 cause the total amount of taxes levied to exceed any 25.23 limitation whatsoeverupon the power of a political subdivision 25.24 to levy taxes, suchthe political subdivision may levy taxes in 25.25 excess of the limitations in suchthe amounts as isnecessary to 25.26 meet its obligation under subdivision 25this chapter. The 25.27 expenditures authorized to be made under subdivision 25shall 25.28 not be included in computing the cost of government as defined 25.29 in any home rule charter of any city affected thereby. The 25.30 governing body of a municipality, for the purpose of meeting its 25.31 liabilities under subdivision 25this chapter, in the event of a 25.32 deficit, may issue its obligations payable in not more than two 25.33 years, in an amount whichthat may cause its indebtedness to 25.34 exceed any statutory or charter limitations, without an 25.35 election, and may levy taxes to pay thereforin the manner 25.36 provided in section 475.61. 26.1 Sec. 25. Minnesota Statutes 1996, section 268.06, 26.2 subdivision 28, is amended to read: 26.3 Subd. 28. [PAYMENT TO FUND BY NONPROFIT CORPORATION AND26.4 ALLOCATION OF BENEFIT COSTS BY BASE PERIOD REIMBURSERS26.5 CORPORATIONS.] (1) Benefits paid to employees of nonprofit26.6 organizations shall be financed in accordance with the26.7 provisions of this subdivision. For the purpose of this26.8 subdivision, a nonprofit organization is an organization (or26.9 group of organizations) described in section 501(c)(3) of the26.10 United States Internal Revenue Code which is exempt from income26.11 tax under section 501(a) of such code.(a) Any nonprofit 26.12 organization which, pursuant to section 268.04, subdivision 10,26.13 clause (9) is, or becomes, subject to this law on or after26.14 January 1, 1972,that is determined to be an employer shall pay 26.15 contributions under the provisions of subdivision 1,unless it 26.16 elects , in accordance with this paragraph,to paymake payments 26.17 in lieu of contributions to the commissioner for the26.18 unemploymentreemployment insurance fund an amount equal tothe 26.19 amount of regularbenefits and the state share of the extended26.20 benefits charged, that is attributable to service in the employ26.21 of such nonprofit organization, to individuals for weeks of26.22 unemployment which begin during the effective period of such26.23 electioncharged to the employer's account. 26.24 (a)(1) Any nonprofit organization which becomes subject to26.25 this law after January 1, 1972,may elect to become liable for 26.26 payments in lieu of contributions for a period of not less than 26.27 two calendar years beginning with the date on which such26.28 subjectivity beginsthat the organization was determined to be 26.29 an employer by filing a written notice of itselection with the 26.30 commissioner not later than 30 calendar days immediately 26.31 following the date of the determination of such subjectivity. 26.32 (b)(2) Any nonprofit organization whichthat makes an 26.33 election in accordance with clause (a)will continue to be 26.34 liable for payments in lieu of contributions until it files with 26.35 the commissioner a written notice terminating its election not 26.36 later than 30 calendar days prior to the beginning of the 27.1 calendar year for which suchthe termination shall first be 27.2 effective. 27.3 (c)(3) Any nonprofit organization whichthat has been 27.4 paying contributions under this law for a period subsequent to27.5 January 1, 1972,may change to a reimbursable basismaking 27.6 payments in lieu of contributions by filing with the 27.7 commissioner not later than 30 calendar days prior to the27.8 beginningJanuary 1 of any calendar year a written notice of 27.9 election to become liable for payments in lieu of 27.10 contributions. SuchThe election shall not be terminable by the 27.11 organization for that and the next calendar year. 27.12 (d)(4) The commissioner may for good cause extend the 27.13 period within whichthat a notice of election, or a notice of 27.14 termination, must be filed and may permit an election to be 27.15 retroactive but not any earlier than with respect to benefits27.16 paid after December 31, 1971. 27.17 (e)(5) The commissioner , in accordance with such rules as27.18 the commissioner may prescribe,shall notify each nonprofit 27.19 organization of any determination which the commissioner may27.20 makeof its status as an employer and of the effective date of 27.21 any election which it makes and of anyor termination of such27.22 election. SuchThe determinations shall be final unless 27.23 reviewed in accordance with the provisions of section 268.12,27.24 subdivision 13a written appeal is filed within 30 calendar days 27.25 after mailing of the determination. Proceedings on the appeal 27.26 shall be conducted in accordance with section 268.105. 27.27 (2)(b) Payments in lieu of contributions, in the amount of 27.28 benefits charged to the employer's account, during a calendar 27.29 quarter, shall be made at the end of each calendar quarter, or27.30 at the end of any other period as determined by the commissioner27.31 and become dueon or before the last day of the month next 27.32 following the month in which the notice of benefits charged is 27.33 mailed to the employer. The commissioner shall bill each27.34 nonprofit organization (or group of such organizations) which27.35 has elected to make payments in lieu of contributions for an27.36 amount equal to the full amount of regular benefits plus28.1 one-half of the amount of extended benefits charged during such28.2 quarter or other prescribed period that is attributable to28.3 service in the employ of such organization.28.4 (3)(c) Past due payments of amountsin lieu of 28.5 contributions shall be subject to the same interest charges and 28.6 collection procedures that apply to past due contributions under28.7 sections 268.16 and 268.161. 28.8 (4)(d) If any nonprofit organization is delinquent in 28.9 making payments in lieu of contributions as required under this28.10 subdivision, the commissioner may terminate suchthe 28.11 organization's election to make payments in lieu of 28.12 contributions as of the beginning of the next taxablecalendar 28.13 year, and suchthe termination shall be effective for that and 28.14 the following taxablecalendar year. 28.15 (e) For purposes of this subdivision, a nonprofit 28.16 organization is an organization, or group of organizations, 28.17 described in section 501(c)(3) of the Internal Revenue Code that 28.18 is exempt from income tax under section 501(a) of the code. 28.19 Sec. 26. Minnesota Statutes 1996, section 268.06, 28.20 subdivision 29, is amended to read: 28.21 Subd. 29. [GROUP ACCOUNTS.] Two or more employers that 28.22 have becomeare liable for payments in lieu of contributions may 28.23 file a joint applicationapply to the commissioner for the 28.24 establishment of a group account for the purpose of sharing the 28.25 cost of benefits paid that are attributable to service in the28.26 employ of suchcharged based upon wage credits from all 28.27 employers in the group. Each suchThe application shall 28.28 identify and authorize a group representative to act as the 28.29 group's agent for the purposes of this subdivisionthe account. 28.30 Upon the commissioner's approval of the applicationIf approved, 28.31 the commissioner shall establish a group account for suchthe 28.32 employers effective as of the beginning of the calendar year in28.33 whichthat the application is received by the commissioner and28.34 shall notify the group's representative of the effective date of28.35 the account. SuchThe account shall remain in effect for not 28.36 less than two calendar years and thereafter until terminated at 29.1 the discretion of the commissioner or upon application by the 29.2 group at least 30 calendar days prior to the end of suchthe two 29.3 year period or 30 calendar days prior to January 1 of any 29.4 calendar year subsequent to such two calendar years. 29.5 Each member ofemployer in the group shall be jointly and 29.6 severally liable for payments in lieu of contributions for all 29.7 benefits paid based upon wage credits earned with afrom all 29.8 employers in the group memberduring the period the group 29.9 account was in effect. The commissioner shallmay prescribe 29.10 suchrules as the commissioner deems necessary with respect to29.11 applicationsfor the establishment, maintenance and termination 29.12 of group accounts that are authorized by this subdivision, for29.13 addition of new members to, and withdrawal of active members29.14 from, such account, and for the determination of the amounts29.15 that are payable under this subdivision by members of the group29.16 and the time and manner of such payments. 29.17 Sec. 27. Minnesota Statutes 1996, section 268.06, 29.18 subdivision 31, is amended to read: 29.19 Subd. 31. [ELECTION BY STATE OR POLITICAL SUBDIVISION TO 29.20 BE A CONTRIBUTING EMPLOYER.] (1) Notwithstanding the provisions29.21 of section 268.06, subdivisions 25 and 26, after December 31,29.22 1977 an employer as defined in section 268.04, subdivision 10,29.23 clauses (14) and (15)(a) The state or political subdivision may :29.24 (a)elect to be a contributing employer subject to the29.25 provisions of subdivisions 1, 2, 3a, 4, 5, 6, 8, 18, 19, 20 and29.26 24 and section 268.16 beginning with January 1, 1978for any 29.27 calendar year if it files with the commissionera written notice 29.28 of itselection is filed with the commissioner within 30 29.29 calendar days immediatelyfollowing January 1 , 1978; orof that 29.30 calendar year. 29.31 (b) Elect for a subsequent calendar year, not having29.32 elected to be a contributing employer beginning with January 1,29.33 1978, to be a contributing employer subject to the provisions of29.34 subdivisions 1, 2, 3a, 4, 5, 6, 8, 18, 19, 20 and 24 and section29.35 268.16 if it files with the commissioner a written notice of its29.36 election within 30 days immediately following the first day of30.1 the subsequent calendar year.30.2 An election shall continuebe for a minimum period of two 30.3 calendar years immediately following the effective date of the 30.4 election and thereaftercontinue unless a written notice 30.5 terminating the election is filed with the commissioner not 30.6 later than 30 calendar days prior to the beginning of the 30.7 calendar year for which. The termination shall firstbe 30.8 effective at the beginning of the next calendar year. 30.9 (2)(b) The provisions of subdivisions 25, 26, and 27 as to30.10 themethod of payments to the reemployment insurance fund shall 30.11 apply to all contributions paid by or due from employers30.12 electingthe state or political subdivision that elects to be 30.13 contributing employers under clause (1) ofthis subdivision. 30.14 Sec. 28. [268.069] [PAYMENT OF BENEFITS.] 30.15 (a) The commissioner shall pay reemployment insurance 30.16 benefits from the Minnesota reemployment insurance fund to a 30.17 claimant who has met each of the following requirements: 30.18 (1) the claimant has established a reemployment insurance 30.19 account in accordance with section 268.07; 30.20 (2) the claimant is not subject to a disqualification from 30.21 benefits under section 268.09; 30.22 (3) the claimant has met all of the eligibility 30.23 requirements under section 268.08; and 30.24 (4) the claimant does not have an outstanding overpayment 30.25 of benefits under section 268.18; 30.26 (b) Benefits shall not be considered as paid by an employer. 30.27 The commissioner shall determine a claimant's entitlement to 30.28 benefits based upon that information available and any agreement 30.29 between a claimant and an employer shall not be binding on the 30.30 commissioner in determining a claimant's entitlement. Any 30.31 obligation on an employer as a result of benefits charged to the 30.32 employer is to the fund only. 30.33 Sec. 29. Minnesota Statutes 1996, section 268.07, 30.34 subdivision 2, is amended to read: 30.35 Subd. 2. [WEEKLY BENEFIT AMOUNT AND DURATION.] (a) To 30.36 establish a reemployment insurance account, a claimant must have: 31.1 (1) wage credits in two or more calendar quarters of the 31.2 claimant's base period; 31.3 (2) minimum total base periodwage credits equal to or 31.4 greater than the high quarter wageswage credits multiplied by 31.5 1.25; 31.6 (3) high quarter wage credits of not less than $1,000 ; and31.7 (4) performed work in 15 or more calendar weeks in the base31.8 period. 31.9 (b) If the commissioner finds that a claimant has 31.10 sufficient wage credits and weeks worked within the base period31.11 to establishestablished a reemployment insurance account, the 31.12 weekly benefit amount payable to the claimant during the 31.13 claimant's benefit year shall be equal to 1/26 of the claimant's 31.14 high quarter wage credits, rounded to the next lower whole 31.15 dollar. 31.16 (c) Notwithstanding paragraph (b), the maximum weekly 31.17 benefit amount shall be a percentage of the average weekly wage31.18 as determined under paragraphs (d) and (e).31.19 (d) On or before June 30 of each year, the commissioner31.20 shall determine the average weekly wage for purposes of31.21 paragraph (c) paid by employers subject to sections 268.03 to31.22 268.23 in the following manner:31.23 (1) The sum of the total monthly employment reported for31.24 the previous calendar year shall be divided by 12 to determine31.25 the average monthly employment.31.26 (2) The sum of the total wages reported for the previous31.27 calendar year shall be divided by the average monthly employment31.28 to determine the average annual wage.31.29 (3) The average annual wage shall be divided by 52 to31.30 determine the average weekly wage.31.31 (e) The maximum weekly benefit amountfor any reemployment 31.32 insurance account established during the 12-month period 31.33 subsequent to June 30 of any year shall be determined on the 31.34 basis of the unemploymentreemployment insurance fund balance on 31.35 December 31 of the preceding year. If the fund balance is less 31.36 than $70,000,000 on that date, the maximum weekly benefit amount 32.1 shall be 66-2/3 percent of the state's average weekly wage; if 32.2 the fund balance is more than $70,000,000 but less than 32.3 $100,000,000, the maximum weekly benefit amount is 66 percent of 32.4 the state's average weekly wage; if the fund balance is more 32.5 than $100,000,000 but less than $150,000,000, the maximum weekly 32.6 benefit amount is 65 percent of the state's average weekly wage; 32.7 if the fund balance is more than $150,000,000 but less than 32.8 $200,000,000, the maximum weekly benefit amount is 64 percent of 32.9 the state's average weekly wage; if the fund balance is more 32.10 than $200,000,000 but less than $250,000,000, the maximum weekly 32.11 benefit amount is 63 percent of the state's average weekly wage; 32.12 if the fund balance is more than $250,000,000 but less than 32.13 $300,000,000, the maximum weekly benefit amount is 62 percent of 32.14 the state's average weekly wage; if the fund balance is more 32.15 than $300,000,000 but less than $350,000,000, the maximum weekly 32.16 benefit amount is 61 percent of the state's average weekly wage; 32.17 if the fund balance is more than $350,000,000, the maximum 32.18 weekly benefit amount is 60 percent. The maximum weekly benefit 32.19 amount as determined under this paragraphshall be computed to 32.20 the nearest whole dollar shall apply to reemployment insurance32.21 accounts established subsequent to June 30 of each year. 32.22 (f)(d) The maximum benefit amount payable foron any 32.23 benefit yearreemployment insurance account shall equal 32.24 one-third of the claimant's total base periodwage credits 32.25 rounded to the next lower dollar, not to exceed 26 times the 32.26 claimant's weekly benefit amount. 32.27 Sec. 30. Minnesota Statutes 1996, section 268.07, 32.28 subdivision 3, is amended to read: 32.29 Subd. 3. [SECOND ACCOUNT PROHIBITEDREQUIREMENTS.] (a)To 32.30 establish a second reemployment insurance account following the 32.31 expiration of a benefit year on a preceding reemployment 32.32 insurance account, a claimant must have sufficient wage 32.33 credits and weeks of employmentto establish a reemployment 32.34 insurance account under the provisions of subdivision 2 and must 32.35 have performed services in covered employment after the 32.36 establishment of the preceding reemployment insurance account. 33.1 The services performed must have been in insured work andThe 33.2 wages paid for those services must equal not less than teneight 33.3 times the weekly benefit amount of the secondpreceding 33.4 reemployment insurance account. A reemployment insurance 33.5 account established sufficiently in advance of anticipated 33.6 unemployment to make the limitations of this paragraph 33.7 ineffective shall not be allowed. It is the purpose of this 33.8 provision thatto prevent a claimant cannot establishfrom 33.9 establishing more than one reemployment insurance account as a 33.10 result of one separation from employment. 33.11 (b) No employer who provided 90 percent or more of the wage33.12 credits in a claimant's base period shall be charged for33.13 benefits based upon wages paid during a subsequent base period33.14 unless the claimant performed services for the employer in any33.15 part of the subsequent base period.33.16 Sec. 31. Minnesota Statutes 1996, section 268.07, 33.17 subdivision 3a, is amended to read: 33.18 Subd. 3a. [RIGHT OF APPEAL.] (a) A determination or 33.19 redetermination of a reemployment insurance account shall be 33.20 final unless a claimant or base period employer within 33.21 15 calendar days after the mailing of the determination or 33.22 redetermination to the last known address files a written 33.23 appeal. Every determination or redetermination of a 33.24 reemployment insurance account shall contain a prominent 33.25 statement indicating in clear language the method of appealing, 33.26 the time within which the appeal must be made, and the 33.27 consequences of not appealing. Proceedings on the appeal shall 33.28 be conducted in accordance with section 268.105. 33.29 (b) Any claimant or base period employer may appeal from a 33.30 determination or redetermination of a reemployment insurance 33.31 account on the issue of whether an employing unit is an employer 33.32 within the meaning of this chapter or whether services performed 33.33 constitute employment within the meaning of this chapter. 33.34 Proceedings on the appeal shall be conducted in accordance with 33.35 section 268.105. 33.36 Sec. 32. Minnesota Statutes 1996, section 268.07, 34.1 subdivision 3b, is amended to read: 34.2 Subd. 3b. [LIMITATIONS.] (a) A reemployment insurance 34.3 account shall be established the Sunday of the calendar week in 34.4 which the application for reemployment insurance benefits was 34.5 made. If an individual attempted to make an application for a 34.6 reemployment insurance account, but was prevented from making an 34.7 application by the department of economic security, the 34.8 reemployment insurance account shall be established the Sunday 34.9 of the calendar week the individual first attempted to make an 34.10 application. 34.11 (b) A reemployment insurance account, once established, may 34.12 be withdrawn if benefits have not been paid, and benefit credit34.13 has not been claimedand a new account established only if the 34.14 claimant has not been credited with a waiting week under section 34.15 268.08, subdivision 1, clause (3). A determination or amended 34.16 determination pursuant to section 268.101, that was issued 34.17 before the withdrawal of the reemployment insurance account, 34.18 shall remain in effect and shall not be voided by the withdrawal 34.19 of the reemployment insurance account. A determination of 34.20 disqualification requiring subsequent earnings to satisfy the 34.21 disqualification shall apply to the weekly benefit amount on the 34.22 new account. 34.23 (c) A reemployment insurance account shall not be 34.24 established prior to the Sunday following the expiration of the 34.25 benefit year on a priorpreceding reemployment insurance account. 34.26 (d) All benefits shall be payable from the Minnesota 34.27 reemployment insurance fund only for weeks occurring during the 34.28 benefit year. 34.29 Sec. 33. Minnesota Statutes 1996, section 268.071, 34.30 subdivision 3, is amended to read: 34.31 Subd. 3. [ELIGIBILITY REQUIREMENTS FOR EXTENDED BENEFITS.] 34.32 An individualA claimant shall be eligible to receive extended 34.33 benefits with respect to any week of unemploymentin the 34.34 individual'sclaimant's eligibility period only if the34.35 commissioner finds thatwith respect to suchthat week the 34.36 individualclaimant: 35.1 (1) is an "exhaustee" as defined in subdivision 1, clause35.2 paragraph (9); 35.3 (2) has satisfied the requirements of this law for the 35.4 receipt of regular benefits that are applicable to individuals35.5 claimants claiming extended benefits, including not being 35.6 subject to a disqualification for the receipt of benefits ,35.7 except that an individual disqualified for benefits pursuant to35.8 section 268.09, subdivision 1, clause (g) is not eligible for35.9 extended benefits unless the individual has, subsequent to the35.10 disciplinary suspension, earned at least four times the35.11 individual's weekly extended benefit amount; and 35.12 (3) has, during the individual'sclaimant's base period 35.13 earned wage credits available for benefit purposes of not less 35.14 than 40 times the individual'sclaimant's weekly benefit amount 35.15 as determined pursuant to section 268.07, subdivision 2. 35.16 Sec. 34. Minnesota Statutes 1996, section 268.071, 35.17 subdivision 6, is amended to read: 35.18 Subd. 6. [BEGINNING AND TERMINATION OF EXTENDED BENEFIT 35.19 PERIOD.] (1)(a) Whenever an extended benefit period is to 35.20 become effective in this state as a result of a state "on" 35.21 indicator, or an extended benefit period is to be terminated in 35.22 this state as a result of a state "off" indicator the 35.23 commissioner shall make an appropriate public announcement. 35.24 (2)(b) Computations required by the provisions of 35.25 subdivision 1, clauseparagraph (4) shall be made by the 35.26 commissioner, in accordance with regulations prescribed by the 35.27 United States Secretary of Labor. 35.28 (3) Except as otherwise provided, the state share of the35.29 benefits paid to an individual under this section shall be35.30 charged to the employment experience record of the base period35.31 employer of the individual to the extent regular benefits were35.32 charged to the base period employer under sections 268.06,35.33 subdivision 5, and 268.09, subdivision 1, clause (e).35.34 (4) With respect to an employer which has elected to be a35.35 contributing employer under the provisions of section 268.06,35.36 subdivision 31, all benefits paid under this section which are36.1 based upon services for such contributing employer shall be36.2 charged to such contributing employer's account as to weeks of36.3 unemployment beginning after January 1, 1979.36.4 Sec. 35. Minnesota Statutes 1996, section 268.071, 36.5 subdivision 9, is amended to read: 36.6 Subd. 9. [ELIGIBILITY REQUIREMENTS.] Notwithstanding the 36.7 provisions of subdivision 2, an individuala claimant shall be 36.8 ineligible for the payment of extended benefits for any week of36.9 unemploymentin the individual'sclaimant's eligibility period 36.10 if the commissioner finds thatduring that week the individual36.11 claimant failed to accept any offer of suitable workemployment, 36.12 failed to apply for any suitable workemployment to which 36.13 referred by the commissioner or failed to actively engage in36.14 seeking workseek employment. 36.15 Any individualclaimant who has been found ineligible for 36.16 extended benefits for any week by reason of this subdivision 36.17 shall also be denied benefits for the week following the week in36.18 which the failure occurred anduntil the individualclaimant has 36.19 been employed in each of four subsequent weeks, whether or not 36.20 consecutive, and has earned remuneration of not less than four 36.21 times the individual'sclaimant's extended weekly benefit amount. 36.22 For the purpose of this subdivision "suitable work36.23 employment" means , with respect to any individual,any work36.24 employment which is within that individual'sthe claimant's 36.25 capabilities and which has a gross average weekly remuneration 36.26 payable which exceeds the sum of the individual'sclaimant's 36.27 weekly benefit amount as determined under subdivision 4 plus the 36.28 amount, if any, of supplemental unemploymentreemployment 36.29 insurance benefits, as defined in section 501(c) (17) (D) of the 36.30 Internal Revenue Code of 1954, as amended, payable to 36.31 the individualclaimant for that week. The workemployment must 36.32 pay wages not less than the higher of the federal minimum wage 36.33 provided by section 6(a) (1) of the Fair Labor Standards Act of36.34 1938, as amended,without regard to any exemption, or the 36.35 applicable state or localminimum wage. 36.36 No individualclaimant shall be denied extended benefits 37.1 for failure to accept an offer of or apply for any suitable work37.2 employment if: (a) the position was not offered to the 37.3 individualclaimant in writing or was not listed with employment 37.4 service; (b) the failure could not result in a denial of 37.5 benefits under the definition of suitable workemployment for 37.6 regular benefit claimants in section 268.09 , subdivision 2to 37.7 the extent that the criteria of suitability therein areis not 37.8 inconsistent with this subdivision; or (c) the 37.9 individualclaimant furnishes satisfactory evidence to the 37.10 commissioner that prospects for obtaining workemployment in the 37.11 individual'sclaimant's customary occupation within a reasonably 37.12 short period are good. If the evidence furnished is found to be 37.13 satisfactory for this purpose, the determination of whether 37.14 any workemployment is suitable for the individualclaimant 37.15 shall be made in accordance with the definition of suitable work37.16 for regular benefit claimantsemployment in section 268.09, 37.17 subdivision 2, clause15, paragraph (a), without regard to the 37.18 definition or special disqualification specified in this 37.19 subdivision. 37.20 No workemployment shall be found to be suitable work37.21 employment for an individuala claimant which doeswould not 37.22 accord with the labor standard provisions required by section37.23 3304(a) (5) of the Internal Revenue Code of 1954, as amended,37.24 and set forth inbe suitable employment under section 268.09, 37.25 subdivision 215, clausesparagraph (b) (1) (2) and (3). 37.26 For the purpose of this subdivision an individuala 37.27 claimant is "actively seeking workemployment" during any week 37.28 if the individualclaimant has engaged in a systematic and 37.29 sustained effort to obtain workemployment during the week, and 37.30 the individualclaimant furnishes tangible evidence of engaging 37.31 in that effort during the week. 37.32 The employment service shall refer any claimant entitled to 37.33 extended benefits under this section to any workemployment 37.34 which is suitable workemployment for that individualclaimant 37.35 under this subdivision. 37.36 Sec. 36. Minnesota Statutes 1996, section 268.08, 38.1 subdivision 1, is amended to read: 38.2 Subdivision 1. [ELIGIBILITY CONDITIONS.] A claimant shall 38.3 be eligible to receive benefits with respect tofor any week of38.4 unemploymentin the claimant's benefit year only if the38.5 commissioner finds that the claimant: 38.6 (1) has registered for work at and thereafter has continued38.7 to report to an employment office, or agent of the office, in38.8 accordance with rules the commissioner may adopt; except that38.9 the commissioner may by rule waive or alter either or both of38.10 the requirements of this clause as to types of cases or38.11 situations with respect to which the commissioner finds that38.12 compliance with the requirements would be oppressive or would be38.13 inconsistent with the purposes of sections 268.03 to 268.23;38.14 (2)(1) the claimant has made a continued claim for 38.15 benefits in person, by mail, by telephone, or by electronic 38.16 transmission as the commissioner shall require. The 38.17 commissioner may by rule adopt other requirements for a 38.18 continued claim; 38.19 (3)(2) the claimant was able to work and was available for 38.20 workemployment, and was actively seeking workemployment. The 38.21 claimant's weekly benefit amount shall be reduced one-fifth for 38.22 each day the claimant is unable to work or is unavailable 38.23 for workemployment. 38.24 Benefits shall not be denied by application of this clause 38.25 to a claimant who is in training with the approval of the 38.26 commissioner, is a dislocated worker as defined in section 38.27 268.975, subdivision 3, who isin training approved by the 38.28 commissioner, or in training approved pursuant to section 236 of 38.29 the Trade Act of 1974, as amended. 38.30 A claimant is deemed unavailable for work with respect to38.31 any week which occurs in a period when the claimant is a38.32 full-time student in attendance at, or on vacation from an38.33 established school, college, or university unless a majority of38.34 the claimant's wages paid during the 52 weeks preceding the38.35 establishment of a reemployment insurance account were for38.36 services performed during weeks in which the student was39.1 attending school as a full-time student.39.2 A claimant serving as a juror shall be considered as 39.3 available for workemployment and actively seeking 39.4 workemployment on each day the claimant is on jury duty; 39.5 (4)(3) the claimant has been unemployed for a waiting 39.6 period of one week during which the claimant is otherwise 39.7 entitled to benefits under sections 268.03 to 268.23; and 39.8 (5)(4) the claimant has been participating in reemployment 39.9 services, such as job search assistance services, if the 39.10 claimant has been determined to belikely to exhaust regular39.11 benefits and in need of reemployment services pursuant to a 39.12 profiling system established by the commissioner, unless there 39.13 is justifiable cause for the claimant's failure to participate. 39.14 Sec. 37. Minnesota Statutes 1996, section 268.08, 39.15 subdivision 2, is amended to read: 39.16 Subd. 2. [ WEEK OF UNEMPLOYMENTNOT ELIGIBLE.] No week39.17 shall be counted asA claimant shall not be eligible to receive 39.18 benefits for any week of unemployment for the purposes of this39.19 section: 39.20 (1) unless it occurs subsequent to the establishment of a 39.21 reemployment insurance account; 39.22 (2) Unless it occurs after benefits first could become39.23 payable to any claimant under sections 268.03 to 268.23;which 39.24 occurs in a period when the claimant is a full-time student in 39.25 attendance at, or on vacation from an established school, 39.26 college, or university unless a majority of the claimant's wages 39.27 paid during the 52 weeks preceding the establishment of a 39.28 reemployment insurance account were for services performed 39.29 during weeks that the claimant was attending school as a 39.30 full-time student; 39.31 (3) in which the claimant is incarcerated. The claimant's 39.32 weekly benefit amount shall be reduced by one-fifth for each day 39.33 the claimant is incarcerated; 39.34 (4) in which the claimant is on a voluntary leave of 39.35 absence; 39.36 (5) in which the claimant is performing services on a 40.1 full-time basis, in covered employment, noncovered employment, 40.2 self-employment, or volunteer work regardless of the amount of 40.3 any earnings; or 40.4 (3)(6) with respect to which the claimant is receiving, 40.5 has received, or has filed a claim for reemployment insurance 40.6 benefits under any otherlaw of this state, orof any other 40.7 state, or the federal government, including readjustment40.8 allowances under Title V, Servicemen's Readjustment Act, 1944,40.9 but not including benefits under the Veterans Readjustment40.10 Assistance Act of 1952 orany otherfederal or state benefits 40.11 whichthat are merely supplementary to those provided for under 40.12 sections 268.03 to 268.23this chapter; provided that if the 40.13 appropriate agency of such other state or the federal government40.14 finally determines that the claimant is not entitled to suchthe 40.15 benefits, this provisionclause shall not apply. 40.16 Sec. 38. Minnesota Statutes 1996, section 268.08, is 40.17 amended by adding a subdivision to read: 40.18 Subd. 2a. [SUSPENSION FROM EMPLOYMENT.] (a) A claimant who 40.19 has been suspended from employment for 30 calendar days or less, 40.20 as a result of misconduct as defined under section 268.09, 40.21 subdivision 12, shall be ineligible for benefits commencing the 40.22 Sunday of the week in which the claimant was suspended and 40.23 continuing for the duration of the suspension. 40.24 (b) A suspension from employment for more than 30 calendar 40.25 days shall be considered a discharge from employment under 40.26 section 268.09, subdivision 11. 40.27 Sec. 39. Minnesota Statutes 1996, section 268.08, 40.28 subdivision 3, is amended to read: 40.29 Subd. 3. [ NOT ELIGIBLEDEDUCTIBLE PAYMENTS.] A claimant 40.30 shall not be eligible to receive benefits for any week with 40.31 respect to which the claimant is receiving, has received, or has 40.32 filed a claim for remunerationpayment in an amount equal to or 40.33 in excess of the claimant's weekly benefit amount in the form of: 40.34 (1) termination, severance, or dismissal payment or wages 40.35 in lieu of notice whether legally required or not ; provided that40.36 if a termination, severance, or dismissal payment is made in a41.1 lump sum, such lump sum payment shall be allocated over a period41.2 equal to the lump sum divided by the claimant's regular pay41.3 while employed by such employer; provided such payment shall be41.4 applied for a period immediately following the last day of41.5 employment but not to exceed 28 calendar days provided that 5041.6 percent of the total of any such payments in excess of eight41.7 weeks shall be similarly allocated to the period immediately41.8 following the 28 days; or. This clause shall apply to the first 41.9 four weeks of payment and to one-half of the total number of any 41.10 additional weeks of payment. This clause shall be applied to 41.11 the period immediately following the last day of employment. 41.12 The number of weeks of payment shall be determined as follows: 41.13 (i) if the payments are made periodically, the total of the 41.14 payments to be received shall be divided by the claimant's last 41.15 level of regular weekly pay from the employer; or 41.16 (ii) if the payment is made in a lump sum, that sum shall 41.17 be divided by the claimant's last level of regular weekly pay 41.18 from the employer; 41.19 (2) vacation allowance paid directly by the employer for a 41.20 period of requested vacation, including vacation periods 41.21 assigned by the employer under the provisions ofa collective 41.22 bargaining agreement, or uniform vacation shutdown; or 41.23 (3) compensation for loss of wages under the workers' 41.24 compensation law of this state or any other state or under a 41.25 similar law of the United States, or under other insurance or 41.26 fund established and paid for by the employer; or 41.27 (4) 50 percent of the pension payments from any fund, 41.28 annuity or insurance maintained or contributed to by a base 41.29 period employer including the armed forces of the United States 41.30 if the employeeclaimant contributed to the fund, annuity or 41.31 insurance and all of the pension payments if the claimant did 41.32 not contribute to the fund, annuity or insurance; or 41.33 (5) 50 percent of a primary insurance benefit under title 41.34 II of the Social Security Act, as amended, or similar old age41.35 benefits under any act of Congress or this state or any other 41.36 state. 42.1 Provided, that if such remunerationthe payment is less 42.2 than the benefits which would otherwise be due under sections42.3 268.03 to 268.23claimant's weekly benefit amount, the claimant 42.4 shall be entitled to receive for suchthat week, if otherwise 42.5 eligible, benefits reduced by the amount of such42.6 remunerationthe payment; provided, further, that if the 42.7 appropriate agency of suchthis state or any other state or the 42.8 federal government finally determines that the claimant is not 42.9 entitled to such benefitspayments, this provisionsubdivision 42.10 shall not apply. If the computation of reduced benefits ,42.11 required by this subdivision,is not a whole dollar amount, it 42.12 shall be rounded down to the next lower dollar amount. 42.13 Sec. 40. Minnesota Statutes 1996, section 268.08, 42.14 subdivision 3a, is amended to read: 42.15 Subd. 3a. [DEDUCTIBLE EARNINGS.] Each eligible claimant42.16 who is unemployed in any week shall be paid with respect to such42.17 week a benefit in an amount equal to the claimant's weekly42.18 benefit amount less that part of the claimant's earnings,42.19 including holiday pay, payable to the claimant with respect to42.20 such week which is in excess of $200 for earnings from service42.21 in the national guard or a United States military reserve unit42.22 and the greater of $50 or 25 percent of the earnings in other42.23 work; provided that no deduction may be made from the weekly42.24 benefit amount for earnings from service as a volunteer42.25 firefighter or volunteer ambulance service personnel. Jury duty42.26 pay is not considered as earnings and shall not be deducted from42.27 benefits paid. The resulting benefit, if not a whole dollar42.28 amount, shall be rounded down to the next lower dollar42.29 amount.(a) If the claimant has earnings, including holiday 42.30 pay, with respect to any week, from covered employment, 42.31 noncovered employment, self-employment, or volunteer work, equal 42.32 to or in excess of the claimant's weekly benefit amount, the 42.33 claimant shall be ineligible for benefits for that week. 42.34 (b) If the claimant has earnings, including holiday pay, 42.35 with respect to any week, from covered employment, noncovered 42.36 employment, self-employment, or volunteer work, that is less 43.1 than the claimant's weekly benefit amount, the following shall 43.2 be deducted from the claimant's weekly benefit amount: 43.3 (1) that amount in excess of $50 if the claimant's earnings 43.4 were $200 or less, and that amount in excess of 25 percent of 43.5 the claimant's earnings if those earnings were more than $200; 43.6 and 43.7 (2) that amount in excess of $200 for earnings from service 43.8 in the National Guard or a United States military reserve unit. 43.9 The resulting benefit, if not a whole dollar, shall be 43.10 rounded to the next lower dollar. 43.11 (c) No deduction shall be made from a claimant's weekly 43.12 benefit amount for earnings from service as a volunteer 43.13 firefighter or volunteer ambulance service personnel. No 43.14 deduction shall be made for jury duty pay. 43.15 Sec. 41. Minnesota Statutes 1996, section 268.08, 43.16 subdivision 3b, is amended to read: 43.17 Subd. 3b. [RECEIPT OF BACK PAY.] Back pay received by a 43.18 claimant with respect to any weeks of unemploymentoccurring in 43.19 the 104 weeks immediately preceding the payment of the back pay 43.20 shall be deducted from benefits paid for those weeks. 43.21 The amount deducted shall not reduce the benefits for which43.22 that the claimant is otherwise eligible for that week below 43.23 zero. If the amount of benefits after the deduction of back pay 43.24 is not a whole dollar amount, it shall be rounded to the next 43.25 lower dollar. 43.26 If the back pay awarded the claimant is reduced by benefits 43.27 paid, the amounts withheld shall be: (a) paid by the employer 43.28 into the fund within 30 days of the award and are subject to the 43.29 same collection procedures that apply to past due contributions 43.30 under this chapter; (b) applied to benefit overpayments 43.31 resulting from the payment of the back pay; (c) credited to the 43.32 claimant's maximum amount of benefits payable in a benefit year 43.33 whichthat includes the weeks of unemploymentfor which back pay 43.34 was deducted. Benefit charges for those weeks shall be removed 43.35 from the employer's account as of the calendar quarter in which 43.36 the fund receives payment. 44.1 Payments to the fund under this subdivision areshall be 44.2 considered as made by the employer on behalf ofthe claimant and44.3 are not voluntary contributions under section 268.06,44.4 subdivision 24. 44.5 Sec. 42. Minnesota Statutes 1996, section 268.08, 44.6 subdivision 10, is amended to read: 44.7 Subd. 10. [SEASONAL EMPLOYMENT.] (a) If the commissioner44.8 finds thata claimant has earnedwage credits infrom seasonal 44.9 employment, benefits shall be payable only if the commissioner44.10 finds thatthe claimant has earned wage credits in 15 or more44.11 calendar weeks equal to or in excess of 30 times the claimant's44.12 weekly benefit amount, in employment which is not seasonal, in44.13 addition to anycan establish a reemployment insurance account 44.14 under section 268.07, subdivision 2, excluding the wage credits 44.15 infrom seasonal employment. For purposes of this subdivision, 44.16 "seasonal employment" means employment with a single employer in 44.17 the recreation or tourist industry whichthat is available with 44.18 the employer for 15 consecutive weeks or less each calendar year. 44.19 (b) Wages paid inWage credits from seasonal employment are44.20 may not availablebe used for benefit purposes during weeks in44.21 which there is no seasonal employment available with the44.22 employeroutside the normal season. 44.23 Sec. 43. Minnesota Statutes 1996, section 268.09, is 44.24 amended by adding a subdivision to read: 44.25 Subd. 1a. [QUIT.] A claimant who quits employment shall be 44.26 disqualified from benefits: 44.27 (1) unless the claimant quit the employment because of a 44.28 good reason caused by the employer; 44.29 (2) unless the claimant quit the employment to accept other 44.30 covered employment that provided substantially higher wages or 44.31 substantially better conditions of employment or both, but the 44.32 claimant did not work long enough at the other employment to 44.33 have sufficient subsequent earnings to satisfy the 44.34 disqualification that would otherwise be imposed; 44.35 (3) unless the claimant quit the employment within 30 44.36 calendar days of commencing the employment because the 45.1 employment was unsuitable for the claimant; 45.2 (4) unless the employment was unsuitable for the claimant 45.3 and the claimant quit to enter approved training; 45.4 (5) unless the employment was part time and the claimant 45.5 had full-time employment in the base period, that the claimant 45.6 separated from because of nondisqualifying reasons, sufficient 45.7 to meet the minimum requirements to establish a reemployment 45.8 insurance account under section 268.07, subdivision 2; or 45.9 (6) unless the claimant quit the employment because of the 45.10 claimant's serious illness, provided that the claimant made 45.11 reasonable efforts to retain that employment in spite of the 45.12 serious illness. 45.13 A claimant who quit employment because of the claimant's 45.14 serious illness of chemical dependency, has not made reasonable 45.15 efforts to retain the employment if the claimant has previously 45.16 been professionally diagnosed as chemically dependent, or has 45.17 previously voluntarily submitted to treatment for chemical 45.18 dependency, and has failed to make consistent efforts to 45.19 maintain the treatment the claimant knows or has been 45.20 professionally advised is necessary to control the chemical 45.21 dependency. 45.22 Sec. 44. Minnesota Statutes 1996, section 268.09, is 45.23 amended by adding a subdivision to read: 45.24 Subd. 2a. [QUIT DEFINED.] A quit from employment occurs 45.25 when the decision to end the employment was, at the time the 45.26 employment ended, the employee's. An employee who seeks to 45.27 withdraw a previously submitted notice of quitting shall be 45.28 considered to have quit the employment if the employer does not 45.29 agree that the notice may be withdrawn. 45.30 Sec. 45. Minnesota Statutes 1996, section 268.09, 45.31 subdivision 3, is amended to read: 45.32 Subd. 3. [LABOR DISPUTE.] (a) An individualA claimant who 45.33 has left or partially or totally lost employment with an 45.34 employer because of a strike or other labor dispute at the 45.35 establishment in whichwhere the individualclaimant is or was 45.36 employed shall be disqualified forfrom benefits: 46.1 (1) for eachuntil the end of the calendar week during46.2 whichthat the strike or labor dispute iswas in active 46.3 progress if the claimant is participating in or directly 46.4 interested in the strike or labor dispute; or 46.5 (2) for one week following the commencement ofuntil the 46.6 end of the calendar week that the strike or labor 46.7 dispute commenced if the individualclaimant is not 46.8 participating in or directly interested in the strike or labor 46.9 dispute. 46.10 Participation includes the failure or refusal of an46.11 individualby a claimant to accept and perform available and 46.12 customary work at the establishment. 46.13 (b) An individualA claimant who has left or partially or 46.14 totally lost employment with an employer because of a 46.15 jurisdictional controversy between two or more labor 46.16 organizations at the establishment in whichwhere the individual46.17 claimant is or was employed shall be disqualified for benefits 46.18 for eachuntil the end of the calendar week during whichthat 46.19 the jurisdictional controversy iswas in progress. 46.20 (c) For the purpose of this subdivision the term "labor46.21 dispute" shall have the same definition as provided in the46.22 Minnesota labor relations act. Nothing in this subdivision46.23 shall be deemed to deny benefits to any employeeA claimant 46.24 shall not be disqualified from benefits under this subdivision 46.25 if: 46.26 (1) whothe claimant becomes unemployed because of a strike 46.27 or lockoutcaused by an employer's willful failure to observe 46.28 the terms of the safety and health section of a union contract 46.29 or failure to comply with an official citation for a violation 46.30 of federal and state laws involving occupational safety and 46.31 health; provided, however, that benefits paid in accordance with46.32 this provision shall not be charged to the employer's experience46.33 rating account if, following official appeal proceedings, it is46.34 held that there was no willful failure on the part of the46.35 employer; or46.36 (2) whothe claimant becomes unemployed because of a 47.1 lockout; or 47.2 (3) whothe claimant is dismisseddischarged during the 47.3 period of negotiation in any labor disputeand prior to the 47.4 commencement of a strike or other labor dispute. 47.5 (d) A voluntary separationquit from employment by the 47.6 claimant during the time that the strike or other labor dispute 47.7 is in active progress at the establishment shall not be deemed 47.8 to terminate the individual'sclaimant's participation in or 47.9 direct interest in suchthe strike or other labor dispute for 47.10 purposes of this subdivision. 47.11 (e) Benefits paid to an employee who has left or partially47.12 or totally lost employment because of a strike or other labor47.13 dispute at the employee's primary place of employment shall not47.14 be charged to the employer's account unless the employer was a47.15 party to the particular strike or labor disputeFor the purpose 47.16 of this subdivision, the term "labor dispute" shall have the 47.17 same definition as provided in section 179.01, subdivision 7. 47.18 (f) Notwithstanding any other provision of this section, an47.19 individual whose last separation from employment with an47.20 employer occurred prior to the commencement of the strike or47.21 other labor dispute and was permanent or for an indefinite47.22 period, shall not be denied benefits or waiting week credit47.23 solely by reason of failure to apply for or to accept recall to47.24 work or reemployment with the employer during any week in which47.25 the strike or other labor dispute is in progress at the47.26 establishment in which the individual was employed.47.27 Sec. 46. Minnesota Statutes 1996, section 268.09, is 47.28 amended by adding a subdivision to read: 47.29 Subd. 9. [GOOD REASON CAUSED BY THE EMPLOYER DEFINED.] (a) 47.30 A good reason caused by the employer for quitting is a reason: 47.31 (1) that is directly related to the employment and for 47.32 which the employer is responsible; and 47.33 (2) that is significant and would compel an average, 47.34 reasonable worker to quit. 47.35 (b) A claimant has a good reason caused by the employer for 47.36 quitting if it results from sexual harassment. Sexual 48.1 harassment means unwelcome sexual advances, requests for sexual 48.2 favors, sexually motivated physical contact or other conduct or 48.3 communication of a sexual nature when: 48.4 (1) the claimant's submission to the conduct or 48.5 communication is made a term or condition of the employment; 48.6 (2) the claimant's submission to or rejection of the 48.7 conduct or communication is the basis for decisions affecting 48.8 employment; or 48.9 (3) the conduct or communication has the purpose or effect 48.10 of substantially interfering with a claimant's work performance 48.11 or creating an intimidating, hostile, or offensive working 48.12 environment and the employer knows or should know of the 48.13 existence of the harassment and fails to take timely and 48.14 appropriate action. 48.15 Sec. 47. Minnesota Statutes 1996, section 268.09, is 48.16 amended by adding a subdivision to read: 48.17 Subd. 10. [DISCHARGE.] A claimant who is discharged from 48.18 employment by an employer shall not be disqualified from 48.19 benefits: 48.20 (1) unless the claimant was discharged because of 48.21 misconduct that interfered with and adversely affected that 48.22 employment. This clause shall not apply if: 48.23 (i) the misconduct was a direct result of the claimant's 48.24 serious illness provided that the claimant made reasonable 48.25 efforts to retain the employment in spite of the serious 48.26 illness. If the misconduct was a direct result of the 48.27 claimant's chemical dependency, the claimant has not made 48.28 reasonable efforts to retain employment if the claimant has 48.29 previously been professionally diagnosed chemically dependent or 48.30 the claimant has previously voluntarily submitted to treatment 48.31 for chemical dependency and has failed to make consistent 48.32 efforts to maintain the treatment the claimant knows or has been 48.33 professionally advised is necessary to control the chemical 48.34 dependency; or 48.35 (ii) the employment was part time and the claimant had 48.36 full-time employment in the base period, that the claimant 49.1 separated from because of nondisqualifying reasons, sufficient 49.2 to meet the minimum requirements to establish a reemployment 49.3 insurance account under section 268.07, subdivision 2; 49.4 (2) unless the claimant was discharged because of gross 49.5 misconduct that interfered with and adversely affected that 49.6 employment. For the purpose of this clause, "gross misconduct" 49.7 means: 49.8 (i) the commission of any act that amounts to a gross 49.9 misdemeanor or felony; or 49.10 (ii) for an employee of a facility as defined in section 49.11 626.5572, gross misconduct includes an act of patient or 49.12 resident abuse, financial exploitation, or recurring or serious 49.13 neglect, as defined in section 626.5572 and applicable rules. 49.14 If a claimant is convicted of a gross misdemeanor or felony 49.15 for the same act or acts for which the claimant was discharged, 49.16 it is conclusively presumed to be gross misconduct; or 49.17 (3) if the claimant was discharged because the claimant 49.18 gave notice of intention to quit the employment within 30 49.19 calendar days. This clause shall be effective only through the 49.20 end of the calendar week that includes the intended date of 49.21 quitting. Thereafter the separation from employment shall be 49.22 considered a quit of employment by the claimant, and a 49.23 disqualification, if any, shall commence with the Sunday of the 49.24 week following the week that includes the intended date of 49.25 quitting. 49.26 Sec. 48. Minnesota Statutes 1996, section 268.09, is 49.27 amended by adding a subdivision to read: 49.28 Subd. 11. [DISCHARGE DEFINED.] A discharge from employment 49.29 occurs when any words or actions by an employer would lead a 49.30 reasonable employee to believe that the employee's services are 49.31 no longer desired by the employer. A layoff due to lack of work 49.32 shall be considered a discharge. A suspension from employment 49.33 of more than 30 calendar days shall be considered a discharge. 49.34 Sec. 49. Minnesota Statutes 1996, section 268.09, is 49.35 amended by adding a subdivision to read: 49.36 Subd. 12. [MISCONDUCT DEFINED.] Misconduct is intentional 50.1 conduct showing a disregard of: 50.2 (1) the employer's interest; 50.3 (2) the standards of behavior that an employer has the 50.4 right to expect of the employee; or 50.5 (3) the employee's duties and obligations to the employer. 50.6 Misconduct also includes negligent conduct by an employee 50.7 demonstrating a substantial lack of concern for the employment. 50.8 Inefficiency, inadvertence, simple unsatisfactory conduct, or 50.9 poor performance as a result of inability or incapacity are not 50.10 misconduct. 50.11 Sec. 50. Minnesota Statutes 1996, section 268.09, is 50.12 amended by adding a subdivision to read: 50.13 Subd. 13. [ACT OR OMISSIONS AFTER SEPARATION.] Except as 50.14 provided for under subdivision 14, a claimant shall not be 50.15 disqualified from benefits for any acts or omissions occurring 50.16 after the claimant's separation from employment with the 50.17 employer. 50.18 Sec. 51. Minnesota Statutes 1996, section 268.09, is 50.19 amended by adding a subdivision to read: 50.20 Subd. 14. [OFFERS OF EMPLOYMENT.] (a) A claimant shall be 50.21 disqualified from benefits if the claimant, without good cause: 50.22 (1) failed to apply for available, suitable employment of 50.23 which the claimant was advised by the commissioner or an 50.24 employer; 50.25 (2) failed to accept suitable employment when offered; or 50.26 (3) avoided an offer of suitable employment. 50.27 (b) The claimant shall not be disqualified from benefits 50.28 under paragraph (a) if the claimant: 50.29 (1) was in approved training; or 50.30 (2) formerly worked for the employer and the claimant's 50.31 last separation from employment with the employer occurred prior 50.32 to the commencement of a strike or other labor dispute, was 50.33 permanent or for an indefinite period, and the claimant failed 50.34 to apply for or accept reemployment because a strike or other 50.35 labor dispute was in progress at the establishment where the 50.36 claimant was previously employed by that employer. 51.1 Sec. 52. Minnesota Statutes 1996, section 268.09, is 51.2 amended by adding a subdivision to read: 51.3 Subd. 15. [SUITABLE EMPLOYMENT DEFINED.] (a) Suitable 51.4 employment is employment in the claimant's labor market area 51.5 that is reasonably related to the claimant's qualifications. In 51.6 determining whether any employment is suitable for a claimant, 51.7 the degree of risk involved to the health and safety, physical 51.8 fitness, prior training, experience, length of unemployment, 51.9 prospects for securing local employment in the claimant's 51.10 customary occupation, and the distance of the employment from 51.11 the claimant's residence shall be considered. 51.12 (b) No employment shall be considered suitable if: 51.13 (1) the position offered is vacant due directly to a 51.14 strike, lockout, or other labor dispute; 51.15 (2) the wages, hours, or other conditions of employment are 51.16 substantially less favorable than those prevailing for similar 51.17 employment in the locality; or 51.18 (3) as a condition of becoming employed, the claimant would 51.19 be required to join a company union or to resign from or refrain 51.20 from joining any bona fide labor organization. 51.21 Sec. 53. Minnesota Statutes 1996, section 268.09, is 51.22 amended by adding a subdivision to read: 51.23 Subd. 16. [DISQUALIFICATION DURATION.] (a) A 51.24 disqualification from the payment of benefits under subdivisions 51.25 1a, 10, and 14 shall be for the duration of the claimant's 51.26 unemployment and until the end of the calendar week in which the 51.27 claimant had total earnings in subsequent covered employment of 51.28 eight times the claimant's weekly benefit amount. 51.29 (b) Any disqualification imposed under subdivisions 1a and 51.30 10 shall commence on the Sunday of the week in which the 51.31 claimant became separated from employment. Any disqualification 51.32 imposed under subdivision 14 shall commence on the Sunday of the 51.33 week the claimant failed to apply for, accept, or avoided 51.34 employment. 51.35 (c) Notwithstanding paragraph (a), if the claimant was 51.36 discharged from employment because of gross misconduct that 52.1 interfered with and adversely affected that employment the 52.2 disqualification shall be for the duration of the claimant's 52.3 unemployment and until the end of the calendar week in which the 52.4 claimant had total earnings in subsequent covered employment of 52.5 12 times the claimant's weekly benefit amount. In addition, 52.6 wage credits from that employment shall be canceled and the 52.7 claimant's reemployment insurance account redetermined pursuant 52.8 to section 268.07, subdivision 1, paragraph (d). 52.9 Sec. 54. Minnesota Statutes 1996, section 268.09, is 52.10 amended by adding a subdivision to read: 52.11 Subd. 17. [APPLICATION.] This section shall apply to: 52.12 (1) all covered employment, full time or part time, 52.13 temporary or limited duration, permanent or indefinite duration, 52.14 that occurred during the base period, the period between the end 52.15 of the base period and the effective date of the reemployment 52.16 insurance account, or the benefit year, except as provided for 52.17 in subdivisions 1a, clause (5); and 10, clause (1)(ii); or 52.18 (2) all covered employment occurring in this state, any 52.19 other state, federal employment, or employment covered under the 52.20 Railroad Unemployment Compensation Act. 52.21 Sec. 55. Minnesota Statutes 1996, section 268.101, 52.22 subdivision 2, is amended to read: 52.23 Subd. 2. [DISQUALIFICATION DETERMINATION.] (a) The 52.24 commissioner shall promptly determine any issue of 52.25 disqualification raised by a timely protest made by an employer, 52.26 and mail to the claimant and that employer at the last known 52.27 address a determination of disqualification or a determination 52.28 of nondisqualification, as is appropriate. The determination 52.29 shall set forth the effect on employer charges. 52.30 (b) The commissioner shall promptly determine any issue of 52.31 disqualification raised by information obtained from a claimant 52.32 pursuant to subdivision 1, paragraph (a) or (c), and mail to the 52.33 claimant and employer at the last known address a determination 52.34 of disqualification or a determination of nondisqualification, 52.35 as is appropriate. 52.36 (c) The commissioner shall promptly determine any issue of 53.1 disqualification raised by an untimely protest made by an 53.2 employer and mail to the claimant and that employer at the last 53.3 known address a determination of disqualification or a 53.4 determination of nondisqualification as is appropriate. 53.5 Notwithstanding section 268.09, any disqualification imposed as 53.6 a result of determination issued pursuant to this paragraph 53.7 shall commence the Sunday two weeks following the week in which 53.8 the untimely protest was made. Notwithstanding any provisions 53.9 to the contrary, any relief of employer charges as a result of a 53.10 determination issued pursuant to this paragraph shall commence 53.11 the Sunday two weeks following the week in which the untimely 53.12 protest was made. 53.13 (d) If any time within 24 months from the establishment of 53.14 a reemployment insurance account the commissioner finds that a 53.15 claimant failed to report any employment, loss of employment, or 53.16 offers of employment received whichthat were required to be 53.17 provided by the claimant under this section, the commissioner 53.18 shall promptly determine any issue of disqualification on that 53.19 loss of employment or offer of employment and mail to the 53.20 claimant and involved employer at the last known address a 53.21 determination of disqualification or a determination of 53.22 nondisqualification, as is appropriate. The determination shall 53.23 set forth the effect on employer charges. 53.24 This paragraph shall not apply if the involved employer was 53.25 notified and given the opportunity to protest pursuant to 53.26 subdivision 1, paragraph (b) or (c). 53.27 (e) A determination of disqualification or a determination 53.28 of nondisqualification shall be final unless a writtenan appeal 53.29 is filed by the claimant or notified employer within 15 calendar 53.30 days after mailing of the determination to the last known 53.31 address. The determination shall contain a prominent statement 53.32 indicating in clear language the method of appealing, the time 53.33 within which an appeal must be made, and the consequences of not 53.34 appealing. Proceedings on the appeal shall be conducted in 53.35 accordance with section 268.105. 53.36 (f) An issue of disqualification for purposes of this 54.1 section shall include any question of denial of benefits under 54.2 section 268.09, any question of an exception to disqualification 54.3 under section 268.09, subdivision 1, paragraph (c),any question 54.4 of benefit charge to an employer, and any question of an 54.5 otherwise imposed disqualification for which a claimant has had 54.6 requalifyingsubsequent earnings sufficient to satisfy the 54.7 disqualification. 54.8 (g) Notwithstanding the requirements of this subdivision, 54.9 the commissioner is not required to mail to a claimant a 54.10 determination of nondisqualification where the claimant has had 54.11 requalifyingsubsequent earnings sufficient to satisfy any 54.12 otherwise potential disqualification. 54.13 Sec. 56. Minnesota Statutes 1996, section 268.101, 54.14 subdivision 3, is amended to read: 54.15 Subd. 3. [ELIGIBILITY DETERMINATION.] (a) The commissioner 54.16 shall promptly determine any issue of eligibility raised by a 54.17 timely protest made by an employer and mail to the claimant and 54.18 that employer at the last known address a determination of 54.19 eligibility or a determination of ineligibility, as is 54.20 appropriate. 54.21 (b) The commissioner shall promptly determine any issue of 54.22 eligibility raised by information obtained from a claimant and 54.23 mail to the claimant and any involved employer at the last known 54.24 address a determination of eligibility or a determination of 54.25 ineligibility, as is appropriate. 54.26 (c) The commissioner shall promptly determine any issue of 54.27 eligibility raised by an untimely protest made by an employer 54.28 and mail to the claimant and that employer at the last known 54.29 address a determination of eligibility or a determination of 54.30 ineligibility, as is appropriate. Any denial of benefits 54.31 imposed as a result of determination issued pursuant to this 54.32 paragraph shall commence the Sunday two weeks following the week 54.33 in which the untimely protest was made. 54.34 (d) If any time within 24 months from the establishment of 54.35 a reemployment insurance account the commissioner finds the 54.36 claimant failed to provide requested information regarding the 55.1 claimant's eligibility for benefits, the commissioner shall 55.2 determine the issue of eligibility and mail to the claimant and 55.3 any involved employer at the last known address a determination 55.4 of eligibility or a determination of ineligibility, as is 55.5 appropriate. 55.6 This paragraph shall not apply if the involved employer was 55.7 notified, was aware, or should have been aware of the issue of 55.8 eligibility at the time of notification, and was given the 55.9 opportunity to protest pursuant to subdivision 1, paragraph (b) 55.10 or (c). 55.11 (e) A determination of eligibility or determination of 55.12 ineligibility shall be final unless a writtenan appeal is filed 55.13 by the claimant or notified employer within 15 calendar days 55.14 after mailing of the determination to the last known address. 55.15 The determination shall contain a prominent statement indicating 55.16 in clear language the method of appealing, the time within which 55.17 an appeal must be made, and the consequences of not appealing. 55.18 Proceedings on the appeal shall be conducted in accordance with 55.19 section 268.105. 55.20 (f) An issue of eligibility for purposes of this section 55.21 shall include any question of denial of benefits under sections 55.22 268.071, 268.072, 268.073, 268.074, and268.08, 268.115, 55.23 268.125, 268.135, and 268.155. 55.24 Sec. 57. Minnesota Statutes 1996, section 268.101, is 55.25 amended by adding a subdivision to read: 55.26 Subd. 3a. [DIRECT HEARING.] Notwithstanding subdivision 2 55.27 or 3, the commissioner may refer any issue of disqualification 55.28 or any issue of eligibility directly for hearing in accordance 55.29 with section 268.105, subdivision 1. The status of the issue 55.30 shall be the same as if a determination had been made and an 55.31 appeal filed. 55.32 Sec. 58. Minnesota Statutes 1996, section 268.101, 55.33 subdivision 4, is amended to read: 55.34 Subd. 4. [AMENDED DETERMINATION.] Unless an appeal has 55.35 been filed, the commissioner, on the commissioner's own motion, 55.36 upon finding that an error has occurred in the issuing of a 56.1 determination of disqualification or nondisqualification or a 56.2 determination of eligibility or ineligibility, may issue an 56.3 amended determination. Any amended determination shall be 56.4 mailed to the claimant and any involved employer at the last 56.5 known address. Any amended determination shall be final unless 56.6 a writtenan appeal is filed by the claimant or notified 56.7 employer within 15 calendar days after mailing of the amended 56.8 determination to the last known address. Proceedings on the 56.9 appeal shall be conducted in accordance with section 268.105. 56.10 Sec. 59. [268.103] [APPEALS BY TELEPHONE; ELECTRONIC 56.11 TRANSMISSION.] 56.12 Subdivision 1. [IN COMMISSIONER'S DISCRETION.] (a) Unless 56.13 the statutory provision providing for an appeal requires that 56.14 the appeal be in writing, the commissioner shall have the 56.15 discretion to allow an appeal to be made by telephone or by 56.16 electronic transmission. If the commissioner allows an appeal 56.17 to be made by telephone or by electronic transmission, that 56.18 shall be clearly set out on the determination or decision 56.19 subject to appeal. 56.20 (b) The commissioner may restrict the conditions under 56.21 which an appeal by telephone or electronic transmission may be 56.22 made. Any restrictions as to days, hours, telephone number, 56.23 electronic transmission address, or other conditions, shall be 56.24 clearly set out on the determination or decision subject to 56.25 appeal. 56.26 (c) All information requested by the commissioner when an 56.27 appeal is made by telephone or by electronic transmission must 56.28 be supplied or the communication will not constitute an appeal. 56.29 Subd. 2. [APPEAL IN WRITING.] An appeal may be made in 56.30 writing even if an appeal by telephone or by electronic 56.31 transmission is allowed. 56.32 Subd. 3. [EXCLUSIVE MEANS OF APPEAL.] A written appeal, or 56.33 if allowed an appeal by telephone or electronic transmission, 56.34 shall be the only manner of appeal. 56.35 Sec. 60. Minnesota Statutes 1996, section 268.105, is 56.36 amended to read: 57.1 268.105 [REEMPLOYMENT INSURANCE HEARINGS; APPEALS.] 57.2 Subdivision 1. [HEARING.] (a) Upon appeal the department 57.3 shall set a time and place for a de novo hearing and give the57.4 interested partiesany involved claimant and any involved 57.5 employer written notice of it, by mail, not less than 57.6 ten calendar days prior to the timedate of the hearing. 57.7 (b) The commissioner shall by rule adopt a procedure by 57.8 which reemployment insurance judges hear and decide appeals, 57.9 subject to further appeal to the commissioner. The rules need 57.10 not conform to common law or statutory rules of evidence and 57.11 other technical rules of procedure. The written report of any 57.12 employee of the department of economic security, except a 57.13 determination, made in the regular course of the performance of 57.14 the employee's duties, shall be competent evidence of the facts 57.15 contained in it. 57.16 (c) After the conclusion of the hearing, upon the evidence 57.17 presented, the reemployment insurance judge shall mail findings 57.18 of fact and decision to all interestedinvolved parties. The 57.19 reemployment insurance judge's decision is final unless a 57.20 further appeal is filed pursuant to subdivision 3. 57.21 Subd. 2. [REEMPLOYMENT INSURANCE JUDGES.] The commissioner 57.22 shall designate one or moreregular salaried employees of the 57.23 department as impartial reemployment insurance judges to conduct 57.24 hearings on appeals. The commissioner or authorized 57.25 representative may personally hear or transfer to another 57.26 reemployment insurance judge any proceedings pending before a 57.27 reemployment insurance judge. Any proceedings removed to the 57.28 commissioner or authorized representative shall be heard in 57.29 accordance with subdivision 1. 57.30 Subd. 3. [COMMISSIONER REVIEW.] (a) Within 30 calendar 57.31 days after mailing of the reemployment insurance judge's 57.32 decision, an interestedany involved party may appeal in writing57.33 and obtain a review by the commissioner or an authorized 57.34 representative. The commissioner within the same period of time 57.35 may on the commissioner's own motion order a review of a 57.36 decision. 58.1 (b) Upon review, the commissioner or authorized58.2 representativeshall, on the basis of the evidence submitted at 58.3 the hearing before the reemployment insurance judge, make 58.4 findings of fact and decision, or remand the matter back to the58.5 a reemployment insurance judge for the taking of additional 58.6 evidence and new findings and decision based on all the 58.7 evidence. The commissioner may disregard the findings of fact 58.8 of the reemployment insurance judge and examine the evidence and 58.9 make any findings of fact as the evidence may, in the judgment 58.10 of the commissioner require, and make any decision as the facts 58.11 found by the commissioner require. 58.12 (c) The commissioner shall mail to all interested58.13 partiesany involved party the findings of fact and decision. 58.14 The decision of the commissioner is final unless judicial review 58.15 is sought as provided by subdivision 7. 58.16 Subd. 3a. [DECISIONS.] (a) If a reemployment insurance 58.17 judge's decision or the commissioner's decision awards benefits, 58.18 the benefits shall be promptly paid regardless of any appeal 58.19 period or any appeal having been filed. 58.20 (b) If a reemployment insurance judge's decision modifies 58.21 or reverses a determination awarding benefits, any benefits paid 58.22 pursuant to the determination is an overpayment of those 58.23 benefits subject to section 268.18. 58.24 (c) Except as provided in paragraph (d), if a 58.25 commissioner's decision modifies or reverses a reemployment 58.26 insurance judge's decision awarding benefits, any benefits paid 58.27 pursuant to the reemployment insurance judge's decision is an 58.28 overpayment of those benefits subject to section 268.18. 58.29 (d) If a reemployment insurance judge's decision affirms a 58.30 determination on an issue of disqualification awarding benefits 58.31 or the commissioner affirms a reemployment insurance judge's 58.32 decision on an issue of disqualification awarding benefits, the 58.33 decision, if finally reversed, shall result in a 58.34 disqualification from benefits only for weeks following the week 58.35 in which the decision reversing the award of benefits was issued 58.36 and benefits paid for that week and previous weeks shall neither59.1 not be deemed overpaid nor shalland the benefits paid shall not 59.2 be considered in determining the employer's future contribution59.3 rate under section 268.06charged to a contributing employer's 59.4 account. 59.5 (e) If the commissioner, pursuant to subdivision 3, remands 59.6 a matter to a reemployment insurance judge for the taking of 59.7 additional evidence, the prior reemployment insurance judge's 59.8 decision shall continue to be enforced until new findings of 59.9 fact and decision are made by a reemployment insurance judge. 59.10 Subd. 4. [TESTIMONIAL POWERS.] In the discharge of the 59.11 duties imposed by this section, the reemployment insurance 59.12 judge, the commissioner, or authorized representative, may 59.13 administer oaths and affirmations, take depositions, certify to 59.14 official acts, and issue subpoenas to compel the attendance of 59.15 witnesses and the production of books, papers, correspondence, 59.16 memoranda, and other records deemed necessary as evidence in 59.17 connection with the subject matter of the hearing. The 59.18 subpoenas shall be enforceable through the district court in the 59.19 district in which the subpoena is issued. Witnesses, other than 59.20 an interested partyinvolved claimant or involved employer or 59.21 officers and employees of an interested partyinvolved employer, 59.22 subpoenaed pursuant to this section shall be allowed fees the 59.23 same as witness fees in a civil action in district court. These 59.24 fees shall be deemed a part of the expense of administering 59.25 sections 268.03 to 268.23this chapter. 59.26 Subd. 5. [USE OF INFORMATION.] (a) All testimony at any 59.27 hearing conducted pursuant to subdivision 1 shall be recorded ,59.28 but shall be transcribed only if the disputed claim is appealed59.29 further and is requested by a party, or as directed by the59.30 commissioner or an authorized representative. A copy of any 59.31 recorded testimony and exhibits received into evidence at the 59.32 hearing shall, upon request, or upon directive of the 59.33 commissioner, be furnished to a party at no cost. If requested, 59.34 the representative of a commissioner shall make available a 59.35 device for listening to the recording. 59.36 (b) Testimony obtained under subdivision 1, may not be used 60.1 or considered in any civil, administrative, or contractual 60.2 proceeding, except by a local, state, or federal human 60.3 rights groupagency with enforcement powers, unless the 60.4 proceeding is initiated by the department. 60.5 (c) No findings of fact or decision issued by a 60.6 reemployment insurance judge or the commissioner or authorized60.7 representativemay be held conclusive or binding or used as 60.8 evidence in any separate or subsequent action in any other 60.9 forum, except proceedings provided for under this chapter, 60.10 regardless of whether the action involves the same or related 60.11 parties or involves the same facts. 60.12 Subd. 6. [REPRESENTATION; FEES.] In any proceeding under 60.13 these sections, a party may be represented by any agent. Except 60.14 for services provided by an attorney-at-law, a claimant for60.15 benefitsshall not be charged fees or costs of any kind in a 60.16 proceeding before a reemployment insurance judge, the 60.17 commissioner or authorized representative, or by any court or 60.18 any of its officers. 60.19 Subd. 7. [COURT OF APPEALS; ATTORNEY FOR COMMISSIONER.] (a) 60.20 The court of appeals may, by writ of certiorari to the 60.21 commissioner, review any decision of the commissioner provided a 60.22 petition for the writ is filed and served upon the commissioner 60.23 and the adverseany other involved party within 30 calendar days 60.24 of the mailing of the commissioner's decision. 60.25 (b) Any interested party, except a claimant for60.26 benefitsinvolved employer, upon the service of the writ shall 60.27 furnish a cost bond to the commissioner in accordance with rule60.28 107 ofthe rules of civil appellate procedure. Upon review 60.29 before the court of appeals, the commissioner shall, if 60.30 requested, furnish to the claimant at no cost a written 60.31 transcript of the testimony received at the hearing conducted 60.32 pursuant to subdivision 1. 60.33 (c) The commissioner shall be deemed to be a party to any 60.34 judicial action involving any decision and shall be represented 60.35 by any qualified attorney who is a regular salaried employee of 60.36 the department of economic securityand has been designated by 61.1 the commissioner for that purpose or, at the commissioner's 61.2 request, by the attorney general. 61.3 Sec. 61. Minnesota Statutes 1996, section 268.11, 61.4 subdivision 3, is amended to read: 61.5 Subd. 3. [ELECTION AGREEMENTS; TERMINATION POWERS OF 61.6 COMMISSIONER.] (1) An employing unit, not otherwise subject to61.7 sections 268.03 to 268.23defined as an employer under this 61.8 chapter, whichthat files with the commissioner itsa written 61.9 election to become an employer subject thereto for not less than61.10 two calendar years, shall, with the written approval of such61.11 election bythe commissioner, become an employer subject hereto61.12 for not less than two calendar years to the same extent as all 61.13 other employers, as of the date stated in suchthe approval and. 61.14 The employing unit shall cease to be subject heretoan employer 61.15 as of the first day of January of any calendar year subsequent61.16 to such two calendar years, only, if at least 30 calendar days 61.17 prior to suchthe first day of January, itthe employing unit 61.18 has filed with the commissioner a written notice to that effect. 61.19 (2) Any employing unit for whichthat has services 61.20 performed for it that do not constitute employment are61.21 performed, may file with the commissioner a written election 61.22 that all such service performed by individuals in its employ, in 61.23 one or more distinct establishments or places of business, shall 61.24 be deemed to constitute employment for all thepurposes of 61.25 sections 268.03 to 268.23this chapter for not less than two 61.26 calendar years. Upon the written approval of such election by61.27 the commissioner, suchthe services shall be deemed to 61.28 constitute employment subject to these sectionsfrom and after 61.29 the date stated in suchthe approval. SuchThe services shall 61.30 cease to be deemed employment subject heretoas of the first day 61.31 of January of any calendar year subsequent to such two calendar61.32 yearsonly if at least 30 calendar days prior to suchthe first 61.33 day of January suchthe employing unit has filed with the 61.34 commissioner a written notice to that effect. 61.35 (3) The commissioner must terminate any election agreement 61.36 under this subdivision upon 30 calendar days notice to the 62.1 employeremploying unit, if the employeremploying unit fails to 62.2 pay all contributions due under section 268.06, subdivision 1,62.3 or reimbursepayments in lieu of contributions due the 62.4 unemploymentreemployment insurance fund in accordance with62.5 section 268.06, subdivisions 25, 26, 27, and 28. 62.6 Sec. 62. Minnesota Statutes 1996, section 268.12, 62.7 subdivision 8, is amended to read: 62.8 Subd. 8. [RECORDS ; REPORTS.] (1)(a) Each employing unit 62.9 shall keep true and accurate records for suchthe periods of 62.10 time and containing suchthe information asthe commissioner may 62.11 prescriberequire. For the purpose of determining compliance 62.12 with this chapter, or for the purpose of collection of any 62.13 amounts due under this chapter, the commissioner or 62.14 any authorizeddelegated representative of the commissionerhas 62.15 the power to examine, or cause to be examined or copied, any 62.16 books, correspondence, papers, records, or memoranda which are 62.17 relevant to making these determinations, whether the books, 62.18 correspondence, papers, records, or memoranda are the property 62.19 of or in the possession of the employing unit or any other 62.20 person or corporation at any reasonable time and as often as may 62.21 be necessary. 62.22 (2)(b) The commissioner or any other duly authorized62.23 delegated representative of the commissionermay cause to be62.24 made suchmake summaries, compilations, photographs, 62.25 duplications, or reproductions of any records, or reports , or62.26 transcripts thereof asthat the commissioner may deemconsiders 62.27 advisable for the effective and economical preservation of the 62.28 information contained therein, and suchany summaries, 62.29 compilations, photographs, duplications or reproductions , duly62.30 authenticated,shall be admissible in any proceeding under this 62.31 chapter, if the original record or records would have been 62.32 admissible therein. Notwithstanding any restrictions contained 62.33 in section 16B.50, except restrictions as to quantity,the 62.34 commissioner is hereby authorized to duplicate , on equipment62.35 furnished by the federal government or purchased with funds62.36 furnished for that purpose by the federal government,records, 63.1 reports, summaries, compilations, instructions, determinations, 63.2 or any other written matter pertaining to the administration of 63.3 the Minnesota economic security law. 63.4 (3)(c) Notwithstanding any inconsistent provisions 63.5 elsewhere, the commissioner may provide for the destruction or 63.6 disposition of any records, reports, transcripts,or 63.7 reproductions thereof, or other papers in the commissioner's 63.8 custody, whichthat are more than two years old, the 63.9 preservation of which is no longer necessary for the63.10 establishment of contributiondetermining employer liability 63.11 or a claimant's benefit rights or for any purpose necessary to 63.12 the proper administration of this chapter, including any 63.13 required audit thereof, provided, that the commissioner may 63.14 provide for the destruction or disposition of any record, 63.15 report, or transcript,or other paper in the commissioner's 63.16 custody which has been photographed, duplicated, or reproduced. 63.17 (4) Notwithstanding the provisions of the Minnesota State63.18 Archives Act the commissioner shall with the approval of the63.19 legislative auditor destroy all benefit checks and benefit check63.20 authorization cards that are more than two years old and no63.21 person shall make any demand, bring any suit or other proceeding63.22 to recover from the state of Minnesota any sum alleged to be due63.23 on any claim for benefits after the expiration of two years from63.24 the date of filing such claim.63.25 Sec. 63. Minnesota Statutes 1996, section 268.12, 63.26 subdivision 9a, is amended to read: 63.27 Subd. 9a. [ TESTIMONIAL POWERSSUBPOENAS; OATHS.] (1)(a) 63.28 In the discharge of the duties imposed by sections 268.03 to 63.29 268.23, the commissioner , appeal referee,or any duly authorized63.30 delegated representative of the commissioner, shall have power 63.31 to administer oaths and affirmations, take depositions, certify 63.32 to official acts, and issue subpoenas to compel the attendance 63.33 of witnessespersons and the production of books, papers, 63.34 correspondence, memoranda, and other records deemednecessary as63.35 evidencein connection with a disputed claim orthe 63.36 administration of these sections. 64.1 (2) Witnesses(b) Persons, other than interested64.2 partiesclaimants or officers and employees of an employing unit 64.3 whichthat is an interested partythe subject of the inquiry, 64.4 subpoenaed pursuant to this subdivision or sections 268.03 to64.5 268.23, shall be allowed fees the same as witness fees in civil 64.6 actions in district court , which. The fees need not be paid in 64.7 advance of the time of giving of testimony, and such fees of64.8 witnesses so subpoenaed shall be deemed part of the expense of64.9 administering these sections. 64.10 (3) In case of contumacy by, or refusal to obey, a subpoena64.11 issued to any person, any court of this state within the64.12 jurisdiction of which the inquiry is carried on or within the64.13 jurisdiction of which such person guilty of contumacy or refusal64.14 to obey is found or resides or transacts business, upon64.15 application by the commissioner, or referee, or any duly64.16 authorized representative of the commissioner, shall have64.17 jurisdiction to issue to such person an order requiring such64.18 person to appear before the commissioner, the chair of an appeal64.19 tribunal, referee, or any duly authorized representative of the64.20 commissioner, there to produce evidence if so ordered or there64.21 to give testimony relative to the matter under investigation or64.22 in question; and any failure to obey such order of the court may64.23 be punished by the court as a contempt thereof.64.24 (c) The subpoena shall be enforceable through the district 64.25 court in the district in which the subpoena is issued. 64.26 Sec. 64. Minnesota Statutes 1996, section 268.121, is 64.27 amended to read: 64.28 268.121 [WAGE REPORTING.] 64.29 Beginning on April 1, 1984,Subdivision 1. [WAGE DETAIL 64.30 REPORT.] (a) Each employer subject to this chapter shall provide 64.31 the commissioner with a quarterly report of the wages paid to64.32 each employee of that employer covered by this chapter. The64.33 report mustknown as the wage detail report, that shall include, 64.34 for each employee covered by this chapter, the employee's name, 64.35 social security number, and the total wages paid to the employee 64.36 , and the number of weeks in which work was performed. The 65.1 report is due and must be filed at the same time as the65.2 contribution report in accordance with rules established by the65.3 commissioner for filing of quarterly contribution reports. For65.4 the purpose of this section, "wages paid" includes wages65.5 actually or constructively paid and wages overdue and delayed65.6 beyond the usual time of paymenton or before the last day of 65.7 the month following the end of the calendar quarter. 65.8 (b) An employer need not include the name of the employee 65.9 or other required information on the wage detail report if 65.10 disclosure is specifically exempted by federal law. 65.11 Subd. 2. [FAILURE TO FILE REPORT.] Any employer who fails 65.12 to file the wage detail report shall pay to the department, for 65.13 each month the report is delinquent, a penalty of one-half of 65.14 one percent of total wages paid that quarter. The penalty shall 65.15 not be assessed if the wage detail report is properly made and 65.16 filed within 30 calendar days after a demand for the report is 65.17 mailed to the employer's address of record. In no case shall 65.18 the amount of the penalty, if assessed, be less than $25. 65.19 Penalties due under this subdivision may be waived where good 65.20 cause for late filing is found by the commissioner. 65.21 Subd. 3. [MISSING OR ERRONEOUS INFORMATION.] Any employer 65.22 who files the wage detail report, but knowingly fails to include 65.23 any of the required information or knowingly enters erroneous 65.24 information, shall be subject to a penalty of $25 for each 65.25 employee for whom the information is missing or erroneous. 65.26 Subd. 4. [PENALTIES.] The penalties provided for in 65.27 subdivisions 2 and 3 are in addition to interest and other 65.28 penalties imposed by this chapter and shall be collected in the 65.29 same manner as delinquent contributions and shall be credited to 65.30 the contingent account. 65.31 Sec. 65. Minnesota Statutes 1996, section 268.14, 65.32 subdivision 1, is amended to read: 65.33 Subdivision 1. [ACCEPTANCE OF FEDERAL ACT.] A state 65.34 employment service is hereby established in the department of65.35 economic security. The commissioner in the conduct of such65.36 serviceshall establish and maintain free public employment 66.1 offices, in suchthat number and in suchthose places as may be 66.2 necessary for the proper administration of sections 268.03 to66.3 268.23 andfor the purpose of performing suchthe functions as66.4 arewithin the purview of the act of Congress entitled "An act66.5 to provide for the establishment of a national employment system66.6 for the cooperation with the states in the promotion of such66.7 system and for other purposes," approved June 6, 1933, as66.8 amended. The provisions of such act of Congress are hereby66.9 accepted by this state and the department of economic security66.10 is hereby designated and constituted the agency of this state66.11 for the purposes of such act. The commissioner, pending the66.12 return of the employment service, its facilities, property, and66.13 personnel, to state control after the war emergency, may loan to66.14 the United States employment service facilities, property and66.15 personnelWagner-Peyser Act, United States Code, title 29, 66.16 chapter 4B. 66.17 Sec. 66. Minnesota Statutes 1996, section 268.16, 66.18 subdivision 2, is amended to read: 66.19 Subd. 2. [REPORTS; DELINQUENCIES; PENALTIES.] (a) Any 66.20 employer who knowingly fails to make and submit to the 66.21 departmentcommissioner any contribution report at the time the 66.22 report is required by rules prescribed by the commissionershall 66.23 pay to the department a penalty in theof up to $25 or an amount 66.24 of 1-1/2 percent of contributions accrued during the period for66.25 which the report is required,for each month from and after the 66.26 due date until the report is properly made and submitted to the66.27 department. In no case shall the amount of the penalty imposed66.28 hereby be less than $5 per month. The maximum penalty imposed66.29 hereby shall be $25 or the amount determined at the rate of66.30 1-1/2 percent per month, whichever is greater. 66.31 (b) If any employing unitemployer required by sections66.32 268.03 to 268.23to make and submit contribution reports shall66.33 failfails to do so within the time prescribed by these sections66.34 or by rules under the authority thereofrequired, or shall make66.35 makes, willfully or otherwise, an incorrect, false or fraudulent 66.36 contribution report, itthe employer shall, on the written 67.1 demand of the commissioner, make suchthe contribution report, 67.2 or corrected report, within ten days after the mailing of such67.3 the written demand and at the same time pay the whole 67.4 contribution, or any additional contribution, due on the basis67.5 thereof. If suchthe employer shall failfails within that 67.6 time to make suchthe report, or corrected report, the 67.7 commissioner shall make a report, or corrected report, from the 67.8 commissioner's own knowledge and from suchinformation asthe 67.9 commissioner canmay obtain through testimony, or otherwise,and 67.10 assess a contribution on thethat basis thereof, which 67.11 contribution, plus any penalties and interest which thereafter67.12 accrued (less any payments theretofore made)shall be paid 67.13 within ten days after the commissioner has mailed to suchthe 67.14 employer a written notice of the amount thereofdue and demand 67.15 for itspayment. Any suchcontribution report or assessment 67.16 made by the commissioner on account of the failure of the 67.17 employer to make a report or corrected report shall be prima 67.18 facie correct and valid, and the employer shall have the burden 67.19 of establishing its incorrectness or invalidity in 67.20 any subsequent action or proceeding in respect thereto. 67.21 Whenever suchthe delinquent employer shall filefiles a report 67.22 or corrected report, the commissioner may, on finding it 67.23 substantially correct, substitute it for the commissioner's 67.24 report. 67.25 (c) Any employer who fails to file the wage detail report67.26 required by section 268.121 shall pay to the department for the67.27 contingent account for each month the report is delinquent a67.28 penalty of one-half of one percent of total wages paid and wages67.29 due but not paid during the period for each month the report is67.30 delinquent. The penalty shall not be assessed if the wage67.31 detail report is properly made and filed within 30 days after a67.32 demand for the report is mailed to the employer's address of67.33 record. In no case shall the amount of the penalty, if67.34 assessed, be less than $25. Penalties due under this67.35 subdivision may be waived where good cause for late filing is67.36 found by the commissioner.68.1 (d) Any employer who files the wage detail report required68.2 by section 268.121, but knowingly fails to include any of the68.3 required information or knowingly enters erroneous information,68.4 shall be subject to a penalty of $25 for each individual for68.5 whom the information is missing or erroneous.68.6 (c) If the commissioner finds that any part of any 68.7 employer's contribution deficiency is due to fraud with intent 68.8 to avoid payment of contributions to the fund, 50 percent of the 68.9 total amount of the deficiency or $500, whichever is greater, 68.10 shall be assessed as a penalty against the employer and 68.11 collected in addition to the deficiency. 68.12 (e)(d) Any employing unit whichthat fails to make and 68.13 submit to the commissioner any report, other than a contribution 68.14 report or wage detail report, as and when required by rule, 68.15 shall be subject to a penalty in the sumof $50 payable to the68.16 department for the contingent account. 68.17 (f)(e) The penalties provided for in paragraphs (a), (c), 68.18 (d),and (e)(d) are in addition to interest and any other 68.19 penalties imposed by sections 268.03 to 268.23 and shall be68.20 collected as provided by section 268.161and shall be paid to 68.21 the department and credited to the contingent account. 68.22 (f) An employer or officer or agent of an employer is 68.23 guilty of a gross misdemeanor, unless the contribution or other 68.24 payment involved exceeds $500, in which case the person is 68.25 guilty of a felony, if the individual: 68.26 (1) in order to avoid becoming or remaining a subject 68.27 employer or to avoid or reduce any contribution or other payment 68.28 required under this chapter: 68.29 (i) makes a false statement or representation knowing it to 68.30 be false; or 68.31 (ii) knowingly fails to disclose a material fact; or 68.32 (2) willfully fails or refuses to make any contributions or 68.33 other payment at the time required. 68.34 Sec. 67. Minnesota Statutes 1996, section 268.161, 68.35 subdivision 4, is amended to read: 68.36 Subd. 4. [COLLECTION BY CIVIL ACTION.] (1)(a) In addition 69.1 to all other collection methods authorized, if , after due69.2 notice,any employer defaults inis delinquent on any payment of 69.3 contributions or interest due thereon or penalties for failure 69.4 to file returnsa contribution report and other reports as 69.5 required by sections 268.03 to 268.23this chapter or by any 69.6 rule of the commissioner, the amount due may be collected by 69.7 civil action in the name of the state of Minnesota, and any 69.8 money recovered shall be credited to the funds provided for 69.9 under those sections. Any employer adjudged in default69.10 delinquent shall pay the costs of the action. Civil actions 69.11 brought under this section to collect contributions, interest69.12 due thereon, or penalties from an employersubdivision shall be 69.13 heard by the court at the earliest possible dateas provided 69.14 under section 16D.14. No action for the collection of 69.15 contributions or, interest thereon, or penalties shall be 69.16 commenced more than six years after the contributions have been 69.17 reported by the employer or determined by the commissioner to be 69.18 due and payable. In any action, judgment shall be entered 69.19 against any defendantemployer in default for the relief 69.20 demanded in the complaint without proof, together with costs and 69.21 disbursements, upon the filing of an affidavit of default. 69.22 (2)(b) Any employing unit whichemployer that is not a 69.23 resident of this state and which exercises the privilege of69.24 having one or more individuals perform service for it within69.25 this state,and any resident employing unit which exercises that69.26 privilege and thereafter removesemployer removed from this 69.27 state, shall be deemed therebyto appoint the secretary of state 69.28 as its agent and attorney for the acceptance of process in any 69.29 civil action under this subdivision. In instituting an action 69.30 against any employing unitemployer, the commissioner 69.31 shall causefile process or notice to be filedwith the 69.32 secretary of state, together with a payment of a fee of $15 and 69.33 that service shall be considered sufficient service upon the 69.34 employing unitemployer, and shall be ofhave the same force and 69.35 validity as if served upon itthe employer personally within 69.36 this state. The commissioner shall forthwithsend notice of the 70.1 service of process or notice, together with a copy thereofof 70.2 the process, by certified mail, return receipt requested,to the 70.3 employing unitemployer at its last known address. The return70.4 receipt,The commissioner's affidavit of compliance with the 70.5 provisions of this section, and a copy of the notice of service 70.6 shall be appended to the original of the process and filed in 70.7 the court in which the civil action is pending. 70.8 (c) No court filing fees, docketing fees, or release of 70.9 judgment fees may be assessed against the state for actions 70.10 pursuant to this subdivision. 70.11 Sec. 68. Minnesota Statutes 1996, section 268.161, 70.12 subdivision 6, is amended to read: 70.13 Subd. 6. [CONTRIBUTION OR REIMBURSEMENTPAYMENT IN LIEU OF 70.14 CONTRIBUTION PRESUMED VALID.] The contribution and reimbursement70.15 payment in lieu of contribution, as assessed by the 70.16 commissioner, including any penalties, shall be presumed to be 70.17 valid and correctly determined and assessed, and the burden 70.18 shall be upon the employer to show its incorrectness or 70.19 invalidity. TheA statement filed by the commissioner with the70.20 court administrator, as provided in subdivision 3, or any other70.21 certificateby the commissioner of the amount of the 70.22 contribution, reimbursementpayment in lieu of contribution, 70.23 interest and penalties as determined or assessed by the 70.24 commissioner, shall be admissible in evidence in any court or 70.25 administrative proceeding and shall establishbe prima facie 70.26 evidence of the facts set forth thereinin the statement. 70.27 Sec. 69. Minnesota Statutes 1996, section 268.161, 70.28 subdivision 7, is amended to read: 70.29 Subd. 7. [CONFESSION OF JUDGMENT.] (a) Any contribution 70.30 report or other form that is required to be filed with the 70.31 commissioner concerning contributions or reimbursementspayments 70.32 in lieu of contributions due, shall contain a written 70.33 declaration that it is made under the penalties of section70.34 268.18, subdivision 3for willfully making a false report and 70.35 shall contain a confession of judgment for the amount of the 70.36 contribution or reimbursementpayments in lieu of contributions 71.1 shown due thereon to the extent not timely paid together with 71.2 any interest and penalty due under this chapter. 71.3 (b) The commissioner may, within six years after athe 71.4 report or other form is filed, notwithstanding section 541.09, 71.5 enter judgment on any confession of judgment contained in the71.6 contribution report or formafter 20 dayscalendar days' notice 71.7 served upon the employer by mail at the address shown in the71.8 employer's report. The judgment shall be entered by the court 71.9 administrator of any county upon the filing of a photocopy or71.10 similar reproduction of that part of the contribution report or71.11 form containingof the confession of judgment along with a 71.12 statement of the commissioner or agentthat the contribution or 71.13 reimbursementpayment in lieu of contribution has not been paid. 71.14 Sec. 70. Minnesota Statutes 1996, section 268.167, is 71.15 amended to read: 71.16 268.167 [GARNISHMENT FOR DELINQUENT TAXES AND BENEFIT 71.17 OVERPAYMENTS.] 71.18 (a) The commissioner or an authorizeda delegated 71.19 representative may, within six years after the date of 71.20 assessment of the tax, or payment in lieu of contribution, or 71.21 determination of benefit overpayment, or if a lien has been 71.22 filed under section 268.161, within the statutory period for 71.23 enforcement of the lien, give notice to any employer that an 71.24 employee of that employer owes delinquent unemployment71.25 reemployment insurance taxes or reimbursementspayments in lieu 71.26 of contributions including penalties, interest, and costs, or 71.27 has an unpaid benefit overpayment. The commissioner can proceed 71.28 under this subdivisionsection only if the tax, payment in lieu 71.29 of contributions, or benefit overpayment is uncontested or if 71.30 the time for any appeal has expired. The commissioner shall not 71.31 proceed under this subdivisionsection until the expiration of 71.32 30 calendar days after mailing to the debtor employee, at the 71.33 debtor's last known address, a written notice of garnishment. 71.34 The notice shall list: 71.35 (1) the amount of taxes, reimbursementspayments in lieu of 71.36 contributions, interest, penalties, costs, or benefit 72.1 overpayment due from the debtor; 72.2 (2) demand for immediate payment; and 72.3 (3) the commissioner's intention to serve a garnishment on 72.4 the debtor's employer pursuant to this subdivisionsection. 72.5 The effect of the notice shall expire 180 calendar days 72.6 after it has been mailed to the debtor provided that the notice 72.7 may be renewed by mailing a new notice which is in accordance 72.8 with this subdivisionsection. The renewed notice shall have 72.9 the effect of reinstating the priority of the original claim. 72.10 The notice to the debtor shall be in substantially the same form 72.11 as that provided in section 571.72. The notice shall further 72.12 inform the debtor of the wage exemptions contained in section 72.13 550.37, subdivision 14. If no statement of exemption is 72.14 received by the commissioner within 30 calendar days from the 72.15 mailing of the notice, the commissioner may proceed under 72.16 this subdivisionsection. The notice to the debtor's employer 72.17 may be served by mail or by delivery by an employee of the 72.18 commissioner and shall be in substantially the same form as 72.19 provided in section 571.75. Upon receipt of the notice, the 72.20 employer shall retain the earnings due or to become due to the 72.21 employee, the total amount shown by the notice, subject to the 72.22 provisions of section 571.922. The employer shall continue to 72.23 retain each pay period until the notice is released by the 72.24 commissioner under section 268.161, subdivision 8. Upon receipt 72.25 of notice by the employer, the claim of the commissioner shall 72.26 have priority over any subsequent garnishments or wage 72.27 assignments. The commissioner may arrange between the employer 72.28 and employee for retaining a portion of the total amount due the 72.29 employee each pay period, until the total amount shown by the 72.30 notice plus accrued interest has been retained. 72.31 The "earnings due" any employee is defined in accordance 72.32 with section 571.921. The maximum garnishment allowed under 72.33 this subdivisionsection for any one pay period shall be 72.34 decreased by any amounts payable pursuant to a garnishment 72.35 action with respect to which the employer was served prior to 72.36 being served with the notice of delinquency, and any amounts 73.1 covered by any irrevocable and previously effective assignment 73.2 of wages; the employer shall give notice to the commissioner of 73.3 the amounts and the facts relating to suchthe assignment within 73.4 ten days after the service of the notice of delinquency on the 73.5 form provided by the commissioner as noted in this subdivision73.6 section. 73.7 (b) If the employee ceases to be employed by the employer 73.8 before the full amount set forth in a notice of garnishment plus 73.9 accrued interest has been retained, the employer shall 73.10 immediately notify the commissioner in writing of the 73.11 termination date of the employee and the total amount retained. 73.12 No employer may discharge or otherwise discipline any employee 73.13 by the reason of the fact that the commissioner has proceeded 73.14 under this subdivisionsection. If an employer discharges an 73.15 employee in violation of this provision, the employee shall have 73.16 the same remedy as provided in section 571.927, subdivision 2. 73.17 (c) Within ten calendar days after the expiration of such73.18 the pay period, the employer shall remit to the commissioner, on 73.19 a form and in the manner prescribed by the commissioner, the 73.20 amount retained during each pay period under this subdivision73.21 section. 73.22 (d) Paragraphs (a) to (c), except provisions imposing a 73.23 liability on the employer for failure to retain or remit, shall 73.24 apply to cases in which the employer is the United States or any 73.25 instrumentality thereof or this state or any political 73.26 subdivision thereof. 73.27 (e) The commissioner shall refund to the employee excess 73.28 amounts retained from the employee under this subdivision73.29 section. If any excess results from payments by the employer 73.30 because of willful failure to retain or remit as prescribed in 73.31 paragraph (c), the excess attributable to the employer's payment 73.32 shall be refunded to the employer. 73.33 (f) Employers required to retain delinquent amounts under 73.34 this subdivisionsection shall not be required to compute any 73.35 additional interest, costs, or other charges to be retained. 73.36 (g) The collection remedy provided to the commissioner by74.1 this subdivision shall have the same legal effect as if it were74.2 a levy made pursuant to section 268.161An employer that fails 74.3 or refuses to comply with the requirements of this section shall 74.4 be liable as provided in section 268.058, subdivision 3, 74.5 paragraph (i). 74.6 Sec. 71. Minnesota Statutes 1996, section 268.18, 74.7 subdivision 1, is amended to read: 74.8 Subdivision 1. [ERRONEOUS PAYMENTS.] (a) Any claimant for74.9 benefitswho, by reason of the claimant's own mistake or through 74.10 the error of any individual engaged in the administration 74.11 of sections 268.03 to 268.23this chapter or because of a 74.12 determination, redetermination, or amended determination issued 74.13 pursuant to section 268.07 or 268.101, has received any sum as74.14 benefits to whichthat the claimant was not entitled under these74.15 sectionsto, shall promptly return thoserepay the benefits in74.16 cashto the nearest office of the Minnesotadepartment of74.17 economic security. If the claimant fails to returnrepay the 74.18 benefits, the department of economic securityshall, as soon as 74.19 it discoversthe erroneous payment is discovered, determine the 74.20 amount due and notify the individualclaimant in writing to 74.21 return itrepay the benefits. 74.22 (b) Unless the claimant files a writtenan appeal with the74.23 department of economic securitywithin 15 calendar days after 74.24 the mailing of the notice ofdetermination of overpayment to the 74.25 claimant's last known address or personal delivery of the74.26 notice, the determination shall become final. Proceedings on 74.27 the appeal shall be conducted in accordance with section 74.28 268.105. A claimant may not collaterally attack, by way of an 74.29 appeal to an overpayment determination, any prior determination 74.30 issued pursuant to section 268.07 or 268.101, or decision issued 74.31 pursuant to section 268.105, that has become final. 74.32 (c) If the claimant fails to repay the benefits, the 74.33 commissioner of the department of economic security is74.34 authorized tomay deduct from any future benefits payable to the 74.35 claimant under these sectionsin either the current or any 74.36 subsequent benefit year an amount equivalent to the overpayment 75.1 determined, except that no single deduction under this 75.2 subdivision shall exceed 50 percent of the amount of the payment 75.3 from which the deduction is made, or the overpayment may be 75.4 collected the same as delinquent contributions or reimbursements75.5 under section 268.161. A determination of overpayment shall 75.6 state the methods of collection the commissioner will use to 75.7 recover the overpayment. If a claimant has been overpaid 75.8 benefits under the law of another state due tobecause of an 75.9 error and that state certifies to the department the facts75.10 involved andthat the individualclaimant is liable under its 75.11 law to repay the benefits and requests the department to recover 75.12 the overpayment, the commissioner is authorized tomay deduct 75.13 from future benefits payable to the claimant in either the 75.14 current or any subsequent benefit year an amount equivalent to 75.15 the amount of overpayment determined by that state, except that 75.16 no single deduction under this subdivision shall exceed 50 75.17 percent of the amount of the payment from which the deduction is 75.18 made. 75.19 (d) Benefits paid for weeks more than three years prior to 75.20 the discovery of error are not erroneous payments. 75.21 (d)(e) Notwithstanding paragraph (a), the commissioner 75.22 shall waive recovery of an overpayment if a reemployment75.23 insurance judge orthe commissioner's authorized representative 75.24 under section 268.105, subdivision 3, determines the overpayment 75.25 resulted from an administrative failure to identify that a 75.26 claimant's wage credits were not earned in covered 75.27 employment. This paragraph shall not apply to misidentification 75.28 of an employee-employer relationship. 75.29 Sec. 72. Minnesota Statutes 1996, section 268.18, 75.30 subdivision 2, is amended to read: 75.31 Subd. 2. [FRAUD.] (a) Any claimant who files a claim for75.32 orreceives benefits by knowingly and willfully misrepresenting 75.33 or, misstating any material fact or by knowingly and willfully, 75.34 or failing to disclose any material fact whichthat would 75.35 makehave made the claimant ineligible fornot entitled to those 75.36 benefits under sections 268.03 to 268.23 is guilty ofhas 76.1 committed fraud. After the discovery of facts by the76.2 commissionerindicating fraud in claiming or obtaining benefits76.3 under sections 268.03 to 268.23, the commissioner is hereby76.4 authorized toshall make a written determination that the 76.5 claimant was ineligible for each week with reference to which76.6 not entitled to benefits that were claimed orobtained by fraud 76.7 for the amount as was in excess of what the claimant would have76.8 been entitled to had the claimant not made the fraudulent76.9 statements or failed to disclose any material facts.and that 76.10 the claimant must promptly repay the benefits to the 76.11 department. In addition, the commissioner alsomay disqualify76.12 an individual fromdeny benefits to a claimant for one to 52 76.13 weeks infor which the claimant is otherwise eligible for76.14 entitled to benefits following the week in which the fraud was 76.15 determined. A disqualificationdenial imposed for fraud shall76.16 not be removed by subsequent insured work or the expiration of a76.17 benefit year butshall not apply to any week more than 104 weeks 76.18 after the week in which the fraud was determined. The claimant76.19 shall promptly repay in cash to the department of economic76.20 security any benefits fraudulently obtained.76.21 (b) Unless the claimant files a writtenan appeal with the76.22 department of economic securitywithin 15 calendar days after 76.23 the mailing of the notice ofdetermination of overpayment by 76.24 fraud to the claimant's last known address or personal delivery76.25 of the notice, the determination shall become final. 76.26 Proceedings on the appeal shall be conducted in accordance with 76.27 section 268.105. 76.28 (c) If the claimant fails to repay the benefits, the 76.29 commissioner is hereby authorized tomay deduct from future 76.30 benefits payable to the claimant in either the current or any 76.31 subsequent benefit year an amount equivalent to the amount of 76.32 overpayment determined disregarding the 50 percent limitation76.33 provided for in subdivision 1or the overpayment may be 76.34 collected the same as delinquent contributions or reimbursements76.35 under section 268.161. A determination of overpayment by fraud 76.36 shall state the methods of collection the commissioner may use 77.1 to recover the overpayment. If a claimant has been overpaid 77.2 benefits under the law of another state due tobecause of fraud 77.3 and that state certifies to the department the facts involved77.4 andthat the individualclaimant is liable to repay the benefits 77.5 and requests the department to recover the overpayment, the 77.6 commissioner is authorized tomay deduct from future benefits 77.7 payable to the claimant in either the current or any subsequent 77.8 benefit year an amount equivalent to the amount of overpayment 77.9 determined by that state disregarding the 50 percent limitation77.10 provided for in subdivision 1. 77.11 (d) A determination of fraud may be made at any time. 77.12 Sec. 73. Minnesota Statutes 1996, section 268.18, is 77.13 amended by adding a subdivision to read: 77.14 Subd. 2b. [INTEREST.] (a) On any benefits fraudulently 77.15 obtained, as determined under subdivision 2, the commissioner 77.16 shall have the discretion to assess interest at the rate of 77.17 1-1/2 percent per month on any overpaid amount which remains 77.18 unpaid 30 calendar days after the date of the determination of 77.19 overpayment by fraud. A determination of overpayment by fraud 77.20 shall state that interest may be assessed. 77.21 (b) Any money received in repayment of fraudulently 77.22 obtained benefits and interest thereon shall be first applied to 77.23 the overpayment balance. 77.24 (c) Unpaid interest may be collected the same as delinquent 77.25 contributions. 77.26 Sec. 74. Minnesota Statutes 1996, section 268.18, 77.27 subdivision 3, is amended to read: 77.28 Subd. 3. [FALSE REPRESENTATIONS; CONCEALMENT OF FACTS; 77.29 PENALTY.] (a) Whoever obtains, or attempts to obtain, or aids or 77.30 abets any person to obtain by means of a willfullyan 77.31 intentional false statement or representation, by intentional 77.32 concealment of a material fact, or by impersonation or other 77.33 fraudulent devicemeans, benefits to whichthat the person is 77.34 not entitled or benefits greater than that to whichthe person 77.35 is entitled under this chapter, or under the employment security77.36 law of any state or of the federal government or of a foreign78.1 government, either personally or for any other person, shall be78.2 is guilty of theft and shall be sentenced pursuant to section 78.3 609.52 , subdivision 3, clauses (2), (3)(a), (c), and (d), (4),78.4 and (5). The amount of the benefits incorrectly paid shall be 78.5 the difference between the amount of benefits actually received78.6 paid and the amount whichthat the personclaimant would have 78.7 been entitled under state and federal law had the department 78.8 been informed of all material facts. 78.9 (b) Any employing unit or any officer or agent of an 78.10 employing unit or any other person who makes a false statement 78.11 or representation knowing it to be false, or who knowingly fails 78.12 to disclose a material fact, to prevent or reduce the payment of 78.13 benefits to any individual entitled thereto, or to avoid78.14 becoming or remaining a subject employer or to avoid or reduce78.15 any contribution or other payment required from an employing78.16 unit under this chapter or under the employment security law of78.17 any state or of the federal government, or who willfully fails78.18 or refuses to make any such contributions or other payment at78.19 the time required shall beclaimant, is guilty of a gross 78.20 misdemeanor unless the benefit underpayment , contribution, or78.21 other payment involvedexceeds $250$500, in which eventthat 78.22 case the person is guilty of a felony. 78.23 (c) Any person who willfully fails to produce or permit the78.24 inspection or copying of books, papers, records, or memoranda as78.25 required or when requested under section 268.12, subdivision 8,78.26 or to furnish any required reports other than contribution78.27 reports shall be guilty of a gross misdemeanor.78.28 Sec. 75. Minnesota Statutes 1996, section 268.18, 78.29 subdivision 4, is amended to read: 78.30 Subd. 4. [CANCELLATION OF BENEFITS PAID THROUGH ERROR OR 78.31 FRAUD.] When(a) If benefits paid through error or fraudare not 78.32 repaid or deducted from subsequent benefit amounts as provided 78.33 for in subdivisionssubdivision 1 and 2within six years after 78.34 the date of the determination that benefits were paid through78.35 error or fraud irrespective of subsequent partial recovery dates78.36 of overpayment, the commissioner shall cancel the overpayment 79.1 balance, and no administrative or legal proceedings shall 79.2 be instituted under the Minnesota economic security lawused to 79.3 enforce collection of those amounts. 79.4 (b) If benefits paid as a result of fraud are not repaid or 79.5 deducted from subsequent benefits as provided for in subdivision 79.6 2 within ten years after the date of the determination of 79.7 overpayment by fraud, the commissioner shall cancel the 79.8 overpayment balance and any interest due, and no administrative 79.9 or legal proceeding shall be used to enforce collection of those 79.10 amounts. 79.11 (c) The commissioner may cancel at any time benefits paid 79.12 through error or fraud whichthat the commissioner determines 79.13 are uncollectible due to death or bankruptcy. 79.14 Sec. 76. Minnesota Statutes 1996, section 268.18, 79.15 subdivision 6, is amended to read: 79.16 Subd. 6. [EMPLOYER MISCONDUCT; PENALTY.] If the 79.17 commissioner finds that any employing unit or any employee, 79.18 officer, or agent of any employing unit, is in collusion with 79.19 any employeeclaimant for the purpose of assisting the claimant 79.20 to receive benefits illegally, the employing unit shall be 79.21 penalized $500 or an amount equal to the amount of benefits 79.22 determined to be overpaid, whichever is greater. 79.23 If the commissioner finds that any part of any employer's79.24 contribution deficiency is due to fraud with intent to avoid79.25 payment of contributions to the fund, 50 percent of the total79.26 amount of the deficiency or $500, whichever is greater, shall be79.27 assessed as a penalty against the employer and collected in79.28 addition to the deficiency.79.29 Penalties assessed under this section shall be in addition 79.30 to any other penalties provided for by sections 268.03 to 268.2379.31 and be subject to the same collection procedures that apply to 79.32 past due contributions under this chapter. Penalties under this 79.33 section shall be paid to the department and credited to the 79.34 contingent fund. 79.35 The assessment of the penalty shall be final unless the 79.36 employeremploying unit files a written appeal with the80.1 departmentwithin 1530 calendar days after the mailing of the 80.2 notice of determinationpenalty to the employer's last known 80.3 address. Proceedings on the appeal shall be conducted in 80.4 accordance with section 268.105. 80.5 Sec. 77. Minnesota Statutes 1996, section 268.21, is 80.6 amended to read: 80.7 268.21 [NONLIABILITY OF STATE.] 80.8 (a) Benefits shall be deemed to be due and payable under80.9 sections 268.03 to 268.23only to the extent provided thereinin 80.10 this chapter and to the extent that moneys aremoney is 80.11 available therefor to the credit ofin the reemployment 80.12 insurance fund and neither the state nor the commissioner shall 80.13 be liable for any amount in excess of such sums. 80.14 (b) No person shall make any demand, bring any suit, or 80.15 other proceeding to recover from the state any sum alleged to be 80.16 due on a reemployment insurance account after the expiration of 80.17 two years from the effective date of the reemployment insurance 80.18 account. 80.19 Sec. 78. [WAITING PERIOD WAIVER.] 80.20 Subdivision 1. [WAIVER OF WAITING PERIOD.] The waiting 80.21 period requirement under Minnesota Statutes, section 268.08, 80.22 subdivision 1, clause (4), is waived for a claimant who would 80.23 have been eligible for federal disaster unemployment assistance 80.24 but for the claimant's establishment of a reemployment insurance 80.25 account. The waiver applies to accounts established effective 80.26 March 23, 1997, through May 31, 1997. 80.27 Subd. 2. [EFFECTIVE DATE.] Subdivision 1 is effective the 80.28 day following final enactment. 80.29 Sec. 79. [INSTRUCTION TO REVISOR.] 80.30 The revisor of statutes shall renumber each section of 80.31 Minnesota Statutes specified in column A with the number set 80.32 forth in column B. The revisor shall also make necessary 80.33 cross-reference changes consistent with the renumbering. 80.34 Column A Column B 80.35 268.041 268.043 80.36 268.05 268.194 81.1 268.06, subd. 1 268.051, subd. 1 81.2 268.06, subd. 3a 268.051, subd. 5 81.3 268.06, subd. 6 268.051, subd. 3 81.4 268.06, subd. 8 268.051, subd. 2 81.5 268.06, subd. 8a 268.051, subd. 8 81.6 268.06, subd. 18 268.047, subd. 5 81.7 268.06, subd. 19 268.051, subd. 6 81.8 268.06, subd. 20, 268.051, subd. 6, 81.9 paragraph (a) paragraph (c) 81.10 268.06, subd. 20, 268.051, subd. 6, 81.11 paragraph (b) paragraph (d) 81.12 268.06, subd. 21 268.045 81.13 268.06, subd. 22 268.051, subd. 4 81.14 268.06, subd. 24 268.051, subd. 7 81.15 268.06, subd. 25 268.052, subd. 1 81.16 268.06, subd. 26 268.052, subd. 3 81.17 268.06, subd. 27 268.052, subd. 4 81.18 268.06, subd. 28 268.053 81.19 268.06, subd. 29 268.045 (d) 81.20 268.06, subd. 31 268.052, subd. 2 81.21 268.06, subd. 34 268.054 81.22 268.061 268.068 81.23 268.071 268.115 81.24 268.072 268.155 81.25 268.073 268.125 81.26 268.074 268.135 81.27 268.075 268.145 81.28 268.09, subd. 3 268.09, subd. 18 81.29 268.11 268.042 81.30 268.12, subd. 8 268.186 81.31 268.12, subd. 9a 268.188 81.32 268.12, subd. 12 268.19 81.33 268.121 268.044 81.34 268.14, subd. 1 268.198, subd. 1 81.35 268.14, subd. 2 268.198, subd. 2 81.36 268.14, subd. 5 268.198, subd. 3 82.1 268.15 268.196 82.2 268.16, subd. 1 268.057, subd. 5 82.3 268.16, subd. 1a 268.057, subd. 6 82.4 268.16, subd. 2 268.057, subd. 1 82.5 268.16, subd. 3a 268.057, subd. 4 82.6 268.16, subd. 4 268.067 82.7 268.16, subd. 5 268.057, subd. 10 82.8 268.16, subd. 6 268.057, subd. 7 82.9 268.16, subd. 7 268.057, subd. 8 82.10 268.16, subd. 9 268.057, subd. 9 82.11 268.161, subd. 1 268.058, subd. 1 82.12 268.161, subd. 1a 268.058, subd. 2 82.13 268.161, subd. 2 268.058, subd. 6 82.14 268.161, subd. 4 268.058, subd. 5 82.15 268.161, subd. 5 268.058, subd. 4 82.16 268.161, subd. 6 268.057, subd. 2 82.17 268.161, subd. 7 268.057, subd. 3 82.18 268.161, subd. 8 268.058, subd. 3 82.19 268.161, subd. 9 268.063 82.20 268.162 268.064 82.21 268.163 268.065 82.22 268.164 268.062 82.23 268.166 268.066 82.24 268.167 268.059 82.25 268.17 268.192 82.26 268.18, subd. 3 268.182 82.27 268.18, subd. 6 268.184 82.28 Sec. 80. [INSTRUCTION TO REVISOR.] 82.29 The revisor of statutes shall change the words 82.30 "unemployment insurance," "unemployment insurance benefits," and 82.31 "unemployment benefits" whenever they appear in Minnesota 82.32 Statutes to "reemployment insurance benefits" in Minnesota 82.33 Statutes 1998 and subsequent editions of the statutes. 82.34 The revisor of statutes shall change the words 82.35 "unemployment fund" whenever they appear in Minnesota Statutes 82.36 to "reemployment insurance fund" in Minnesota Statutes 1998 and 83.1 subsequent editions of the statutes. 83.2 The revisor of statutes shall change the words "insured 83.3 work" whenever they appear in Minnesota Statutes, sections 83.4 268.03 to 268.23 to "covered employment" in Minnesota Statutes 83.5 1998 and subsequent editions of the statutes. 83.6 The revisor of statutes shall change the word "contribution" 83.7 whenever it appears in Minnesota Statutes, sections 268.022 to 83.8 268.23 to "tax" in Minnesota Statutes 1998 and subsequent 83.9 editions of the statutes. 83.10 The revisor of statutes shall change the word 83.11 "contributions" whenever it appears in Minnesota Statutes, 83.12 sections 268.022 to 268.23, except in section 268.196, 83.13 subdivision 3, to "taxes" in Minnesota Statutes 1998 and 83.14 subsequent editions of the statutes. 83.15 The revisor of statutes shall change the word "contributing" 83.16 whenever it appears in Minnesota Statutes, sections 268.03 to 83.17 268.23 to "taxpaying" in Minnesota Statutes 1998 and subsequent 83.18 editions of the statutes. 83.19 The revisor of statutes shall change the words 83.20 "unemployment tax" whenever they appear in Minnesota Statutes, 83.21 sections 268.03 to 268.23 to "reemployment insurance tax" in 83.22 Minnesota Statutes 1998 and subsequent editions of the statutes. 83.23 The revisor of statutes shall change the words 83.24 "unemployment taxes" whenever they appear in Minnesota Statutes, 83.25 sections 268.03 to 268.23 to "reemployment insurance taxes" in 83.26 Minnesota Statutes 1998 and subsequent editions of the statutes. 83.27 The revisor of statutes shall change the word 83.28 "reimbursement" whenever it appears in Minnesota Statutes, 83.29 sections 268.057, 268.058, 268.059, 268.062, 268.063, 268.066, 83.30 and 268.067 to "payment in lieu of taxes" in Minnesota Statutes 83.31 1998 and subsequent editions of the statutes. 83.32 The revisor of statutes shall change the term 83.33 "reimbursements" whenever it appears in Minnesota Statutes, 83.34 sections 268.057, 268.058, 268.059, 268.062, 268.063, 268.066, 83.35 and 268.067 to "payments in lieu of taxes" in Minnesota Statutes 83.36 1998 and subsequent editions of the statutes. 84.1 The revisor of statutes shall change the term "reimbursable 84.2 account" whenever it appears in Minnesota Statutes, sections 84.3 268.03 to 268.23, to "payment in lieu of taxes account." 84.4 Sec. 81. [REPEALER.] 84.5 Minnesota Statutes 1996, sections 268.026; 268.04, 84.6 subdivisions 8, 13, 14, 20, 21, 32, and 35; 268.06, subdivisions 84.7 2, 4, 5, 30, and 33; 268.073, subdivision 7; 268.09, 84.8 subdivisions 1, 2, 4, 5, 6, 7, and 8; 268.12, subdivisions 2, 4, 84.9 5, 7, and 11; 268.14, subdivisions 3 and 4; 268.16, subdivision 84.10 8; 268.161, subdivision 3; 268.165; and 268.18, subdivision 5, 84.11 are repealed. 84.12 Sec. 82. [EFFECTIVE DATE.] 84.13 Sections 1 to 59, 61 to 77, and 79 to 81 are effective July 84.14 1, 1997. Section 60 is effective the day following final 84.15 enactment.