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Key: (1) language to be deleted (2) new language

  

                         Laws of Minnesota 1983 

                        CHAPTER 372--S.F.No. 1011
           An act relating to unemployment compensation; 
          providing for conformity with federal law; imposing an 
          annual surcharge on employers' calendar year 
          contributions for the purpose of repayment of interest 
          charged on federal loans; creating the emergency 
          interest repayment fund; adding a category to the 
          extension of base period in the definition of base 
          period; updating the law to reflect current practice; 
          making technical changes; removing obsolete language; 
          regulating administrative practices; providing for the 
          effect of back pay awards; regulating benefit amounts, 
          contributions, and benefit eligibility; requiring a 
          report to the legislature on shared work benefits; 
          appropriating money; amending Minnesota Statutes 1982, 
          sections 268.04, subdivisions 2, 12, 17, 25, 26, 29, 
          and by adding a subdivision; 268.05, subdivision 5; 
          268.06, subdivisions 1, 2, 3a, 5, 20, 28, and 29; 
          268.07, subdivisions 2 and 3; 268.071, subdivision 3; 
          268.08, subdivisions 1, 3, 6, and by adding 
          subdivisions; 268.09, subdivisions 1 and 2; 268.10, 
          subdivisions 2, 3, 4, 5, 6, 7, and 9; 268.11, 
          subdivisions 2 and 3; 268.12, subdivisions 8 and 9; 
          268.16, subdivision 2; 268.161, subdivisions 1, 4, 5, 
          7, and 8; 268.18, subdivisions 1 and 2; proposing new 
          law coded in Minnesota Statutes, chapter 268; 
          repealing Minnesota Statutes 1982, section 268.06, 
          subdivision 32. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1982, section 268.04, 
subdivision 2, is amended to read: 
    Subd. 2.  "Base period" means the period of fifty-two 
calendar weeks immediately preceding the first day of an 
individual's benefit year.  Provided, However, that if a 
claimant received weekly worker's compensation for temporary 
total disability under the provisions of chapter 176 or under a 
similar law of the United States for more than seven weeks 
within the base period, as heretofore defined, his or if a 
claimant, whose own serious illness caused a loss of credit 
weeks within the base period, received compensation due to the 
illness from some other source or under a law of this state 
other than chapter 176 or under a similar law of the United 
States for more than seven weeks within the base period, the 
claimant's base period shall be lengthened by the same number of 
such weeks, but not to exceed 52 weeks, for which he the 
claimant received such the payments; provided further, that.  
No extended base period shall include wage credits upon which 
benefits were established and paid with respect to a prior valid 
claim. 
    Sec. 2.  Minnesota Statutes 1982, section 268.04, 
subdivision 12, is amended to read: 
    Subd. 12.  "Employment" means:  (1) Subject to the other 
provisions of this subdivision "employment" means service 
performed prior to January 1, 1945, which was employment as 
defined in this section prior to such date, and any service 
performed after December 31, 1944, including service in 
interstate commerce, by an individual who is a servant under the 
law of master and servant or who performs services for any 
employing unit, unless such services are performed by an 
independent contractor. 
    The term "employment" shall include:  Any service 
performed, including service in interstate commerce, by; 
    (a) any officer of any corporation; or 
    (b) any individual other than an individual who is an 
employee under clause (1) who performs services for remuneration 
for any person as an agent-driver or commission-driver engaged 
in distributing meat products, vegetable products, fruit 
products, bakery products, beverages (other than milk), or 
laundry or dry-cleaning services, for his principal, or as a 
traveling or city salesman, other than as an agent-driver or 
commission-driver, engaged upon a fulltime basis in the 
solicitation on behalf of, and the transmission to, his 
principal (except for sideline sales activities on behalf of 
some other person) of orders from wholesalers, retailers, 
contractors, or operators of hotels, restaurants, or other 
similar establishments for merchandise for resale or supplies 
for use in their business operations; 
             Provided, that for purposes of clause (1) (b), the term 
"employment" shall include services described above only if the 
contract of service contemplates that substantially all of the 
services are to be performed personally by such individual, the 
individual does not have a substantial investment in facilities 
used in connection with the performance of the services (other 
than in facilities for transportation), and the services are not 
in the nature of a single transaction that is not part of a 
continuing relationship with the person for whom the services 
are performed. 
             (2) The term "employment" shall include an individual's 
entire service, performed within or both within and without this 
state if (a) the service is localized in this state; or (b) the 
service is not localized in any state but some of the service is 
performed in this state and (1) the base of operations, or, if 
there is no base of operations, then the place from which such 
service is directed or controlled, is in this state; (2) the 
base of operations or place from which such service is directed 
or controlled is not in any state in which some part of the 
service is performed, but the individual's residence is in this 
state. 
             (3) Service shall be deemed to be localized within a state 
if (a) the service is performed entirely within such state; or 
(b) the service is performed both within and without such state, 
but the service performed without such state is incidental to 
the individual's service within the state, for example, is 
temporary or transitory in nature or consists of isolated 
transactions. 
             (4) The term "employment" shall include an individual's 
service wherever performed within the United States or Canada, 
if 
             (a) Such service is not covered under the unemployment 
compensation law of any other state or Canada, and 
             (b) The place from which the service is directed or 
controlled is in this state. 
             (5) (a) Service covered by an election pursuant to section 
268.11, subdivision 3; and 
             (b) Service covered by an arrangement pursuant to section 
268.13 between the commissioner and the agency charged with the 
administration of any other state or federal employment security 
law, pursuant to which all service performed by an individual 
for an employing unit is deemed to be performed entirely within 
this state, shall be deemed to be employment if the commissioner 
has approved an election of the employing unit for which such 
service is performed, pursuant to which the entire service of 
such individual during the period covered by such election is 
deemed to be employment. 
             (6) Notwithstanding any inconsistent provisions of 
sections 268.03 to 268.24, the term "employment" shall include 
any services which are performed by an individual with respect 
to which an employing unit is liable for any federal tax against 
which credit may be taken for contributions required to be paid 
into a state unemployment compensation fund or which as a 
condition for full tax credit against the tax imposed by the 
federal unemployment tax act is required to be covered under 
this law. 
             (7) Service performed by an individual in the employ of 
the state of Minnesota or any instrumentality which is wholly 
owned by the state of Minnesota or in the employ of this state 
and one or more other states or an instrumentality of this state 
and one or more of its political subdivisions or an 
instrumentality of this state and another state or an 
instrumentality of this state and one or more political 
subdivisions of another state if such service is excluded from 
"employment" as defined by section 3306(c)(7) of the federal 
unemployment tax act and is not excluded from "employment" under 
clause (10) of this subdivision. 
             (8) Service performed by an individual in the employ of 
any political subdivision of the state of Minnesota or 
instrumentality thereof or an instrumentality of two or more 
political subdivisions of this state or any instrumentality of a 
political subdivision of this state and another state or 
political subdivisions of another state if such service is 
excluded from "employment" as defined by section 3306(c)(7) of 
the federal unemployment tax act and is not excluded from 
"employment" under clause (10) of this subdivision. 
             (a) The provisions of section 268.08, subdivision 6, shall 
apply to service covered by this section. 
             (b) The amounts required to be paid in lieu of 
contributions by any political subdivision shall be billed and 
payment made as provided in section 268.06, subdivision 28, 
clause (2), with respect to similar payments by nonprofit 
organizations. 
             (9) Service performed by an individual in the employ of a 
religious, charitable, educational or other organization but 
only if the following conditions are met: 
             (a) the service is excluded from "employment" as defined 
in the federal unemployment tax act solely by reason of section 
3306(c) (8) of that act; and 
             (b) the organization had one or more individuals in 
employment for some portion of a day in each of 20 different 
weeks, whether or not such weeks were consecutive, within either 
the current or preceding calendar year, regardless of whether 
they were employed at the same moment of time. 
             (10) For the purposes of clauses (7), (8), and (9), the 
term "employment" does not apply to service performed 
             (a) in the employ of a church or convention or association 
of churches, or an organization which is operated exclusively 
primarily for religious purposes and which is operated, 
supervised, controlled, or principally supported by a church or 
convention or association of churches; or 
             (b) by a duly ordained, commissioned, or licensed minister 
of a church in the exercise of his ministry or by a member of a 
religious order in the exercise of duties required by such 
order; or 
             (c) in a facility conducted for the purpose of carrying 
out a program of rehabilitation for individuals whose earning 
capacity is impaired by age or physical or mental deficiency or 
injury or providing remunerative work for individuals who 
because of their impaired physical or mental capacity cannot be 
readily absorbed in the competitive labor market by an 
individual receiving such rehabilitation or remunerative work; 
or 
             (d) as part of an unemployment work relief or work 
training program assisted or financed in whole or in part by any 
federal agency or an agency of a state or political subdivision 
thereof, by an individual receiving such work relief or work 
training, excepting public service employment and on the job 
training participants under the federal comprehensive employment 
and training act, as amended, if the participants are performing 
services which are the same or similar to those performed by 
other employees of the employer.  This exclusion shall not apply 
to programs that provide for and require unemployment insurance 
coverage for the participants; or 
    (e) by an inmate of a custodial or penal institution;  or 
    (f) in the employ of governmental entities referred to in 
clauses (7) and (8) of this subdivision if such service is 
performed by an individual in the exercise of duties 
    (i) as an elected official, 
    (ii) as a member of a legislative body, or a member of the 
judiciary, 
    (iii) as a member of the Minnesota national guard or air 
national guard, 
             (iv) as an employee serving only on a temporary basis in 
case of fire, storm, snow, earthquake, flood or similar 
emergency, 
             (v) (a) in a position with the state of Minnesota which is 
a major nontenured policy making or advisory position in the 
unclassified service, or 
             (b) a policy making position with the state of Minnesota 
or a political subdivision the performance of the duties of 
which ordinarily does not require more than eight hours per 
week; or 
             (c) in a position with a political subdivision which is a 
major nontenured policy making or advisory position. 
             (11) The term "employment" shall include the service of an 
individual who is a citizen of the United States, performed 
outside the United States, except in Canada, in the employ of an 
American employer (other than service which is deemed 
"employment" under the provisions of clauses (2), (3), or (4) or 
the parallel provisions of another state's law) if: 
             (a) The employer's principal place of business in the 
United States is located in this state; or 
             (b) The employer has no place of business in the United 
States, but the employer is an individual who is a resident of 
this state, or the employer is a corporation which is organized 
under the laws of this state, or the employer is a partnership 
or a trust and the number of partners or trustees who are 
residents of this state is greater than the number who are 
residents of any one other state; or 
             (c) None of the criteria of (a) and (b) of this clause is 
met but the employer has elected coverage in this state, or the 
employer having failed to elect coverage in any state, the 
individual has filed a claim for benefits, based on such 
service, under the law of this state. 
             (d) An "American employer," for the purposes of this 
subdivision, means a person who is an individual who is a 
resident of the United States, or a partnership if two-thirds or 
more of the partners are residents of the United States, or a 
trust, if all of the trustees are residents of the United 
States, or a corporation organized under the laws of the United 
States or of any state; 
             (e) As used in this subdivision, the term "United States" 
includes the states, the District of Columbia, the Commonwealth 
of Puerto Rico, and the Virgin Islands. 
    (12) Notwithstanding clause (1) (2), all service performed 
by an officer or member of the crew of an American vessel on or 
in connection with such vessel, if the operating office, from 
which the operations of such vessel operating on navigable 
waters within, or within and without, the United States are 
ordinarily and regularly supervised, managed, directed and 
controlled is within this state. 
             (13) Service performed by an individual in agricultural 
labor as defined in clause (15)(a) of this subdivision when: 
             (a) Such service is performed for a person who: 
             (i) during any calendar quarter in either the current or 
the preceding calendar year paid wages of $20,000 or more to 
individuals employed in agricultural labor, or 
             (ii) for some portion of a day in each of 20 different 
calendar weeks, whether or not such weeks were consecutive, in 
either the current or preceding calendar year employed in 
agricultural labor four or more individuals regardless of 
whether they were employed at the same time. 
             (b) For the purpose of this clause (13) any individual who 
is a member of a crew furnished by a crew leader to perform 
service in agricultural labor for any other person shall be 
treated as an employee of the crew leader: 
             (i) if the crew leader holds a valid certificate of 
registration under the farm labor contractor registration act of 
1963, as amended; or substantially all of the members of his 
crew operate or maintain tractors, mechanized harvesting or crop 
dusting equipment, or any other mechanized equipment, which is 
provided by the crew leader; and 
             (ii) if the individual is not an employee of another 
person as determined by clause (1) of this subdivision. 
             (c) For the purpose of this clause (13) in the case of any 
individual who is furnished by a crew leader to perform service 
in agricultural labor for any other person and who is not 
treated as an employee of the crew leader under subclause 
(13)(b): 
             (i) such other person and not the crew leader shall be 
treated as the employer of such individual; and 
             (ii) such other person shall be treated as having paid 
wages to such individual in an amount equal to the amount of 
wages paid to such individual by the crew leader (either on his 
own behalf or on behalf of such other person) for the service in 
agricultural labor performed for such other person. 
             (d) For the purposes of this clause (13) the term "crew 
leader" means an individual who: 
             (i) furnishes individuals to perform service in 
agricultural labor for any other person, 
             (ii) pays (either on his own behalf or on behalf of such 
other person) the individuals so furnished by him for the 
service in agricultural labor performed by them, and 
             (iii) has not entered into a written agreement with such 
other person under which such furnished individual is designated 
as an employee of such other person. 
             (e) For the purposes of this clause (13) services 
performed by an officer or shareholder of a family farm 
corporation shall be excluded from agricultural labor and 
employment unless said corporation is an employer as defined in 
section 3306(a)(2) of the Federal Unemployment Tax Act. 
             (f) For the purposes of this clause (13), services 
performed by an individual 16 years of age or under shall be 
excluded from agricultural labor and employment unless the 
employer is an employer as defined in section 3306(a)(2) of the 
Federal Unemployment Tax Act. 
             (14) The term "employment" shall include domestic service 
in a private home, local college club, or local chapter of a 
college fraternity or sorority performed for a person who paid 
wages of $1,000 or more in the current calendar year or the 
preceding calendar year to individuals employed in domestic 
service in any calendar quarter. 
             "Domestic service" includes all service for an individual 
in the operation and maintenance of a private household, for a 
local college club, or local chapter of a college fraternity or 
sorority as distinguished from service as an employee in the 
pursuit of an employer's trade, occupation, profession, 
enterprise or vocation. 
             (15) The term "employment" shall not include: 
             (a) Agricultural labor.  Service performed by an 
individual in agricultural labor, except as provided in clause 
(13) of this subdivision.  The term "agricultural labor" 
includes all services performed: 
             (1) On a farm, in the employ of any person or family farm 
corporation, in connection with cultivating the soil, or in 
connection with raising or harvesting any agricultural or 
horticultural commodity, including the raising, shearing, 
feeding, caring for, training, and management of livestock, 
bees, poultry, fur-bearing animals and wildlife; 
             (2) In the employ of the owner or tenant or other operator 
of a farm, in connection with the operation, management, 
conservation, improvement, or maintenance of such farm and its 
tools and equipment, or in salvaging timber or clearing land of 
brush and other debris left by a tornadic-like storm, if the 
major part of such service is performed on a farm; 
             (3) In connection with the production or harvesting of any 
commodity defined as an agricultural commodity in section 15(g) 
of the agricultural marketing act, as amended (46 Stat. 1550, 
sec. 3; 12 U.S.C. 1141j) or in connection with the ginning of 
cotton, or in connection with the operation or maintenance of 
ditches, canals, reservoirs, or waterways, not owned or operated 
for profit, used exclusively for supplying and storing water for 
farming purposes; 
             (4) In the employ of the operator of a farm in handling, 
planting, drying, packing, packaging, processing, freezing, 
grading, storing, or delivering to storage or to market or to a 
carrier for transportation to market, in its unmanufactured 
state, any agricultural or horticultural commodity; but only if 
such operator produced more than one-half of the commodity with 
respect to which such service is performed, or in the employ of 
a group of operators of farms (or a cooperative organization of 
which such operators are members) in the performance of service 
described herein, but only if such operators produced more than 
one-half of the commodity with respect to which such service is 
performed; however, the provisions of this paragraph shall not 
be deemed to be applicable with respect to service performed in 
connection with commercial canning or commercial freezing or in 
connection with any agricultural or horticultural commodity 
after its delivery to a terminal market for distribution for 
consumption; or 
             (5) On a farm operated for profit if such service is not 
in the course of the employer's trade or business. 
             As used herein, the term "farm" includes stock, dairy, 
poultry, fruit, fur-bearing animal, and truck farms, 
plantations, ranches, nurseries, ranges, greenhouses or other 
similar structures used primarily for the raising of 
agricultural or horticultural commodities, and orchards. 
             (b) Casual labor not in the course of the employing unit's 
trade or business; 
             (c) Service performed on the navigable waters of the 
United States as to which this state is prohibited by the 
constitution and laws of the United States of America from 
requiring contributions of employers with respect to wages as 
provided in sections 268.03 to 268.24; 
             (d) Service performed by an individual in the employ of 
his son, daughter, or spouse, and service performed by a child 
under the age of 18 in the employ of his father or mother; 
             (e) Service performed in the employ of the United States 
government, or any instrumentality of the United States exempt 
under the constitution of the United States from the 
contributions imposed by sections 268.03 to 268.24, except that 
with respect to such service and to the extent that the congress 
of the United States shall permit states to require any 
instrumentalities of the United States to make payments into an 
unemployment compensation fund under a state unemployment 
compensation act; then, to the extent permitted by congress, and 
from and after the date as of which such permission becomes 
effective, all of the provisions of these sections shall be 
applicable to such instrumentalities and to services performed 
for such instrumentalities in the same manner, to the same 
extent, and on the same terms as to all other employers, 
employing units, individuals, and services; provided, that if 
this state shall not be certified for any year by the United 
States department of labor under section 3304(c) of the federal 
internal revenue code, the payments required of such 
instrumentalities with respect to such year shall be refunded by 
the commissioner from the fund in the same manner and within the 
same period as is provided in section 268.16, subdivision 6, 
with respect to contributions erroneously collected; 
             (f) Service with respect to which unemployment 
compensation is payable under an unemployment compensation 
system established by an act of congress; 
             (g) (1) Service performed in any calendar quarter in the 
employ of any organization exempt from income tax under section 
501(a) (other than an organization described in section 401(a)) 
or section 521 of the federal internal revenue code, if the 
remuneration for such service is less than $50; or 
             (2) Service performed in the employ of a school, college, 
or university, if such service is performed by a student who is 
enrolled and is regularly attending classes at such school, 
college, or university; or 
    (3) Service performed by an individual under the age of 22 
who is enrolled at a nonprofit or public educational institution 
which normally maintains a regular faculty and curriculum and 
normally has a regularly organized body of students in 
attendance at the place where its educational activities are 
carried on as a student in a fulltime program, taken for credit 
at such institution, which combines academic instruction with 
work experience, if such service is an integral part of such 
program, and such institution has so certified to the employer, 
except that this paragraph shall not apply to service performed 
in a program established for or on behalf of an employer or 
group of employers; 
    (h) Service performed in the employ of a foreign government 
(including service as a consular or other officer or employee or 
a nondiplomatic representative); 
    (i) Service performed in the employ of an instrumentality 
wholly owned by a foreign government, if 
    (1) The service is of a character similar to that performed 
in foreign countries by employees of the United States 
government or of an instrumentality thereof; and 
             (2) The commissioner finds that the United States 
secretary of state has certified to the United States secretary 
of the treasury that the foreign government, with respect to 
whose instrumentality exemption is claimed, grants an equivalent 
exemption with respect to similar service performed in the 
foreign country by employees of the United States government and 
of instrumentalities thereof. 
             (j) Service covered by an arrangement between the 
commissioner and the agency charged with the administration of 
any other state or federal employment security law pursuant to 
which all services performed by an individual for an employing 
unit during the period covered by such employing unit's duly 
approved election, are deemed to be performed entirely within 
such agency's state; 
             (k) Service performed in the employ of a hospital, if such 
service is performed by a patient of the hospital, as defined in 
clause (17); 
             (l) Service performed as a student nurse in the employ of 
a hospital or a nurses' training school by an individual who is 
enrolled and is regularly attending classes in a nurses' 
training school chartered and approved pursuant to state law; 
and service performed as an intern in the employ of a hospital 
by an individual who has completed a four years' course in a 
medical school chartered and approved pursuant to state law; 
             (m) Service performed by an individual for a person as an 
insurance agent or as an insurance solicitor, if all such 
service performed by such individual for such person is 
performed for remuneration solely by way of commission (the word 
"insurance" as used in this subdivision shall include an annuity 
and an optional annuity); 
             (n) Service performed by an individual under the age of 18 
in the delivery or distribution of newspapers or shopping news, 
not including delivery or distribution to any point for 
subsequent delivery or distribution; 
             (o) Service performed by an individual for a person as a 
real estate salesman, if all such service performed by such 
individual for such person is performed for remuneration solely 
by way of commission; 
             (p) If the service performed during one-half or more of 
any pay period by an individual for the person employing him 
constitutes employment, all the service of such individual for 
such period shall be deemed to be employment; but if the service 
performed during more than one-half of any such pay period by an 
individual for the person employing him does not constitute 
employment, then none of the service of such individual for such 
period shall be deemed to be employment.  As used in this 
subdivision, the term "pay period" means a period (of not more 
than 31 consecutive days) for which a payment or remuneration is 
ordinarily made to the individual by the person employing him. 
             (q) Services performed for a state, other than the state 
of Minnesota, or an instrumentality wholly owned by such other 
state or political subdivision of such other state; 
    (r) Services performed as a direct seller as defined in 
United States Code, title 26, section 3508.  
    (16) "Institution of higher education," for the purposes of 
this chapter, means an educational institution which: 
    (a) Admits as regular students only individuals having a 
certificate of graduation from a high school, or the recognized 
equivalent of such a certificate; 
    (b) Is legally authorized in this state to provide a 
program of education beyond high school; 
    (c) Provides an educational program for which it awards a 
bachelor's or higher degree, or provides a program which is 
acceptable for credit toward such a degree, a program of 
post-graduate or post-doctoral studies, or a program of training 
to prepare students for gainful employment in a recognized 
occupation; and 
    (d) Is a public or other nonprofit institution. 
    (e) Notwithstanding any of the foregoing provisions of this 
clause, all colleges and universities in this state are 
institutions of higher education for purposes of this section. 
    (17) "Hospital" means an institution which has been 
licensed, certified or approved by the department of health as a 
hospital. 
    Sec. 3.  Minnesota Statutes 1982, section 268.04, 
subdivision 17, is amended to read: 
    Subd. 17.  "Insured work" means employment for employers as 
defined in this section, except that for the purposes of 
interstate reciprocal benefit payment arrangements and the 
clearing of disqualifications under this law, the term "insured 
work" shall mean employment in insured work under this law or a 
similar law of any other state.  Periods for which an individual 
receives back pay are periods of insured work for benefit 
purposes, except for the clearing of disqualifications under 
this chapter.  
    Sec. 4.  Minnesota Statutes 1982, section 268.04, 
subdivision 25, is amended to read: 
    Subd. 25.  [WAGES.] "Wages" means all remuneration for 
services, including commissions and bonuses, back pay as of the 
date of payment, and tips and gratuities paid to an employee by 
a customer of an employer and accounted for by the employee to 
the employer, and the cash value of all remuneration in any 
medium other than cash, except that such term shall not include: 
    (a) For the purpose of determining contributions payable 
under section 268.06, subdivision 2, that part of the 
remuneration which exceeds $8,000 during the calendar years 
1979, 1980 and 1981 and, for all each subsequent calendar 
years year, the greater of $7,000 or that part of the 
remuneration which exceeds 60 percent of the average annual wage 
rounded to the nearest $100 computed in accordance with the 
provisions of clause (f), paid to an individual by an employer 
with respect to covered employment in this state, or with 
respect to employment under the unemployment compensation law of 
any other state during any calendar year paid to such individual 
by such covered employer or his predecessor during such calendar 
year; provided, that if the term "wages" as contained in the 
federal unemployment tax act is amended to include remuneration 
in excess of the amount required to be paid hereunder to an 
individual by an employer under the federal act for any calendar 
year, wages for the purposes of sections 268.03 to 268.24 shall 
include remuneration paid in a calendar year up to an amount 
equal to the dollar limitation specified in the federal 
unemployment tax act. For the purposes of this clause, the term 
"employment" shall include service constituting employment under 
any employment security law of another state or of the federal 
government; 
     (b) The amount of any payment made to, or on behalf of, an 
employee under a plan or system established by an employer which 
makes provision for his employees generally or for a class or 
classes of his employees (including any amount paid by an 
employer for insurance or annuities, or into a fund, to provide 
for any such payment), on account of (1) retirement or (2) 
sickness or accident disability or (3) medical and 
hospitalization expenses in connection with sickness or accident 
disability, or (4) death, provided the employee has not the 
option to receive, instead of provision for such death benefit, 
any part of such payment, or if such death benefit is insured, 
any part of the premium (or contributions to premiums) paid by 
his employer and has not the right, under the provisions of the 
plan or system or policy of insurance providing for such death 
benefit, to assign such benefit, or to receive a cash 
consideration in lieu of such benefit either upon his withdrawal 
from the plan or system providing for such benefit or upon 
termination of such plan or system or policy of insurance or of 
his employment with such employer; 
     (c) The payment by an employer (without deduction from the 
remuneration of the employee) (1) of the tax imposed upon an 
employee under section 3101 of the federal internal revenue 
code, or (2) of any payment required from an employee under a 
state unemployment compensation law, with respect to 
remuneration paid to an employee for domestic service in a 
private home of the employer or for agricultural labor;  
     (d) Any payments made to a former employee during the 
period of active military service in the armed forces of the 
United States by such employer, whether legally required or not; 
     (e) Any payment made to, or on behalf of, an employee or 
his beneficiary (1) from or to a trust described in section 
401(a) of the federal internal revenue code which is exempt from 
tax under section 501(a) of such code at the time of such 
payment unless such payment is made to an employee of the trust 
as remuneration for services rendered as an employee and not as 
a beneficiary of the trust, or (2) under or to an annuity plan 
which, at the time of such payment is a plan described in 
section 403(a) of the federal internal revenue code, or (c) 
under or to a bond purchase plan which, at the time of such 
payment, is a qualified bond purchase plan described in section 
405(a) of the federal internal revenue code; 
    (f) On or before July 1 of each year the commissioner shall 
determine the average annual wage paid by employers subject to 
sections 268.03 to 268.24 in the following manner: 
    (1) The sum of the total monthly employment reported for 
the previous calendar year shall be divided by 12 to determine 
the average monthly employment; 
    (2) The sum of the total wages reported for the previous 
calendar year shall be divided by the average monthly employment 
to determine the average annual wage. 
    The average annual wage determined shall be effective for 
the calendar year next succeeding the determination.  
    Sec. 5.  Minnesota Statutes 1982, section 268.04, 
subdivision 26, is amended to read: 
    Subd. 26.  "Wage credits" mean the amount of wages actually 
or constructively paid and, wages due and payable but not 
overdue and delayed beyond the usual time of payment and back 
pay paid by or from an employer to an employee for insured work 
and tips and gratuities paid to an employee by a customer of an 
employer and accounted for by the employee to the employer 
except that wages earned in part-time employment by a student as 
an integral part of an occupational course of study, under a 
plan for vocational education accepted by the Minnesota 
department of education, shall not result in wage credits 
available for benefit purposes. 
    Sec. 6.  Minnesota Statutes 1982, section 268.04, 
subdivision 29, is amended to read: 
    Subd. 29.  "Credit week" is any week for which the wages 
which have been or back pay, actually or constructively paid and 
, wages which are due and payable but not paid overdue and 
delayed beyond the usual time of payment, and back pay by or 
from one or more employers to an employee for insured work equal 
or exceed 30 percent of the average weekly wage computed to the 
nearest whole dollar.  On or before June 30 of each year the 
commissioner shall determine the average weekly wage paid by 
employers subject to sections 268.03 to 268.24 in the following 
manner:  
    (a) The sum of the total monthly employment reported for 
the previous calendar year shall be divided by 12 to determine 
the average monthly employment;  
    (b) The sum of the total wages reported for the previous 
calendar year shall be divided by the average monthly employment 
to determine the average annual wage; and 
    (c) The average annual wage shall be divided by 52 to 
determine the average weekly wage.  
    The average weekly wage as so determined computed to the 
nearest whole dollar shall apply to claims for benefits which 
establish a benefit year which begins subsequent to December 31 
of the year of the computation.  
    Sec. 7.  Minnesota Statutes 1982, section 268.04, is 
amended by adding a subdivision to read: 
    Subd. 33.  [BACK PAY.] "Back pay" means a retroactive 
payment of money by an employer to an employee or former 
employee for lost wages because of the employer's noncompliance 
with a state or federal law or a collective bargaining agreement 
as determined in an arbitration award, administrative or 
judicial decision, or negotiated settlement.  The period to 
which the payment shall be applied shall commence immediately 
following the last day of work or as specified in the 
arbitration award, administrative or judicial decision, or 
negotiated settlement.  
    Sec. 8.  Minnesota Statutes 1982, section 268.05, 
subdivision 5, is amended to read: 
    Subd. 5.  [PAYMENT OF EXPENSES OF ADMINISTRATION.] (1) 
Money credited to the account of this state in the unemployment 
trust fund by the secretary of the treasury of the United States 
of America pursuant to section 903 of the Social Security Act, 
as amended, may be requisitioned and used for the payment of 
expenses incurred for the administration of Laws 1957, Chapter 
883 pursuant to a specific appropriation by the legislature, 
provided that the expenses are incurred and the money is 
requisitioned after the enactment of an appropriation law which: 
    (a) Specifies the purposes for which such money is 
appropriated and the amounts appropriated therefor.  
    (b) Limits the period within which such money may be 
obligated to a period ending not more than two years after the 
date of the enactment of the appropriation law, and 
    (c) Limits the amount which may be obligated during any 
twelve-month period beginning on July 1 and ending on the next 
June 30 to an amount which does not exceed the amount by which 
(i) the aggregate of the amounts credited to the account of this 
state pursuant to section 903 of the Social Security Act, as 
amended, during the same twelve-month period and the 24 34 
preceding twelve-month periods, exceeds (ii) the aggregate of 
the amounts used pursuant to this subdivision and charged 
against the amounts credited to the account of this state during 
any of such 25 35 twelve-month periods.  For the purposes of 
this subdivision, amounts used during any such twelve-month 
period shall be charged against equivalent amounts which were 
first credited and which are not already so charged; except that 
no amount obligated for administration during any such 
twelve-month period may be charged against any amount credited 
during such a twelve-month period earlier than the 24th 
preceding such period.  
    (2) Money credited to the account of this state pursuant to 
section 903 of the Social Security Act, as amended, may not be 
withdrawn or used except for the payment of benefits and for the 
payment of expenses for the administration of Laws 1957, Chapter 
883 and of public employment offices pursuant to this 
subdivision.  Any moneys used for the payment of benefits may be 
restored for appropriation and use for administrative expenses 
upon request of the governor, under section 903(c) of the Social 
Security Act.  
    (3) Money requisitioned for the payment of expenses of 
administration pursuant to this subdivision shall be deposited 
in the employment services administration fund, but, until 
expended, shall remain a part of the unemployment fund.  The 
commissioner shall maintain a separate record of the deposit, 
obligation, expenditure, and return of funds so deposited.  If 
any money so deposited is, for any reason, not to be expended 
for the purpose for which it was appropriated, or, if it remains 
unexpended at the end of the period specified by the law 
appropriating such money, it shall be withdrawn and returned to 
the secretary of the treasury of the United States for credit to 
this state's account in the unemployment trust fund.  
    Sec. 9.  Minnesota Statutes 1982, section 268.06, 
subdivision 1, is amended to read: 
    Subdivision 1.  [PAYMENTS.] (1) Contributions shall accrue 
and become payable by each employer for each calendar year in 
which he is subject to sections 268.03 to 268.24 with respect to 
wages (as defined in section 268.04, subdivision 25) for 
employment, except that contributions shall not be payable after 
December 31, 1974 upon public service wages.  "Public service 
wages" are remuneration for services performed in a public 
service job to the extent that such remuneration is paid with 
funds provided under the comprehensive employment and training 
act of 1973 and to the extent that the unemployment compensation 
fund is reimbursed for benefits based upon said public service 
wages pursuant to section 221 of United States Public Law 
94-444.  Such contributions shall become due and be paid by each 
employer to the department of economic security for the fund in 
accordance with such regulations as the commissioner may 
prescribe, and shall not be deducted, in whole or in part, from 
the wages of individuals in such employer's employ.  No rule of 
the commissioner shall be put in force which will permit the 
payment of such contributions at a time or under conditions 
which will not allow the employer to take credit for such 
contribution against the tax imposed by section 3301 of the 
Internal Revenue Code. 
    (2) In the payment of any contribution, a fractional part 
of a cent shall be disregarded unless it amounts to one-half 
cent or more in which case it shall be increased to one cent. 
    (3) When the contribution rate applied to an employer's 
taxable payroll for any given calendar quarter results in a 
computed contribution of less than $1, the contribution shall be 
disregarded. 
    Sec. 10.  Minnesota Statutes 1982, section 268.06, 
subdivision 2, is amended to read: 
    Subd. 2.  [RATES.] Each employer who is not eligible for an 
experience ratio or who has an experience ratio of one-tenth of 
one percent or more as computed in subdivision 6 shall pay 
contributions equal to two and seven-tenths percent for each 
calendar year prior to 1985 and 5-4/10 percent for 1985 and each 
subsequent calendar year of wages paid and wages overdue and 
delayed beyond the usual time of payment from him with respect 
to employment occurring during each calendar year, except as may 
be otherwise prescribed in subdivisions 3a and 4.  Each employer 
who has an experience ratio of less than one-tenth of one 
percent shall pay contributions on only the first $8,000 in 
wages paid and wages overdue and delayed beyond the usual time 
of payment to each employee with respect to employment occurring 
during each calendar year.  
    Sec. 11.  Minnesota Statutes 1982, section 268.06, 
subdivision 3a, is amended to read: 
    Subd. 3a.  [RATE FOR NEW EMPLOYERS.] Notwithstanding the 
provisions of subdivision 2, each employer, who becomes subject 
to this law, shall pay contributions at a rate: 
     (a) Not exceeding two and seven-tenths percent, that is the 
higher of (1) one percent and (2) the state's three-year benefit 
cost rate for the 36 consecutive month period immediately 
preceding July 1 of each year for each employer who becomes 
subject to this law prior to January 1, 1984.  For purposes of 
this clause, the state's three-year benefit cost rate shall be 
computed annually and shall be derived by dividing the total 
dollar amount of benefits paid to claimants under this law 
during the 36 consecutive calendar months immediately preceding 
July 1 of each year by the total dollar amount of wages subject 
to contributions under this law during the same period.  The 
rate so determined shall be applicable for the calendar year 
next succeeding each computation date.  
     (b) Not exceeding 2-7/10 percent, that is the higher of (1) 
one percent and (2) the state's four-year benefit cost rate for 
the 48 consecutive month period immediately preceding July 1 of 
each year for each employer, except employers in the 
construction industry, as determined by the commissioner, 
principally employing laborers and construction tradesmen, who 
becomes subject to this law subsequent to December 31, 1983 and 
prior to January 1, 1985.  For purposes of this clause, the 
state's four-year benefit cost rate shall be computed and 
derived by dividing the total dollar amount of benefits paid to 
claimants under this law during the 48 consecutive calendar 
months immediately preceding July 1, 1983 by the total dollar 
amount of wages subject to contributions under this law during 
the same period.  The rate so determined shall be applicable for 
the calendar year 1984.  
    Each construction employer described above who becomes 
subject to chapter 268 shall pay contributions at a rate, not 
exceeding 7.5 percent, that is the higher of (1) one percent, or 
(2) the state's four-year benefit cost rate for construction 
employers for the 48 consecutive month period immediately 
preceding July 1, 1983.  For purposes of this clause, the 
state's four-year benefit cost rate shall be computed and 
derived by dividing the total dollar amount of benefits paid to 
claimants of construction employers, as determined by the 
commissioner, during the 48 consecutive calendar months 
immediately preceding July 1, 1983 by the total dollar amount of 
wages of construction employers subject to contributions during 
the same period.  The rate so determined shall be applicable for 
the calendar year 1984.  
    (c) Not exceeding 2-7/10 5-4/10 percent, that is the higher 
of (1) one percent and (2) the state's five-year benefit cost 
rate for the 60 consecutive month period immediately preceding 
July 1, 1984 and each year thereafter for each employer, except 
employers in the construction industry, as determined by the 
commissioner, principally employing laborers and construction 
tradesmen, who becomes subject to this law on January 1, 1985 
and thereafter.  For purposes of this clause, the state's 
five-year benefit cost rate shall be computed annually and shall 
be derived by dividing the total dollar amount of benefits paid 
to claimants under this law during the 60 consecutive calendar 
months immediately preceding July 1, 1984 and each year 
thereafter by the total dollar amount of wages subject to 
contributions under this law during the same period.  The rate 
so determined shall be applicable for the calendar year next 
succeeding each computation date.  
    Each construction employer described above who becomes 
subject to this chapter shall pay contributions at a rate, not 
exceeding 7.5 percent, that is the higher of (1) one percent, or 
(2) the state's five-year benefit cost rate for construction 
employers for the 60 consecutive month period immediately 
preceding July 1, 1984 and each year thereafter.  For purposes 
of this clause, the state's five-year benefit cost rate shall be 
computed annually and shall be derived by dividing the total 
dollar amount of benefits paid to claimants of construction 
employers, as determined by the commissioner, during the 60 
consecutive calendar months immediately preceding July 1, 1984 
and each year thereafter by the total dollar amount of wages of 
construction employers subject to contributions during the same 
period.  The rate so determined shall be applicable for the 
calendar year next succeeding each computation date.  
    Sec. 12.  Minnesota Statutes 1982, section 268.06, 
subdivision 5, is amended to read: 
    Subd. 5.  [BENEFITS CHARGED AS AND WHEN PAID.] Benefits 
paid to an individual pursuant to a valid claim shall be charged 
against the account of his employer as and when paid, except 
that benefits paid to an individual who earned base period wages 
for part time employment shall not be charged to an employer 
that is liable for payments in lieu of contributions or to the 
experience rating account of an employer if the employer:  (1) 
provided weekly base period part time employment; (2) continues 
to provide weekly employment equal to at least 90 percent of the 
part time employment provided in the base period; and (3) is an 
interested party because of the individual's loss of other 
employment.  The amount of benefits so chargeable against each 
base period employer's account shall bear the same ratio to the 
total benefits paid to an individual as the base period wage 
credits of the individual earned from such employer bear to the 
total amount of base period wage credits of the individual 
earned from all his base period employers. 
             In making computations under this provision, the amount of 
wage credits if not a multiple of $1, shall be computed to the 
nearest multiple of $1. 
    An employer's account shall not be charged with respect to 
benefits paid to any individual whose base period wage credits 
include wages for previously uncovered services as defined in 
section 268.07, subdivision 4 to the extent that the 
unemployment compensation fund is reimbursed for such benefits 
pursuant to section 121 of United States Public Law 94-566.  
    Benefits shall not be charged to an employer that is liable 
for payments in lieu of contributions or to the experience 
rating account of an employer for unemployment that is directly 
caused by a major natural disaster declared by the president 
pursuant to section 102 (2) of the Disaster Relief Act of 1974 
(42 U.S.C. 5122 (2)), if the unemployed individual would have 
been eligible for disaster unemployment assistance with respect 
to that unemployment but for the individual's receipt of 
unemployment insurance benefits.  
    Sec. 13.  Minnesota Statutes 1982, section 268.06, 
subdivision 20, is amended to read: 
    Subd. 20.  [PROTEST, REVIEW, REDETERMINATION, APPEAL.] A 
review of the charges made to an employer's account as set forth 
in the notice of charges referred to in subdivision 18 and a 
review of an employer's contribution rate as set forth in the 
notice of his rate for any calendar year as provided in 
subdivision 19, may be had by such employer if he files with the 
commissioner a written protest setting forth his reasons 
therefor within 30 days from the date of the mailing of the 
notice of charges or contribution rate to him, which date shall 
appear on such notice.  Upon receipt of such protest the 
commissioner shall refer the matter to an official designated by 
him to review the charges appearing on such notice appealed from 
or the computations of the protesting employer's rate, as the 
case may be, to determine whether or not there has been any 
clerical error or error in computation in either case, and he 
shall either affirm or make a redetermination rectifying said 
charges or rate as the case may be, and a notice of such 
affirmation or redetermination shall immediately be mailed to 
said employer.  If the employer is not satisfied with such 
affirmation or redetermination, he may appeal therefrom by 
filing a notice thereof with the department within ten days 
after the date of mailing appearing upon said redetermination.  
Upon the receipt of such appeal the commissioner shall refer the 
matter to a referee for a hearing and after opportunity for a 
fair hearing, the referee shall affirm, modify or set aside the 
original determination with its affirmation or the 
redetermination, as appears just and proper.  The commissioner 
may at any time upon his own motion correct any clerical error 
of the department resulting in charges against an employer's 
account or any error in the computation of an employer's 
contribution rate.  The referee may order the consolidation of 
two or more appeals whenever, in his judgment, such 
consolidation will not be prejudicial to any interested party.  
At any such hearing a written report of any employee of the 
department which has been authenticated shall be admissible in 
evidence.  Appeals from the decision of the referee shall be 
made in the same manner as appeals from the decision of an 
appeal tribunal provided by section 268.10, subdivision 5.  
Decisions of the commissioner made upon appeal from a decision 
of the referee shall be reviewed by the supreme court upon 
certiorari in accordance with the procedure outlined therefor 
with respect to benefit decisions.  
    Sec. 14.  Minnesota Statutes 1982, section 268.06, 
subdivision 28, is amended to read: 
    Subd. 28.  [PAYMENT TO FUND BY NONPROFIT CORPORATION AND 
ALLOCATION OF BENEFIT COSTS BY BASE PERIOD REIMBURSERS.] (1) 
Benefits paid to employees of nonprofit organizations shall be 
financed in accordance with the provisions of this subdivision.  
For the purpose of this subdivision, a nonprofit organization is 
an organization (or group of organizations) described in section 
501(c) (3) of the United States internal revenue code which is 
exempt from income tax under section 501(a) of such code.  Any 
nonprofit organization which, pursuant to section 268.04, 
subdivision 10, clause (9) is, or becomes, subject to this law 
on or after January 1, 1972, shall pay contributions under the 
provisions of section 268.06, subdivision 1, unless it elects, 
in accordance with this paragraph, to pay to the commissioner 
for the unemployment fund an amount equal to the amount of 
regular benefits and the state share of the extended benefits 
charged, that is attributable to service in the employ of such 
nonprofit organization, to individuals for weeks of unemployment 
which begin during the effective period of such election. 
    (a) Any nonprofit organization which is, or becomes, 
subject to this law on January 1, 1972, may elect to become 
liable for payments in lieu of contributions for a period of not 
less than two calendar years beginning with January 1, 1972; 
provided it files with the commissioner a written notice of its 
election within the 30 day period immediately following such 
date.  
    (b) Any nonprofit organization which becomes subject to 
this law after January 1, 1972, may elect to become liable for 
payments in lieu of contributions for a period of not less than 
two calendar years beginning with the date on which such 
subjectivity begins by filing a written notice of its election 
with the commissioner not later than 30 days immediately 
following the date of the determination of such subjectivity. 
    (c) (b) Any nonprofit organization which makes an election 
in accordance with clause (a) or clause (b) will continue to be 
liable for payments in lieu of contributions until it files with 
the commissioner a written notice terminating its election not 
later than 30 days prior to the beginning of the calendar year 
for which such termination shall first be effective. 
    (d) (c) Any nonprofit organization which has been paying 
contributions under this law for a period subsequent to January 
1, 1972, may change to a reimbursable basis by filing with the 
commissioner not later than 30 days prior to the beginning of 
any calendar year a written notice of election to become liable 
for payments in lieu of contributions.  Such election shall not 
be terminable by the organization for that and the next year. 
    (e) (d) The commissioner may for good cause extend the 
period within which a notice of election, or a notice of 
termination, must be filed and may permit an election to be 
retroactive but not any earlier than with respect to benefits 
paid after December 31, 1971. 
    (f) (e) The commissioner, in accordance with such 
regulations as he may prescribe, shall notify each nonprofit 
organization of any determination which he may make of its 
status as an employer and of the effective date of any election 
which it makes and of any termination of such election.  Such 
determinations shall be final unless reviewed in accordance with 
the provisions of section 268.12, subdivision 13. 
     (2) Payments in lieu of contributions shall be made at the 
end of each calendar quarter, or at the end of any other period 
as determined by the commissioner and become due on the last day 
of the month next following the month in which the notice of 
benefits charged is mailed to the employer.  The commissioner 
shall bill each nonprofit organization (or group of such 
organizations) which has elected to make payments in lieu of 
contributions for an amount equal to the full amount of regular 
benefits plus one-half of the amount of extended benefits 
charged during such quarter or other prescribed period that is 
attributable to service in the employ of such organization. 
    (3) Past due payments of amounts in lieu of contributions 
shall be subject to the same interest charges and collection 
procedures that apply to past due contributions under sections 
268.16 and 268.161. 
    (4) If any nonprofit organization is delinquent in making 
payments in lieu of contributions as required under this 
subdivision, the commissioner may terminate such organization's 
election to make payments in lieu of contributions as of the 
beginning of the next taxable year, and such termination shall 
be effective for that and the following taxable year. 
    Sec. 15.  Minnesota Statutes 1982, section 268.06, 
subdivision 29, is amended to read: 
    Subd. 29.  [GROUP ACCOUNTS.] Two or more employers that 
have become liable for payments in lieu of contributions may 
file a joint application to the commissioner for the 
establishment of a group account for the purpose of sharing the 
cost of benefits paid that are attributable to service in the 
employ of such employers. Each such application shall identify 
and authorize a group representative to act as the group's agent 
for the purposes of this subdivision.  Upon his approval of the 
application, the commissioner shall establish a group account 
for such employers effective as of the beginning of the calendar 
year in which the application is received by the commissioner 
and shall notify the group's representative of the effective 
date of the account.  Such account shall remain in effect for 
not less than two years and thereafter until terminated at the 
discretion of the commissioner or upon application by the group 
at least 30 days prior to the end of such two year period or 30 
days prior to January 1 of any calendar year subsequent to such 
two calendar years.  Upon establishment of the account, Each 
member of the group shall be jointly and severally liable for 
payments in lieu of contributions in the amount that bears the 
same ratio to the total benefits paid that are attributable to 
service performed in the employ of all members of the group as 
the total wage credits for service in employment by such member 
bear to the total during the base period for service performed 
in the employ of all members of the group for all benefits paid 
based upon wage credits earned with a group member during the 
period the group account was in effect.  The commissioner shall 
prescribe such regulations as he deems necessary with respect to 
applications for establishment, maintenance and termination of 
group accounts that are authorized by this subdivision, for 
addition of new members to, and withdrawal of active members 
from, such account, and for the determination of the amounts 
that are payable under this subdivision by members of the group 
and the time and manner of such payments. 
    Sec. 16.  [268.061] [SURCHARGE; EMERGENCY INTEREST 
REPAYMENT FUND.] 
    Subdivision 1.  [AMOUNT.] Each employer, except those 
making payments in lieu of contributions pursuant to section 
268.06, subdivisions 25, 26, 27 and 28, shall pay an annual 
surcharge of 10 percent of contributions paid or due and payable 
for the calendar years 1982 and 1983.  The commissioner shall 
notify employers of the contributions upon which the surcharge 
is based and the amount of surcharge payable no later than 
August 1, 1983, and August 1, 1984.  The surcharge for taxable 
year 1982 shall be paid no later than August 31, 1983, and the 
surcharge for taxable year 1983 shall be paid no later than 
August 31, 1984.  Payments due under this subdivision are 
subject to the collection provisions of sections 268.16 and 
268.161.  The surcharges paid under this subdivision are not 
contributions for the purposes of section 268.06, subdivision 
6.  The commissioner may temporarily reduce the amount of 
surcharge imposed by this section when there are sufficient 
funds raised by the surcharge to make the interest payment 
required on federal funds advanced to the state under section 
1202 of the Social Security Act.  
    Subd. 2.  [EMERGENCY INTEREST REPAYMENT FUND, CREATION.] A 
special fund to be known as the emergency interest repayment 
fund is created in the state treasury.  The special fund is 
separate and distinct from any fund or account created for any 
other purposes of sections 268.03 to 268.24.  All collections 
from the surcharge shall be deposited in the special fund.  All 
money in the special fund is appropriated to the commissioner to 
pay interest accruing on funds advanced from the federal 
government pursuant to section 1202 of the Social Security Act, 
and shall not be used for any other obligation of the state.  All 
money in this fund shall be deposited, administered, and 
disbursed in the same manner and under the same conditions and 
requirements as are provided by law for the other special funds 
in the state treasury, except that all interest or net income 
resulting from the investment or deposit of money in the fund 
shall accrue to the emergency fund for the purposes of the fund. 
    Subd. 3.  [REPORT TO LEGISLATURE.] On January 1, 1984, and 
on January 1, 1985, the commissioner shall report to the 
legislature on the status of the outstanding funds advanced 
pursuant to section 1202 of the Social Security Act, including 
the interest charged on those funds.  When all advanced funds 
and the interest charged on those funds have been repaid to the 
federal government, the commissioner shall recommend appropriate 
action by the legislature relating to the termination of the 
emergency interest repayment fund and the disposition of any 
money still in the fund.  
    Sec. 17.  Minnesota Statutes 1982, section 268.07, 
subdivision 2, is amended to read: 
    Subd. 2.  [WEEKLY BENEFIT AMOUNT AND DURATION.] If the 
commissioner finds that an individual has earned 15, or more, 
credit weeks within the base period of employment in insured 
work with one or more employers, benefits shall be payable to 
such individual during his benefit year as follows: 
    (1) Weekly benefit amount shall be equal to 60 percent of 
the first $85, 40 percent of the next $85 and 50 percent of the 
remainder of the average weekly wage of such individual,.  The 
amount so computed to the nearest if not a whole dollar shall be 
rounded down to the next lower dollar amount.  The maximum 
weekly benefit amount of claims for benefits which establish a 
benefit year subsequent to July 1, 1979 shall be 66 2/3 percent 
of the average weekly wage, except as provided in clause (d).  
    On or before June 30 of each year the commissioner shall 
determine the average weekly wage paid by employers subject to 
sections 268.03 to 268.24 in the following manner:  
    (a) The sum of the total monthly employment reported for 
the previous calendar year shall be divided by 12 to determine 
the average monthly employment.  
    (b) The sum of the total wages reported for the previous 
calendar year shall be divided by the average monthly employment 
to determine the average annual wage.  
     (c) The average annual wage shall be divided by 52 to 
determine the average weekly wage.  
     The maximum weekly benefit amount as so determined computed 
to the nearest whole dollar shall apply to claims for benefits 
which establish a benefit year which begins subsequent to June 
30 of each year.  
      (d) The maximum weekly benefit amount for claims for 
benefits which establish a benefit year subsequent to June 30, 
1982, and prior to July 1, 1983, shall be $184. 
      The maximum weekly benefit amount for claims for benefits 
which establish a benefit year subsequent to June 30, 1983, and 
prior to July 1, 1984, shall be $191. 
     The maximum weekly benefit amount for claims for benefits 
which establish a benefit year subsequent to June 30, 1984, and 
prior to July 1, 1985, shall be $198.  
     (2) An individual's maximum amount of regular benefits 
payable in a benefit year shall not exceed the lesser of (a) 26 
times his weekly benefit amount or (b) 70 percent of the number 
of credit weeks earned by such an individual computed to the 
nearest whole week times his weekly benefit amount. 
    (3) Each eligible individual who is unemployed in any week 
shall be paid with respect to such week a benefit in an amount 
equal to his weekly benefit amount less that part of his 
earnings, including holiday pay, payable to him with respect to 
such week which is in excess of $25 or $200 for earnings from 
service in the national guard or a United States military 
reserve unit.  Jury duty pay is not considered as earnings and 
shall not be deducted from benefits paid.  Such benefit, if not 
a multiple of $1, whole dollar amount shall be computed rounded 
down to the next higher multiple of $1 lower dollar amount. 
    (4) The provisions of clauses (1) and (2) of this 
subdivision shall apply to claims for benefits which establish a 
benefit year subsequent to June 30, 1982 1983. 
    Sec. 18.  Minnesota Statutes 1982, section 268.07, 
subdivision 3, is amended to read: 
    Subd. 3.  [WHEN WAGE CREDITS ARE NOT AVAILABLE.] (1) No 
individual may receive benefits in a benefit year unless, 
subsequent to the beginning of the next preceding benefit year 
during which he received benefits were received, he the 
individual performed service in insured work as defined in 
section 268.04, subdivision 17, and earned remuneration for such 
the service in an amount equal to not less than the minimum wage 
credits required to qualify for benefits. 
    (2) No employer who provided 90 percent or more of the wage 
credits in a claimant's base period shall be charged for 
benefits based upon earnings of such the claimant during a 
subsequent base period unless he the employer has employed such 
the claimant in any part of such the subsequent base period. 
    (3) Wages paid by an employing unit may not be used for 
benefit purposes by any individual who (a) individually or 
jointly with a spouse, parent or child owns or controls directly 
or indirectly 25 percent or more interest in the employing unit; 
or (b) is the spouse, parent or minor child of any individual 
who owns or controls directly or indirectly 25 percent or more 
interest in the employing unit; and (c) is not permanently 
separated from employment. 
    This clause shall be is effective when the individual has 
been paid four times the individual's weekly benefit amount in 
the current benefit year. 
    (4) Wages paid by an employing unit may not be used for 
benefit purposes during a benefit year commencing after October 
1, 1982, if the total amount of wage credits in the base period 
equal or exceed three times the average annual wage, as 
determined in subdivision 2, in the second year preceding the 
calendar year in which the individual's valid claim was 
established.  
    (5) (4) Wages paid in seasonal employment, as defined in 
subdivision 2a, are not available for benefit purposes during 
weeks in which there is no seasonal employment available with 
the employer. 
    Sec. 19.  Minnesota Statutes 1982, section 268.071, 
subdivision 3, is amended to read: 
    Subd. 3.  [ELIGIBILITY REQUIREMENTS FOR EXTENDED BENEFITS.] 
An individual shall be eligible to receive extended benefits 
with respect to any week of unemployment in his eligibility 
period only if the commissioner finds that with respect to such 
week: 
    (1) He is an "exhaustee" as defined in subdivision 1, 
clause (9); 
    (2) He has satisfied the requirements of this law for the 
receipt of regular benefits that are applicable to individuals 
claiming extended benefits, including not being subject to a 
disqualification for the receipt of benefits, except that an 
individual disqualified for benefits pursuant to section 268.09, 
subdivision 1, clause (6) is not eligible for extended benefits 
unless the individual has, subsequent to the disciplinary 
suspension, earned at least four times his or her weekly 
extended benefit amount; and 
    (3) He has, during his base period earned wage credits 
available for benefit purposes of not less than 40 times his 
weekly benefit amount as determined pursuant to section 268.07, 
subdivision 2. 
    Sec. 20.  Minnesota Statutes 1982, section 268.08, 
subdivision 1, is amended to read: 
    Subdivision 1.  [ELIGIBILITY CONDITIONS.] An individual 
shall be eligible to receive benefits with respect to any week 
of unemployment only if the commissioner finds that the 
individual: 
    (1) He has registered for work at and thereafter has 
continued to report to an employment office, or agent of such 
the office, in accordance with such regulations as rules the 
commissioner may prescribe adopt; except that the commissioner 
may by regulation rule waive or alter either or both of the 
requirements of this clause as to types of cases or situations 
with respect to which he the commissioner finds that compliance 
with such the requirements would be oppressive or would be 
inconsistent with the purposes of sections 268.03 to 268.24; 
    (2) He has made a claim for benefits in accordance with 
such regulations rules as the commissioner may prescribe adopt; 
and 
    (3) He was able to work and was available for work, and was 
actively seeking work, provided that.  The individual's weekly 
benefit amount shall be reduced one-fifth for each day such the 
individual is unable to work or is unavailable for work; 
provided further that.  Benefits shall not be denied by 
application of this clause to an individual who is in training 
with the approval of the commissioner or in training approved 
pursuant to section 236 of the Trade Act of 1974, as amended; 
    An individual shall be is deemed unavailable for work with 
respect to any week which occurs in a period when he the 
individual is a full-time student in attendance at, or on 
vacation from an established school, college or university 
unless a majority of the credit weeks earned in his the base 
period were for services performed during weeks in which he the 
student was attending school as a full-time student.  
    An individual serving as a juror shall be considered as 
available for work and actively seeking work on each day the 
individual is on jury duty.  
    (4) He has been unemployed for a waiting period of one week 
during which he the individual is otherwise eligible for 
benefits under sections 268.03 to 268.24, provided,.  However, 
payment for the waiting week shall be made to such the 
individual after he the individual has qualified for and been 
paid benefits for four weeks of unemployment in a benefit year 
which period of unemployment is terminated because of such the 
individual's return to employment.  No individual shall be is 
required to serve a waiting period of more than one week within 
the one year period subsequent to filing a valid claim and 
commencing with the week within which such the valid claim was 
filed. 
    Sec. 21.  Minnesota Statutes 1982, section 268.08, 
subdivision 3, is amended to read: 
    Subd. 3.  [NOT ELIGIBLE.] An individual shall not be 
eligible to receive benefits for any week with respect to which 
he is receiving, has received, or has filed a claim for 
remuneration in an amount equal to or in excess of his weekly 
benefit amount in the form of 
     (1) termination, severance, or dismissal payment or wages 
in lieu of notice whether legally required or not; provided that 
if a termination, severance, or dismissal payment is made in a 
lump sum, the employer may allocate such lump sum payment over a 
period equal to the lump sum divided by the employee's regular 
pay while employed by such employer; provided any such payment 
shall be applied for a period immediately following the last day 
of work but not to exceed 28 calendar days; or 
     (2) vacation allowance paid directly by the employer for a 
period of requested vacation, including vacation periods 
assigned by the employer under the provisions of a collective 
bargaining agreement, or uniform vacation shutdown; or 
     (3) compensation for loss of wages under the workers' 
compensation law of this state or any other state or under a 
similar law of the United States, or under other insurance or 
fund established and paid for by the employer; or 
    (4) 50 percent of the pension payments from any fund, 
annuity or insurance maintained or contributed to by a base 
period employer including the armed forces of the United States 
if the employee contributed to the fund, annuity or insurance 
and all of the pension payments if the employee did not 
contribute to the fund, annuity or insurance; or 
    (5) 50 percent of a primary insurance benefit under Title 
II of the social security act as amended, or similar old age 
benefits under any act of congress or this state or any other 
state. 
    Provided, that if such remuneration is less than the 
benefits which would otherwise be due under sections 268.03 to 
268.24, he shall be entitled to receive for such week, if 
otherwise eligible, benefits reduced by the amount of such 
remuneration; provided, further, that if the appropriate agency 
of such other state or the federal government finally determines 
that he is not entitled to such benefits, this provision shall 
not apply.  If the computation of reduced benefits, required by 
this subdivision, is not a whole dollar amount, it shall be 
rounded down to the next lower dollar amount.  
    Sec. 22.  Minnesota Statutes 1982, section 268.08, is 
amended by adding a subdivision to read: 
     Subd. 3a.  [RECEIPT OF BACK PAY.] Back pay received by an 
individual with respect to any weeks of unemployment occurring 
in the 104 weeks immediately preceding the payment of the back 
pay shall be deducted from benefits paid for those weeks.  
    The amount deducted shall not reduce the benefits for which 
the individual is otherwise eligible for that week below zero. 
If the amount of benefits after the deduction of back pay is not 
a whole dollar amount, it shall be rounded to the next lower 
dollar.  
    If a deduction from back pay is paid to the fund for 
benefits deductible under this subdivision, the payment:  (a) 
shall be applied to benefit overpayments resulting from the 
payment of the back pay; (b) credited to the individual's 
maximum amount of benefits payable in a benefit year which 
includes the weeks of unemployment for which back pay was 
deducted; and (c) benefit charges for those weeks shall be 
removed from the employer's account as of the calendar quarter 
in which the fund receives payment.  
    Payments to the fund under this subdivision are made by the 
employer on behalf of the individual and are not voluntary 
contributions under section 268.06, subdivision 24.  
    Sec. 23.  Minnesota Statutes 1982, section 268.08, 
subdivision 6, is amended to read: 
    Subd. 6.  [SERVICES PERFORMED FOR STATE, MUNICIPALITIES OR 
CHARITABLE CORPORATION.] Effective January 1, 1978 Benefits 
based on service in employment defined in section 268.04, 
subdivision 12, clauses (7), (8) and (9), shall be are payable 
in the same amount, on the same terms and subject to the same 
conditions as benefits payable on the basis of other service 
subject to this chapter; except that 
    (a) With respect to weeks of unemployment after December 
31, 1977, Benefits based upon service performed in an 
instructional, research, or principal administrative capacity 
for an institution of higher education or a public school, or a 
nonpublic school or the Minnesota school for the deaf or 
Minnesota braille and sight saving school, or in a public or 
nonpublic school for an educational cooperative service unit 
established under section 123.58, or any other educational 
service agency as defined in section 3304 (a) (6) (A) (IV) of 
the federal unemployment tax act, shall not be paid for any week 
of unemployment commencing during the period between two 
successive academic years or terms, or during a similar period 
between two regular but not successive terms, or during a period 
of paid sabbatical leave provided for in the individual's 
contract, to any individual if the individual performs the 
services in the first of the academic years or terms and if 
there is a contract or a reasonable assurance that the 
individual will perform services in any such capacity for any 
institution of higher education, public school, nonpublic 
school, state deaf and sight saving schools, an educational 
cooperative service unit, or other educational service agency, 
or developmental achievement center in the second of the 
academic years or terms, and 
    (b) With respect to service performed after December 31, 
1977 in any capacity, other than those capacities described in 
clause (a) of this subdivision, for an institution of higher 
education, or a public school or nonpublic school, or the 
Minnesota school for the deaf or Minnesota braille and sight 
saving school, or in a public or nonpublic school or for an 
educational cooperative service unit established under section 
123.58, or any other educational service agency as defined in 
section 3304 (a) (6) (A) (IV) of the federal unemployment tax 
act, benefits shall not be paid on the basis of these services 
to any individual for any week which commences during a period 
between two successive academic years or terms if the individual 
performs the services in the first of the academic years or 
terms and there is a reasonable assurance that the individual 
will perform the services in the second of the academic years or 
terms,.  If benefits are denied to any individual under this 
clause and the individual was not offered an opportunity to 
perform the services in the second of the academic years or 
term, the individual shall be entitled to a retroactive payment 
of benefits for each week in which the individual filed a timely 
claim for benefits, but the claim was denied solely because of 
this clause; and 
    (c) With respect to any services described in clause 
clauses (a) or (b), benefits payable on the basis of the 
services shall not be paid to any individual for any week which 
commences during an established and customary vacation period or 
holiday recess if the individual performs the services in the 
period immediately before the vacation period or holiday recess, 
and there is a reasonable assurance that the individual will 
perform the services in the period immediately following the 
vacation period or holiday recess. 
    Sec. 24.  Minnesota Statutes 1982, section 268.08, is 
amended by adding a subdivision to read:  
    Subd. 9.  [SERVICES FOR CERTAIN CONTRACTORS.] Benefits 
based upon services performed for an employer are subject to 
subdivision 6, clauses (b) and (c) if:  
     (a) the employment was provided pursuant to a contract 
between the employer and a public or private school;  
     (b) the contract was for services which the public or 
private school could have had performed by its employees;  
     (c) the employment was not as defined in section 268.04, 
subdivision 12, clauses (7), (8), and (9); and 
     (d) the individual is notified in writing of the provisions 
of this subdivision while employed in 1983 or prior to or at the 
time of commencing the employment.  
    Sec. 25.  [268.081] [SHARED WORK PLAN.] 
    The commissioner shall prepare a report on the 
implementation of a shared work benefit program.  The report 
shall be given to the senate committee on employment and the 
house committee on governmental operations no later than January 
15, 1984.  The report shall evaluate existing state laws 
establishing shared work programs and shall contain 
recommendations for statutory changes to implement a program in 
Minnesota.  
    Sec. 26.  Minnesota Statutes 1982, section 268.09, 
subdivision 1, is amended to read: 
    Subdivision 1.  [DISQUALIFYING CONDITIONS.] An individual 
separated from employment under clauses (1), (2) and, or (3) 
shall be disqualified for waiting week credit and benefits.  For 
separations under clauses (1) and (2), the disqualification 
shall continue until 4 calendar weeks have elapsed following his 
separation and he the individual has earned four times his 
weekly benefit amount in insured work. 
    (1) [VOLUNTARY LEAVE.] The individual voluntarily and 
without good cause attributable to the employer discontinued his 
employment with such employer.  For the purpose of this clause, 
a separation from employment by reason of its temporary nature 
or for inability to pass a test or for inability to meet 
performance standards necessary for continuation of employment 
or based solely on a provision in a collective bargaining 
agreement by which an individual has vested discretionary 
authority in another to act in behalf of the individual shall 
not be deemed voluntary.  
    A separation shall be for good cause attributable to the 
employer if it occurs as a consequence of sexual harassment. 
Sexual harassment means unwelcome sexual advances, requests for 
sexual favors, sexually motivated physical contact or other 
conduct or communication of a sexual nature when:  (1) the 
employee's submission to such conduct or communication is made a 
term or condition of the employment, (2) the employee's 
submission to or rejection of such conduct or communication is 
the basis for decisions affecting employment, or (3) such 
conduct or communication has the purpose or effect of 
substantially interfering with an individual's work performance 
or creating an intimidating, hostile, or offensive working 
environment and the employer knows or should know of the 
existence of the harassment and fails to take timely and 
appropriate action.  
     (2) [DISCHARGE FOR MISCONDUCT.] The individual was 
discharged for misconduct, not amounting to gross misconduct 
connected with his work or for misconduct which interferes with 
and adversely affects his employment. 
     An individual shall not be disqualified under clauses (1) 
and (2) of this subdivision under any of the following 
conditions: 
     (a) The individual voluntarily discontinued his employment 
to accept work offering substantially better conditions of work 
or substantially higher wages or both; 
     (b) The individual is separated from employment due to his 
own serious illness provided that such individual has made 
reasonable efforts to retain his employment; 
     An individual who is separated from his employment due to 
his illness of chemical dependency which has been professionally 
diagnosed or for which he has voluntarily submitted to treatment 
and who fails to make consistent efforts to maintain the 
treatment he knows or has been professionally advised is 
necessary to control that illness has not made reasonable 
efforts to retain his employment. 
     (c) The individual accepts work from a base period employer 
which involves a change in his location of work so that said 
work would not have been deemed to be suitable work under the 
provisions of subdivision 2 and within a period of 13 weeks from 
the commencement of said work voluntarily discontinues his 
employment due to reasons which would have caused the work to be 
unsuitable under the provision of said subdivision 2; 
     (d) The individual left employment because he had reached 
mandatory retirement age and was 65 years of age or older; 
     (e) The individual is terminated by his employer because he 
gave notice of intention to terminate employment within 30 
days.  This exception shall be effective only through the 
calendar week which includes the date of intended termination, 
provided that this exception shall not result in the payment of 
benefits for any week for which he receives his normal wage or 
salary which is equal to or greater than his weekly benefit 
amount; 
    (f) The individual is separated from employment due to the 
completion of an apprenticeship program, or segment thereof, 
approved pursuant to chapter 178;  
     (g) The individual voluntarily leaves part-time employment 
with a base period employer while continuing full-time 
employment if the individual attempted to return to part-time 
employment after being separated from the full-time employment, 
and if substantially the same part-time employment with the base 
period employer was not available for the individual. 
    (3) [DISCHARGE FOR GROSS MISCONDUCT.] The individual was 
discharged for gross misconduct connected with his work or gross 
misconduct which interferes with and adversely affects his 
employment and provided further that.  For a separation under 
this clause, the commissioner is empowered to shall impose a 
total disqualification for the benefit year and to cancel part 
or all of the wage credits from the last employer from whom he 
was discharged for gross misconduct connected with his work. 
    For the purpose of this clause "gross misconduct" shall be 
is defined as misconduct involving assault and battery or the 
malicious destruction of property or the theft of money or 
property of a value of $100 or more or arson or sabotage or 
embezzlement or any other act, including theft, the commission 
of which amounts to a felony or gross misdemeanor.  For an 
employee of a health care facility, gross misconduct also 
includes misconduct involving an act of patient or resident 
abuse as defined in section 626.557, subdivision 2, clause (d).  
    If an individual is convicted of a felony or gross 
misdemeanor for the same act or acts of misconduct for which the 
individual was discharged, the misconduct is conclusively 
presumed to be gross misconduct if it was connected with his 
work.  
    (4) [LIMITED OR NO CHARGE OF BENEFITS.] Benefits paid 
subsequent to an individual's separation under any of the 
foregoing clauses, excepting clauses (2)(c) and (2)(e), shall 
not be used as a factor in determining the future contribution 
rate of the employer from whose employment such individual 
separated. 
    Benefits paid subsequent to an individual's failure, 
without good cause, to accept an offer of suitable re-employment 
shall not be used as a factor in determining the future 
contribution rate of the employer whose offer of re-employment 
he failed to accept or whose offer of re-employment was refused 
solely due to the distance of the available work from his 
residence, the individual's own serious illness or his other 
employment at the time of the offer. 
    (5) An individual who was employed by an employer shall not 
be disqualified for benefits under this subdivision for any acts 
or omissions occurring after his separation from employment with 
the employer.  
    (6) [DISCIPLINARY SUSPENSIONS.] An individual shall be 
disqualified for waiting week credit and benefits for the 
duration of any disciplinary suspension of 30 days or less 
resulting from his own misconduct.  Disciplinary suspensions of 
more than 30 days shall constitute a discharge from employment. 
    Sec. 27.  Minnesota Statutes 1982, section 268.09, 
subdivision 2, is amended to read: 
    Subd. 2.  [FAILURE TO APPLY FOR OR ACCEPT SUITABLE WORK OR 
RE-EMPLOYMENT.] An individual shall be disqualified for waiting 
week credit and benefits during the week of occurrence and until 
four calendar weeks have elapsed following his refusal or 
failure and he has earned four times his weekly benefit amount 
in insured work if the commissioner finds that he has failed, 
without good cause, either to apply for available, suitable work 
of which he was advised by the employment office, or the 
commissioner or to accept suitable work when offered him, or to 
return to his customary self-employment (if any) when so 
directed by the commissioner, or to accept suitable a base 
period employer's offer of re-employment offered by a base 
period employer offering substantially the same or better hourly 
wages and conditions of work as were previously provided by that 
employer in his base period. 
    (a) In determining whether or not any work is suitable for 
an individual, the commissioner shall consider the degree of 
risk involved to his health, safety, and morals, his physical 
fitness and prior training, his experience, his length of 
unemployment and prospects of securing local work in his 
customary occupation, and the distance of the available work 
from his residence.  
    (b) Notwithstanding any other provisions of sections 268.03 
to 268.24, no work shall be deemed suitable, and benefits shall 
not be denied thereunder to any otherwise eligible individual 
for refusing to accept new work under any of the following 
conditions: 
    (1) if the position offered is vacant due directly to a 
strike, lockout, or other labor dispute; 
    (2) if the wages, hours, or other conditions of the work 
offered are substantially less favorable to the individual than 
those prevailing for similar work in the locality; 
    (3) if as a condition of being employed the individual 
would be required to join a union or to resign from or refrain 
from joining any bona fide labor organization; 
    (4) if the individual is in training with the approval of 
the commissioner. 
    Sec. 28.  Minnesota Statutes 1982, section 268.10, 
subdivision 2, is amended to read: 
    Subd. 2.  [EXAMINATION OF CLAIMS; DETERMINATION; APPEAL.] 
(1) An official, designated by the commissioner, shall promptly 
examine each claim for benefits filed to establish a benefit 
year pursuant to this section, and, on the basis of the facts 
found, shall determine whether or not such claims are valid, and 
if valid, the weekly benefit amount payable, the maximum benefit 
amount payable during the benefit year, and the date the benefit 
year terminates, and this determination shall be known as the 
determination of validity.  Notice of the determination of 
validity or any redetermination as provided for in clause (4) 
shall be promptly given the claimant and all other interested 
parties.  If within the time limits for filing a protest an 
interested party employer notifies the department that an 
individual's weekly benefit amount as determined under section 
268.07 exceeds the individual's weekly wages while employed by 
the interested party, the earned with the employer, the 
individual's weekly benefit amount shall be the lesser of the 
amount derived by dividing the total base period wages earned in 
all credit weeks by the number of base period credit weeks 
computed to the nearest whole dollar or the amount as computed 
under section 268.07 (1) the weekly benefit amount as determined 
under section 268.07, or (2) the weekly benefit amount which is 
50 percent of the quotient derived by dividing the total wage 
credits earned in the individual's base period credit weeks from 
all employers in insured work by the number of base period 
credit weeks.  If within the time specified for the filing of 
wage and separation information as provided in subdivision 1, 
clause (2), the employer makes an allegation of disqualification 
or raises an issue of the chargeability to his account of 
benefits that may be paid on such claim, if the claim is valid, 
the issue thereby raised shall be promptly determined by said 
official and a notification of the determination delivered or 
mailed to the claimant and the employer.  If an initial 
determination or an appeal tribunal decision or the 
commissioner's decision awards benefits, the benefits shall be 
paid promptly regardless of the pendency of any appeal period or 
any appeal or other proceeding which may thereafter be taken.  
Except as provided in clause (6), if an appeal tribunal decision 
modifies or reverses an initial determination awarding benefits, 
or if a commissioner's decision modifies or reverses an appeal 
decision awarding benefits, any benefits paid under the award of 
such initial determination or appeal tribunal decision shall be 
deemed erroneous payments. 
    (2) At any time within 15 24 months from the date of the 
filing of a valid claim for benefits by an individual, an 
official of the department or any interested party or parties 
raises an issue of claimant's eligibility for benefits for any 
week or weeks in accordance with the requirements of the 
provisions of sections 268.03 to 268.24 or any official of the 
department or any interested party or parties or benefit year 
employer raises an issue of disqualification in accordance with 
the regulations of the commissioner, a determination shall be 
made thereon and a written notice thereof shall be given to the 
claimant and such other interested party or parties or benefit 
year employer.  A determination issued under this clause which 
denies benefits for weeks for which the claimant has previously 
been paid benefits is an overpayment of those benefits subject 
to section 268.18.  
    (3) A determination issued pursuant to clauses (1) and (2) 
shall be final unless an appeal therefrom is filed by a claimant 
or employer within 15 days after the mailing of the notice of 
the determination to his last known address or personal delivery 
of the notice. Every notice of determination shall contain a 
prominent statement indicating in clear language the method of 
appealing the determination, the time within which such an 
appeal must be made, and the consequences of not appealing the 
determination.  A timely appeal from a determination of validity 
in which the issue is whether an employing unit is an employer 
within the meaning of this chapter or whether services performed 
for an employer constitute employment within the meaning of this 
chapter shall be subject to the provisions of section 268.12, 
subdivision 13. 
    (4) At any time within 15 24 months from the date of the 
filing of a valid claim for benefits by an individual, the 
commissioner on his own motion may reconsider a determination of 
validity made thereon and make a redetermination thereof if he 
finds that an error in computation or identity or the crediting 
of wage credits has occurred in connection therewith or if the 
determination was made as a result of a nondisclosure or 
misrepresentation of a material fact.  A determination or 
redetermination issued under this clause which denies benefits 
for weeks for which the claimant has previously been paid 
benefits is an overpayment of those benefits subject to section 
268.18.  
    (5) However, the commissioner may in his discretion refer 
any disputed claims directly to the appeal tribunal a referee 
for hearing and determination in accordance with the procedure 
outlined in subdivision 3 and the effect and status of such 
determination in such a case shall be the same as though the 
matter had been determined upon an appeal to the tribunal from 
an initial determination. 
    (6) If an appeal tribunal a referee's decision affirms an 
initial determination awarding benefits or the commissioner 
affirms an appeal tribunal decision awarding benefits, the 
decision, if finally reversed, shall not result in a 
disqualification and benefits paid shall neither be deemed 
overpaid nor shall they be considered in determining any 
individual employer's future contribution rate under section 
268.06. 
    Sec. 29.  Minnesota Statutes 1982, section 268.10, 
subdivision 3, is amended to read: 
    Subd. 3.  [APPEAL; HEARING.] Unless such an appeal is 
withdrawn, the date for hearing before an appeal tribunal a 
referee shall be set and notice of such the hearing shall be 
mailed to the last known address of all interested parties at 
least ten days prior to the date set for such the hearing.  Such 
The hearing may be conducted by means of a conference telephone 
call except that the appellant may request that the hearing be 
conducted in person.  The hearing shall be a trial de novo, and, 
upon the evidence presented, the appeal tribunal referee shall 
affirm, modify, or set aside the initial determination.  The 
commissioner may, by regulation, provide for the taking of 
evidence or for the admission of sworn statements in case any 
interested party is unable to be present at the hearing Where 
the same or substantially similar evidence is relevant and 
material to the issues in appeals by more than one individual or 
in appeals by one individual with respect to two or more weeks 
of unemployment, the appeals may be consolidated into one 
hearing.  The referee shall exclude from any consolidated 
hearing the appeal of an individual who may be prejudiced 
because of the consolidation.  A referee shall not hear any 
appeal in which the referee has a direct interest.  The parties 
shall be duly notified of such tribunal's the referee's decision 
, together with its and the reason therefor, for it.  which 
shall be The referee's decision is deemed to be the final 
decision unless a further appeal is initiated pursuant to 
subdivision 5. 
    Sec. 30.  Minnesota Statutes 1982, section 268.10, 
subdivision 4, is amended to read: 
    Subd. 4.  [APPEAL TRIBUNALS ESTABLISHED REFEREES.] In order 
to assure the prompt disposition of all claims for benefits, the 
commissioner shall establish appoint one or more impartial 
appeal tribunals consisting of a salaried examiner who shall 
serve as chairman, and two additional members, one of whom shall 
be a representative of employers and the other of whom shall be 
a representative of employees; each of the latter two members 
shall serve at the pleasure of the commissioner and be paid a 
fee of not more than $35 per day of active service on such 
tribunal plus necessary expense referees.  The commissioner 
shall by regulation prescribe the rule adopt a procedure by 
which such appeal tribunals shall referees hear and decide 
disputed claims, subject to appeal to the commissioner.  No 
person shall participate on behalf of the commissioner in any 
case in which he that person is an interested party.  The 
commissioner may designate alternates to serve in the absence or 
disqualification of any member of any appeal tribunal a 
referee.  The chairman shall act alone in the absence or 
disqualification of any other member and his alternates.  In no 
case shall a hearing before an appeal tribunal proceed unless 
the chairman of such tribunal is present.  There shall be no 
charges, fees, transcript costs, or other cost imposed upon the 
employee in prosecuting his an appeal.  All decisions of such 
tribunal, complete as to the names of members of such tribunal, 
referees shall be made available to the public in accordance 
with such regulations as rules the commissioner may prescribe, 
except that names of interested parties may be deleted. 
    Sec. 31.  Minnesota Statutes 1982, section 268.10, 
subdivision 5, is amended to read: 
    Subd. 5.  [REVIEW BY COMMISSIONER.] Within 30 days after 
mailing or personal delivery of the notice of an appeal tribunal 
a referee's decision to the claimant or employer at his the last 
known address or personal delivery thereof, any such, a party 
may appeal from such the decision and obtain a review thereof of 
it by the commissioner or his duly an authorized representative, 
and.  The commissioner within the same period of time may on his 
the commissioner's own motion order a review of any such a 
decision.  Upon review, the commissioner or his duly authorized 
representative may affirm, modify, or set aside any finding of 
fact or decision, or both, of the appeal tribunal referee on the 
basis of the evidence previously submitted in such the case, or 
remand such the matter back to the appeal tribunal referee for 
the taking of additional evidence and new findings and decision 
based on all of the evidence before it the referee.  Notice of 
all hearings on review shall be given to all interested parties 
in the same manner as provided for by subdivision 3.  The 
commissioner or his authorized representative may remove to 
himself or herself or transfer to another appeal tribunal 
referee the proceedings on any claim pending before an appeal 
tribunal a referee.  Any proceedings so removed to the 
commissioner or his authorized representative shall be heard 
upon notice in accordance with the requirements of subdivision 
3.  The department of economic security shall mail to all 
interested parties a notice of the filing of and a copy of the 
findings and decision of the commissioner or his representative. 
    Sec. 32.  Minnesota Statutes 1982, section 268.10, 
subdivision 6, is amended to read: 
    Subd. 6.  [COMMISSIONER.] The manner in which disputed 
claims shall be are presented, the reports thereon required from 
the claimant and from employers, and the conduct of hearings and 
appeals shall be in accordance with the regulations prescribed 
rules adopted by the commissioner for determining the rights of 
the parties, whether or not such the regulations conform to 
common law or statutory rules of evidence and other technical 
rules of procedure.  A full and complete record shall be kept of 
all proceedings in connection with a disputed claim.  All 
testimony at any hearing shall be reduced to writing recorded, 
but need not be transcribed unless the disputed claim is further 
appealed. 
    Sec. 33.  Minnesota Statutes 1982, section 268.10, 
subdivision 7, is amended to read: 
    Subd. 7.  [SUBPOENAED.] Witnesses, other than an interested 
party or officers and employees of an interested party, 
subpoenaed pursuant to this section shall be allowed fees at a 
rate fixed by the commissioner the same as witness fees in a 
civil action in district court.  Such These fees shall be deemed 
a part of the expense of administering sections 268.03 to 268.24.
    Sec. 34.  Minnesota Statutes 1982, section 268.10, 
subdivision 9, is amended to read: 
    Subd. 9.  [REPRESENTATION BY ATTORNEY.] In any proceeding 
under these sections before an appeal tribunal a referee or the 
commissioner, a party may be represented by an agent or 
attorney, but no individual claiming benefits shall be charged 
fees of any kind in any a proceeding thereunder by the appeal 
tribunal before a referee, the commissioner, or his 
commissioner's representatives, or by any court or any officers 
thereof.  Any individual claiming benefits in any proceedings 
before the commissioner or his representatives or a court may be 
represented by counsel or other duly authorized agent, except 
that said agent in any court proceedings under these sections, 
must be an attorney at law; but no such counsel shall either 
charge or receive for such the services more than an amount 
approved by the commissioner and no fees shall be collected from 
an individual claiming benefits by any agent unless he is an 
attorney at law. 
    Sec. 35.  Minnesota Statutes 1982, section 268.11, 
subdivision 2, is amended to read: 
    Subd. 2.  [APPLICATION FOR TERMINATION OF COVERAGE.] Except 
as otherwise provided in subdivision 3, any employing unit shall 
cease to be an employer subject to sections 268.03 to 268.24 as 
of the last day of the calendar quarter in which the employing 
unit files with the commissioner a written application for 
termination of coverage, if the commissioner finds the 
employment in the preceding calendar year and during the current 
calendar year, up to the last day of the calendar quarter in 
which the application was received, was not sufficient to make 
the employing unit liable under the provisions of section 
268.04, subdivision 10.  For the purpose of this subdivision the 
two or more employing units mentioned in section 268.04, 
subdivision 10, clause (2), (3), (4), or (5), or (6), shall be 
treated as a single employing unit.  
    The commissioner shall waive the requirement for an 
application for termination of coverage whenever it shall appear 
that the employer was unable to comply with such requirement for 
the reason that, at the time when he had qualified for release 
from liability under the provisions of this chapter, he was in 
good faith not aware of the fact that he was an employer subject 
to the provisions of this chapter.  
     The commissioner at the commissioner's discretion may on 
his or her own motion terminate the coverage of any employer who 
no longer meets the definition of employer under section 268.04, 
subdivision 10.  
    Sec. 36.  Minnesota Statutes 1982, section 268.11, 
subdivision 3, is amended to read: 
    Subd. 3.  [ELECTION AGREEMENTS; TERMINATION POWERS OF 
COMMISSIONER.] (1) An employing unit, not otherwise subject to 
sections 268.03 to 268.24 as an employer, which files with the 
commissioner its written election to become an employer subject 
thereto for not less than two calendar years, shall, with the 
written approval of such election by the commissioner, become an 
employer subject hereto to the same extent as all other 
employers, as of the date stated in such approval and cease to 
be subject hereto as of the first day of January of any calendar 
year subsequent to such two calendar years, only, if at least 30 
days prior to such first day of January, it has filed with the 
commissioner a written notice to that effect; 
    (2) Any employing unit for which services that do not 
constitute employment are performed, may file with the 
commissioner a written election that all such service performed 
by individuals in its employ in one or more distinct 
establishments or places of business shall be deemed to 
constitute employment for all the purposes of sections 268.03 to 
268.24 for not less than two calendar years.  Upon the written 
approval of such election by the commissioner, such services 
shall be deemed to constitute employment subject to these 
sections from and after the date stated in such approval.  Such 
services shall cease to be deemed employment subject hereto as 
of the first day of January of any calendar year subsequent to 
such two calendar years only if at least 30 days prior to such 
first day of January such employing unit has filed with the 
commissioner a written notice to that effect.  
    (3) The commissioner in his discretion may on his own 
motion must terminate any election agreement under this 
subdivision upon 30 days notice to the employer, and he may also 
in his discretion and on his own motion terminate the coverage 
of any employer who has had less than 20 weeks of employment in 
a calendar year if the employer fails to pay all contributions 
due under section 268.06, subdivision 1, or reimburse the 
unemployment fund in accordance with section 268.06, 
subdivisions 25, 26, 27, and 28.  
    Sec. 37.  Minnesota Statutes 1982, section 268.12, 
subdivision 8, is amended to read: 
    Subd. 8.  [RECORDS; REPORTS.] (1) Each employing unit shall 
keep true and accurate work records for such periods of time and 
containing such information as the commissioner may prescribe.  
Such records shall be open to inspection, audit, and 
verification, and be subject to being copied by any authorized 
representative of the commissioner at any reasonable time and as 
often as may be necessary. The commissioner, appeal referee, 
chairman of an appeal tribunal, or any other duly authorized 
representative of the commissioner, may require from any 
employing unit any sworn or unsworn reports, with respect to 
persons employed by it, which the commissioner, appeal referee, 
chairman of an appeal tribunal, or any other duly authorized 
representative of the commissioner deems necessary for the 
effective administration of sections 268.03 to 268.24, provided 
that quarterly contribution and wage report forms shall be made 
to correspond wherever possible with the reports required from 
employers under the federal insurance contributions act, so that 
such state forms may be prepared as duplicates of such federal 
forms, except that no employer shall be permitted to submit a 
duplicate report which is not thoroughly legible include the 
employee's name, social security number, and total wages paid to 
the employee. 
    (2) The commissioner may cause to be made such summaries, 
compilations, photographs, duplications, or reproductions of any 
records, reports, or transcripts thereof as he may deem 
advisable for the effective and economical preservation of the 
information contained therein, and such summaries, compilations, 
photographs, duplications or reproductions, duly authenticated, 
shall be admissible in any proceeding under sections 268.03 to 
268.24, if the original record or records would have been 
admissible therein.  Notwithstanding any restrictions contained 
in section 16.02, except restrictions as to quantity, the 
commissioner is hereby authorized to duplicate, on equipment 
furnished by the federal government or purchased with funds 
furnished for that purpose by the federal government, records, 
reports, summaries, compilations, instructions, determinations, 
or any other written matter pertaining to the administration of 
the Minnesota Employment Services Law. 
    (3) Notwithstanding any inconsistent provisions elsewhere, 
the commissioner may provide for the destruction or disposition 
of any records, reports, transcripts, or reproductions thereof, 
or other papers in his custody, which are more than two years 
old, the preservation of which is no longer necessary for the 
establishment of contribution liability or benefit rights or for 
any purpose necessary to the proper administration of sections 
268.03 to 268.24, including any required audit thereof, 
provided, that the commissioner may provide for the destruction 
or disposition of any record, report, or transcript, or other 
paper in his custody which has been photographed, duplicated, or 
reproduced in the manner provided in clause (2). 
    (4) Notwithstanding the provisions of the Minnesota State 
Archives Act the commissioner shall with the approval of the 
legislative auditor destroy all benefit checks and benefit check 
authorization cards that are more than two years old and no 
person shall make any demand, bring any suit or other proceeding 
to recover from the state of Minnesota any sum alleged to be due 
him on any claim for benefits after the expiration of two years 
from the date of filing such claim. 
    Sec. 38.  Minnesota Statutes 1982, section 268.12, 
subdivision 9, is amended to read: 
    Subd. 9.  [TESTIMONIAL POWERS.] (1) In the discharge of the 
duties imposed by sections 268.03 to 268.24, the commissioner, 
the chairman of the appeal tribunal, appeal referee, or any duly 
authorized representative of the commissioner, shall have power 
to administer oaths and affirmations, take depositions, certify 
to official acts, and issue subpoenas to compel the attendance 
of witnesses and the production of books, papers, 
correspondence, memoranda, and other records deemed necessary as 
evidence in connection with a disputed claim or the 
administration of these sections; 
    (2) Witnesses, other than interested parties or officers 
and employees of an employing unit which is an interested party, 
subpoenaed pursuant to this subdivision or sections 268.03 to 
268.24, shall be allowed fees at a fixed rate prescribed by 
regulation by the commissioner the same as witness fees in civil 
actions in district court, which fees need not be paid in 
advance of the time of giving of testimony, and such fees of 
witnesses so subpoenaed shall be deemed part of the expense of 
administering these sections; 
    (3) In case of contumacy by, or refusal to obey, a subpoena 
issued to any person, any court of this state within the 
jurisdiction of which the inquiry is carried on or within the 
jurisdiction of which such person guilty of contumacy or refusal 
to obey is found or resides or transacts business, upon 
application by the commissioner, chairman of an appeal tribunal, 
or referee, or any duly authorized representative of the 
commissioner, shall have jurisdiction to issue to such person an 
order requiring such person to appear before the commissioner, 
the chairman of an appeal tribunal, referee, or any duly 
authorized representative of the commissioner, there to produce 
evidence if so ordered or there to give testimony relative to 
the matter under investigation or in question; and any failure 
to obey such order of the court may be punished by the court as 
a contempt thereof. 
    Sec. 39.  Minnesota Statutes 1982, section 268.16, 
subdivision 2, is amended to read: 
    Subd. 2.  [REPORTS; DELINQUENCIES; PENALTIES.] (1) Any 
employer who knowingly fails to make and submit to the 
department of economic security any report of wages paid by or 
due from him for insured work in the manner and at the time such 
report is required by regulations prescribed by the commissioner 
shall pay to the department of economic security for the 
contingent account a penalty in the amount of one and one-half 
percent of contributions accrued during the period for which 
such report is required, for each month from and after such date 
until such report is properly made and submitted to the 
department of economic security.  In no case shall the amount of 
the penalty imposed hereby be less than $5 per month.  The 
maximum penalty imposed hereby shall be $25 or the amount 
determined at the rate of one and one-half percent per month, 
whichever is greater.  Any employing unit which fails to make 
and submit to the commissioner any report, other than one of 
wages paid or payable for insured work, as and when required by 
the regulations of the commissioner, shall be subject to a 
penalty in the sum of $10 payable to the department of economic 
security for the contingent account.  All such penalties shall 
be in addition to interest and any other penalties provided for 
by sections 268.03 to 268.24 and shall be collected by civil 
action as hereinafter provided as provided by section 268.161. 
    (2) If any employing unit required by sections 268.03 to 
268.24 to make and submit contribution reports shall fail to do 
so within the time prescribed by these sections or by 
regulations under the authority thereof, or shall make, wilfully 
or otherwise, an incorrect, false or fraudulent contribution 
report, he shall, on the written demand of the commissioner, 
make such contribution report, or corrected report, within ten 
days after the mailing of such written demand and at the same 
time pay the whole contribution, or additional contribution, due 
on the basis thereof.  If such employer shall fail within that 
time to make such report, or corrected report, the commissioner 
shall make for him a report, or corrected report, from his own 
knowledge and from such information as he can obtain through 
testimony, or otherwise, and assess a contribution on the basis 
thereof, which contribution, plus penalties and interest which 
thereafter accrued (less any payments theretofore made) shall be 
paid within ten days after the commissioner has mailed to such 
employer a written notice of the amount thereof and demand for 
its payment.  Any such contribution report or assessment made by 
the commissioner on account of the failure of the employer to 
make a report or corrected report shall be prima facie correct 
and valid, and the employer shall have the burden of 
establishing its incorrectness or invalidity in any action or 
proceeding in respect thereto.  Whenever such delinquent 
employer shall file a report or corrected report, the 
commissioner may, if he finds it substantially correct, 
substitute it for the commissioner's report.  If an employer has 
failed to submit any report of wages paid, or has filed an 
incorrect report, and the commissioner finds that such 
noncompliance with the terms of sections 268.03 to 268.24 was 
not wilful and that such employer was free from fraudulent 
intent, the commissioner shall limit the charge against such 
employer to the period of the year in which such condition has 
been found to exist and for the preceding calendar year.  
    Sec. 40.  Minnesota Statutes 1982, section 268.161, 
subdivision 1, is amended to read: 
    Subdivision 1.  [LIEN.] Any contributions or reimbursements 
due under sections 268.03 to 268.24 and interest and penalties 
imposed with respect thereto, shall become a lien upon all the 
property, both real and personal, of the person liable therefor, 
within this state, both real and personal, of the person liable 
therefor, except his homestead, from and after the filing by the 
commissioner of a notice of lien in the office of the county 
recorder of the county in which the property is situated, or in 
the case of personal property belonging to an individual who is 
not a resident of this state, or which is a corporation, 
partnership, or other organization, in the office of the 
secretary of state.  
    The lien created under this section shall become effective 
with respect to personal property from and after the date of 
filing by the commissioner of a notice of the lien describing 
the property to which the lien attaches in the office of the 
county recorder of the county in which the commissioner believes 
the property is located at the time the lien is filed, and with 
the secretary of state.  
    The lien imposed on personal property by this section, even 
though properly filed, shall not be valid as against a purchaser 
with respect to tangible personal property purchased at retail 
or as against the personal property listed as exempt in sections 
550.37, 550.38 and 550.39.  
     The lien imposed by this section shall be enforceable by 
levy as authorized in subdivision 8 or by judgment lien 
foreclosure as authorized in chapter 550.  
    Sec. 41.  Minnesota Statutes 1982, section 268.161, 
subdivision 4, is amended to read: 
    Subd. 4.  [COLLECTION BY CIVIL ACTION.] (1) In addition to 
all other collection methods authorized, if, after due notice, 
any employer defaults in any payment of contributions or 
interest due thereon or penalties for failure to file returns 
and other reports as required by sections 268.03 to 268.24 or by 
any rule of the commissioner, the amount due shall may be 
collected by civil action in the name of the state of Minnesota, 
and any money recovered shall be credited to the funds provided 
for under those sections.  Any employer adjudged in default 
shall pay the costs of the action.  Civil actions brought under 
this section to collect contributions, interest due thereon, or 
penalties from an employer shall be heard by the court at the 
earliest possible date.  No action for the collection of 
contributions or interest thereon shall be commenced more than 
four six years after the contributions have been reported by the 
employer or determined by the commissioner to be due and 
payable.  In any action, judgment shall be entered against any 
defendant in default for the relief demanded in the complaint 
without proof, together with costs and disbursements, upon the 
filing of an affidavit of default. 
      (2) Any employing unit which is not a resident of this 
state and which exercises the privilege of having one or more 
individuals perform service for it within this state, and any 
resident employing unit which exercises that privilege and 
thereafter removes from this state, shall be deemed thereby to 
appoint the secretary of state as its agent and attorney for the 
acceptance of process in any civil action under this 
subdivision.  In instituting an action against any employing 
unit, the commissioner shall cause process or notice to be filed 
with the secretary of state, together with a payment of a fee of 
$15 and that service shall be sufficient service upon the 
employing unit, and shall be of the same force and validity as 
if served upon it personally within this state.  The 
commissioner shall forthwith send notice of the service of 
process or notice, together with a copy thereof, by certified 
mail, return receipt requested, to the employing unit at its 
last known address.  The return receipt, the commissioner's 
affidavit of compliance with the provisions of this section, and 
a copy of the notice of service shall be appended to the 
original of the process filed in the court in which the civil 
action is pending.  
    Sec. 42.  Minnesota Statutes 1982, section 268.161, 
subdivision 5, is amended to read: 
    Subd. 5.  [RIGHT OF SETOFF.] Upon certification by the 
commissioner to the commissioner of finance or to any state 
agency which disburses its own funds, that an employer has an 
uncontested delinquent contribution or reimbursement liability 
owed to the department, and that the state has purchased 
personal services, supplies, contract services, or property from 
said employer, the commissioner of finance or the state agency 
shall apply to the delinquent contribution or reimbursement 
liability funds sufficient to satisfy the unpaid liability from 
funds appropriated for payment of said obligation of the state 
or any of its agencies that are due and owing the employer.  The 
credit shall not be made against any funds exempt under section 
550.37 or those funds owed the an individual employer who 
receives assistance under chapter 256 or 256B. 
    All funds, whether general or dedicated, shall be subject 
to setoff in the manner provided in this subdivision.  Transfer 
of funds in payment of the obligations of the state or any of 
its agencies to an employer and any actions for the funds shall 
be had against the commissioner on the issue of the contribution 
or reimbursement liability.  Nothing in this section shall be 
construed to limit the previously existing right of the state or 
any of its agencies to setoff.  
    Sec. 43.  Minnesota Statutes 1982, section 268.161, 
subdivision 7, is amended to read: 
    Subd. 7.  [CONFESSION OF JUDGMENT.] (a) Any contribution 
report or form that is required to be filed with the 
commissioner concerning contributions or reimbursements due, 
shall contain a written declaration that it is made under the 
penalties of section 268.18, subdivision 3 for wilfully making a 
false report and shall contain a confession of judgment for the 
amount of the contribution or reimbursement shown due thereon to 
the extent not timely paid together with any interest and 
penalty due under this chapter. 
    (b) The commissioner may, within four six years after a 
report or form is filed, notwithstanding section 541.09, enter 
judgment on any confession of judgment contained in the 
contribution report or form after 20 days notice served upon the 
employer by mail at the address shown in the employer's report.  
The judgment shall be entered by the clerk of court of any 
county upon the filing of a photocopy or similar reproduction of 
that part of the contribution report or form containing the 
confession of judgment along with a statement of the 
commissioner or his agent that the contribution or reimbursement 
has not been paid.  
    Sec. 44.  Minnesota Statutes 1982, section 268.161, 
subdivision 8, is amended to read: 
    Subd. 8.  [LEVY.] (a) If any contribution or reimbursement 
payable to the department is not paid when due, the amount may 
be collected by the commissioner, his duly authorized 
representative, or by the sheriff of any county to whom the 
commissioner has issued his warrant, who may levy upon all 
property and rights of property of the person liable for the 
contribution or reimbursement, (except that which is exempt from 
execution pursuant to section 550.37), or property on which 
there is a lien provided by subdivision 1 of this section.  The 
terms "contribution or reimbursement" shall include any penalty, 
interest, and costs.  The term "levy" includes the power of 
distraint and seizure by any means.  Before a levy is made or 
warrant issued, notice and demand for payment of the amount due 
shall be given to the person liable for the contribution or 
reimbursement at least ten days prior to the levy or issuing of 
a warrant.  
    (b) Upon the commissioner issuing a warrant, the sheriff 
shall proceed within 60 days to levy upon the rights to property 
of the employer within his county, except the homestead and 
household goods of the employer and property of the employer not 
liable to attachment, garnishment, or sale on any final process 
issued from any court under the provisions of section 550.37, 
and shall sell so much thereof as is required to satisfy the 
contribution, reimbursement, interest, and penalties, together 
with his costs.  The sales shall, as to their manner, be 
governed by the law applicable to sales of like property on 
execution issued against property upon a judgment of a court of 
record.  The proceeds of the sales, less the sheriff's costs, 
shall be turned over to the commissioner, who shall retain a 
part thereof as is required to satisfy the contribution, 
reimbursement, interest, penalties, and costs, and pay over any 
balance to the employer.  
      (c) If the commissioner has reason to believe that 
collection of the contribution or reimbursement is in jeopardy, 
notice and demand for immediate payment of the amount may be 
made by the commissioner.  If the contribution or reimbursement 
is not paid, the commissioner may proceed to collect by levy or 
issue his warrant without regard to the ten day period provided 
herein.  
     (d) In making the execution of the levy and in collecting 
the contribution or reimbursement due, the commissioner shall 
have all of the powers provided in chapter 550 and in any other 
law for purposes of effecting an execution against property in 
this state.  The sale of property levied upon and the time and 
manner of redemption therefrom shall be as provided in chapter 
550.  The seal of the court, subscribed by the clerk, as 
provided in section 550.04, shall not be required.  The levy for 
collection of contributions or reimbursements may be made 
whether or not the commissioner has commenced a legal action for 
collection of the amount. 
      (e) Where a jeopardy assessment or any other assessment has 
been made by the commissioner, the property seized for 
collection of the contribution or reimbursement shall not be 
sold until any determination of liability, rate or benefit 
charges has become final.  No sale shall be made unless the 
contribution or reimbursement remain unpaid for a period of more 
than 30 days after the determination becomes final.  Seized 
property may be sold at any time if:  
      (1) the employer consents in writing to the sale; or 
     (2) the commissioner determines that the property is 
perishable or may become greatly reduced in price or value by 
keeping, or that the property cannot be kept without great 
expense.  
     (f) Where a levy has been made to collect contributions or 
reimbursements pursuant to this subdivision and the property 
seized is properly included in a formal proceeding commenced 
under sections 524.3-401 to 524.3-505 and maintained under full 
supervision of the court, the property shall not be sold until 
the probate proceedings are completed or until the court so 
orders.  
     (g) The property seized shall be returned by the 
commissioner if the owner gives a surety bond equal to the 
appraised value of his interest in the property, as determined 
by the commissioner, or deposits with the commissioner security 
in a form and amount as he deems necessary to insure payment of 
the liability, but not more than twice the liability. 
      (h) Notwithstanding any other law to the contrary, if a 
levy or sale pursuant to this section would irreparably injure 
rights in property which the court determines to be superior to 
rights of the state in the property, the district court may 
grant an injunction to prohibit the enforcement of the levy or 
to prohibit the sale. 
      (i) Any person who fails or refuses to surrender without 
reasonable cause any property or rights to property subject to 
levy upon demand by the commissioner shall be personally liable 
to the department in an amount equal to the value of the 
property or rights not so surrendered, but not exceeding the 
amount of contribution or reimbursement for the collection of 
which the levy has been made.  Any amount recovered under this 
subdivision shall be credited against the contribution or 
reimbursement liability for the collection of which the levy was 
made.  The term "person" includes an officer or employee of a 
corporation or a member or employee of a partnership who, as an 
officer, employee, or member is under a duty to surrender the 
property or rights to property or to discharge the obligation.  
     (j) Any action taken by the commissioner pursuant to this 
subdivision shall not constitute an election by the department 
to pursue a remedy to the exclusion of any other remedy.  
      (k) After the commissioner has seized the property of any 
person, that person may, upon giving 48 hours notice to the 
commissioner and to the court, bring a claim for equitable 
relief before the district court for the release of the property 
to the employer upon terms and conditions as the court may deem 
equitable. 
     (l) Any person in possession of (or obligated with respect 
to) property or rights to property subject to levy upon which a 
levy has been made who, upon demand by the commissioner, 
surrenders the property or rights to property or who pays a 
liability under this subdivision shall be discharged from any 
obligation or liability to the person liable for the payment of 
the delinquent contribution or reimbursement with respect to the 
property or rights to property so surrendered or paid.  
     (m) Notwithstanding any other provisions of law to the 
contrary, the notice of any levy authorized by this section may 
be served by certified or registered mail or by delivery by an 
employee or agent of the department of economic security.  
     (n) It shall be lawful for the commissioner to release the 
levy upon all or part of the property or rights to property 
levied upon if the commissioner determines that the release will 
facilitate the collection of the liability, but the release 
shall not operate to prevent any subsequent levy.  If the 
commmissioner determines that property has been wrongfully 
levied upon, it shall be lawful for the commissioner to return:  
    (1) the specific property levied upon, at any time; or 
    (2) an amount of money equal to the amount of money levied 
upon, at any time before the expiration of nine months from the 
date of levy. 
     (o) A levy by the commissioner made pursuant to the 
provisions of this section upon an employer's funds on deposit 
in a financial institution located in this state, shall have 
priority over any unexercised right of setoff of the financial 
institution to apply the levied funds toward the balance of an 
outstanding loan or loans owed by the employer to the financial 
institution.  A claim by the financial institution that it 
exercised its right to setoff prior to the levy by the 
commissioner must be substantiated by evidence of the date of 
the setoff, and shall be verified by the sworn statement of a 
responsible corporate officer of the financial institution. 
Furthermore, for purposes of determining the priority of any 
levy made under this section, the levy shall be treated as if it 
were an execution made pursuant to chapter 550.  
    Sec. 45.  Minnesota Statutes 1982, section 268.18, 
subdivision 1, is amended to read: 
    Subdivision 1.  [ERRONEOUS PAYMENTS.] Any claimant for 
benefits who, by reason of his own mistake or through the error 
of any individual engaged in the administration of sections 
268.03 to 268.24 or because of a determination or 
redetermination issued pursuant to section 268.10, subdivision 
2, has received any sum as benefits to which he was not entitled 
under these sections, shall promptly return such benefits in 
cash to the nearest office of the Minnesota department of 
economic security.  If such claimant fails to return such 
benefits, the department of economic security shall, as soon as 
it discovers such erroneous payment, determine the amount 
thereof and notify said individual to return the same.  Unless 
the claimant files a written appeal with the department of 
economic security within 15 days after the mailing of the notice 
of determination to his last known address or personal delivery 
of the notice, the determination shall become final.  If the 
claimant files an appeal with the department in writing within 
the time aforesaid the matter shall be set for hearing before an 
appeal tribunal a referee of the department and heard as other 
benefit matters are heard in accordance with section 268.10 with 
the same rights of review as outlined for benefit cases in that 
section.  The commissioner of the department of economic 
security is hereby authorized to deduct from any future benefits 
payable to the claimant under these sections in either the 
current or any subsequent benefit year an amount equivalent to 
the overpayment determined or the overpayment may be collected 
without interest by civil action in the name of the 
commissioner.  If a claimant has been overpaid benefits under 
the law of another state and that state certifies to the 
department the facts involved and that the individual is liable 
under its law to repay the benefits and requests the department 
to recover the overpayment, the commissioner is authorized to 
deduct from future benefits payable to the claimant in either 
the current or any subsequent benefit year an amount equivalent 
to the amount of overpayment determined by that state.  Benefits 
paid for weeks more than three years prior to the discovery of 
error are not erroneous payments. 
    Sec. 46.  Minnesota Statutes 1982, section 268.18, 
subdivision 2, is amended to read: 
    Subd. 2.  [FRAUD.] Any claimant who files a claim for or 
receives benefits by knowingly and wilfully misrepresenting or 
misstating any material fact or by knowingly and wilfully 
failing to disclose any material fact which would make him 
ineligible for benefits under sections 268.03 to 268.24 is 
guilty of fraud.  After the discovery of facts by the 
commissioner indicating fraud in claiming or obtaining benefits 
under sections 268.03 to 268.24, he is hereby authorized to make 
a determination that the claimant was ineligible for each week 
with reference to which benefits were claimed or obtained by 
fraud for the amount as was in excess of what the claimant would 
have been entitled to had he not made the fraudulent statements 
or failed to disclose any material facts.  The commissioner also 
may disqualify an individual from benefits for one to 52 weeks 
in which the claimant is otherwise eligible for benefits 
following the week in which the fraud was determined.  A 
disqualification imposed for fraud shall not be removed by 
subsequent insured work or the expiration of a benefit year but 
shall not apply to any week more than 104 weeks after the week 
in which the fraud was determined.  Said The claimant shall 
within 20 days from the date of mailing the notice of said 
determination to him promptly repay in cash to the department of 
economic security any benefits so fraudulently obtained.  Unless 
the claimant files a written appeal with the department of 
economic security within 15 days after the mailing of the notice 
of determination to his last known address or personal delivery 
of the notice.  The determination shall become final.  If the 
claimant shall appeal appeals from such the determination within 
the time above specified said the matter shall be referred to an 
appeal tribunal a referee for a hearing as in other benefit 
cases and thereafter the procedure for review shall be the same 
as set forth in section 268.10.  The commissioner is hereby 
authorized to deduct from future benefits payable to the 
claimant in either the current or any subsequent benefit year an 
amount equivalent to the amount of overpayment determined or the 
overpayment may be collected without interest by civil action in 
the name of the commissioner.  If a claimant has been overpaid 
benefits under the law of another state and that state certifies 
to the department the facts involved and that the individual is 
liable to repay the benefits and requests the department to 
recover the overpayment, the commissioner is authorized to 
deduct from future benefits payable to the claimant in either 
the current or any subsequent benefit year an amount equivalent 
to the amount of overpayment determined by that state.  A 
determination of fraud may be made at any time.  
    Sec. 47.  [PERSONNEL NAME CHANGE.] 
    Those individuals serving as salaried examiners of an 
appeal tribunal shall be referees as of the effective date of 
section 30 without change in the terms and conditions of their 
employment.  They have the same authority to decide matters 
pending before them as did an appeal tribunal chairman.  
    Sec. 48.  [REPEALER.] 
    Minnesota Statutes 1982, section 268.06, subdivision 32 is 
repealed.  
    Sec. 49.  [EFFECTIVE DATE.] 
    Section 19 is effective retroactively to July 4, 1982. 
Section 18 is effective retroactively to October 1, 1982.  Any 
wage credits disallowed for benefit purposes due to the 
operation of the stricken clause (4) shall be reinstated and 
eligibility for regular benefits shall be extended from October 
1, 1982, until the claimant is reemployed or the final approval 
of this act whichever is earlier.  Section 2 is effective 
retroactively to January 1, 1983.  Sections 3, 4, 5, 6, 7, 8, 9, 
10, 11, 12, 14, 15, 16, 17, 20, 21, 22, 23, 24, 26, 27, 28, 32, 
35, 36, 39, 40, 41, 42, 43, 44, and 48 are effective the day 
following final enactment.  Sections 1, 13, 25, 28, 30, 31, 33, 
34, 37, 38, 45, 46, and 47 are effective August 1, 1983. 
    Approved June 14, 1983

Official Publication of the State of Minnesota
Revisor of Statutes