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Minnesota Legislature

Office of the Revisor of Statutes

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

  

                         Laws of Minnesota 1987 

                        CHAPTER 362-H.F.No. 715 
           An act relating to unemployment compensation; 
          regulating administration of unemployment 
          compensation; providing for benefits and contribution 
          rates; amending Minnesota Statutes 1986, sections 
          268.04, subdivisions 2, 4, 24, 26, and by adding 
          subdivisions; 268.06, subdivisions 2, 3a, 8, and by 
          adding a subdivision; 268.07, subdivisions 2, 2a, and 
          3; 268.071, subdivision 1; 268.08, subdivision 1; 
          268.09, subdivisions 1 and 2; 268.10, subdivisions 1 
          and 2; 268.12, subdivision 8; 268.121; 268.15, 
          subdivision 3; and 268.16, subdivision 2; proposing 
          coding for new law in Minnesota Statutes, chapter 268; 
          repealing Minnesota Statutes 1986, section 268.04, 
          subdivisions 29 and 30. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1986, section 268.04, 
subdivision 2, is amended to read:  
    Subd. 2.  "Base period" means the period of 52 calendar 
weeks immediately preceding the first day of an individual's 
benefit year.  However, 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, 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 weeks, but not 
to exceed 52 weeks, for which the claimant received the 
payments.  No extended base period shall include wage credits 
upon which benefits were established and paid with respect to a 
prior valid claim first four of the last five completed calendar 
quarters immediately preceding the first day of an individual's 
benefit year; except:  (a) if during the base period an 
individual received workers' compensation for temporary 
disability under chapter 176 or a similar law of the United 
States, or if an individual whose own serious illness caused a 
loss of work for which the individual received compensation due 
to the illness from some other source or under a law of this 
state other than chapter 176 or a similar law of the United 
States, the individual's base period shall be lengthened to the 
extent stated as follows: 
    (1) if an individual was compensated, as described above, 
for a loss of work of seven to 13 weeks, the original base 
period shall be extended to include one calendar quarter 
preceding the original base period; or 
    (2) if an individual was compensated, as described above, 
for a loss of work of 14 to 26 weeks, the original base period 
shall be extended to include two calendar quarters preceding the 
original base period; or 
    (3) if an individual was compensated, as described above, 
for a loss of work of 27 to 39 weeks, the original base period 
shall be extended to include the first three calendar quarters 
preceding the original base period; or 
    (4) if an individual was compensated, as described above, 
for a loss of work of 40 to 52 weeks, the original base period 
shall be extended to include the first four quarters preceding 
the original base period; or 
    (b) if the commissioner finds that, during the base period 
described above, the individual subject to clause (a) has 
insufficient wage credits to establish a valid claim, the 
individual may request a determination of validity using an 
alternate base period of the last four completed calendar 
quarters preceding the first day of an individual's benefit 
year.  This alternate base period may be used by an individual 
only once during any five calendar year period to establish a 
valid claim. 
    In no instance shall the base period be extended to include 
more than four additional calendar quarters. 
    No base period, extended base period, or alternate base 
period under paragraph (b) shall include wage credits upon which 
a claim was established and benefits were paid with respect to 
that valid claim. 
    Sec. 2.  Minnesota Statutes 1986, section 268.04, 
subdivision 4, is amended to read:  
    Subd. 4.  "Benefit year" with respect to any individual 
means the period of 52 calendar weeks beginning with the first 
day of the first week with respect to which the individual files 
a valid claim for benefits.  For individuals with a claim 
effective January 1, April 1, July 1, or October 1, the benefit 
year will be a period of 53 weeks beginning with the first week 
with respect to which the individual files a valid claim for 
benefits. 
    Sec. 3.  Minnesota Statutes 1986, section 268.04, 
subdivision 24, is amended to read:  
    Subd. 24.  "Valid claim" with respect to any individual 
means a claim filed by an individual who has registered for work 
and who has earned wage credits and established credit weeks 
wages paid during the individual's base period sufficient to 
entitle the individual to benefits under section 268.07, 
subdivision 2. 
    Sec. 4.  Minnesota Statutes 1986, section 268.04, is 
amended by adding a subdivision to read: 
    Subd. 25a.  [WAGES PAID.] "Wages paid" means the amount of 
wages which have been actually paid or which have been credited 
to or set apart for the employee so that payment and disposition 
is under the control of the employee.  Wage payments delayed 
beyond their regularly scheduled pay date are considered 
"actually paid" on the missed pay date.  Any wages earned but 
not paid with no scheduled date of payment shall be considered 
"actually paid" on the last day services are performed in 
employment before separation. 
    Wages paid shall not include wages earned but not paid 
except as provided for in this subdivision. 
    Sec. 5.  Minnesota Statutes 1986, section 268.04, 
subdivision 26, is amended to read:  
    Subd. 26.  [WAGE CREDITS.] "Wage credits" mean the amount 
of wages actually or constructively paid, wages 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 
paid within the base period for insured work. 
    Sec. 6.  Minnesota Statutes 1986, section 268.04, is 
amended by adding a subdivision to read: 
    Subd. 34.  [CONTRIBUTION REPORT.] "Contribution report" 
means the summary report of wages and employment used to 
determine the amount of contributions due by employers on a 
calendar quarter basis.  An auxiliary report of wages and 
employment broken down by business locations, when required, is 
part of the contribution report. 
    Sec. 7.  Minnesota Statutes 1986, section 268.04, is 
amended by adding a subdivision to read: 
    Subd. 35.  [WAGE DETAIL REPORT.] "Wage detail report" means 
the itemized report used to record the information required by 
section 268.121. 
    Sec. 8.  Minnesota Statutes 1986, section 268.04, is 
amended by adding a subdivision to read: 
    Subd. 36.  [HIGH QUARTER.] "High quarter" means the 
calendar quarter in an individual's base period for which the 
individual's total wage credits during that quarter are equal to 
or greater than the individual's total wage credits during any 
other calendar quarter in the individual's base period. 
    Sec. 9.  Minnesota Statutes 1986, section 268.06, 
subdivision 2, is amended to read:  
    Subd. 2.  [RATES.] Each employer 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 the employer 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. 10.  Minnesota Statutes 1986, 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 2-7/10 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, 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 7-1/2 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 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 of each year thereafter for each employer, except 
employers in the construction industry, as determined by the 
commissioner 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 of 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.  
    (b) Each construction employer described above in the 
construction industry who becomes subject to this chapter shall 
pay contributions at a rate, not exceeding 7-1/2 percent the 
maximum contribution rate for all employers as provided under 
subdivision 8, 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 of 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 of 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.  
    For purposes of this subdivision an employer is in the 
construction industry if assigned an industrial classification 
within division C of the Standard Industrial Classification 
Manual issued by the United States Office of Management and 
Budget as determined by the tax branch of the department. 
    Sec. 11.  Minnesota Statutes 1986, section 268.06, 
subdivision 8, is amended to read:  
    Subd. 8.  [DETERMINATION OF CONTRIBUTION RATES.] (a) For 
each calendar year the commissioner shall determine the 
contribution rate of each employer by adding the minimum rate to 
the experience ratio, except that if the ratio for the current 
calendar year increases or decreases the experience ratio for 
the preceding calendar year by more than one and one-half 
percentage points for 1982; and 2-1/2 percentage points for 1983 
and each year thereafter, the increase or decrease for the 
current year shall be limited to one and one-half percentage 
points for 1982; and 2-1/2 percentage points for 1983 and each 
year thereafter, provided that a small business employer shall 
be eligible, upon application, for a reduction in the limitation 
to 1-1/2 percentage points for 1983 and each year thereafter. 
"Small business employer" for the purpose of this subdivision 
means an employer with an annual covered payroll of $250,000 or 
less, or fewer than 20 employees in three of the four quarters 
ending June 30, of the previous calendar year. 
    (b) The minimum rate for all employers shall be 
eight-tenths of one percent for 1988; seven-tenths of one 
percent for 1989; and six-tenths of one percent for 1990.  The 
minimum rate for all employers in 1991 and thereafter shall be 
six-tenths of one percent if the amount in the unemployment 
compensation fund is less than $80,000,000 $200,000,000 on June 
30 of the preceding calendar year; or nine-tenths of one percent 
if the fund is more than $80,000,000 but less than $90,000,000; 
or eight-tenths of one percent if the fund is more than 
$90,000,000 but less than $110,000,000; or seven-tenths of one 
percent if the fund is more than $110,000,000 but less than 
$130,000,000; or six-tenths of one percent if the fund is more 
than $130,000,000 but less than $150,000,000; or five-tenths of 
one percent if the fund is more than $150,000,000 $200,000,000 
but less than $170,000,000 $225,000,000; or four-tenths of one 
percent if the fund is more than $225,000,000 but less than 
$250,000,000; or three-tenths of one percent if the fund is more 
than $170,000,000 $250,000,000 but less than 
$200,000,000 $275,000,000; or two-tenths of one percent if the 
fund is $275,000,000 but less than $300,000,000; or one-tenth of 
one percent if the fund is $200,000,000 $300,000,000 or more; 
provided that no employer shall have a contribution rate of more 
than 7.5 percent. 
    (c) The maximum rate for all employers shall be 8.0 percent 
in 1988; 8.5 percent in 1989; 9.0 percent in 1990 and thereafter.
    (d) For the purposes of this section the unemployment 
compensation fund shall not include any moneys advanced from the 
Federal Unemployment Account in the unemployment trust fund in 
accordance with Title XII of the Social Security Act, as 
amended.  No employer first assigned an experience ratio in 
accordance with subdivision 6, shall have a contribution rate 
increased or decreased by more than one and one-half percentage 
points for 1982; and 2-1/2 percentage points for 1983 and each 
year thereafter over the contribution rate assigned for the 
preceding calendar year in accordance with subdivision 3a, 
provided that a small business employer shall be eligible, upon 
application, for a reduction in the limitation to 1-1/2 
percentage points for 1983 and each year thereafter. 
    Sec. 12.  Minnesota Statutes 1986, section 268.06, is 
amended by adding a subdivision to read: 
    Subd. 8a.  [SOLVENCY ASSESSMENT.] (a) If the fund balance 
is greater than $75,000,000 but less than $150,000,000 on June 
30 of any year, a solvency assessment will be in effect for the 
following calendar year.  Each employer, except those making 
payments in lieu of contributions under subdivisions 25, 26, 27, 
and 28, shall pay a quarterly solvency assessment of ten percent 
multiplied by the contributions paid or due and payable for each 
calendar quarter in that year.  Quarterly contributions and the 
solvency assessment payments shall be combined and will be 
computed notwithstanding the maximum rate established in 
subdivision 3a or 8, by multiplying the quarterly taxable 
payroll by the assigned contribution rate multiplied by 1.10. 
    (b) If the fund balance is less than $75,000,000 on June 30 
of any year, a solvency assessment will be in effect for the 
following calendar year.  Each employer, except those making 
payments in lieu of contributions under subdivisions 25, 26, 27, 
and 28, shall pay a quarterly solvency assessment of 15 percent 
multiplied by the contributions paid or due and payable for each 
calendar quarter in that year.  Quarterly contributions and the 
solvency assessment payments shall be combined and will be 
computed notwithstanding the maximum rate established in 
subdivisions 3a or 8, by multiplying the quarterly taxable 
payroll by the assigned contribution rate multiplied by 1.15.  
    Sec. 13.  Minnesota Statutes 1986, 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 the individual's 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 if not a whole dollar shall be rounded down 
to the next lower dollar amount.  (a) To establish a benefit 
year for unemployment insurance benefits, effective after 
January 1, 1988, and thereafter, an individual must have: 
    (1) wage credits in two or more calendar quarters of the 
individual's base period; 
    (2) minimum total base period wage credits equal to the 
high quarter wages multiplied by 1.25;  
    (3) high quarter wage credits of not less than $1,000; and 
    (4) wage credits in 15 or more calendar weeks in the base 
period.  
    (b) If the commissioner finds that an individual has 
sufficient wage credits and weeks worked within the base period 
to establish a valid claim, the weekly benefit amount payable to 
the individual during the individual's benefit year shall be 
equal to 1/26 of the individual's high quarter wage credits, 
rounded to the next lower whole dollar.  
    (c) Notwithstanding paragraph (b), 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 a 
percentage of the average weekly wage, except as provided in 
clause (d) as determined under paragraphs (d) and (e).  
    (d) On or before June 30 of each year the commissioner 
shall determine the average weekly wage for purposes of 
paragraph (c) paid by employers subject to sections 268.03 to 
268.24 in the following manner:  
    (a) (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.  
    (b) (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.  
    (c) (3) The average annual wage shall be divided by 52 to 
determine the average weekly wage.  
    (e) The maximum weekly benefit amount for any claim filed 
during the 12-month period subsequent to June 30 of any year 
shall be determined on the basis of the unemployment fund 
balance on December 31 of the preceding year.  If the fund 
balance is less than $70,000,000 on that date, the maximum 
weekly benefit amount shall be 66-2/3 percent of the average 
weekly wage; if the fund balance is more than $70,000,000 but 
less than $100,000,000, the maximum weekly benefit amount is 66 
percent of the average weekly wage; if the fund balance is more 
than $100,000,000 but less than $150,000,000, the maximum weekly 
benefit amount is 65 percent of the average weekly wage; if the 
fund balance is more than $150,000,000 but less than 
$200,000,000, the maximum weekly benefit amount is 64 percent of 
the average weekly wage; if the fund balance is more than 
$200,000,000 but less than $250,000,000, the maximum weekly 
benefit amount is 63 percent of the average weekly wage; if the 
fund balance is more than $250,000,000 but less than 
$300,000,000, the maximum weekly benefit amount is 62 percent of 
the average weekly wage; if the fund balance is more than 
$300,000,000 but less than $350,000,000, the maximum weekly 
benefit amount is 61 percent of the average weekly wage; if the 
fund balance is more than $350,000,000, the maximum weekly 
benefit amount is 60 percent.  The maximum weekly benefit amount 
as so determined under this paragraph 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 the individual's 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 the individual's weekly 
benefit amount. 
    (f) Any eligible individual shall be entitled during any 
benefit year to a total amount of benefits equal to one-third of 
the individual's total base period wage credits rounded to the 
next lower dollar, not to exceed 26 times the individual's 
weekly benefit amount. 
    (3) (g) Each eligible individual who is unemployed in any 
week shall be paid with respect to such week a benefit in an 
amount equal to the individual's weekly benefit amount less that 
part of the individual's earnings, including holiday pay, 
payable to the individual 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 and the greater 
of $25 or 25 percent of the earnings in other work.  Jury duty 
pay is not considered as earnings and shall not be deducted from 
benefits paid.  Such benefit, if not a whole dollar amount shall 
be rounded down to the next lower dollar amount. 
    (4) The provisions of clauses (1) and (2) shall apply to 
claims for benefits which establish a benefit year subsequent to 
June 30, 1983.  
    Sec. 14.  Minnesota Statutes 1986, section 268.07, 
subdivision 2a, is amended to read:  
    Subd. 2a.  [EXCEPTION.] Notwithstanding the provisions of 
subdivision 2, if the commissioner finds that an individual has 
earned credit weeks wage credits in seasonal employment, 
benefits shall be payable only if the commissioner finds that 
the individual has earned 15 credit weeks wage credits in 15 or 
more calendar weeks equal to or in excess of 30 times the 
individual's weekly benefit amount, in employment which is not 
seasonal, in addition to any credit weeks wage credits in 
seasonal employment.  For the purposes of this subdivision, 
"seasonal employment" means employment with a single employer in 
the recreation or tourist industry which is available with the 
employer for 15 consecutive weeks or less each calendar year.  
    Sec. 15.  Minnesota Statutes 1986, 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 benefits were received, the individual performed 
service in insured work as defined in section 268.04, 
subdivision 17, and earned remuneration for the service in an 
amount equal to not less than the minimum wage credits required 
to qualify for benefits To establish a second benefit year 
following the expiration of an immediately preceding benefit 
year, an individual must have sufficient wage credits and weeks 
of employment to establish a claim under the provisions of 
subdivision 2 and must have performed services after the 
establishment of the expired benefit year.  The services 
performed must have been in insured work and the wage credits 
from the services must equal not less than ten times the weekly 
benefit amount of the second benefit year. 
    (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 the claimant during a subsequent 
base period unless the employer has employed the claimant in any 
part of 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 is effective when the individual has been paid 
four times the individual's weekly benefit amount in the current 
benefit year. 
    (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. 
    (5) No employer shall be charged for benefits if the 
employer is a base period employer on a second claim solely 
because of the transition from a base period consisting of the 
52-week period preceding the claim date to a base period as 
defined in section 268.04, subdivision 2. 
    Sec. 16.  Minnesota Statutes 1986, section 268.071, 
subdivision 1, is amended to read:  
    Subdivision 1.  [DEFINITIONS.] As used in this section, 
unless the context clearly requires otherwise: 
    (1) [EXTENDED BENEFIT PERIOD.] "Extended benefit period" 
means a period which 
    (a) Begins with the third week after a week for which there 
is a state "on" indicator; and 
    (b) Ends with either of the following weeks, whichever 
occurs later:  The third week after the first week for which 
there is a state "off" indicator; or the 13th consecutive week 
of the period; 
    Provided, that no extended benefit period may begin before 
the 14th week following the end of a prior extended benefit 
period which was in effect with respect to this state. 
    (2) [STATE "ON" INDICATOR.] There is a "state 'on' 
indicator" for this state for a week if the commissioner 
determines, in accordance with the regulations of the United 
States Secretary of Labor, that for the period consisting of 
such week and the immediately preceding 12 weeks, the rate of 
insured unemployment (not seasonally adjusted) under this law 
    (a) equaled or exceeded 120 percent of the average of such 
rates for the corresponding 13-week period ending in each of the 
preceding two calendar years, and 
    (b) equaled or exceeded five percent. 
    The determination of whether there has been a state "on" 
indicator beginning any extended benefit period may be made as 
provided in clauses (a) and (b) above or a "state 'on' 
indicator" shall exist if the rate described in clause (b) 
equaled or exceeded six percent irrespective of whether the 
percentage requirement provided by clause (a) is met or exceeded.
    (3) [STATE "OFF" INDICATOR.] There is a "state 'off' 
indicator" for this state for a week if, for the period 
consisting of such week and the immediately preceding 12 weeks, 
the rate of insured unemployment is less than six percent and 
the requirements for a "state 'on' indicator" under clause (2) 
of this subdivision are not satisfied. 
    (4) [RATE OF INSURED UNEMPLOYMENT.] "Rate of insured 
unemployment," for purposes of clauses (2) and (3), means the 
percentage derived by dividing the average weekly number of 
individuals filing claims for regular benefits in this state for 
weeks of unemployment with respect to the most recent 13 
consecutive week period, as determined by the commissioner on 
the basis of the commissioner's reports to the United States 
secretary of labor, by the average monthly employment covered 
under this law for the first four of the most recent six 
completed calendar quarters ending before the end of such 13 
week period. 
    (5) [REGULAR BENEFITS.] "Regular benefits" means benefits 
payable to an individual under this law or under any other state 
law (including benefits payable to federal civilian employees 
and to ex-servicemen pursuant to United States Code, title 5, 
chapter 85) other than extended benefits and additional benefits.
    (6) [EXTENDED BENEFITS.] "Extended benefits" means benefits 
(including benefits payable to federal civilian employees and to 
ex-servicemen pursuant to United States Code, title 5, chapter 
85) payable to an individual under the provisions of this 
section for weeks of unemployment in the individual's 
eligibility period. 
    (7) [ADDITIONAL BENEFITS.] "Additional benefits" means 
benefits payable to exhaustees by reason of conditions of high 
unemployment or by reason of other special factors under the 
provisions of any state law. 
    (8) [ELIGIBILITY PERIOD.] "Eligibility period" of an 
individual means the period consisting of the weeks in the 
individual's benefit year which begin in an extended benefit 
period and, if the benefit year ends within such extended 
benefit period, any weeks thereafter which begin in such period. 
    (9) [EXHAUSTEE.] "Exhaustee" means an individual who, with 
respect to any week of unemployment in the individual's 
eligibility period: 
    (a) Has received, prior to such week, all of the regular 
benefits that were available under this law or any other state 
law (including dependents' allowances and benefits payable to 
federal civilian employees and ex-servicemen under United States 
Code, title 5, chapter 85) in the individual's current benefit 
year that includes such week; 
    Provided, that, for the purposes of this paragraph, an 
individual shall be deemed to have received all of the regular 
benefits that were available to the individual although as a 
result of a pending appeal with respect to wage credits or 
credit weeks that were not considered in the original monetary 
determination in the individual's benefit year, the individual 
may subsequently be determined to be entitled to added regular 
benefits; or 
    (b)  The individual's benefit year having expired prior to 
such week, has no, or insufficient, wages and/or employment on 
the basis of which the individual could establish a new benefit 
year that would include such week or having established a 
benefit year that includes such week, the individual is 
precluded from receiving regular compensation by reason of:  (i) 
a state law provision which meets the requirements of section 
3304 (a) (7) of the Internal Revenue Code of 1954, or (ii) a 
disqualification determination which canceled wage credits or 
totally reduced benefit rights, or (iii) benefits are not 
payable by reason of a seasonal limitation in a state 
unemployment insurance law; and 
    (c) Has no right to unemployment benefits or allowances, as 
the case may be, under the railroad unemployment insurance act, 
the trade expansion act of 1962, the automotive products act of 
1965 and such other federal laws as are specified in regulations 
issued by the United States Secretary of Labor; and has not 
received and is not seeking unemployment benefits under the 
unemployment compensation law of Canada; but if the individual 
is seeking such benefits and the appropriate agency finally 
determines that the individual is not entitled to benefits under 
such law the individual is considered an exhaustee. 
    (10) [STATE LAW.] "State law" means the unemployment 
insurance law of any state, approved by the United States 
secretary of labor under section 3304 of the Internal Revenue 
Code of 1954. 
    Sec. 17.  [268.073] [ADDITIONAL UNEMPLOYMENT COMPENSATION 
BENEFITS.] 
    Subdivision 1.  [ADDITIONAL BENEFITS; WHEN AVAILABLE.] 
Additional unemployment compensation benefits are authorized 
under this section only if the commissioner determines that: 
    (1) an employer has reduced operations at a facility 
employing 100 or more individuals for at least six months during 
the preceding year resulting in the reduction of at least 50 
percent of the employer's work force and the lay-off of at least 
50 employees at that facility; 
    (2) the employer does not intend to resume operations which 
would lead to the reemployment of those employees at any time in 
the future; and 
    (3) the unemployment rate for the county in which the 
facility is located was ten percent during the month of the 
reduction or any of the three months preceding or succeeding the 
reduction. 
    Subd. 2.  [PAYMENT OF BENEFITS.] All benefits payable under 
this section are payable from the fund.  
    Subd. 3.  [ELIGIBILITY CONDITIONS.] An individual is 
eligible to receive additional benefits under this section for 
any week during the individual's benefit year if the 
commissioner finds that: 
    (1) the individual's unemployment is the result of a 
reduction in operations as provided under subdivision 1; 
     (2) the individual is unemployed and meets the eligibility 
requirements for the receipt of unemployment benefits under 
section 268.08; 
     (3) the individual is not subject to a disqualification for 
benefits under section 268.09; for the purpose of this 
subdivision, the disqualifying conditions set forth in section 
268.09, and the requalifying requirements thereunder, apply to 
the receipt of additional benefits under this section; 
    (4) the individual has exhausted all rights to regular 
benefits payable under section 268.07, is not entitled to 
receive extended benefits under section 268.071, and is not 
entitled to receive unemployment compensation benefits under any 
other state or federal law for the week in which the individual 
is claiming additional benefits; 
     (5) the individual has made a claim for additional benefits 
with respect to any week the individual is claiming benefits in 
accordance with the regulations as the commissioner may 
prescribe with respect to claims for regular benefits; and 
     (6) the individual has worked at least 26 weeks during the 
individual's base period in employment with an employer for whom 
the commissioner has determined there was a reduction in 
operations under subdivision 1. 
    Subd. 4.  [WEEKLY BENEFIT AMOUNT.] A claimant's weekly 
benefit amount under this section shall be the same as the 
individual's weekly benefit amount payable during the 
individual's current benefit year under section 268.08. 
    Subd. 5.  [MAXIMUM BENEFITS PAYABLE.] A claimant's maximum 
amount of additional benefits payable in the individual's 
benefit year shall be six times the individual's weekly benefit 
amount.  Unemployment compensation benefits paid to an 
individual under any state or federal law other than regular 
benefits payable under section 268.07 shall be deducted from 
that individual's maximum amount of additional benefits. 
    Subd. 6.  [RETROACTIVITY.] The additional benefits provided 
under this section are payable to any claimant who meets the 
eligibility conditions under subdivision 3 whose unemployment 
occurred on July 1, 1985, or thereafter, provided the claimant 
has filed a claim for additional benefits which is effective 
January 1, 1987, or thereafter. 
    Sec. 18.  Minnesota Statutes 1986, 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) has registered for work at and thereafter has continued 
to report to an employment office, or agent of the office, in 
accordance with rules the commissioner may adopt; except that 
the commissioner may by rule waive or alter either or both of 
the requirements of this clause as to types of cases or 
situations with respect to which the commissioner finds that 
compliance with the requirements would be oppressive or would be 
inconsistent with the purposes of sections 268.03 to 268.24; 
    (2) has made a claim for benefits in accordance with rules 
as the commissioner may adopt;  
    (3) was able to work and was available for work, and was 
actively seeking work.  The individual's weekly benefit amount 
shall be reduced one-fifth for each day the individual is unable 
to work or is unavailable for work.  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 is deemed unavailable for work with respect 
to any week which occurs in a period when 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 wage credits earned in the base period were for 
services performed during weeks in which 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; and 
    (4) has been unemployed for a waiting period of one week 
during which the individual is otherwise eligible for benefits 
under sections 268.03 to 268.24.  However, payment for the 
waiting week, not to exceed $20, shall be made to the individual 
after 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 the individual's return to 
employment.  No individual 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 
the valid claim was filed. 
     Sec. 19.  Minnesota Statutes 1986, section 268.09, 
subdivision 1, is amended to read:  
    Subdivision 1.  [DISQUALIFYING CONDITIONS.] An individual 
separated from employment under clause (1), (2), or (3) shall be 
disqualified for waiting week credit and benefits.  For 
separations under clauses (1) and (2), the disqualification 
shall continue until four calendar weeks have elapsed following 
the individual's separation and the individual has earned four 
eight times the individual's weekly benefit amount in insured 
work. 
    (1) [VOLUNTARY LEAVE.] The individual voluntarily and 
without good cause attributable to the employer discontinued 
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 work or for misconduct which interferes with and 
adversely affects 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 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 
personal, serious illness provided that such individual has made 
reasonable efforts to retain employment; 
    An individual who is separated from employment due to the 
individual's illness of chemical dependency which has been 
professionally diagnosed or for which the individual has 
voluntarily submitted to treatment and who fails to make 
consistent efforts to maintain the treatment the individual 
knows or has been professionally advised is necessary to control 
that illness has not made reasonable efforts to retain 
employment. 
    (c) The individual accepts work from a base period employer 
which involves a change in 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 
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 of reaching 
mandatory retirement age and was 65 years of age or older; 
    (e) The individual is terminated by the employer because 
the individual 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 the individual 
receives the individual's normal wage or salary which is equal 
to or greater than the 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 work or gross 
misconduct which interferes with and adversely affects the 
individual's employment.  For a separation under this clause, 
the commissioner shall impose a total disqualification for the 
benefit year and cancel all of the wage credits from the last 
employer from whom the individual was discharged for gross 
misconduct connected with work. 
    For the purpose of this clause "gross misconduct"  is 
defined as misconduct involving assault and battery or the 
malicious destruction of property 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 the 
individual's 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 
was not accepted or whose offer of re-employment was refused 
solely due to the distance of the available work from the 
individual's residence, the individual's own serious illness or 
the individual's 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 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 the individual's own misconduct.  Disciplinary 
suspensions of more than 30 days shall constitute a discharge 
from employment. 
    Sec. 20.  Minnesota Statutes 1986, 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 the refusal or 
failure and the individual has earned four eight times the 
individual's weekly benefit amount in insured work if the 
commissioner finds that the individual has failed, without good 
cause, either to apply for available, suitable work of which 
advised by the employment office, or the commissioner or to 
accept suitable work when offered, or to return to customary 
self-employment (if any) when so directed by the commissioner, 
or to accept a base period employer's offer of re-employment 
offering substantially the same or better hourly wages and 
conditions of work as were previously provided by that employer 
in the 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 health, safety, and morals, physical fitness 
and prior training, experience, length of unemployment and 
prospects of securing local work in the individual's customary 
occupation, and the distance of the available work from the 
individual's 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. 21.  Minnesota Statutes 1986, section 268.10, 
subdivision 1, is amended to read:  
    Subdivision 1.  [FILING.] (a) Claims for benefits shall be 
made in accordance with such rules as the commissioner may 
prescribe.  Each employer shall post and maintain printed 
statements of such rules in places readily accessible to 
individuals in the employer's service and shall make available 
to each such individual at the time of becoming unemployed, a 
printed statement of such rules.  Such printed statements shall 
be supplied by the commissioner to each employer without cost to 
the employer. 
    (1) (b) Any employer upon separation of an employee from 
employment for any reason which may result in disqualification 
for benefits under section 268.09, shall furnish to such 
employee a separation notice which shall provide the employer's 
name, address, and employer account number as registered with 
the department, the employee's name and social security account 
number, the inclusive dates of employment, and the reason for 
the separation.  A copy of such separation notice shall be filed 
with the commissioner within seven days of such separation.  The 
commissioner shall require each individual filing a claim for 
benefits to establish a benefit year to furnish the reason for 
separation from all employers in the individual's base period. 
    (2) Upon the filing, by an individual, of a claim for 
benefits, the commissioner shall give notice to all such base 
period employers of the filing of such claim and request each 
such base period employer, within seven days after the mailing 
of such notice, to furnish the following information: 
    (a) The total wage credits earned in the base period; 
    (b) The number of credit weeks which end within the base 
period; 
    (c) The week ending dates for each calendar week within the 
base period in which the individual earned less than the amount 
required to make a credit week and the amount of earnings in 
each such week; 
    (d) The reason for the separation or separations of such 
individual from the employ of the employer in the base period; 
and 
    (e) Such employer's protest, if any, relating to the 
ineligibility or disqualification of such individual. 
    (3) If any base period employer, after the notice of filing 
of a claim and the request for wage and separation information 
has been duly mailed to the employer's last known address, fails 
to file information as provided by items (a) through (e) of 
clause 2 of this subdivision within seven days, the commissioner 
shall:  
    (a) Determine the validity of an individual's claim based 
on the claimant's statements or any other available 
information.  An employer shall be liable for a late filing fee 
of not less than $5 nor more than $25, as the commissioner may 
determine, to be paid to the department of jobs and training and 
credited to the contingent fund if the employer has failed 
without good cause to submit the wage and separation information 
as required in clause 2 of this subdivision within seven days 
after the request has been duly mailed to the employer's last 
known address.  
     (c) For the purpose of complying with section 268.04, 
subdivision 2, the commissioner may require all base period 
employers to provide such information as the commissioner may 
prescribe, including, but not limited to, wages paid during any 
part of the base period, whether or not such information was 
previously provided. 
    (d) Upon establishment of a benefit year, the commissioner 
shall give notice to the last employer for whom the individual 
worked and all base period employers.  The employer so notified 
shall have seven days after the mailing of the notice to file a 
protest to monetary entitlement or a protest raising an issue of 
ineligibility or disqualification. 
    (e) If, upon review of the wage information on file with 
the department, it is found that an employer failed to provide 
wage information for the claimant, the commissioner shall accept 
a claimant certification as to the wage credits earned, based 
upon the claimant's records, and issue a monetary determination 
of validity certification.  This determination may be modified 
based upon corrected information subsequently received from the 
employer or other sources.  The employer who failed to report 
the individual's wages or filed an erroneous report may be 
penalized in accordance with section 268.16 or 268.18.  In the 
absence of fraud, if a redetermination of validity of claim 
based on an employer's late corrected or erroneous report 
subsequently cancels or reduces the amount of benefits to which 
a claimant was entitled under the initial determination, the 
claimant shall not be required to make repayment to the fund of 
any benefits paid prior to such redetermination; and 
    (b) (f) The commissioner shall determine any issue of 
disqualification raised by clause (1) under paragraph (d) or by 
an employer's late report.  If an employer fails to file a 
separation notice within the time limits prescribed in clause 
(1) paragraph (b), any relief from benefit charges provided by 
section 268.09, subdivision 1, clause (4), shall apply to weeks 
of unemployment beginning after the filing of the late report or 
protest.  
    Sec. 22.  Minnesota Statutes 1986, 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 
employer notifies the department that an individual's weekly 
benefit amount as determined under section 268.07 exceeds the 
individual's weekly wages earned with the employer, the 
individual's weekly benefit amount shall be the lesser of (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 a protest as provided in subdivision 1, clause (2), 
the employer makes an allegation of disqualification or raises 
an issue of the chargeability to the employer's 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 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 rules 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 the 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 24 months from the date of the 
filing of a valid claim for benefits by an individual, the 
commissioner on the commissioner's own motion may reconsider a 
determination of validity made thereon and make a 
redetermination thereof on finding 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 refer any disputed claims 
directly to 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 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. 23.  Minnesota Statutes 1986, 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, 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, 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 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 the commissioner 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 16B.50, 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 economic security 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 the commissioner's 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 the commissioner's 
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 
on any claim for benefits after the expiration of two years from 
the date of filing such claim. 
    Sec. 24.  Minnesota Statutes 1986, section 268.121, is 
amended to read:  
    268.121 [WAGE REPORTING.] 
    Beginning on April 1, 1984, each employer subject to this 
chapter shall provide the commissioner with a quarterly report 
of the wages, as defined in section 268.04, subdivision 25, paid 
to each employee of that employer covered by this chapter.  The 
commissioner shall provide the legislature with recommendations 
for statutory changes to fully implement this section no later 
than January 1, 1983 The report must include the employee's 
name, social security number, the total wages paid to the 
employee, and the number of weeks in which work was performed.  
The report is due and must be filed at the same time as the 
contribution report in accordance with rules established by the 
commissioner for filing of quarterly contribution reports.  For 
the purpose of this section, "wages paid" includes wages 
actually or constructively paid and wages overdue and delayed 
beyond the usual time of payment. 
    Sec. 25.  Minnesota Statutes 1986, section 268.15, 
subdivision 3, is amended to read: 
    Subd. 3.  [CONTINGENT ACCOUNT.] There is hereby created in 
the state treasury a special account, to be known as the 
economic security contingent account, which shall not lapse nor 
revert to any other fund.  Such account shall consist of all 
moneys appropriated therefor by the legislature, all moneys in 
the form of interest and penalties collected pursuant to section 
sections 268.16 and 268.18, and all moneys received in the form 
of voluntary contributions to this account and interest 
thereon.  All moneys in such account shall be supplemental to 
all federal moneys that would be available to the commissioner 
but for the existence of this account.  Moneys in this account 
are hereby appropriated to the commissioner and shall be 
expended in accordance with the provisions of section 3.30, in 
connection with the administration of sections 268.03 to 268.24. 
Whenever the commissioner expends moneys from said contingent 
account for the proper and efficient administration of the 
Minnesota economic security law for which funds have not yet 
been made available by the federal government, such moneys so 
withdrawn from the contingent account shall be replaced as 
hereinafter provided.  Upon the deposit in the economic security 
administration fund of moneys which are received in 
reimbursement of payments made as above provided for said 
contingent account, the commissioner shall certify to the state 
treasurer the amount of such reimbursement and thereupon the 
state treasurer shall transfer such amount from the economic 
security administration fund to said contingent account.  All 
moneys in this account shall be deposited, administered, and 
disbursed in the same manner and under the same conditions and 
requirements as is provided by law for the other special 
accounts in the state treasury.  The state treasurer shall be 
liable on the treasurer's official bond for the faithful 
performance of duties in connection with the economic security 
contingent account provided for herein.  Notwithstanding 
anything to the contrary contained herein, on June 30 of each 
year, except 1982, all amounts in excess of $300,000 in this 
account shall be paid over to the unemployment compensation fund 
established under section 268.05 and administered in accordance 
with the provisions set forth therein. 
    Sec. 26.  Minnesota Statutes 1986, section 268.16, 
subdivision 2, is amended to read:  
    Subd. 2.  [REPORTS; DELINQUENCIES; PENALTIES.] (1) (a) Any 
employer who knowingly fails to make and submit to the 
department of jobs and training any contribution report of wages 
paid by or due from the employer for insured work in the manner 
and at the time such the report is required by rules prescribed 
by the commissioner shall pay to the department of jobs and 
training for the contingent account a penalty in the amount of 
1-1/2 percent of contributions accrued during the period for 
which such the report is required, for each month from and after 
such date until such the report is properly made and submitted 
to the department of jobs and training.  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 1-1/2 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 rules of 
the commissioner, shall be subject to a penalty in the sum of 
$10 payable to the department of jobs and training 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 as provided by section 268.161. 
    (2) (b) 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 rules 
under the authority thereof, or shall make, willfully or 
otherwise, an incorrect, false or fraudulent contribution 
report, it 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 a report, or corrected report, from the 
commissioner's own knowledge and from such information as the 
commissioner 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, on finding it 
substantially correct, substitute it for the commissioner's 
report. 
     (c) Any employer who fails to file the wage detail report 
required by section 268.121 shall pay to the department for the 
contingent account a penalty of one-half of one percent of total 
wages paid and wages due but not paid during the period for each 
month the report is delinquent.  The penalty shall not be 
assessed if the wage detail report is properly made and filed 
within 30 days after a demand for the report is mailed to the 
employer's address of record.  In no case shall the amount of 
the penalty, if assessed, be less than $25.  Penalties due under 
this subdivision may be waived where good cause for late filing 
is found by the commissioner. 
    (d) Any employer who files the wage detail report required 
by section 268.121, but knowingly fails to include any of the 
required information or knowingly enters erroneous information, 
shall be subject to a penalty of $25 for each individual for 
whom the information is missing or erroneous. 
    (e) Any employing unit which fails to make and submit to 
the commissioner any report, other than a contribution report or 
wage detail report, as and when required by rule, shall be 
subject to a penalty in the sum of $50 payable to the department 
for the contingent account. 
    (f) The penalties provided for in paragraphs (a), (c), (d), 
and (e) are in addition to interest and any other penalties 
imposed by sections 268.03 to 268.24 and shall be collected as 
provided by section 268.161. 
    Sec. 27.  [REPEALER.] 
    Minnesota Statutes 1986, section 268.04, subdivisions 29 
and 30, are repealed. 
    Sec. 28.  [EFFECTIVE DATE.] 
    Sections 4, 5, 6, 7, 9, 17, 22, 23, 25, and 26 are 
effective the day following final enactment.  Sections 19 and 20 
are effective July 1, 1987.  Sections 1, 2, 3, 8, 10, 11, 12, 
13, except paragraph (a), clause (4), 14, 15, 16, 18, 21, 24, 
and 27 are effective January 1, 1988.  Section 13, paragraph 
(a), clause (4), is effective July 1, 1989. 
    Approved June 2, 1987