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Minnesota Legislature

Office of the Revisor of Statutes

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

  

                         Laws of Minnesota 1992 

                        CHAPTER 484-S.F.No. 1590 
           An act relating to unemployment compensation; making 
          various technical and administrative changes; 
          pertaining to treatment of American Indian tribal 
          governments as employers for purposes of unemployment 
          compensation insurance payments; amending Minnesota 
          Statutes 1990, sections 268.04, subdivisions 18, 32, 
          and 34; 268.06, subdivisions 18, 19, 22, and by adding 
          a subdivision; 268.07, subdivision 3; 268.071, 
          subdivision 6; 268.08, subdivision 1; 268.09, 
          subdivisions 1 and 2; 268.10, subdivision 1; 268.161, 
          subdivision 5; and 268.18, subdivision 1. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1990, section 268.04, 
subdivision 18, is amended to read: 
    Subd. 18.  "Interested party" includes the claimant, the 
claimant's base period employers, and most recent employer prior 
to the filing of a valid claim for benefits and registered 
successors to those employers as defined in section 268.06, 
subdivision 22. 
    Sec. 2.  Minnesota Statutes 1990, section 268.04, 
subdivision 32, is amended to read: 
    Subd. 32.  "Nonpublic school" means any school within the 
state, other than a public school, wherein a resident of 
Minnesota may legally fulfill the compulsory school attendance 
requirements of section where an individual is provided 
instruction in compliance with sections 120.101 and 120.102, or 
any school (1) which operates on a nonprofit basis, (2) which 
admits only prekindergarten children, (3) which has as its 
primary purpose the education of its students as determined by 
the commissioner of human services pursuant to section 245A.03, 
clause (14), and (4) which operates on a regular basis for at 
least eight months and no more than nine months a year. 
    Sec. 3.  Minnesota Statutes 1990, section 268.04, 
subdivision 34, is amended to read: 
    Subd. 34.  [CONTRIBUTION REPORT.] "Contribution report" 
means the summary report of wages paid and employment used to 
determine the amount of contributions due by employers on a 
calendar quarter basis.  An auxiliary report of wages paid and 
employment broken down by business locations, when required by 
the commissioner, is part of the contribution report.  The 
auxiliary report shall contain the number of employees for each 
month, and the quarterly total wages, excess wages, taxable 
wages, and tax for each location. 
    Sec. 4.  Minnesota Statutes 1990, section 268.06, 
subdivision 18, is amended to read: 
    Subd. 18.  [NOTICE TO EMPLOYER.] The commissioner shall at 
least twice each year notify mail to the last known address of 
each employer a quarterly notice of the benefits as determined 
by the department which have been charged to the employer's 
account subsequent to the last notice, as determined by the 
department.  Unless reviewed in the manner hereinafter provided, 
charges set forth in such notice, or as modified by a 
redetermination, a decision of a referee, or the commissioner, 
shall be final and shall be used in determining the contribution 
rates for all years in which the charges occur within the 
employer's experience period and shall not be subject to 
collateral attack by way of review of a rate determination, 
application for adjustment or refund, or otherwise. 
    Sec. 5.  Minnesota Statutes 1990, section 268.06, 
subdivision 19, is amended to read: 
    Subd. 19.  [NOTICE OF RATE.] The commissioner shall mail to 
the last known address of each employer notice of the employer's 
contribution rate of contributions as determined for any 
calendar year pursuant to this section.  Such notice shall 
contain the contribution rate, factors used in determining the 
individual employer's experience rating, and such other 
information as the commissioner may prescribe.  Unless changed 
by the procedure provided in this subdivision, the assigned rate 
as initially determined or as changed by a redetermination by 
the tax branch of this department, a decision of a referee, or 
the commissioner shall be final except for fraud and shall be 
the rate upon which contributions shall be computed for the 
calendar year for which such rate was assigned, and shall not be 
subject to collateral attack for any errors, clerical or 
otherwise, whether by way of claim for adjustment or refund, or 
otherwise.  If the legislature changes any of the factors used 
to determine the contribution rate of any employer for any year 
subsequent to the original mailing of such notice for the year, 
the earlier notice shall be void.  The notice based on the new 
factors shall be deemed to be the only notice of rate of 
contributions for that year and shall be subject to the same 
finality, redetermination, and review procedures as provided 
above.  
    Sec. 6.  Minnesota Statutes 1990, section 268.06, 
subdivision 22, is amended to read: 
    Subd. 22.  [EMPLOYMENT EXPERIENCE RECORD TRANSFER.] (a) 
When an employing unit succeeds to or acquires the organization, 
trade or business or substantially all the assets of another 
employing unit which at the time of the acquisition was an 
employer subject to this law, and continues such organization, 
trade or business, the experience rating record of the 
predecessor employer shall be transferred as of the date of 
acquisition to the successor employer for the purpose of rate 
determination. 
    (b) When an employing unit succeeds to or acquires a 
distinct severable portion of the organization, trade, business, 
or assets which is less than substantially all of the employing 
enterprises of another employing unit, the successor employing 
unit shall acquire the experience rating record attributable to 
the portion to which it has succeeded, and the predecessor 
employing unit shall retain the experience rating record 
attributable to the portion which it has retained, if (1) the 
successor continues the organization, trade, or business of the 
portion acquired, (2) the successor makes a written request to 
file an application for the transfer of the experience rating 
record for the severable portion acquired from the predecessor 
(3) and within 90 days from the date the application is mailed 
to the last known address of the successor the successor and 
predecessor employing units jointly sign and file a properly 
completed, written application as prescribed by the commissioner 
that furnishes the commissioner with sufficient information to 
substantiate the severable portion and to assign the appropriate 
total and taxable wages and benefit charges to the successor for 
experience rating purposes.  Previously assigned contribution 
rates that have become final in accordance with subdivision 19 
prior to the filing of the written request to file an 
application shall not be affected by the transfer. 
    (c) Employment with a predecessor employer shall not be 
deemed to have been terminated if similar employment is offered 
by the successor employer and accepted by the employee. 
    (d) An official, designated by the commissioner, upon the 
official's own motion or upon application of an employing unit 
shall determine if an employing unit is a successor within the 
meaning of this subdivision and shall notify mail notice of such 
determination to the last known address of the employing unit of 
the determination.  The determination shall be final unless a 
written appeal is filed by the employing unit shall within 30 
days after mailing of the notice of determination to the 
employing unit's last known address file a written appeal.  
Proceedings on the appeal shall be in accordance with section 
268.12, subdivision 13.  
    (e) Notwithstanding subdivision 19, the commissioner may, 
as the result of any determination or decision regarding 
succession or nonsuccession, recompute the rate of all employers 
affected by the determination or decision for any year, 
including the year of the acquisition or succession and 
subsequent years, that is affected by the transfer or 
nontransfer of part or all of the experience rating record under 
this subdivision.  This paragraph does not apply to rates that 
have become final in accordance with subdivision 19 prior to the 
filing of a written request to file an application for the 
transfer of a severable portion of the experience rating record 
as provided in paragraph (b). 
    Sec. 7.  Minnesota Statutes 1990, section 268.06, is 
amended by adding a subdivision to read: 
    Subd. 34.  [INDIAN TRIBAL GOVERNMENTS; WHOLLY 
TRIBALLY-CONTROLLED SUBSIDIARIES AND SUBDIVISIONS.] To the 
extent permissible under the laws of the United States, an 
Indian tribe defined in section 268.0111, subdivision 5a, and 
any wholly tribally-controlled subsidiaries and subdivisions 
shall, if elected by the tribe, be treated as a self-sustaining 
state and political subdivision employer for the purposes of 
subdivisions 25, 30, 31, and 33 or as a nonprofit corporation 
employer for purposes of subdivisions 28, 29, 30, and 33, or as 
an employer providing employment excluded under section 268.04, 
subdivision 12, clause (15).  Any tribal election must be in 
writing to the commissioner and must be binding for a minimum of 
two years.  To the extent permissible under the laws of the 
United States, a tribe may make separate elections for itself 
and each of its wholly tribally-controlled subsidiaries and 
subdivisions.  
    Sec. 8.  Minnesota Statutes 1990, section 268.07, 
subdivision 3, is amended to read: 
    Subd. 3.  [WHEN WAGE CREDITS ARE NOT AVAILABLE.] (1) 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 wages paid for those services must equal not less 
than ten times the weekly benefit amount of the second benefit 
year.  A claim filed sufficiently in advance of anticipated 
unemployment to make the limitations of this clause ineffective 
shall be invalid.  It is the purpose of this provision that an 
individual cannot establish more than one benefit year as a 
result of one separation from employment. 
    (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 claimant who (a) individually, jointly, 
or in combination with the claimant's 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. 9.  Minnesota Statutes 1990, section 268.071, 
subdivision 6, is amended to read: 
    Subd. 6.  [BEGINNING AND TERMINATION OF EXTENDED BENEFIT 
PERIOD.] (1) Whenever an extended benefit period is to become 
effective in this state as a result of a state "on" indicator, 
or an extended benefit period is to be terminated in this state 
as a result of a state "off" indicator the commissioner shall 
make an appropriate public announcement. 
    (2) Computations required by the provisions of subdivision 
1, clause (4) shall be made by the commissioner, in accordance 
with regulations prescribed by the United States Secretary of 
Labor. 
    (3) Except as otherwise provided, the state share of the 
benefits paid to an individual under this section shall be 
charged to the employment experience record of the base period 
employer of the individual to the extent regular benefits were 
charged to the base period employer under sections 268.06, 
subdivision 5, and 268.09, subdivision 1, clause (4) (e). 
    (4) With respect to an employer which has elected to be a 
contributing employer under the provisions of section 268.06, 
subdivision 31, all benefits paid under this section which are 
based upon services for such contributing employer shall be 
charged to such contributing employer's account as to weeks of 
unemployment beginning after January 1, 1979. 
    Sec. 10.  Minnesota Statutes 1990, 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 268.231; 
    (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, is a dislocated 
worker as defined in section 268.975, subdivision 3, who is in 
training approved by 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 wage credits earned in the base period individual's wages 
paid during the 52 weeks preceding the claim date 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 268.231.  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. 11.  Minnesota Statutes 1990, section 268.09, 
subdivision 1, is amended to read: 
    Subdivision 1.  [DISQUALIFYING CONDITIONS.] An individual 
separated from any employment under paragraph (a), (b), or (d) 
shall be disqualified for waiting week credit and benefits.  For 
separations under paragraphs (a) and (b), the disqualification 
shall continue until four calendar weeks have elapsed following 
the individual's separation and the individual has earned eight 
times the individual's weekly benefit amount in insured work. 
    (a)  [VOLUNTARY LEAVE.] The individual voluntarily and 
without good cause attributable to the employer discontinued 
employment with such employer.  For the purpose of this 
paragraph, 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 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.  
    (b)  [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. 
    (c)  [EXCEPTIONS TO DISQUALIFICATION.] An individual shall 
not be disqualified under paragraphs (a) and (b) under any of 
the following conditions: 
    (1) the individual voluntarily discontinued employment to 
accept work employment offering substantially better conditions 
of work or substantially higher wages or both; 
    (2) 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. 
      (3) 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; 
      (4) the individual left employment because of reaching 
mandatory retirement age and was 65 years of age or older; 
      (5) 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; 
     (6) the individual is separated from employment due to the 
completion of an apprenticeship program, or segment thereof, 
approved pursuant to chapter 178; 
     (7) 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; 
     (8) the individual is separated from employment based 
solely on a provision in a collective bargaining agreement by 
which an individual has vested discretionary authority in 
another to act on behalf of the individual; 
     (9) except as provided in paragraph (d), separations from 
part-time employment will not be disqualifying when the claim is 
based on sufficient full-time employment to establish a valid 
claim from which the claimant has been separated for 
nondisqualifying reasons. 
     (d)  [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 paragraph "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. 
     (e)  [LIMITED OR NO CHARGE OF BENEFITS.] Benefits paid 
subsequent to an individual's separation under any of the 
foregoing paragraphs, excepting paragraphs (c)(3), (c)(5), and 
(c)(8), 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 reemployment 
shall not be used as a factor in determining the future 
contribution rate of the employer whose offer of reemployment 
was not accepted or whose offer of reemployment was refused 
solely due to the distance of the available work from the 
individual's residence, the individual's own serious illness, 
the individual's other employment at the time of the offer, or 
if the individual is in training with the approval of the 
commissioner. 
    (f)  [ACTS OR OMISSIONS.] 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.  
    (g)  [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. 12.  Minnesota Statutes 1990, section 268.09, 
subdivision 2, is amended to read: 
    Subd. 2.  [FAILURE TO APPLY FOR OR ACCEPT SUITABLE WORK OR 
REEMPLOYMENT.] 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 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 reemployment 
offering substantially the same or better hourly wages and 
conditions of work as were previously provided by that employer 
in the base period most recent period of employment. 
    (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 268.231, 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. 13.  Minnesota Statutes 1990, 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. 
    (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. 
       (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 and registered successors 
to those employers as defined in section 268.06, subdivision 
22.  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 
    (f) The commissioner shall determine any issue raised 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 paragraph (b), any relief from benefit charges 
provided by section 268.09, subdivision 1, paragraph (e), shall 
apply to weeks of unemployment beginning after the filing of the 
late report or protest.  
    Sec. 14.  Minnesota Statutes 1990, 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 an individual employer who receives 
assistance under chapter 256. 
    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.  
     Notwithstanding any law to the contrary, the commissioner 
shall have first priority to setoff funds owed by the department 
to a delinquent employer. 
    Sec. 15.  Minnesota Statutes 1990, section 268.18, 
subdivision 1, is amended to read: 
    Subdivision 1.  [ERRONEOUS PAYMENTS.] (a) Any claimant for 
benefits who, by reason of the claimant's own mistake or through 
the error of any individual engaged in the administration of 
sections 268.03 to 268.231 or because of a determination or 
redetermination issued pursuant to section 268.10, subdivision 
2, has received any sum as benefits to which the claimant was 
not entitled under these sections, shall promptly return such 
those benefits in cash to the nearest office of the Minnesota 
department of jobs and training.  If such the claimant fails to 
return such the benefits, the department of jobs and training 
shall, as soon as it discovers such the erroneous payment, 
determine the amount thereof due and notify said the individual 
to return the same it.  
    (b) Unless the claimant files a written appeal with the 
department of jobs and training within 15 days after the mailing 
of the notice of determination to the claimant's 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 above the matter 
shall be set for hearing before 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. 
    (c) The commissioner of the department of jobs and training 
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, except that no single deduction shall 
exceed 50 percent of the amount of the payment from which the 
deduction is made, or the overpayment may be collected the same 
as contributions or reimbursements under section 268.161.  If a 
claimant has been overpaid benefits under the law of another 
state due to error 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, except that no single 
deduction shall exceed 50 percent of the amount of the payment 
from which the deduction is made.  Benefits paid for weeks more 
than three years prior to the discovery of error are not 
erroneous payments. 
    (d) Notwithstanding paragraph (a), the commissioner shall 
waive recovery of an overpayment if a referee or the 
commissioner's representative determines the overpayment 
resulted from an administrative failure to identify that a 
claimant's wage credits were not earned in covered employment. 
    Sec. 16.  [RED LAKE BAND; TEMPORARY UNEMPLOYMENT INSURANCE 
RATE; ABATEMENT OF PENALTY, INTEREST, AND COSTS.] 
    To the extent permissible under the laws of the United 
States, and notwithstanding Minnesota Statutes, section 268.06, 
subdivisions 2 and 3a, the commissioner of the department of 
jobs and training shall enter into a compromise agreement with 
the governing body of the Red Lake Band of Chippewa Indians.  
The agreement shall retroactively establish and apply a 
zero-percentage contribution rate for each quarter of the years 
1988, 1989, 1990, 1991, 1992, and 1993, when no benefits under 
sections 268.001 to 268.25, were paid by the state on account of 
employment by the tribe or by any of its wholly 
tribally-controlled subsidiaries or subdivisions.  The agreement 
shall abate any amounts owed and relieve the tribe and its 
subsidiaries or subdivisions of all liability for amounts 
otherwise payable by the tribe or its subsidiaries or 
subdivisions for the period, including but not limited to, 
delinquent contributions, reimbursements, interest, penalties, 
and costs.  This section does not apply to any wholly 
tribally-controlled entity or subsidiary that elected coverage 
under Minnesota Statutes, chapter 268 prior to the day following 
final enactment. 
    Sec. 17.  [LEGISLATIVE INTENT.] 
    The legislature intends that sections 7 and 16 be 
interpreted and applied to assist the Red Lake Band of Chippewa 
Indians in complying with federal and state unemployment laws in 
a manner that does not lead to a determination by the United 
States Department of Labor that sections 7 and 16 are out of 
conformity with federal unemployment law.  In enacting section 
7, the legislature does not intend to suggest that Indian tribes 
should be permitted to choose governmental or nonprofit status 
or to make that status available for employment that is not 
appropriate for governmental or nonprofit treatment, rather, the 
legislature intends to accommodate in state law the status and 
treatment that may be allowed under federal law. 
    Sec. 18.  [SUNSET.] 
    Section 16 expires August 1, 1995. 
    Sec. 19.  [EFFECTIVE DATE.] 
    Sections 1 through 6 and 8 through 14 take effect the day 
following final enactment.  Section 15 is effective the day 
following final enactment and applies to recovery of 
overpayments pending on or after that date.  Sections 7 and 16 
take effect August 1, 1993. 
    Presented to the governor April 16, 1992 
    Signed by the governor April 20, 1992, 6:01 p.m.