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Minnesota Legislature

Office of the Revisor of Statutes

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

                            CHAPTER 265-S.F.No. 2621 
                  An act relating to economic security; making technical 
                  changes in the department of economic security; 
                  amending Minnesota Statutes 1996, sections 248.07, 
                  subdivision 15; 268.0122, subdivision 2; 268.08, as 
                  amended; 268.101, as amended; 268.13, subdivision 4; 
                  and 268.18, as amended; Minnesota Statutes 1997 
                  Supplement, sections 268.03; 268.042, subdivisions 1 
                  and 3; 268.043; 268.044, subdivision 1; 268.045; 
                  268.047, subdivisions 2, 3, and 5; 268.051; 268.057, 
                  subdivisions 1, 5, 6, and 7; 268.059; 268.063; 
                  268.064, subdivision 2; 268.066; 268.067; 268.07; 
                  268.09, subdivisions 1a, 10, 13, 16, and 17; 268.105, 
                  subdivision 3a; 268.125; 268.13, subdivisions 1 and 2; 
                  268.182; 268.184; 268.192, subdivision 1; 268.194, 
                  subdivisions 2, 3, and 6; and 268.196, subdivision 2; 
                  proposing coding for new law in Minnesota Statutes, 
                  chapter 268; repealing Minnesota Statutes 1996, 
                  sections 268.04, as amended; 268.08, subdivision 5a; 
                  268.13, subdivisions 3 and 5; and 268.25; Minnesota 
                  Statutes 1997 Supplement, sections 268.042, 
                  subdivision 2; and 268.054. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1996, section 248.07, 
        subdivision 15, is amended to read: 
           Subd. 15.  [APPEALS FROM AGENCY ACTION.] An applicant for 
        or recipient of rehabilitation service who is dissatisfied with 
        an agency's action with regard to the furnishing or denial of 
        services may file a request for administrative review and fair 
        hearing in accordance with the Code of Federal Regulations, 
        title 34, section 361.48, and rules adopted under subdivision 
        14a. 
           Sec. 2.  Minnesota Statutes 1996, section 268.0122, 
        subdivision 2, is amended to read: 
           Subd. 2.  [SPECIFIC POWERS.] The commissioner of economic 
        security shall: 
           (1) administer and supervise all forms of 
        unemployment reemployment insurance provided for under federal 
        and state laws that are vested in the commissioner;, including 
        make investigations and audits, secure and transmit information, 
        and make available services and facilities as the commissioner 
        considers necessary or appropriate to facilitate the 
        administration of any other states, or the federal economic 
        security law, and accept and use information, services, and 
        facilities made available by other states or the federal 
        government; 
           (2) administer and supervise all employment and training 
        services assigned to the department of economic security under 
        federal or state law; 
           (3) review and comment on local service unit plans and 
        community investment program plans and approve or disapprove the 
        plans; 
           (4) establish and maintain administrative units necessary 
        to perform administrative functions common to all divisions of 
        the department; 
           (5) supervise the county boards of commissioners, local 
        service units, and any other units of government designated in 
        federal or state law as responsible for employment and training 
        programs; 
           (6) establish administrative standards and payment 
        conditions for providers of employment and training services; 
           (7) act as the agent of, and cooperate with, the federal 
        government in matters of mutual concern, including the 
        administration of any federal funds granted to the state to aid 
        in the performance of functions of the commissioner; 
           (8) obtain reports from local service units and service 
        providers for the purpose of evaluating the performance of 
        employment and training services; and 
           (9) review and comment on plans for Indian tribe employment 
        and training services and approve or disapprove the plans. 
           Sec. 3.  Minnesota Statutes 1997 Supplement, section 
        268.03, is amended to read: 
           268.03 [DECLARATION OF PUBLIC POLICY.] 
           Subdivision 1.  [STATEMENT.] As a guide to the 
        interpretation and application of sections 268.03 to 268.30, The 
        public policy of this state underlying sections 268.03 to 268.23 
        is declared to be as follows:  Economic insecurity due to 
        involuntary unemployment is a serious menace threat to the 
        health, morals, and welfare well-being of the people of this 
        state Minnesota.  Involuntary unemployment is therefore a 
        subject of general interest and concern which that requires 
        appropriate action by the legislature to prevent its spread and 
        to lighten its burdens.  This can be provided by encouraging 
        employers to provide more stable employment and by the 
        systematic accumulation of funds during periods of employment to 
        provide benefits for periods of unemployment, thus maintaining 
        purchasing power and limiting the serious social consequences of 
        poor relief assistance.  The legislature, therefore, declares 
        that in its considered judgment The public good and the general 
        welfare well-being of the citizens of this state Minnesota will 
        be promoted by providing, under the police taxing powers of the 
        state for the compulsory setting aside of unemployment reserves 
        to be used for the benefit of persons individuals unemployed 
        through no fault of their own.  In recognition of its focus 
        on returning providing a temporary partial wage replacement to 
        assist the unemployed worker to gainful employment become 
        reemployed, this program will be known in Minnesota as 
        "reemployment insurance." 
           Subd. 2.  [STANDARD OF PROOF.] All issues of fact under 
        sections 268.03 to 268.23 shall be determined by a preponderance 
        of the evidence.  Preponderance of the evidence means evidence 
        in substantiation of a fact that, when weighed against the 
        evidence opposing the fact, is more convincing and has a greater 
        probability of truth. 
           Sec. 4.  [268.035] [DEFINITIONS.] 
           Subdivision 1.  [SCOPE.] Unless the language or context 
        clearly indicates that a different meaning is intended, the 
        words, terms, and phrases in this section shall, for the 
        purposes of sections 268.03 to 268.23, have the meaning stated. 
           Subd. 2.  [AGRICULTURAL EMPLOYMENT.] "Agricultural 
        employment" means services: 
           (1) on a farm, in the employ of any person or family farm 
        corporation in connection with cultivating the soil, or in 
        connection with raising or harvesting any agricultural or 
        horticultural commodity, including the raising, shearing, 
        feeding, caring for, training, and management of livestock, 
        bees, poultry, fur-bearing animals, and wildlife; 
           (2) in the employ of the owner or tenant or other operator 
        of a farm, in connection with the operation, management, 
        conservation, improvement, or maintenance of the farm and its 
        tools and equipment, or in salvaging timber or clearing land of 
        brush and other debris left by a tornado-like storm, if the 
        major part of the employment is performed on a farm; 
           (3) in connection with the production or harvesting of any 
        commodity defined as an agricultural product in United States 
        Code, title 7, section 1626 of the Agricultural Marketing Act, 
        or in connection with cotton ginning, or in connection with the 
        operation or maintenance of ditches, canals, reservoirs, or 
        waterways, not owned or operated for profit, used exclusively 
        for supplying and storing water for farming purposes; 
           (4) in the employ of the operator of a farm in handling, 
        planting, drying, packing, packaging, processing, freezing, 
        grading, storing, or delivering to storage or to market or to a 
        carrier for transportation to market, in its unmanufactured 
        state, any agricultural or horticultural commodity; but only if 
        the operator produced more than one-half of the commodity with 
        respect to which the employment is performed, or in the employ 
        of a group of operators of farms or a cooperative organization 
        of which the operators are members, but only if the operators 
        produced more than one-half of the commodity with respect to 
        which the employment is performed; however, this clause shall 
        not be applicable to employment performed in connection with 
        commercial canning or commercial freezing or in connection with 
        any agricultural or horticultural commodity after its delivery 
        to a terminal market for distribution for consumption; or 
           (5) on a farm operated for profit if the employment is not 
        in the course of the employer's trade or business. 
           For purposes of this subdivision, the term "farm" includes 
        stock, dairy, poultry, fruit, fur-bearing animals, and truck 
        farms, plantations, ranches, nurseries, orchards, ranges, 
        greenhouses, or other similar structures used primarily for the 
        raising of agricultural or horticultural commodities. 
           Subd. 3.  [BACK PAY.] "Back pay" means a retroactive 
        payment of money by an employer to an employee or former 
        employee for lost wages because of the employer's noncompliance 
        with a state or federal law or a collective bargaining agreement 
        as determined by an arbitration award, administrative or 
        judicial decision, or negotiated settlement.  The payment shall 
        be applied to the period immediately following the last day of 
        employment or as specified in the award, decision, or settlement.
           Subd. 4.  [BASE PERIOD.] "Base period" means: 
           (1) the first four of the last five completed calendar 
        quarters immediately prior to the effective date of a claimant's 
        reemployment insurance account; 
           (2) if during the base period under clause (1) a claimant 
        received workers' compensation for temporary disability under 
        chapter 176 or a similar law of the United States, or if a 
        claimant whose own serious illness caused a loss of work for 
        which the claimant received compensation for loss of wages from 
        some other source, the claimant may request that the base period 
        be extended as follows: 
           (i) if a claimant was compensated for a loss of work of 
        seven to 13 weeks, the original base period shall be extended to 
        include the one calendar quarter prior to the original base 
        period; 
           (ii) if a claimant was compensated for a loss of work of 14 
        to 26 weeks, the original base period shall be extended to 
        include the two calendar quarters prior to the original base 
        period; 
           (iii) if a claimant was compensated for a loss of work of 
        27 to 39 weeks, the original base period shall be extended to 
        include the three calendar quarters prior to the original base 
        period; and 
           (iv) if a claimant was compensated for a loss of work of 40 
        to 52 weeks, the original base period shall be extended to 
        include the four quarters prior to the original base period; 
           (3) if the claimant qualifies for an extended base period 
        under clause (2), but has insufficient wage credits to establish 
        a reemployment insurance account, the claimant may request an 
        alternate base period of the last four completed calendar 
        quarters prior to the date the claimant's reemployment insurance 
        account is effective.  This alternate base period may be used 
        only once during any five-calendar-year period; and 
           (4) no base period under clause (1), extended base period 
        under clause (2), or alternate base period under clause (3) 
        shall include wage credits upon which a prior reemployment 
        insurance account was established. 
           Subd. 5.  [BENEFITS.] "Benefits" means the money payments 
        payable to a claimant, as provided in sections 268.03 to 268.23, 
        with respect to the claimant's unemployment. 
           Subd. 6.  [BENEFIT YEAR.] "Benefit year" means the period 
        of 52 calendar weeks beginning the date a reemployment insurance 
        account is effective.  For a reemployment insurance account 
        established effective January 1, April 1, July 1, or October 1, 
        the benefit year will be a period of 53 calendar weeks. 
           Subd. 7.  [CALENDAR QUARTER.] "Calendar quarter" means the 
        period of three consecutive calendar months ending on March 31, 
        June 30, September 30, or December 31. 
           Subd. 8.  [CLAIMANT.] "Claimant" means an individual who 
        has made an application for a reemployment insurance account and 
        has established or is actively pursuing the establishment of a 
        reemployment insurance account. 
           Subd. 9.  [CONSTRUCTION/INDEPENDENT CONTRACTOR.] A worker 
        doing commercial or residential building construction or 
        improvement, in the public or private sector, performing 
        services in the course of the trade, business, profession, or 
        occupation of the employer, shall be considered an employee and 
        not an "independent contractor" unless the worker meets all the 
        following conditions: 
           (1) maintains a separate business with the independent 
        contractor's own office, equipment, materials, and other 
        facilities; 
           (2) holds or has applied for a federal employer 
        identification number; 
           (3) operates under contracts to perform specific services 
        or work for specific amounts of money under which the 
        independent contractor controls the means of performing the 
        services or work; 
           (4) incurs the main expenses related to the service or work 
        that the independent contractor performs under contract; 
           (5) is responsible for the satisfactory completion of work 
        or services that the independent contractor contracts to perform 
        and is liable for a failure to complete the work or service; 
           (6) receives compensation for work or service performed 
        under a contract on a commission or per job or competitive bid 
        basis and not on any other basis; 
           (7) may realize a profit or suffer a loss under contracts 
        to perform work or service; 
           (8) has continuing or recurring business liabilities or 
        obligations; and 
           (9) the success or failure of the independent contractor's 
        business depends on the relationship of business receipts to 
        expenditures. 
           Subd. 10.  [CORPORATION.] "Corporation" includes 
        associations, joint-stock companies, and insurance companies.  
        This definition shall not be exclusive. 
           Subd. 11.  [COVERED AGRICULTURAL EMPLOYMENT.] "Covered 
        agricultural employment" means agricultural employment where: 
           (1) The employment is performed for a person who: 
           (i) during any calendar quarter in either the current or 
        the prior calendar year paid wages of $20,000 or more to 
        employees in agricultural employment; or 
           (ii) for some portion of a day in each of 20 different 
        calendar weeks, whether or not the weeks were consecutive, in 
        either the current or prior calendar year employed in 
        agricultural employment four or more employees, regardless of 
        whether they were employed at the same time. 
           (2) Any employee who is a member of a crew furnished by a 
        crew leader to be employed in agricultural employment for any 
        other person shall be treated as an employee of the crew leader: 
           (i) if the crew leader holds a valid certificate of 
        registration under United States Code, title 29, section 1802, 
        the Migrant and Seasonal Agricultural Worker Protection Act; or 
        substantially all of the members of the crew operate or maintain 
        tractors, mechanized harvesting or crop dusting equipment, or 
        any other mechanized equipment, that is provided by the crew 
        leader; and 
           (ii) if the employee is not an employee of another person. 
           (3) Any employee who is furnished by a crew leader to be 
        employed in agricultural employment for any other person and who 
        is not treated as an employee of the crew leader under clause 
        (2): 
           (i) the other person and not the crew leader shall be 
        treated as the employer of the employee; and 
           (ii) the other person shall be treated as having paid wages 
        to the employee in an amount equal to the amount of wages paid 
        to the employee by the crew leader (either on the crew leader's 
        behalf or on behalf of the other person) for the agricultural 
        employment performed for the other person. 
           (4) The term "crew leader" means an individual who: 
           (i) furnishes employees to be employed in agricultural 
        employment for any other person; 
           (ii) pays (either on the crew leader's own behalf or on 
        behalf of the other person) the employees furnished by the crew 
        leader for the agricultural employment performed by them; and 
           (iii) has not entered into a written agreement with the 
        other person under which the furnished employee is designated as 
        an employee of the other person. 
           (5) Employment of an officer or shareholder of a family 
        farm corporation shall be excluded from covered agricultural 
        employment unless the corporation is an employer under United 
        States Code, title 26, section 3306(a)(2) of the Federal 
        Unemployment Tax Act. 
           (6) Employment of an individual 16 years of age or under 
        shall be excluded from covered agricultural employment unless 
        the employer is an employer under United States Codes, title 26, 
        section 3306(a)(2) of the Federal Unemployment Tax Act. 
           Subd. 12.  [COVERED EMPLOYMENT.] "Covered employment" means 
        the following unless defined as "noncovered employment" under 
        subdivision 20: 
           (1) an employee's entire employment if: 
           (i) the employment is performed entirely in Minnesota; 
           (ii) the employment is performed primarily in Minnesota, 
        and the employment performed outside Minnesota is incidental to 
        the employment in Minnesota; or 
           (iii) the employment is not performed primarily in any one 
        state but some of the employment is performed in Minnesota and 
        the base of operations or the place from which the employment is 
        directed or controlled is in Minnesota; or the base of 
        operations or place from which the employment is directed or 
        controlled is not in any state in which part of the employment 
        is performed, but the employee's residence is in Minnesota; 
           (2) an employee's employment wherever performed within the 
        United States or Canada, if: 
           (i) the employment is not covered under the reemployment 
        insurance law of any other state or Canada; and 
           (ii) the place from which the employment is directed or 
        controlled is in Minnesota; 
           (3) the employment of an employee who is a citizen of the 
        United States, performed outside the United States, except in 
        Canada, in the employ of an American employer if: 
           (i) the employer's principal place of business in the 
        United States is located in Minnesota; 
           (ii) the employer has no place of business in the United 
        States, but the employer is an individual who is a resident of 
        Minnesota, or the employer is a corporation that is organized 
        under the laws of Minnesota, or the employer is a partnership or 
        a trust and the number of partners or trustees who are residents 
        of Minnesota is greater than the number who are residents of any 
        one other state; 
           (iii) none of the criteria of subclauses (i) and (ii) is 
        met but the employer has elected coverage in Minnesota, or the 
        employer having failed to elect coverage in any state, a 
        claimant has made an application for benefits under section 
        268.07, based on the employment; 
           (iv) an "American employer," for the purposes of this 
        subdivision, means an individual who is a resident of the United 
        States, or a partnership if two-thirds or more of the partners 
        are residents of the United States, or a trust, if all of the 
        trustees are residents of the United States, or a corporation 
        organized under the laws of the United States, or of any state; 
        or 
           (v) as used in this subdivision, the term "United States" 
        includes the states, the District of Columbia, the Commonwealth 
        of Puerto Rico, and the Virgin Islands; 
           (4) all employment performed by an officer or member of the 
        crew of an American vessel on or in connection with the vessel, 
        if the operating office, from which the operations of the vessel 
        operating on navigable waters within, or within and without, the 
        United States are ordinarily and regularly supervised, managed, 
        directed, and controlled is in Minnesota; 
           (5) for the purposes of satisfying disqualifications under 
        section 268.095, subdivision 10, "covered employment" shall 
        include covered employment under a similar law of any other 
        state or employment covered under a reemployment insurance 
        system established by an act of Congress; and 
           (6) periods for which an individual receives back pay are 
        periods of "covered employment," except for the satisfying of 
        disqualifications under section 268.095, subdivision 10. 
           Subd. 13.  [EMPLOYEE.] "Employee" means every individual, 
        who is performing, or has performed services for an employer in 
        employment. 
           Subd. 14.  [EMPLOYER.] "Employer" means any of the 
        following which has had one or more employees during the current 
        or the prior calendar year: 
           (1) any individual or type of organization, resident or 
        nonresident, for profit or nonprofit, religious, charitable, or 
        educational, including any partnership, limited liability 
        company, trust, estate, or corporation, domestic or foreign, or 
        the receiver, trustee in bankruptcy, trustee or successor of any 
        of the foregoing, or the legal representative of a deceased 
        person; 
           (2) any government entity, state or federal, foreign or 
        domestic, Indian tribe, including any subdivision thereof and 
        any instrumentality thereof owned wholly or in part; 
           (3) any organization or person that is considered an 
        employer under United States Code, title 26, section 3306(a) of 
        the Federal Unemployment Tax Act; 
           (4) any organization or person that has elected, under 
        section 268.042, to be subject to sections 268.03 to 268.23; 
           (5) a joint venture composed of one or more employers; 
           (6) any private or nonprofit organization or government 
        agency providing or authorizing the hiring of homeworkers, 
        personal care attendants, or other individuals performing 
        similar services in a private home is the employer of the 
        homeworker, attendant, or similar worker whether the agency pays 
        the employee directly or provides funds to the recipient of the 
        services to pay for the services.  This clause does not apply to 
        the state of Minnesota or any county that provides federal, 
        state, or local funds to a child care provider either directly 
        or indirectly through a parent who is a child care assistance 
        recipient; or 
           (7) each individual employed to perform or assist in 
        performing the work of any agent or employee shall be considered 
        to be employed by that employer whether the individual was hired 
        or paid directly by that employer or by the agent or employee, 
        provided the employer had actual or constructive knowledge of 
        the work. 
           Subd. 15.  [EMPLOYMENT.] "Employment" means service 
        performed by: 
           (1) an individual who is considered an employee under the 
        common law of employer-employee and not considered an 
        independent contractor; 
           (2) an officer of a corporation; 
           (3) a member of a limited liability company who is 
        considered an employee under the common law of 
        employer-employee; 
           (4) an individual who performs services for compensation, 
        as: 
           (i) an agent-driver or commission-driver engaged in 
        distributing meat products, vegetable products, fruit products, 
        beverages, or laundry or dry cleaning services, for a principal; 
        or 
           (ii) a traveling or city salesperson, other than as an 
        agent-driver or commission-driver, engaged upon a full-time 
        basis in the solicitation on behalf of, and the transmission to, 
        a principal (except for sideline sales activities on behalf of 
        some other person) of orders from wholesalers, retailers, 
        contractors, or operators of hotels, restaurants, or other 
        similar establishments for merchandise for resale or supplies 
        for use in their business operations. 
           This clause shall apply only if the contract of service 
        provides that substantially all of the services are to be 
        performed personally by the individual, and the services are 
        part of a continuing relationship with the person for whom the 
        services are performed, and the individual does not have a 
        substantial investment in facilities used in connection with the 
        performance of the services (other than facilities for 
        transportation); or 
           (5) an individual whose service is considered employment 
        under United States Code, title 26, section 3306(c), of the 
        Federal Unemployment Tax Act. 
           Subd. 16.  [FAMILY FARM CORPORATION.] "Family farm 
        corporation" has the meaning given to it in section 500.24, 
        subdivision 2. 
           Subd. 17.  [FILING; FILED.] "Filing" or "filed" means the 
        delivery of any document to the commissioner or any of the 
        commissioner's agents, or the depositing of the document in the 
        United States mail properly addressed to the department with 
        postage prepaid, in which case the document shall be considered 
        filed on the day indicated by the cancellation mark of the 
        United States Postal Service. 
           If, where allowed, an application, protest, appeal, or 
        other required action is made by telephone or electronic 
        transmission, it shall be considered filed on the day received 
        by the department. 
           Subd. 18.  [FUND.] "Fund" means the Minnesota reemployment 
        insurance fund established by section 268.194. 
           Subd. 19.  [HIGH QUARTER.] "High quarter" means the 
        calendar quarter in a claimant's base period with the highest 
        amount of wage credits. 
           Subd. 20.  [NONCOVERED EMPLOYMENT.] "Noncovered employment" 
        means: 
           (1) employment for the United States government or an 
        instrumentality thereof; 
           (2) employment for an Indian, an Indian-controlled 
        employer, and Indian tribe, or any wholly controlled 
        subsidiaries or subdivisions, if the employment is performed on 
        an Indian reservation or Indian Trust Land; 
           (3) employment for a state, other than Minnesota, or a 
        political subdivision or instrumentality thereof; 
           (4) employment for a foreign government; 
           (5) employment for an instrumentality wholly owned by a 
        foreign government, if the employment is of a character similar 
        to that performed in foreign countries by employees of the 
        United States government or an instrumentality thereof and the 
        United States Secretary of State has certified that the foreign 
        government grants an equivalent exemption to similar employment 
        performed in the foreign country by employees of the United 
        States government and instrumentalities thereof; 
           (6) employment with respect to which reemployment insurance 
        benefits are payable under a system established by an act of 
        Congress; 
           (7) employment covered by a reciprocal arrangement between 
        the commissioner and another state or the federal government 
        pursuant to which all employment performed by an individual for 
        an employer during the period covered by the reciprocal 
        arrangement is considered performed entirely within another 
        state; 
           (8) employment for a religious, charitable, education, or 
        other organization described in United States Code, title 26, 
        section 501(c)(3) of the federal Internal Revenue Code and 
        exempt from income tax under section 501(a), but only if the 
        organization did not have one or more individuals in employment 
        for some portion of a day in each of 20 different weeks, whether 
        or not such weeks were consecutive, within either the current or 
        the prior calendar year, regardless of whether they were 
        employed at the same time; 
           (9) employment for a church or convention or association of 
        churches, or an organization operated primarily for religious 
        purposes that is operated, supervised, controlled, or 
        principally supported by a church or convention or association 
        of churches described in United States Code, title 26, section 
        501(c)(3) of the federal Internal Revenue Code and exempt from 
        income tax under section 501(a); 
           (10) employment of a duly ordained, commissioned, or 
        licensed minister of a church in the exercise of a ministry or 
        by a member of a religious order in the exercise of duties 
        required by the order, for Minnesota or a political subdivision 
        or an organization described in United States code, title 26, 
        section 501(c)(3) of the federal Internal Revenue Code and 
        exempt from income tax under section 501(a); 
           (11) employment of an individual receiving rehabilitation 
        of "sheltered" work in a facility conducted for the purpose of 
        carrying out a program of rehabilitation for individuals whose 
        earning capacity is impaired by age or physical or mental 
        deficiency or injury or a program providing "sheltered" work for 
        individuals who because of an impaired physical or mental 
        capacity cannot be readily absorbed in the competitive labor 
        market.  This clause applies only to services performed for 
        Minnesota or a political subdivision or an organization 
        described in United States Code, title 26, section 501 (c)(3) of 
        the federal Internal Revenue Code and exempt from income tax 
        under section 501(a) in a facility certified by the 
        rehabilitation services branch of the department or in a day 
        training or habilitation program licensed by the department of 
        human services; 
           (12) employment of an individual receiving work relief or 
        work training as part of an unemployment work relief or work 
        training program assisted or financed in whole or in part by any 
        federal agency or an agency of a state or political subdivision 
        thereof.  This clause applies only to employment for Minnesota 
        or a political subdivision or an organization described in 
        United States Code, title 26, section 501(c)(3) of the federal 
        Internal Revenue Code and exempt from income tax under section 
        501(a).  This clause shall not apply to programs that require 
        reemployment insurance coverage for the participants; 
           (13) employment in any calendar quarter for any 
        organization exempt from income tax under United States Code, 
        title 26, section 501(a) or 521 of the federal Internal Revenue 
        Code except a trust described in section 401(a), if the 
        compensation for the employment is less than $50; 
           (14) employment for Minnesota or a political subdivision if 
        the service is as an elected official, a member of a legislative 
        body, or a member of the judiciary; 
           (15) employment as a member of the Minnesota national guard 
        or air national guard; 
           (16) employment for Minnesota, a political subdivision, or 
        instrumentality thereof, as an employee serving only on a 
        temporary basis in case of fire, storm, snow, earthquake, flood, 
        or similar emergency; 
           (17) employment as an election official or election worker 
        for Minnesota or a political subdivision, but only if the 
        compensation for that employment was less than $1,000 in a 
        calendar year; 
           (18) employment for Minnesota that is a major nontenured 
        policy making or advisory position in the unclassified service; 
           (19) employment in a policy making position for Minnesota 
        or a political subdivision, the performance of the duties that 
        ordinarily does not require more than eight hours per week; 
           (20) employment for a political subdivision of Minnesota 
        that is a major nontenured policy making or advisory position; 
           (21) domestic service in a private household, local college 
        club, or local chapter of a college fraternity or sorority 
        performed for a person, only if the wages paid in any calendar 
        quarter in either the current or preceding calendar year to all 
        individuals employed in domestic service totaled less than 
        $1,000. 
           "Domestic service" includes all service for an individual 
        in the operation and maintenance of a private household, for a 
        local college club, or local chapter of a college fraternity or 
        sorority as distinguished from service as an employee in the 
        pursuit of an employer's trade, occupation, profession, 
        enterprise, or vocation; 
           (22) employment of an individual by a son, daughter, or 
        spouse, and employment of a child under the age of 18 by the 
        child's father or mother; 
           (23) employment of an inmate of a custodial or penal 
        institution; 
           (24) employment for a school, college, or university by a 
        student who is enrolled and is regularly attending classes at 
        the school, college, or university; 
           (25) employment of an individual who is enrolled as a 
        student in a full-time program at a nonprofit or public 
        educational institution that normally maintains a regular 
        faculty and curriculum and normally has a regularly organized 
        body of students in attendance at the place where its 
        educational activities are carried on, taken for credit at the 
        institution, that combines academic instruction with work 
        experience, if the employment is an integral part of the 
        program, and the institution has so certified to the employer, 
        except that this clause shall not apply to employment in a 
        program established for or on behalf of an employer or group of 
        employers; 
           (26) employment of university, college, or professional 
        school students in an internship or other training program with 
        the city of St. Paul or the city of Minneapolis pursuant to Laws 
        1990, chapter 570, article 6, section 3; 
           (27) employment for a hospital by a patient of the hospital.
        "Hospital" means an institution that has been licensed, 
        certified, or approved by the department of health as a 
        hospital; 
           (28) employment as a student nurse for a hospital or a 
        nurses' training school by an individual who is enrolled and is 
        regularly attending classes in a nurses' training school 
        chartered and approved pursuant to state law; 
           (29) employment as an intern for a hospital by an 
        individual who has completed a four-year course in a medical 
        school chartered and approved pursuant to state law; 
           (30) employment as an insurance agent or as an insurance 
        solicitor, by other than a corporate officer, if all the 
        compensation for the employment is solely by way of commission.  
        The word "insurance" shall include an annuity and an optional 
        annuity; 
           (31) employment as an officer of a township mutual 
        insurance company or farmer's mutual insurance company operating 
        pursuant to chapter 67A; 
           (32) employment as a real estate salesperson, by other than 
        a corporate officer, if all the compensation for the employment 
        is solely by way of commission; 
           (33) employment as a direct seller as defined in United 
        States Code, title 26, section 3508; 
           (34) employment of an individual under the age of 18 in the 
        delivery or distribution of newspapers or shopping news, not 
        including delivery or distribution to any point for subsequent 
        delivery or distribution; 
           (35) casual labor not in the course of the employer's trade 
        or business; 
           (36) employment in "agricultural employment" unless 
        considered "covered agricultural employment" under subdivision 
        11; or 
           (37) if the employment during one-half or more of any pay 
        period constitutes covered employment, all the employment for 
        the period shall be considered covered employment; but if the 
        employment performed during more than one-half of any pay period 
        does not constitute covered employment, then none of the 
        employment for the period shall be considered covered 
        employment.  "Pay period" means a period of not more than a 
        calendar month for which a payment or compensation is ordinarily 
        made to the employee by the employer. 
           Subd. 21.  [PERSON.] "Person" means an individual, trust or 
        estate, a partnership or a corporation. 
           Subd. 22.  [STATE.] "State" includes, in addition to the 
        states of the United States, the Commonwealth of Puerto Rico, 
        the District of Columbia, and the Virgin Islands. 
           Subd. 23.  [STATE'S AVERAGE ANNUAL AND AVERAGE WEEKLY 
        WAGE.] (a) On or before June 30 of each year, the commissioner 
        shall calculate the state's average annual wage and the state's 
        average weekly wage in the following manner: 
           (1) The sum of the total monthly covered employment 
        reported by all employers for the prior calendar year shall be 
        divided by 12 to calculate the average monthly covered 
        employment. 
           (2) The sum of the total wages paid for all covered 
        employment reported by all employers for the prior calendar year 
        shall be divided by the average monthly covered employment to 
        calculate the state's average annual wage. 
           (3) The state's average annual wage shall be divided by 52 
        to calculate the state's average weekly wage. 
           (b) For purposes of calculating the amount of taxable 
        wages, the state's average annual wage shall apply to the 
        calendar year following the calculation. 
           (c) For purposes of calculating the state's maximum weekly 
        benefit amount payable on any reemployment insurance account, 
        the state's average weekly wage shall apply to the 12-month 
        period beginning August 1 of the calendar year of the 
        calculation. 
           Subd. 24.  [TAXABLE WAGES.] (a) "Taxable wages" means those 
        wages paid to an employee in covered employment each calendar 
        year up to an amount equal to 60 percent of the state's average 
        annual wage, rounded to the nearest $100. 
           (b) Taxable wages includes the amount of wages paid for 
        covered employment by the employer's predecessor in this state 
        or under the reemployment insurance law of any other state.  Any 
        credit given for amounts reported under the reemployment 
        insurance law of another state shall be limited to that state's 
        taxable wage base. 
           Subd. 25.  [TAXES.] "Taxes" means the money payments 
        required by sections 268.03 to 268.23 to be paid into the fund 
        by an employer on account of paying wages to employees in 
        covered employment. 
           Subd. 26.  [UNEMPLOYED.] A claimant shall be considered 
        "unemployed," (1) in any week that the claimant performs no 
        service in employment, covered employment, noncovered 
        employment, self-employment, or volunteer work, and with respect 
        to which the claimant has no earnings; or (2) in any week of 
        less than 32 hours of service in employment, covered employment, 
        noncovered employment, self-employment, or volunteer work if the 
        earnings with respect to that week are less than the claimant's 
        weekly benefit amount.  
           Subd. 27.  [WAGE CREDITS.] "Wage credits" mean the amount 
        of wages paid within a claimant's base period for covered 
        employment. 
           Subd. 28.  [WAGE DETAIL REPORT.] "Wage detail report" means 
        the report of wages paid and hours worked by each employee in 
        covered employment on a calendar quarter basis.  An auxiliary 
        report broken down by business locations, when required by the 
        commissioner, shall contain the number of employees in covered 
        employment for each month, and the quarterly total wages for 
        each location.  The auxiliary report may be made part of the 
        wage detail report, the tax report, or filed separately, as 
        required by the commissioner. 
           Subd. 29.  [WAGES.] "Wages" means all compensation for 
        services, including commissions; bonuses; severance payments; 
        vacation and holiday pay; back pay as of the date of payment; 
        tips and gratuities paid to an employee by a customer of an 
        employer and accounted for by the employee to the employer; 
        sickness and accident disability payments, except as otherwise 
        provided in this subdivision; and the cash value of all 
        compensation in any medium other than cash, except: 
           (1) the amount of any payment made to, or on behalf of, an 
        employee under a plan established by an employer that makes 
        provision for employees generally or for a class or classes of 
        employees, including any amount paid by an employer for 
        insurance or annuities, or into a plan, to provide for a 
        payment, on account of (i) retirement or (ii) medical and 
        hospitalization expenses in connection with sickness or accident 
        disability, or (iii) death; 
           (2) the payment by an employer of the tax imposed upon an 
        employee under United States Code, title 26, section 3101 of the 
        Federal Insurance Contribution Act, with respect to compensation 
        paid to an employee for domestic service in a private household 
        of the employer or for agricultural employment; 
           (3) any payment made to, or on behalf of, an employee or 
        beneficiary (i) from or to a trust described in United States 
        Code, title 26, section 401(a) of the federal Internal Revenue 
        Code that is exempt from tax under section 501(a) at the time of 
        the payment unless the payment is made to an employee of the 
        trust as compensation for services as an employee and not as a 
        beneficiary of the trust, or (ii) under or to an annuity plan 
        that, at the time of the payment, is a plan described in section 
        403(a); 
           (4) sickness or accident disability payments made by the 
        employer after the expiration of six calendar months following 
        the last calendar month that the individual worked for the 
        employer; 
           (5) disability payments made under the provisions of any 
        workers' compensation law; 
           (6) sickness or accident disability payments made by a 
        third party payer such as an insurance company; 
           (7) payments made into a fund, or for the purchase of 
        insurance or an annuity, to provide for sickness or accident 
        disability payments to employees pursuant to a plan or system 
        established by the employer that provides for the employer's 
        employees generally or for a class or classes of employees; or 
           (8) nothing in this subdivision shall exclude from the term 
        "wages" any payment made under any type of salary reduction 
        agreement, including payments made under a cash or deferred 
        arrangement and cafeteria plan, as defined in United States 
        Code, title 26, sections 401(k) and 125, of the federal Internal 
        Revenue Code, to the extent that the employee has the option to 
        receive the payment in cash. 
           Subd. 30.  [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. 
           Subd. 31.  [WEEK.] "Week" means calendar week, ending at 
        midnight Saturday. 
           Subd. 32.  [WEEKLY BENEFIT AMOUNT.] "Weekly benefit amount" 
        means the amount of benefits computed under section 268.07, that 
        a claimant would be entitled to receive for a week, if totally 
        unemployed and eligible. 
           Sec. 5.  Minnesota Statutes 1997 Supplement, section 
        268.042, subdivision 1, is amended to read: 
           Subdivision 1.  [EMPLOYER FOR PART OF YEAR.] Except as 
        provided in subdivisions 2 and subdivision 3, any employing unit 
        which organization or person that is or becomes an employer 
        subject to sections 268.03 to 268.23 within any calendar year 
        shall be deemed considered to be an employer during the whole of 
        such entire calendar year.  
           Sec. 6.  Minnesota Statutes 1997 Supplement, section 
        268.042, subdivision 3, is amended to read: 
           Subd. 3.  [ELECTION AGREEMENTS; TERMINATION POWERS OF 
        COMMISSIONER.] (1) (a) An employing unit organization or person, 
        not defined as an employer under this chapter, that files with 
        the commissioner a written election to become an employer, 
        shall, with the written approval of the commissioner, become an 
        employer for not less than two calendar years to the same extent 
        as all other employers, as of the date stated in the approval.  
        The employing unit organization or person shall cease to be an 
        employer as of the first day of January of any calendar year, 
        only, if at least 30 calendar days prior to the first day of 
        January, the employing unit organization or person has filed 
        with the commissioner a written notice to that effect. 
           (2) (b) Any employing unit employer that has services 
        performed for it that do not constitute employment and covered 
        employment, may file with the commissioner a written election 
        that all such service, in one or more distinct establishments or 
        places of business, shall be deemed to constitute considered 
        covered employment for purposes of this chapter for not less 
        than two calendar years.  Upon the written approval of the 
        commissioner, the services shall be deemed to constitute covered 
        employment from and after the date stated in the approval.  The 
        services shall cease to be deemed considered covered employment 
        as of the first day of January of any calendar year only if at 
        least 30 calendar days prior to the first day of January 
        the employing unit employer has filed with the commissioner a 
        written notice to that effect.  
           (3) (c) The commissioner must terminate any election 
        agreement under this subdivision upon 30 calendar days notice to 
        the employing unit, if the employing unit employer fails to pay 
        all contributions taxes due or payments in lieu of contributions 
        taxes due the reemployment insurance fund. 
           Sec. 7.  Minnesota Statutes 1997 Supplement, section 
        268.043, is amended to read: 
           268.043 [DETERMINATIONS OF COVERAGE.] 
           An official, designated by (a) The commissioner, upon the 
        commissioner's own motion or upon application of an employing 
        unit organization or person, shall determine if an employing 
        unit that organization or person is an employer within the 
        meaning of this chapter or as to whether services performed for 
        it constitute employment within the meaning of this chapter and 
        covered employment, or whether the remuneration compensation for 
        services constitutes wages as defined in section 268.04, 
        subdivision 25, and shall notify the employing unit organization 
        or person of the determination.  The determination shall be 
        final unless the employing unit organization or person, within 
        30 calendar days after the mailing sending of notice of the 
        determination to the employing unit's last known address by mail 
        or electronic transmission, files a written an appeal from it.  
        Proceedings on the appeal shall be conducted in accordance with 
        section 268.105. 
           (b) The commissioner may at any time upon the 
        commissioner's own motion correct any error of the department 
        resulting in an erroneous determination under this section, 
        except for those matters that have been appealed to the court of 
        appeals and heard on the merits.  The commissioner shall issue a 
        redetermination which A corrected determination shall be final 
        unless the employing unit, within 30 calendar days after the 
        mailing sending of notice of the redetermination corrected 
        determination to the employing unit's last known 
        address organization or person by mail or electronic 
        transmission, files a written an appeal from it is filed.  
        Proceedings on the appeal shall be conducted in accordance with 
        section 268.105. 
           (c) No organization or person shall be initially determined 
        an employer, or that services performed for it were in 
        employment or covered employment, for periods more than four 
        years prior to the year in which the determination is made, 
        unless the commissioner finds that there was fraudulent action 
        to avoid liability under this chapter. 
           Sec. 8.  Minnesota Statutes 1997 Supplement, section 
        268.044, subdivision 1, is amended to read: 
           Subdivision 1.  [WAGE DETAIL REPORT.] (a) Each employer 
        that has employees in covered employment shall provide the 
        commissioner with a quarterly wage detail report that.  The 
        report shall include for each employee in covered employment, 
        the employee's name, social security number, the total wages 
        paid to the employee, and total number of paid hours worked.  
        For employees exempt from the definition of employee in section 
        177.23, subdivision 7, clause (6), the employer shall report 40 
        hours worked for each week any duties were performed by a 
        full-time employee and shall report a reasonable estimate of the 
        hours worked for each week duties were performed by a part-time 
        employee.  The report is due and must be filed on or before the 
        last day of the month following the end of the calendar quarter. 
           (b) The employer may report the wages paid to the nearest 
        whole dollar amount. 
           (c) An employer need not include the name of the employee 
        or other required information on the wage detail report if 
        disclosure is specifically exempted by federal law. 
           Sec. 9.  Minnesota Statutes 1997 Supplement, section 
        268.045, is amended to read: 
           268.045 [EMPLOYER ACCOUNTS.] 
           (a) The commissioner shall maintain a separate account for 
        each employer that has employees in covered employment in the 
        current or the prior calendar year, except as provided in this 
        section, and shall charge the account for any benefits 
        determined chargeable to the employer under section 268.047 and 
        shall credit the account with all the contributions taxes paid, 
        or if the employer is liable for payments in lieu 
        of contributions taxes, the payments made. 
           (b) Two or more related corporations concurrently employing 
        the same employees and compensating those employees through a 
        common paymaster which that is one of the corporations may apply 
        to the commissioner to establish a common paymaster account that 
        shall be the account of the common paymaster corporation.  If 
        approved, the separate accounts shall be maintained, but the 
        employees compensated through the common paymaster shall be 
        reported as employees of the common paymaster corporation.  The 
        corporations using the common paymaster account shall be jointly 
        and severally liable for any unpaid contributions taxes, 
        penalties, and interest owing from the common paymaster 
        account.  The commissioner may prescribe rules for the 
        establishment, maintenance and termination of common paymaster 
        accounts. 
           (c) Two or more employing units employers having 50 percent 
        or more common ownership and compensating employees through a 
        single payee payer that is one of the employing units employers 
        may apply to the commissioner for a merging of the experience 
        rating records of the employing units employers into a single 
        joint account. 
           If approved, the joint account shall be effective on that 
        date assigned by the commissioner and shall remain in effect for 
        not less than two calendar years, and continuing unless written 
        notice terminating the joint account is filed with the 
        commissioner.  The termination shall be effective on January 1 
        next following the filing of the written notice of termination. 
           The employing units employers in the joint account shall be 
        jointly and severally liable for any unpaid contributions taxes, 
        penalties, and interest owing from the joint account. 
           (d) Two or more employers that are liable for payments in 
        lieu of contributions taxes may apply to the commissioner for 
        the establishment of a group account for the purpose of sharing 
        the cost of benefits charged based upon wage credits from all 
        employers in the group.  The application shall identify and 
        authorize a group representative to act as the group's agent for 
        the purposes of the account.  If approved, the commissioner 
        shall establish a group account for the employers effective as 
        of the beginning of the calendar year that the application is 
        received.  The account shall remain in effect for not less than 
        two calendar years and thereafter until terminated at the 
        discretion of the commissioner or upon application by the group 
        at least 30 calendar days prior to the end of the two year 
        period or 30 calendar days prior to January 1 of any following 
        calendar year subsequent.  Each employer in the group shall be 
        jointly and severally liable for payments in lieu 
        of contributions taxes for all benefits paid based upon wage 
        credits from all employers in the group during the period the 
        group account was in effect.  The commissioner may prescribe 
        rules for the establishment, maintenance and termination of 
        group accounts. 
           Sec. 10.  Minnesota Statutes 1997 Supplement, section 
        268.047, subdivision 2, is amended to read: 
           Subd. 2.  [EXCEPTIONS TO CHARGES FOR ALL EMPLOYERS.] 
        Benefits paid to a claimant shall not be charged to the account 
        of a contributing taxpaying base period employer or to the 
        account of a base period employer that is liable for payments in 
        lieu of contributions taxes under the following conditions: 
           (a) (1) the claimant was discharged from the employment 
        because of gross misconduct as determined under section 268.09, 
        subdivision 10, clause (2) 268.095.  This paragraph clause shall 
        apply only to benefits paid for weeks occurring subsequent to 
        after the claimant's discharge from employment; or 
           (b) (2) a claimant's discharge from that employment was 
        required by a law mandating a background check, or the 
        claimant's discharge from that employment was required by law 
        because of a criminal conviction; or 
           (c) (3) the employer: 
           (1) (i) provided regularly scheduled part-time employment 
        to the claimant during the claimant's base period; 
           (2) (ii) during the claimant's benefit year, continues to 
        provide the claimant with regularly scheduled employment 
        approximating 90 percent of the employment provided the claimant 
        by that employer in the base period, or, for a fire department 
        or firefighting corporation or operator of a life-support 
        transportation service, continues to provide employment for a 
        volunteer firefighter or a volunteer ambulance service personnel 
        on the same basis that employment was provided in the base 
        period; and 
           (3) (iii) is an involved employer because of the claimant's 
        loss of other employment.  The exception to charges shall 
        terminate effective the first week in the claimant's benefit 
        year that the employer fails to meet the provisions of clause 
        (2) subclause (ii); 
           This clause shall apply to educational institution 
        employers without consideration of the period between academic 
        years or terms; or 
           (d) (4) the claimant's unemployment: 
           (1) from this employer was directly caused by a major 
        natural disaster declared by the president pursuant to Section 
        102(2) of the Disaster Relief Act of 1974, United States Code, 
        title 42, section 5122(2), if the claimant would have been 
        eligible for federal disaster unemployment assistance with 
        respect to that unemployment but for the claimant's receipt of 
        reemployment insurance benefits; or 
           (2) (5) the claimant's unemployment from this employer was 
        directly caused by the condemnation of property by a 
        governmental agency, a fire, flood, or act of God where 70 
        percent or more of the employees employed in the affected 
        location became unemployed as a result and the employer 
        substantially reopens its operations in that same area within 18 
        months.  Benefits shall be charged to the employer where the 
        unemployment is caused by the willful act of the employer or a 
        person acting on behalf of the employer; or 
           (e) (6) the benefits were paid by another state as a result 
        of the transferring of wage credits under a federally combined 
        wage agreement arrangement provided for in section 
        268.13 268.131; or 
           (f) (7) on a second reemployment insurance account 
        established pursuant to section 268.07, subdivision 3, where the 
        employer provided 90 percent or more of the wage credits in the 
        claimant's preceding prior base period and the claimant did not 
        perform services for the employer during the subsequent second 
        base period; or 
           (g) (8) the claimant left or partially or totally lost 
        employment because of a strike or other labor dispute at the 
        claimant's primary place of employment if the employer was not a 
        party to the particular strike or labor dispute; or 
           (h) (9) the benefits were determined overpaid benefits 
        under section 268.18. 
           Sec. 11.  Minnesota Statutes 1997 Supplement, section 
        268.047, subdivision 3, is amended to read: 
           Subd. 3.  [EXCEPTIONS TO CHARGES FOR CONTRIBUTING TAXPAYING 
        EMPLOYERS.] Benefits paid to a claimant shall not be charged to 
        the account of a contributing taxpaying base period employer 
        under the following conditions: 
           (a) (1) the claimant's wage credits from that employer are 
        less than $500; 
           (b) (2) the claimant quit the employment, unless it was 
        determined under section 268.09, subdivisions 1a and 9 268.095, 
        to have been because of a good reason caused by the employer.  
        This paragraph clause shall apply only to benefits paid for 
        periods occurring subsequent to after the claimant's quitting 
        the employment; 
           (c) (3) the employer discharged the claimant from 
        employment because of misconduct as determined pursuant to under 
        section 268.09, subdivisions 10 and 12 268.095.  This paragraph 
        clause shall apply only to benefits paid for periods occurring 
        subsequent to after the claimant's discharge from employment; 
           (d) (4) the employer discharged the claimant from 
        employment because of reasons resulting directly from the 
        claimant's serious illness, that was determined not misconduct 
        under section 268.095, provided the employer made a reasonable 
        effort to retain the claimant in employment in spite of the 
        claimant's serious illness; or 
           (e) (5) the claimant avoided or failed to accept an offer 
        from the employer of suitable reemployment, as determined under 
        section 268.095, or avoided or failed to accept an offer of 
        reemployment that offered with substantially the same or better 
        hourly wages or and conditions of employment, or both, as were 
        previously provided by that employer.  This paragraph clause 
        shall only apply to benefits paid for weeks occurring periods 
        after the claimant's refusal or avoidance. 
           (6) the claimant was held not disqualified from benefits 
        under section 268.095 solely because of the application of 
        section 268.105, subdivision 3a, paragraph (d). 
           Sec. 12.  Minnesota Statutes 1997 Supplement, section 
        268.047, subdivision 5, is amended to read: 
           Subd. 5.  [NOTICE OF BENEFITS CHARGED.] (a) The 
        commissioner shall mail to the last known address of notify each 
        employer a quarterly notice by mail or electronic transmission 
        of the benefits that have been charged to the employer's 
        account.  Unless a written protest is filed in a manner 
        prescribed by the commissioner within 30 calendar days from the 
        date of mailing sending of the notice, the charges set forth in 
        the notice shall be final and shall not be subject to collateral 
        attack by way of review of a contribution tax rate notice, 
        application for a credit adjustment or refund, or otherwise. 
           (b) Upon receipt of a protest, the commissioner shall 
        review the charges on the notice and determine whether there has 
        been an error in the charging of the employer's account.  The 
        commissioner shall either affirm or make a redetermination of 
        the charges, and a notice of affirmation or redetermination 
        shall be mailed sent to the employer by mail or electronic 
        transmission. 
           (c) The affirmation or redetermination shall be final 
        unless the employer files a written an appeal within 30 calendar 
        days after the date of mailing the affirmation or 
        redetermination was sent.  Proceedings on the appeal shall be 
        conducted in accordance with section 268.105. 
           (d) An employer may not collaterally attack, by way of a 
        protest to a notice of benefits charged, any prior determination 
        or decision holding that benefits shall be charged to the 
        employer's account, that has become final. 
           (e) The commissioner may at any time upon the 
        commissioner's own motion correct a clerical error that resulted 
        in charges to an employer's account. 
           Sec. 13.  Minnesota Statutes 1997 Supplement, section 
        268.051, is amended to read: 
           268.051 [EMPLOYERS CONTRIBUTIONS TAXES.] 
           Subdivision 1.  [PAYMENTS.] (a) Contributions Taxes shall 
        accrue and become payable by each employer for each calendar 
        year that the employer is subject to this chapter paid wages to 
        employees in covered employment, except for:  
           (1) nonprofit corporations as provided in section 268.053; 
        and 
           (2) the state of Minnesota and political subdivisions as 
        provided in section 268.052.  
        Each employer shall pay contributions taxes quarterly, at the 
        employer's assigned contribution tax rate, on the taxable wages 
        paid to each employee.  The contributions taxes shall be paid to 
        the Minnesota reemployment insurance fund on or before the last 
        day of the month following the end of the calendar quarter. 
           (b) The contribution tax may be paid in an amount to the 
        nearest whole dollar. 
           (c) When the contribution tax for any calendar quarter is 
        less than $1, the contribution tax shall be disregarded. 
           Subd. 1a.  [TAX REPORTS.] (a) Every employer, except those 
        making payments in lieu of taxes, shall submit a tax report on a 
        form, or in a manner, prescribed by the commissioner on or 
        before the last day of the month following the end of the 
        calendar quarter, unless the employer meets the requirements for 
        submitting tax reports annually under section 268.0511.  An 
        employer that fails to submit a tax report when due, or submits 
        an incorrect tax report, shall be subject to section 268.057, 
        subdivision 1. 
           (b) Each tax report shall include the total wages paid and 
        the taxable wages paid that quarter, the amount of tax due, and 
        any other information required by the commissioner.  
           (c) A tax report must be submitted for each calendar 
        quarter even though no wages were paid or no tax is due.  
           Subd. 2.  [COMPUTATION OF CONTRIBUTION TAX RATES.] (a) For 
        each calendar year the commissioner shall compute the 
        contribution tax rate of each employer that qualifies for an 
        experience rating by adding the minimum contribution tax rate to 
        the employer's experience rating. 
           (b) The minimum contribution tax rate shall be six-tenths 
        of one percent if the amount in the reemployment insurance fund 
        is less than $200,000,000 on June 30 of the preceding prior 
        calendar year; or five-tenths of one percent if the fund is more 
        than $200,000,000 but less than $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 $250,000,000 but less than $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 
        $300,000,000 or more. 
           (c) The maximum contribution rate shall be 9.0 percent. 
           (d) For the purposes of this subdivision the reemployment 
        insurance fund shall not include any money advanced from the 
        federal unemployment trust fund. 
           Subd. 3.  [COMPUTATION OF EACH AN EMPLOYER'S EXPERIENCE 
        RATING.] (a) For each calendar year, the commissioner shall 
        compute an experience rating for each an employer who has been 
        subject to this chapter for at least the 15 consecutive 12 
        calendar months immediately preceding prior to July 1 of 
        the preceding prior calendar year.  The experience rating shall 
        be the ratio obtained by dividing 1-1/4 times the total benefits 
        charged to the employer's account during the period the employer 
        has been subject to this chapter but not less than the 15 12 or 
        more than the 60 consecutive calendar months ending on June 30 
        of the preceding prior calendar year by the employer's total 
        taxable payroll for the same period on which all contributions 
        due have been paid on or before October 31 of the preceding 
        calendar year. 
           (b) For purposes of paragraph (a), only that taxable 
        payroll upon which taxes have been paid on or before September 
        30 of the prior calendar year may be used in computing an 
        employer's experience rating. 
           (c) The experience rating shall be computed to the nearest 
        one-tenth of a percent, to a maximum of 8.9 percent.  
           Subd. 4.  [EXPERIENCE RATING RECORD TRANSFER.] (a) When 
        an employing unit succeeds to or employer acquires the 
        organization, trade or business or substantially all the assets 
        of another employing unit that at the time of the acquisition 
        was an employer subject to this law, and continues the 
        organization, trade or business employer, and there is 25 
        percent or more common ownership, directly or indirectly, 
        between the predecessor and successor, 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 computation of computing a contribution tax rate. 
           (b) When an employing unit succeeds to or employer acquires 
        a distinct severable portion of the organization, trade, 
        business, or assets that is less than substantially all of the 
        employing enterprises of another employing unit employer, and 
        there is 25 percent or more common ownership, directly or 
        indirectly, between the predecessor and successor, the successor 
        employing unit employer shall acquire the experience rating 
        record attributable to the portion to which it has succeeded 
        acquired, and the predecessor employing unit employer shall 
        retain the experience rating record attributable to the portion 
        that 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 apply for the transfer of the experience rating 
        record for attributable to the severable portion acquired from 
        the predecessor (3) and within 90 180 calendar days from the 
        date of mailing the application to the successor the successor 
        and predecessor jointly sign and file acquisition and (2) files 
        an application as within the time and in the manner prescribed 
        by the commissioner that furnishes 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.  
           (c) The term "common ownership" for purposes of this 
        subdivision includes ownership by a spouse, parent, child, 
        brother, sister, aunt, uncle, or first cousin, by birth or by 
        marriage. 
           (d) If the successor employer under paragraphs (a) and (b) 
        had an experience rating record at the time of the acquisition, 
        the transferred record of the predecessor shall be combined with 
        the successor's record for purposes of computation of computing 
        a contribution tax rate. 
           (d) (e) If there has been a transfer of an experience 
        rating record under paragraph (a) or (b), employment with a 
        predecessor employer shall not be deemed considered to have been 
        terminated if similar employment is offered by the successor 
        employer and accepted by the employee. 
           (e) (f) The commissioner, upon the commissioner's own 
        motion or upon application of an employing unit employer shall 
        determine if an employing unit employer is a successor within 
        the meaning of this subdivision and shall mail send the 
        determination to the last known address of the employing 
        unit employer by mail or electronic transmission.  The 
        determination shall be final unless a written an appeal is filed 
        by the employing unit employer within 30 calendar days 
        after mailing of the sending of the determination.  Proceedings 
        on the appeal shall be conducted in accordance with section 
        268.105. 
           (f) (g) The commissioner shall may, as the result of any 
        determination or decision regarding succession or nonsuccession, 
        recompute the contribution tax 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 prior to before 
        the filing of a written request to file an application apply for 
        the transfer of a severable portion of the experience rating 
        record as provided in under paragraph (b). 
           (g) (h) The experience rating record for purposes of this 
        subdivision shall consist of those factors which make up an 
        experience rating, without the 15-month 12-month minimum 
        required under subdivision 3. 
           (i) If the commissioner finds that a transaction was done, 
        in whole or in part, to avoid an experience rating record or the 
        transfer of an experience rating record, the commissioner may 
        transfer the experience rating record to an employer 
        notwithstanding the requirements of paragraph (a). 
           Subd. 5.  [TAX RATE FOR NEW EMPLOYERS.] (a) Each employer 
        that does not qualify for an experience rating, except employers 
        in the construction industry, shall be assigned a contribution 
        tax rate the higher of (1) one percent, or (2) the state's 
        benefit average cost rate; to a maximum of 5-4/10 percent.  For 
        purposes of this paragraph, the state's benefit average cost 
        rate shall be computed annually and shall be derived by dividing 
        the total dollar amount of benefits paid during the 60 
        consecutive calendar months immediately preceding prior to July 
        1 of each year by the total taxable wages of all contributing 
        taxpaying employers during the same period.  This rate shall be 
        applicable for the calendar year next succeeding following the 
        computation date.  
           (b) Each employer in the construction industry that does 
        not qualify for an experience rating shall be assigned a 
        contribution tax rate, the higher of (1) one percent, or (2) the 
        state's benefit average cost rate for construction employers to 
        a maximum of 9.0 8.9 percent, plus the applicable minimum tax 
        rate.  For purposes of this paragraph, the state's benefit 
        average cost rate shall be computed annually and shall be 
        derived by dividing the total dollar amount of benefits paid to 
        claimants of construction industry employers during the 60 
        consecutive calendar months immediately preceding prior to July 
        1 of each year by the total taxable wages of construction 
        industry employers during the same period.  This rate shall be 
        applicable for the calendar year next succeeding following the 
        computation date.  
           For purposes of this subdivision An employer is considered 
        in the construction industry if the employer is within division 
        C of the Standard Industrial Classification Manual issued by the 
        United States Office of Management and Budget, except as 
        excluded by rules adopted by the commissioner. 
           Subd. 6.  [NOTICE OF CONTRIBUTION TAX RATE.] (a) The 
        commissioner shall mail to the last known address of notify each 
        employer notice by mail or electronic transmission of the 
        employer's contribution tax rate as determined for any calendar 
        year.  The notice shall contain the contribution tax rate and 
        the factors used in determining the employer's experience 
        rating.  Unless a protest of the rate is made, the assigned rate 
        shall be final except for fraud and shall be the rate upon at 
        which contributions taxes shall be paid for the calendar year 
        for which the rate was assigned.  The contribution tax rate 
        shall not be subject to collateral attack by way of claim for a 
        credit adjustment or refund, or otherwise.  
           (b) If the legislature, subsequent to the mailing sending 
        of the contribution tax rate, changes any of the factors used to 
        determine the rate, the earlier notice shall be void.  A 
        new contribution tax rate based on the new factors shall be 
        computed and mailed sent to the employer.  
           (c) A review of an employer's contribution tax rate may be 
        obtained by the employer filing with, in a manner prescribed by 
        the commissioner, a written protest within 30 calendar days from 
        the date of the mailing of the contribution tax rate notice was 
        sent to the employer.  Upon receipt of the protest, the 
        commissioner shall review the contribution tax rate to determine 
        whether or not there has been any clerical error or error in 
        computation.  The commissioner shall either affirm or make a 
        redetermination of the rate and a notice of the affirmation or 
        redetermination shall be mailed sent to the employer by mail or 
        electronic transmission.  The affirmation or redetermination 
        shall be final unless the employer files a written an appeal 
        within 30 calendar days after the date of mailing the 
        affirmation or redetermination was sent.  Proceedings on the 
        appeal shall be conducted in accordance with section 268.105.  
           (d) The commissioner may at any time upon the 
        commissioner's own motion correct any error in the computation 
        or the assignment of an employer's contribution tax rate.  
           Subd. 7.  [CONTRIBUTION TAX RATE BUYDOWN.] (a) Any employer 
        who has been assigned a contribution tax rate based upon an 
        experience rating may, upon the voluntary payment of an amount 
        equivalent to any portion or all of the benefits charged to the 
        employer's account, plus a surcharge of 25 percent, obtain a 
        cancellation of benefits charged to the account equal to the 
        payment made, less the surcharge.  Upon the payment, the 
        commissioner shall compute a new experience rating for the 
        employer, and determine a new contribution tax rate.  
           (b) Voluntary payments may be made only during the 30 
        calendar day period immediately following the date of 
        mailing sending of the notice of contribution tax rate.  This 
        period may be extended, upon a showing of good cause, but in no 
        event shall a voluntary payment be allowed after 120 calendar 
        days immediately following from the beginning of the calendar 
        year for which the contribution tax rate is effective. 
           (c) Voluntary payments made within the time required will 
        not be refunded unless a request is made in writing within 30 
        calendar days after mailing sending of the notice of the new 
        contribution tax rate. 
           Subd. 8.  [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 on taxpaying employers will 
        be in effect for the following calendar year.  Each The employer 
        , except those making payments in lieu of contributions shall 
        pay a quarterly a solvency assessment of ten percent multiplied 
        by of the contributions paid or taxes 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 contribution rate, 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, 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 contribution rate, by multiplying 
        the quarterly taxable payroll by the assigned contribution rate 
        multiplied by 1.15 rounded to the nearest one-hundredth of a 
        percent.  
           (b) The solvency assessment shall be placed into a special 
        account from which the commissioner shall pay any interest 
        accruing on any advance from the federal unemployment trust fund 
        provided for under section 268.194, subdivision 6.  If the 
        commissioner determines that the balance in this special account 
        is more than is necessary to pay the interest on any advance, 
        the commissioner shall pay to the fund the amount in excess of 
        that necessary to pay interest on any advance. 
           Sec. 14.  Minnesota Statutes 1997 Supplement, section 
        268.057, subdivision 1, is amended to read: 
           Subdivision 1.  [REPORTS; DELINQUENCIES; PENALTIES.] (a) 
        Any employer who knowingly fails to make and submit to the 
        commissioner any contribution tax report at the time the report 
        is required under section 268.051, subdivision 1a, or 268.0511 
        shall pay to the department a penalty of up to $25 or an amount 
        of 1-1/2 percent of contributions taxes accrued for each month 
        from and after the due date until the tax report is properly 
        made and submitted, whichever is greater.  
           (b) If any employer required to make and submit 
        contribution tax reports fails to do so within the time 
        required, or makes submits, willfully or otherwise, an 
        incorrect, or false, or fraudulent contribution tax report, the 
        employer shall, on the written demand of the commissioner sent 
        by mail or electronic transmission, make submit the contribution 
        tax report, or corrected report, within ten days after the 
        mailing of the written demand and at the same time pay the whole 
        contribution, or any additional contribution, tax due.  If the 
        employer fails within that time to make submit the tax report, 
        or corrected report and pay any tax due, the commissioner shall 
        make a report, or corrected report, an estimated tax report from 
        the commissioner's own knowledge and from information the 
        commissioner may obtain and assess a contribution tax on that 
        basis, which contribution.  That assessed tax, plus any 
        penalties and interest shall be paid within ten days after the 
        commissioner has mailed to the employer a written notice of the 
        amount due and demand for payment has been sent by mail or 
        electronic transmission.  Any contribution report or assessment 
        made by the commissioner on account assessed tax because of the 
        failure of the employer to make submit a tax report or corrected 
        tax report shall be prima facie correct and valid, and the 
        employer shall have the burden of establishing its incorrectness 
        or invalidity in any subsequent action or proceeding.  Whenever 
        the delinquent employer files a tax report or corrected tax 
        report, the commissioner may, on finding it substantially 
        correct, substitute it for the commissioner's accept that report.
           (c) If the commissioner finds that any part of any 
        employer's contribution tax deficiency is due to fraud with 
        intent to avoid payment of contributions taxes to the fund, 50 
        percent of the total amount of the deficiency or $500, whichever 
        is greater, shall be assessed as a penalty against the employer 
        and collected in addition to the deficiency. 
           (d) Any employing unit that 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 of $50. 
           (e) The penalties provided for in paragraphs (a), (c), and 
        (d) (c) are in addition to interest and any other penalties and 
        shall be paid to the department and credited to the contingent 
        account. 
           (f) (e) An employer or officer or agent of an employer is 
        guilty of a gross misdemeanor, unless the contribution tax or 
        other payment involved exceeds $500, in which case the person is 
        guilty of a felony, if the individual: 
           (1) in order to avoid becoming or remaining a subject 
        employer or to avoid or reduce any contribution tax or other 
        payment required under this chapter: 
           (i) makes a false statement or representation knowing it to 
        be false; or 
           (ii) knowingly fails to disclose a material fact; or 
           (2) willfully fails or refuses to make pay any 
        contributions taxes or other payment at the time required. 
           Sec. 15.  Minnesota Statutes 1997 Supplement, section 
        268.057, subdivision 5, is amended to read: 
           Subd. 5.  [INTEREST ON PAST DUE CONTRIBUTIONS TAXES.] If 
        contributions taxes or reimbursements payments in lieu of taxes 
        to the unemployment fund are not paid on the date on which they 
        are due the unpaid balance thereof shall bear interest at the 
        rate of one and one-half percent per month or any part thereof.  
        Contributions Taxes or reimbursements payments in lieu of taxes 
        received by mail postmarked on a day following the date on which 
        the law requires contributions to be paid due shall be deemed 
        considered to have been paid on the due date if there is 
        substantial evidence tending to prove that the 
        contribution payment was actually deposited in the United States 
        mails properly addressed to the department with postage prepaid 
        thereon on or before the due date.  Interest collected pursuant 
        to this subdivision shall be paid into credited to the 
        contingent account.  Interest on contributions due under this 
        subdivision may be waived in accordance with by rules as 
        adopted by the commissioner may adopt. 
           Sec. 16.  Minnesota Statutes 1997 Supplement, section 
        268.057, subdivision 6, is amended to read: 
           Subd. 6.  [INTEREST ON JUDGMENTS.] Notwithstanding section 
        549.09, if judgment is or has been entered upon any past 
        due contribution tax or reimbursement which has not been paid 
        within the time specified by law for payment in lieu of taxes, 
        the unpaid judgment shall bear interest at the rate specified in 
        subdivision 1 5 until the date of payment.  The rate will be 
        effective after July 1, 1987, on any unpaid judgment balances 
        and all new judgments docketed after that date. 
           Sec. 17.  Minnesota Statutes 1997 Supplement, section 
        268.057, subdivision 7, is amended to read: 
           Subd. 7.  [CREDIT ADJUSTMENTS, REFUNDS.] (a) If an employer 
        makes an application for an a credit adjustment of any amount 
        paid as contributions taxes or interest thereon, to be applied 
        against subsequent contribution payments, or for a refund 
        thereof because such adjustment cannot be made, and the payment 
        was made within four years prior to of the year in which that 
        the application is payment was made, and if the commissioner 
        shall determine determines that the payment of such 
        contributions or interest or any portion thereof was erroneous, 
        the commissioner shall allow such employer to make an adjustment 
        thereof, and issue a credit without interest, in connection with 
        subsequent contribution payments by the employer, or.  If such 
        adjustment a credit cannot be made used, the commissioner shall 
        refund from the fund to which such payment has been credited, 
        without interest, the amount erroneously paid.  For like cause 
        and within the same period, The commissioner, on the 
        commissioner's own motion, may make a credit adjustment or 
        refund may be so made on the commissioner's own initiative under 
        this subdivision. 
           In the event that any application for (b) If a credit 
        adjustment or refund is denied in whole or in part, a written 
        notice of such denial shall be mailed sent to the applicant 
        employer by mail or electronic transmission.  Within 30 calendar 
        days after the mailing sending of such the notice of denial to 
        the applicant's last known address, the applicant employer may 
        request, in writing, that the commissioner grant a hearing for 
        the purpose of reconsidering the facts submitted and to consider 
        any additional information appeal.  Proceedings on the appeal 
        shall be conducted in accordance with section 268.105. 
           Sec. 18.  Minnesota Statutes 1997 Supplement, section 
        268.059, is amended to read: 
           268.059 [GARNISHMENT FOR DELINQUENT TAXES AND BENEFIT 
        OVERPAYMENTS.] 
           (a) The commissioner or a delegated representative may, 
        within six years after the date of assessment of the tax, or 
        payment in lieu of contribution, or determination of benefit 
        overpayment, or if a lien has been filed, within the statutory 
        period for enforcement of the lien, give notice to any employer 
        that an employee of that employer owes delinquent reemployment 
        insurance taxes or, payments in lieu of contributions taxes, 
        or overpaid benefits, including penalties, interest, and costs, 
        or has an unpaid benefit overpayment and that the obligation to 
        the department should be withheld from the employee's wages.  
        The commissioner can may proceed under this section only if the 
        tax, payment in lieu of contributions taxes, or benefit 
        overpayment is uncontested or if the time for any appeal has 
        expired.  The commissioner shall not proceed under this section 
        until the expiration of 30 calendar days after mailing to the 
        debtor employee, at the debtor's last known address, a written 
        notice of garnishment intent to garnish wages and exemption 
        notice.  The That notice shall list: 
           (1) the amount of taxes, payments in lieu of contributions 
        taxes, overpaid benefits, interest, penalties, or costs, or 
        benefit overpayment due from the debtor; 
           (2) demand for immediate payment; and 
           (3) the commissioner's intention to serve a garnishment 
        notice on the debtor's employer pursuant to this section. 
           The effect of the notice shall expire 180 calendar days 
        after it has been mailed to the debtor provided that the notice 
        may be renewed by mailing a new notice which that is in 
        accordance with this section.  The renewed notice shall have the 
        effect of reinstating the priority of the original claim notice. 
        The exemption notice to the debtor shall be in substantially the 
        same form as that provided in section 571.72.  The notice shall 
        further inform the debtor of the wage right to claim exemptions 
        contained in section 550.37, subdivision 14.  If no statement 
        written claim of exemption is received by the commissioner 
        within 30 calendar days from the after mailing of the notice, 
        the commissioner may proceed under this section with the 
        garnishment.  The notice to the debtor's employer may be served 
        by mail or by delivery by an employee of the commissioner and 
        shall be in substantially the same form as provided in section 
        571.75.  Upon receipt of the garnishment notice, the employer 
        shall retain withhold from the earnings due or to become due to 
        the employee, the total amount shown by on the notice plus 
        accrued interest, subject to the provisions of section 571.922.  
        The employer shall continue to retain withhold each pay period 
        the amount shown on the notice plus accrued interest until the 
        garnishment notice is released by the commissioner.  Upon 
        receipt of notice by the employer, the claim of the commissioner 
        shall have priority over any subsequent garnishments or wage 
        assignments.  The commissioner may arrange between the employer 
        and employee for retaining withholding a portion of the total 
        amount due the employee each pay period, until the total amount 
        shown by on the notice plus accrued interest has been retained 
        withheld. 
           The "earnings due" any employee is as defined in accordance 
        with section 571.921.  The maximum garnishment allowed under 
        this section for any one pay period shall be decreased by any 
        amounts payable pursuant to a any other garnishment action with 
        respect to which the employer was served prior to being served 
        with the garnishment notice of delinquency, and any amounts 
        covered by any irrevocable and previously effective assignment 
        of wages; the employer shall give notice to the commissioner of 
        the amounts and the facts relating to the assignment within ten 
        days after the service of the garnishment notice of delinquency 
        on the form provided by the commissioner as noted in this 
        section. 
           (b) If the employee ceases to be employed by the employer 
        before the full amount set forth in a on the garnishment notice 
        of garnishment plus accrued interest has been retained withheld, 
        the employer shall immediately notify the commissioner in 
        writing of the termination date of the employee and the total 
        amount retained withheld.  No employer may discharge or 
        otherwise discipline any employee by the reason of the fact that 
        because the commissioner has proceeded under this section.  If 
        an employer discharges an employee in violation of 
        this provision section, the employee shall have the same remedy 
        as provided in section 571.927, subdivision 2. 
           (c) Within ten calendar days after the expiration of the 
        pay period, the employer shall remit to the commissioner, on a 
        form and in the manner prescribed by the commissioner, the 
        amount retained withheld during each pay period under this 
        section. 
           (d) Paragraphs (a) to (c), except provisions imposing a 
        liability on the employer for failure to retain or remit, shall 
        apply to cases in which if the employer is the United States or 
        any instrumentality thereof or this state of Minnesota or any 
        political subdivision thereof. 
           (e) The commissioner shall refund to the employee any 
        excess amounts retained withheld from the employee under this 
        section.  If any excess results from payments by the employer 
        because of willful failure to retain or remit as prescribed in 
        paragraph (c), the excess attributable to the employer's payment 
        shall be refunded to the employer. 
           (f) Employers required to retain delinquent amounts under 
        this section shall not be required to compute any additional 
        interest, costs, or other charges to be retained. 
           (g) (f) An employer that fails or refuses to comply with 
        the requirements of this section shall be liable as provided in 
        section 268.058, subdivision 3, paragraph (i). 
           Sec. 19.  Minnesota Statutes 1997 Supplement, section 
        268.063, is amended to read: 
           268.063 [PERSONAL LIABILITY.] 
           (a) Any officer, director, or employee of a corporation or 
        any manager, governor, member, or employee of a limited 
        liability company which is an employer under sections 268.03 to 
        268.23, who 
           (1) either individually or jointly with others, have or 
        should have had control of, supervision over, or responsibility 
        for the filing of the tax reports or the making of payments 
        paying the amounts due under this chapter, and 
           (2) willfully fails to file the tax reports or to make 
        payments as required pay the amounts due, shall be personally 
        liable for contributions taxes or reimbursement payments in lieu 
        of taxes, including interest, penalties, and costs in the event 
        the employer does not pay to the department those amounts for 
        which the employer is liable. 
           For purposes of this subdivision section, "willfulness" 
        means that the facts demonstrate that the responsible party used 
        or allowed the use of corporate or company assets to pay other 
        creditors knowing that the payments required amounts due under 
        this chapter were unpaid.  An evil motive or intent to defraud 
        is not necessary to satisfy the willfulness requirement.  
           (b) Any partner of a limited liability partnership, or 
        professional limited liability partnership, shall be jointly and 
        severally liable for contributions taxes or 
        reimbursement payments in lieu of taxes, including interest, 
        penalties, and costs in the event the employer does not pay to 
        the department those amounts for which the employer is liable.  
           (c) Any personal representative of the estate of a decedent 
        or fiduciary who voluntarily distributes the assets filed 
        therein without reserving a sufficient amount to pay the 
        contributions taxes, payments in lieu of taxes, interest, and 
        penalties due pursuant to this chapter shall be personally 
        liable for the deficiency. 
           (d) The personal liability of any person as provided herein 
        individual shall survive dissolution, reorganization, 
        receivership, or assignment for the benefit of creditors.  For 
        the purposes of this subdivision section, all wages paid by the 
        employer shall be considered earned from the person individual 
        determined to be personally liable. 
           An official designated by (e) The commissioner shall make 
        an initial determination as to the personal liability under this 
        section.  The determination shall be final unless the person 
        individual found to be personally liable shall within 30 
        calendar days after mailing of notice of determination to 
        the person's individual's last known address file files a 
        written protest.  Upon receipt of the protest, the 
        official commissioner shall reexamine the personal liability 
        determination and either affirm or redetermine the assessment of 
        personal liability and a notice of the affirmation or 
        redetermination shall be mailed to the person's individual's 
        last known address.  The affirmation or redetermination shall 
        become final unless a written an appeal is filed within 30 
        calendar days of after the date of mailing.  Proceedings on the 
        appeal shall be conducted in accordance with section 268.105.  
           Sec. 20.  Minnesota Statutes 1997 Supplement, section 
        268.064, subdivision 2, is amended to read: 
           Subd. 2.  [REASONABLE VALUE.] An official, designated by 
        The commissioner, upon the official's commissioner's own motion 
        or upon application of the potential successor, shall determine 
        the reasonable value of the organization, trade, or business or 
        assets acquired by the successor based on available 
        information.  The determination shall be final unless the 
        successor, within 30 calendar days after the mailing sending of 
        notice of the determination to the successor's last known 
        address successor by mail or electronic transmission, files a 
        written an appeal from it.  Proceedings on the appeal shall be 
        conducted in accordance with section 268.105. 
           Sec. 21.  Minnesota Statutes 1997 Supplement, section 
        268.066, is amended to read: 
           268.066 [CANCELLATION OF DELINQUENT CONTRIBUTIONS TAXES.] 
           (a) The commissioner may shall cancel as uncollectible any 
        contributions taxes, reimbursements payments in lieu of taxes, 
        penalties, or the interest or costs thereon, which remain unpaid 
        six years after the amounts have been first determined by the 
        commissioner to be due and payable.  This section does not 
        prohibit the commissioner from collecting any, except where the 
        delinquent amounts are secured by a notice of lien or, a 
        judgment which are older than six years, are in the process of 
        garnishment, or are under a payment plan. 
           (b) The commissioner may cancel at any time as 
        uncollectible any taxes, payments in lieu of taxes, penalties, 
        or the interest or costs thereon, that the commissioner 
        determines are uncollectible due to death or bankruptcy. 
           Sec. 22.  Minnesota Statutes 1997 Supplement, section 
        268.067, is amended to read: 
           268.067 [COMPROMISE AGREEMENTS.] 
           (a) The commissioner, or an authorized representative, may 
        compromise in whole or in part any action, determination, or 
        decision which that affects an employer and which that has 
        become final during the preceding prior 24 months. 
           (b) The commissioner, or an authorized representative, may 
        at any time compromise delinquent employer contributions taxes, 
        reimbursements payments in lieu of taxes, interest, penalties, 
        and costs under this section. 
           (c) Any compromise under paragraphs (a) and (b) shall be by 
        written agreement signed by the employing unit employer and the 
        commissioner or authorized representative. 
           The department commissioner shall enter into a compromise 
        agreement only if it is in the best interest of the state of 
        Minnesota.  The written agreement must set forth the reason and 
        all the terms of the agreement.  Any agreements under this 
        section The agreement must be approved by an attorney who is a 
        regularly salaried employee of the department and who has been 
        designated by the commissioner for that purpose. 
           Sec. 23.  Minnesota Statutes 1997 Supplement, section 
        268.07, is amended to read: 
           268.07 [REEMPLOYMENT INSURANCE ACCOUNT.] 
           Subdivision 1.  [APPLICATION; DETERMINATION.] (a) An 
        application for reemployment insurance benefits may be made in 
        person, by mail, by telephone, or by electronic transmission as 
        the commissioner shall require.  The commissioner may by rule 
        adopt other requirements for an application. 
           (b) An official, designated by The commissioner, shall 
        promptly examine each application for benefits to determine the 
        base period, the benefit year, the weekly benefit amount 
        payable, if any, and the maximum benefit amount of benefits 
        payable, if any. The determination shall be known as the 
        determination of reemployment insurance account.  A written 
        determination of reemployment insurance account must be promptly 
        mailed sent to the claimant and all base period employers, by 
        mail or electronic transmission. 
           (c) If a base period employer failed to provide wage 
        information for the claimant as required in section 268.044, the 
        commissioner shall accept a claimant certification as to wage 
        credits, based upon the claimant's records, and issue a 
        determination of reemployment insurance account. 
           (d)(1) The commissioner may, at any time within 24 months 
        from the establishment of a reemployment insurance account, 
        reconsider any determination of reemployment insurance account 
        and make a redetermination if the commissioner finds that the 
        determination was incorrect for any reason.  A written 
        redetermination of reemployment insurance account shall be 
        promptly mailed sent to the claimant and all base period 
        employers, by mail or electronic transmission. 
           (2) If a redetermination of reemployment insurance account 
        reduces the weekly benefit amount or maximum benefit amount of 
        benefits payable, any benefits paid greater than the claimant 
        was entitled is an overpayment of those benefits subject to 
        section 268.18, except when, in the absence of fraud, a 
        redetermination is due to an error or omission by an employer in 
        providing wage information as required in section 268.044. 
           Subd. 2.  [WEEKLY BENEFIT AMOUNT AND DURATION MAXIMUM 
        AMOUNT OF BENEFITS.] (a) To establish a reemployment insurance 
        account, a claimant must have: 
           (1) wage credits in two or more calendar quarters of the 
        claimant's base period; 
           (2) minimum total wage credits equal to or greater than the 
        high quarter wage credits multiplied by 1.25; 
           (3) high quarter wage credits of not less than $1,000.  
           (b) If the commissioner finds that a claimant has 
        established a reemployment insurance account, the weekly benefit 
        amount payable to the claimant during the claimant's benefit 
        year shall be equal to 1/26 of the claimant's high quarter wage 
        credits, rounded to the next lower whole dollar. the higher of: 
           (1) 50 percent of the claimant's average weekly wage during 
        the claimant's base period, to a maximum of 66-2/3 percent of 
        the state's average weekly wage; or 
           (2) 50 percent of the claimant's average weekly wage during 
        the high quarter to a maximum of 50 percent of the state's 
        average weekly wage, or $331, whichever is higher. 
           The claimant's average weekly wage under clause (1) shall 
        be computed by dividing the claimant's total wage credits by 
        52.  The claimant's average weekly wage under clause (2) shall 
        be computed by dividing the claimant's high quarter wage credits 
        by 13.  
           (c) Notwithstanding paragraph (b), the maximum weekly 
        benefit amount for any reemployment insurance account 
        established during the 12-month period subsequent to June 30 of 
        any year shall be determined on the basis of the reemployment 
        insurance 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 
        state's 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 state's 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 state's 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 state's 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 state's 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 state's 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 state's average weekly wage; if the fund balance is more 
        than $350,000,000, the maximum weekly benefit amount is 60 
        percent.  
           (c) The state's maximum weekly benefit amount and the 
        claimant's weekly benefit amount shall be computed to the 
        nearest whole dollar.  
           (d) The maximum benefit amount of benefits payable on any 
        reemployment insurance account shall equal one-third of the 
        claimant's total wage credits rounded to the next lower dollar, 
        not to exceed 26 times the claimant's weekly benefit amount.  
           Subd. 3.  [SECOND ACCOUNT REQUIREMENTS.] To establish a 
        second reemployment insurance account following the expiration 
        of a benefit year on a preceding prior reemployment insurance 
        account, a claimant must have sufficient wage credits to 
        establish a reemployment insurance account under the provisions 
        of subdivision 2 and must have performed services in covered 
        employment after the establishment effective date of the 
        preceding prior reemployment insurance account.  The wages paid 
        for those services that employment must equal not less than 
        eight times the weekly benefit amount of the preceding prior 
        reemployment insurance account.  A reemployment insurance 
        account established sufficiently in advance of anticipated 
        unemployment to make the limitations of this 
        paragraph subdivision ineffective shall not be allowed.  It is 
        The purpose of this provision subdivision is to prevent a 
        claimant from establishing more than one reemployment insurance 
        account as a result of one separation from employment. 
           Subd. 3a.  [RIGHT OF APPEAL.] (a) A determination or 
        redetermination of a reemployment insurance account shall be 
        final unless a claimant or base period employer within 15 30 
        calendar days after the mailing sending of the determination or 
        redetermination to the last known address files a written an 
        appeal.  Every determination or redetermination of a 
        reemployment insurance account shall contain a prominent 
        statement indicating in clear language the method of appealing, 
        the time within which the appeal must be made, and the 
        consequences of not appealing.  Proceedings on the appeal shall 
        be conducted in accordance with section 268.105. 
           (b) Any claimant or base period employer may appeal from a 
        determination or redetermination of a reemployment insurance 
        account on the issue of whether an employing unit is an employer 
        within the meaning of this chapter or whether services performed 
        constitute employment within the meaning of this chapter and 
        covered employment.  Proceedings on the appeal shall be 
        conducted in accordance with section 268.105. 
           Subd. 3b.  [LIMITATIONS.] (a) A reemployment insurance 
        account shall be established the Sunday of the calendar week in 
        which that the application for reemployment insurance benefits 
        was made.  If an individual attempted to make an application for 
        a reemployment insurance account, but was prevented from making 
        an application by the department, the reemployment insurance 
        account shall be established the Sunday of the calendar week the 
        individual first attempted to make an application. 
           (b) A reemployment insurance account, once established, may 
        be withdrawn and a new account established only if the claimant 
        has not been credited with a waiting week under section 
        268.08 268.085, subdivision 1, clause (3).  A determination or 
        amended determination pursuant to section 268.101, that was 
        issued before the withdrawal of the reemployment insurance 
        account, shall remain in effect and shall not be voided by the 
        withdrawal of the reemployment insurance account.  A 
        determination of disqualification requiring subsequent earnings 
        to satisfy the disqualification shall apply to the weekly 
        benefit amount on the new account. 
           (c) A reemployment insurance account shall not be 
        established prior to the Sunday following the expiration of the 
        benefit year on a preceding prior reemployment insurance account.
           (d) All benefits shall be payable from the Minnesota 
        reemployment insurance fund only for weeks occurring during the 
        benefit year. 
           Sec. 24.  Minnesota Statutes 1996, section 268.08, as 
        amended by Laws 1997, chapter 66, sections 36, 37, 38, 39, 40, 
        41, and 42, is amended to read: 
           268.08 [PERSONS ELIGIBLE TO RECEIVE BENEFITS.] 
           Subdivision 1.  [ELIGIBILITY CONDITIONS.] A claimant shall 
        be eligible to receive benefits for any week in the claimant's 
        benefit year only if: 
           (1) the claimant has made a continued claim for benefits in 
        person, by mail, by telephone, or by electronic transmission as 
        the commissioner shall require.  The commissioner may by rule 
        adopt other requirements for a continued claim; 
           (2) the claimant was able to work and was available for 
        employment, and was actively seeking employment.  The claimant's 
        weekly benefit amount shall be reduced one-fifth for each day 
        the claimant is unable to work or is unavailable for employment. 
           Benefits shall not be denied by application of this clause 
        to a claimant who is in training with the approval of the 
        commissioner, is a dislocated worker as defined in section 
        268.975, subdivision 3, in training approved by the 
        commissioner, or in training approved pursuant to section 236 of 
        the Trade Act of 1974, as amended. 
           A claimant serving as a juror shall be considered as 
        available for employment and actively seeking employment on each 
        day the claimant is on jury duty; 
           (3) the claimant has been unemployed for served a waiting 
        period of one week during which that the claimant is otherwise 
        entitled to benefits.  This clause shall not apply if the 
        claimant would have been entitled to federal disaster 
        unemployment assistance because of a disaster in Minnesota, but 
        for the claimant's establishment of a reemployment insurance 
        account under section 268.07; and 
           (4) the claimant has been participating in reemployment 
        services, such as job search assistance services, if the 
        claimant has been determined likely to exhaust benefits and in 
        need of reemployment services pursuant to a profiling system 
        established by the commissioner, unless there is justifiable 
        cause for the claimant's failure to participate. 
           Subd. 1a.  [BENEFITS DUE DECEASED PERSONS.] Upon the death 
        of any claimant for benefits, and in the event it is found by 
        the commissioner that If benefits have accrued and are due and 
        payable to that claimant and remain wholly or partially unpaid 
        at the time of the a claimant's death, or in the event there 
        have been issued and unpaid one or more benefit checks, those 
        checks benefits may, upon application therefor, be paid to 
        the duly qualified administrator or executor personal 
        representative of the estate of the deceased claimant.  In the 
        event that no administrator or executor personal representative 
        is appointed to administer the estate of the deceased, if any, 
        the benefits may, upon the order and direction of the 
        commissioner application be paid to any person designated by the 
        commissioner in the following order:  (1) the surviving spouse, 
        (2) the surviving child or children, or (3) the surviving parent 
        or parents. 
           A person An individual seeking payment under this 
        subdivision shall complete an affidavit on a form application 
        prescribed by the department commissioner and the payment of 
        benefits to a person pursuant to an affidavit under this 
        subdivision shall discharge the obligations of the department to 
        the claimant to the extent of the payment, and no other person 
        individual shall claim or assert any right with respect 
        thereto to those benefits. 
           Subd. 2.  [NOT ELIGIBLE.] A claimant shall not be eligible 
        to receive benefits for any week: 
           (1) unless it that occurs subsequent to before the 
        establishment of a reemployment insurance account; 
           (2) which that occurs in a period when the claimant is a 
        full-time student in attendance at, or on vacation from an 
        established a secondary school, college, or university unless a 
        majority of the claimant's wages paid during the 52 weeks 
        preceding the establishment of a reemployment insurance account 
        were for services performed during weeks that the claimant was 
        attending school as a full-time student; 
           (3) in which that the claimant is incarcerated.  The 
        claimant's weekly benefit amount shall be reduced by one-fifth 
        for each day the claimant is incarcerated; 
           (4) in which that the claimant is on a voluntary leave of 
        absence.  A claimant unemployed as a result of a uniform 
        vacation shutdown shall not be considered on a voluntary leave 
        of absence; 
           (5) in which that the claimant is performing services on a 
        full-time basis 32 hours or more, in employment, covered 
        employment, noncovered employment, self-employment, or volunteer 
        work regardless of the amount of any earnings; or 
           (6) with respect to which the claimant is receiving, has 
        received, or has filed a claim for reemployment insurance 
        benefits under any law of any other state, or the federal 
        government, but not including any federal or state benefits that 
        are merely supplementary to those provided for under this 
        chapter; provided that if the appropriate agency finally 
        determines that the claimant is not entitled to the benefits, 
        this clause shall not apply. 
           Subd. 2a.  [SUSPENSION FROM EMPLOYMENT.] (a) A claimant who 
        has been suspended from employment for 30 calendar days or less, 
        as a result of misconduct as defined under section 268.09 
        268.095, subdivision 12 6, shall be ineligible for 
        benefits commencing beginning the Sunday of the week in which 
        that the claimant was suspended and continuing for the duration 
        of the suspension. 
           (b) A suspension from employment for more than 30 calendar 
        days shall be considered a discharge from employment under 
        section 268.09 268.095, subdivision 11 5. 
           Subd. 3.  [DEDUCTIBLE PAYMENTS.] A claimant shall not be 
        eligible to receive benefits for any week with respect to which 
        the claimant is receiving, has received, or has filed a claim 
        for payment in an amount equal to or in excess of the claimant's 
        weekly benefit amount in the form of: 
           (1) termination, severance, or dismissal payment or wages 
        in lieu of notice whether legally required or not.  This clause 
        shall apply to the first four weeks of payment and to one-half 
        of the total number of any additional weeks of payment.  This 
        clause shall be applied to the period immediately following the 
        last day of employment.  The number of weeks of payment shall be 
        determined as follows: 
           (i) if the payments are made periodically, the total of the 
        payments to be received shall be divided by the claimant's last 
        level of regular weekly pay from the employer; or 
           (ii) if the payment is made in a lump sum, that sum shall 
        be divided by the claimant's last level of regular weekly pay 
        from the employer; 
           (2) vacation allowance paid directly by the employer for a 
        period of requested vacation, including vacation periods 
        assigned by the employer under a collective bargaining 
        agreement, or uniform vacation shutdown; or 
           (3) compensation for loss of wages under the workers' 
        compensation law of this state or any other state or under a 
        similar law of the United States, or under other insurance or 
        fund established and paid for by the employer; or 
           (4) 50 percent of the pension, retirement, or annuity 
        payments from any fund, annuity or insurance maintained or plan 
        contributed to by a base period employer including the armed 
        forces of the United States if the claimant contributed to the 
        fund, annuity or insurance and all of the pension payments if 
        the claimant did not contribute to the fund, annuity or 
        insurance; or 
           (5) 50 percent of a primary insurance benefit under title 
        II of the Social Security Act, as amended, or similar benefits 
        under any act of Congress or this state or any other 
        state. government, except social security benefits as provided 
        for in subdivision 4.  The base period employer contributed to 
        the plan if the contribution is excluded from the definition of 
        wages under section 268.035, subdivision 29, clause (1), or 
        United States Code, title 26, section 3121, clause (2), of the 
        Federal Insurance Contribution Act. 
           Provided, that If the payment under this subdivision is 
        less than the claimant's weekly benefit amount, the claimant 
        shall be entitled to receive for that week, if otherwise 
        eligible, benefits reduced by the amount of the payment; 
        provided, further, that if the appropriate agency of this state 
        or any other state or the federal government finally determines 
        that the claimant is not entitled to payments, this subdivision 
        shall not apply.  If the computation of reduced benefits is not 
        a whole dollar, it shall be rounded down to the next lower 
        dollar. 
           Subd. 3a.  [DEDUCTIBLE EARNINGS.] (a) If the claimant has 
        earnings, including holiday pay, with respect to any week, 
        from employment, covered employment, noncovered employment, 
        self-employment, or volunteer work, equal to or in excess of the 
        claimant's weekly benefit amount, the claimant shall be 
        ineligible for benefits for that week. 
           (b) If the claimant has earnings, including holiday pay, 
        with respect to any week, from employment, covered employment, 
        noncovered employment, self-employment, or volunteer work, that 
        is less than the claimant's weekly benefit amount, the following 
        shall be deducted from the claimant's weekly benefit amount: 
           (1) that amount in excess of $50 if the claimant's earnings 
        were $200 or less, and that amount in excess of 25 percent of 
        the claimant's earnings if those earnings were more than $200; 
        and 
           (2) that amount in excess of $200 for earnings from service 
        in the National Guard or a United States military reserve unit. 
           The resulting benefit, if not a whole dollar, shall be 
        rounded to the next lower dollar. 
           (c) No deduction shall be made from a claimant's weekly 
        benefit amount for earnings from service as a volunteer 
        firefighter or volunteer ambulance service personnel.  No 
        deduction shall be made for jury duty pay. 
           (d) The claimant may report deductible earnings on 
        continued claims for benefits at the nearest whole dollar amount.
           Subd. 3b.  [RECEIPT OF BACK PAY.] Back pay received by a 
        claimant with respect to any weeks occurring in the 104 weeks 
        immediately preceding prior to the payment of the back pay shall 
        be deducted from benefits paid for those weeks.  
           The amount deducted shall not reduce the benefits that the 
        claimant is otherwise eligible for that week below zero.  If the 
        amount of benefits after the deduction of back pay is not a 
        whole dollar amount, it shall be rounded to the next lower 
        dollar.  
           If the back pay awarded the claimant is reduced by benefits 
        paid, the amounts withheld shall be:  (a) paid by the employer 
        into the fund within 30 days of the award and are subject to the 
        same collection procedures that apply to past due 
        contributions taxes under this chapter; (b) applied to benefit 
        overpayments resulting from the payment of the back pay; (c) 
        credited to the claimant's maximum amount of benefits payable in 
        a benefit year that includes the weeks for which back pay was 
        deducted.  Benefit charges for those weeks shall be removed from 
        the employer's account as of the calendar quarter in which that 
        the fund receives payment.  
           Payments to the fund under this subdivision shall be 
        considered as made by the claimant.  
           Subd. 4.  [SOCIAL SECURITY AMOUNT DEDUCTED FROM BENEFITS.] 
        (a) Any claimant aged 62 or over who has not established a 
        reemployment insurance account based on employment subsequent to 
        the first receipt of primary insurance benefits under Title II 
        of the federal social security act, as amended, or similar old 
        age benefits under any act of Congress or this state or any 
        other state shall be required to state in writing at the time of 
        establishing making an application for a reemployment insurance 
        account and when making continued claims whether the claimant is 
        receiving, has filed for, or intends to seek Title II file for, 
        primary social security old age or disability benefits for any 
        week during which the claimant will receive unemployment 
        benefits the benefit year, and if the claimant so intends there 
        shall be withheld deducted from the claimant's 
        weekly unemployment benefits an benefit amount sufficient to 
        cover the otherwise payable for that week, 50 percent of the 
        weekly equivalent of the social security benefit. 
           (b) In addition to paragraph (a), a claimant shall be 
        ineligible for benefits for any week with respect to which the 
        claimant is receiving, has received, or has filed a claim for 
        primary social security disability benefits, unless the social 
        security administration has approved the payment of disability 
        benefits while the claimant was employed. 
           (c) Any claimant disclaiming such intention but who 
        nevertheless receives such social security benefits, that would 
        cause the claimant to be ineligible under this subdivision, for 
        weeks for which that the claimant previously received 
        unemployment reemployment insurance benefits shall be liable for 
        repayment of such unemployment considered overpaid reemployment 
        insurance benefits and otherwise subject to the provisions 
        of under section 268.18. 
           Subd. 5a.  [SELF-EMPLOYMENT.] (a) A claimant who is 
        determined to be likely to exhaust regular reemployment 
        insurance benefits and is enrolled in a dislocated worker 
        program shall be considered in approved training for purposes of 
        this chapter for each week the claimant is engaged on a 
        full-time basis in activities, including training, relating to 
        the establishment of a business and becoming self-employed.  A 
        claimant who meets the requirements of this subdivision shall be 
        considered unemployed for purposes of this chapter.  Income 
        earned from the self-employment activity shall not be considered 
        for purposes of subdivision 3a 5.  Under no circumstances shall 
        more than five percent of the number of claimants receiving 
        regular reemployment insurance benefits be actively enrolled in 
        this program at any time.  This subdivision shall not apply to 
        claimants claiming state or federal extended or additional 
        benefits. 
           (b) This subdivision shall apply to weeks beginning after 
        April 18, 1995, or weeks beginning after approval of this 
        subdivision by the United States Department of Labor whichever 
        date is later.  This subdivision shall have no force or effect 
        for any purpose as of the end of the week preceding the date 
        when federal law no longer authorizes the provisions of this 
        subdivision, unless such date is a Saturday in which case this 
        subdivision shall have no force and effect for any purpose as of 
        that date. 
           Subd. 6.  [SERVICES PERFORMED FOR STATE, MUNICIPALITIES, OR 
        CHARITABLE CORPORATION SCHOOL EMPLOYEES.] Benefits based on 
        service in employment defined in section 268.04, subdivision 12, 
        clauses (7), (8) and (9), are payable in the same amount, on the 
        same terms and subject to the same conditions as benefits 
        payable on the basis of other service subject to this chapter; 
        except that: 
           (a) Benefits based upon service performed No wage credits 
        in any amount from any employment with any educational 
        institution or institutions earned while in an instructional, 
        research, or principal administrative capacity for an 
        educational institution, shall not be paid may be used for 
        benefit purposes for any week of unemployment 
        commencing beginning during the a period between two successive 
        academic years or terms, or during a similar period between two 
        regular but not successive terms, or during a period of paid 
        sabbatical leave provided for in the claimant's contract, to any 
        claimant if: 
           (1) the claimant performs the services had employment in 
        any instructional, research, or principal administrative 
        capacity for any educational institution or institutions in the 
        first of the academic years or terms; and 
           if (2) there is a contract or a reasonable assurance that 
        the claimant will perform services in any such capacity have 
        employment in any instructional, research, or principal 
        administrative capacity for an any educational institution or 
        institutions in the second of the academic years or terms, that 
        is substantially similar to the employment of the first academic 
        years or terms; 
           (b) With respect to employment in any capacity other than 
        those described in paragraph (a), including educational 
        assistants, benefits shall not be paid based upon wage credits 
        earned with from any educational institution or institutions for 
        any week which commences beginning during a period between two 
        successive academic years or terms if the claimant was employed 
        in the first academic year or term by any educational 
        institution or institutions and there is reasonable assurance 
        that the claimant will be employed under similar terms and 
        conditions by any educational institution or institutions in the 
        second academic year or term.  A claimant who has an agreement 
        for a definite period of employment between academic years or 
        terms shall be eligible for any weeks within that period the 
        educational institution or institutions fails to provide 
        employment.  If benefits are denied to any claimant under this 
        paragraph and the claimant was not offered an opportunity to 
        perform the employment in the second of the academic years or 
        term, the claimant shall be entitled to a retroactive payment of 
        benefits for each week in which that the claimant filed a timely 
        continued claim for benefits, but the continued claim was 
        benefits were denied solely because of this paragraph; 
           (c) With respect to services employment described in 
        paragraph (a) or (b), benefits payable on the basis of the 
        services based upon wage credits from any educational 
        institution or institutions shall not be paid to any claimant 
        for any week which commences beginning during an established and 
        customary vacation period or holiday recess if the 
        claimant performs the services was employed in the period 
        immediately before the vacation period or holiday recess, and 
        there is a reasonable assurance that the claimant will perform 
        the services be employed in the period immediately following the 
        vacation period or holiday recess; 
           (d) With respect to services described in paragraph (a) or 
        (b), benefits shall not be payable on the basis of services in 
        any capacity specified in Paragraphs (a), (b), and (c) to any 
        claimant who performed those services in an educational 
        institution while in the employ of shall apply to employment 
        with an educational service agency if the claimant performed the 
        services at an educational institution or institutions.  For 
        purposes of this paragraph, "educational service agency" means a 
        governmental agency or governmental entity which is established 
        and operated exclusively for the purpose of providing services 
        to one or more educational institutions; and 
           (e) With respect to services to state and local 
        government Paragraphs (a) to (d) shall apply to employment with 
        Minnesota or a political subdivision, or a nonprofit 
        organizations covered by section 501(c)(3) of the Internal 
        Revenue Code of 1986, as amended through December 31, 
        1992 organization, if the services are provided to or on behalf 
        of an educational institution, benefits must be denied under the 
        same circumstances as described in paragraphs (a) to (d) or 
        institutions. 
           (f) Paragraphs (a), (b), and (c) shall apply beginning the 
        Sunday of the week that there is a contract or reasonable 
        assurance of employment. 
           (g) Employment with multiple education institutions shall 
        be aggregated for purposes of application of this subdivision. 
           (h) An "educational institution" is an educational entity 
        operated by Minnesota or a political subdivision or an 
        instrumentality thereof, or an educational organization 
        described in United States Code, title 26, section 501(c)(3), of 
        the federal Internal Revenue Code and exempt from income tax 
        under section 501(a).  
           Subd. 7.  [PROFESSIONAL ATHLETES.] Benefits shall not be 
        paid to a claimant on the basis of any service wage credits from 
        employment that substantially all of which consist consists of 
        participating in sports or athletic events or training or 
        preparing to so participate for any week which commences that 
        begins during the period between two successive sport seasons 
        (or similar periods) if the claimant performed such service was 
        so employed in the first of such seasons season (or similar 
        period) and there is a reasonable assurance that the claimant 
        will perform such service be so employed in the later of such 
        seasons following season (or similar periods). 
           Subd. 8.  [ILLEGAL ALIENS.] (a) An alien shall be 
        ineligible for benefits for any week the alien is not authorized 
        to work in the United States under federal law. 
           (b) Benefits shall not be paid on the basis of services 
        performed wage credits earned by an alien unless such the 
        alien is a claimant who (1) was lawfully admitted for permanent 
        residence at the time such services were performed of the 
        employment, (2) was lawfully present for the purposes 
        of performing such services the employment, or (3) was 
        permanently residing in the United States under color of law at 
        the time such services were performed (of the employment 
        including an alien who was lawfully present in the United States 
        as a result of the application of the provision of section 
        203(a)(7) or section 212(d)(5) of the Immigration and 
        Nationality Act). 
           (b) (c) Any data or information required of claimants 
        applying for benefits to determine whether benefits are not 
        payable to them eligibility because of their alien status shall 
        be uniformly required from all applicants for benefits claimants.
           (c) In the case of a claimant whose application for 
        benefits would otherwise be approved, no determination that 
        benefits to such claimant are not payable because of alien 
        status shall be made except upon a preponderance of the evidence.
           Subd. 9.  [SERVICES FOR CERTAIN SCHOOL CONTRACTORS.] 
        Benefits based upon services performed for Wage credits from an 
        employer are subject to subdivision 6 7, paragraphs (b) and (c) 
        if:  
           (a) (1) the employment was provided pursuant to a contract 
        between the employer and a public or private school an 
        educational institution; 
           (b) (2) the contract was for services which that the 
        public or private school educational institution could have had 
        performed by its employees; and 
           (c) the employment was not as defined in section 268.04, 
        subdivision 12, clauses (7), (8), and (9); and 
           (d) (3) the claimant was notified in writing of the 
        provisions of this subdivision while employed in 1983 or prior 
        to or at the time of commencing beginning the employment.  
           Subd. 10.  [SEASONAL EMPLOYMENT.] (a) If a claimant has 
        wage credits from seasonal employment, benefits shall be payable 
        only if the claimant can establish a reemployment insurance 
        account under section 268.07, subdivision 2, excluding the wage 
        credits from seasonal employment.  For purposes of this 
        subdivision, "seasonal employment" means employment with a 
        single employer in the recreation or tourist industry that is 
        available with the employer for 15 consecutive weeks or less 
        each calendar year. 
           (b) Wage credits from seasonal employment may not be used 
        for benefit purposes during weeks outside the normal season. 
           Subd. 11.  [BUSINESS OWNERS.] Wages paid by Wage credits 
        from an employing unit employer may not be used for benefit 
        purposes by any claimant who:  
           (1) 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 
        employer, or 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 employer; and 
           (2) is not permanently separated from employment. 
           This subdivision is effective when the claimant has been 
        paid four times the claimant's weekly benefit amount in the 
        current benefit year. 
           Sec. 25.  Minnesota Statutes 1997 Supplement, section 
        268.09, subdivision 1a, is amended to read: 
           Subd. 1a.  [QUIT.] A claimant who quits employment shall be 
        disqualified from benefits: 
           (1) unless the claimant quit the employment because of a 
        good reason caused by the employer; 
           (2) unless the claimant quit the employment to accept other 
        covered employment that provided substantially higher wages or 
        substantially better conditions of employment or both, but the 
        claimant did not work long enough at the other employment to 
        have sufficient subsequent earnings to satisfy the 
        disqualification that would otherwise be imposed; 
           (3) unless the claimant quit the employment within 30 
        calendar days of commencing beginning the employment because the 
        employment was unsuitable for the claimant; 
           (4) unless the employment was unsuitable for the claimant 
        and the claimant quit to enter approved training; 
           (5) unless the employment was part time and the claimant 
        had full-time employment in the base period, that the claimant 
        separated from because of nondisqualifying reasons, sufficient 
        to meet the minimum requirements to establish a reemployment 
        insurance account under section 268.07, subdivision 2; or 
           (6) unless the claimant quit the employment because of the 
        claimant's serious illness made it medically necessary that the 
        claimant quit, provided that the claimant made reasonable 
        efforts to retain remain in that employment in spite of the 
        serious illness. 
           Reasonable efforts to remain in that employment require 
        that the claimant inform the employer of the serious illness and 
        request accommodation.  
           A claimant who quit employment because of the claimant's 
        serious illness of chemical dependency, has not made reasonable 
        efforts to retain the remain in that employment if the claimant 
        has previously been professionally diagnosed as chemically 
        dependent, or has previously voluntarily submitted to treatment 
        for chemical dependency, and has failed to make consistent 
        efforts to maintain the treatment the claimant knows or has been 
        professionally advised is necessary to control the chemical 
        dependency. 
           Sec. 26.  Minnesota Statutes 1997 Supplement, section 
        268.09, subdivision 10, is amended to read: 
           Subd. 10.  [DISCHARGE.] A claimant who is discharged from 
        employment by an employer shall not be disqualified from 
        benefits: 
           (1) unless the claimant was discharged because of 
        misconduct that interfered with and adversely affected that 
        employment.  This clause shall not apply if: 
           (i) the misconduct was a direct result of the claimant's 
        serious illness provided that the claimant made reasonable 
        efforts to retain the remain in that employment in spite of the 
        serious illness.  
           Reasonable efforts to remain in that employment require 
        that the claimant inform the employer of the serious illness and 
        request accommodation. 
           If the misconduct was a direct result of the 
        claimant's serious illness of chemical dependency, the claimant 
        has not made reasonable efforts to retain remain in that 
        employment if the claimant has previously been professionally 
        diagnosed chemically dependent or the claimant has previously 
        voluntarily submitted to treatment for chemical dependency and 
        has failed to make consistent efforts to maintain the treatment 
        the claimant knows or has been professionally advised is 
        necessary to control the chemical dependency; or. 
           This subclause shall not apply if the misconduct was a 
        violation of section 169.121, 169.1211, or 169.123; or 
           (ii) the employment was part time and the claimant had 
        full-time employment in the base period, that the claimant 
        separated from because of nondisqualifying reasons, sufficient 
        to meet the minimum requirements to establish a reemployment 
        insurance account under section 268.07, subdivision 2; 
           (2) unless the claimant was discharged because of gross 
        misconduct that interfered with and adversely affected that 
        employment.  For the purpose of this clause, "gross misconduct" 
        means: 
           (i) the commission of any act that amounts to a gross 
        misdemeanor or felony; or 
           (ii) for an employee of a facility as defined in section 
        626.5572, gross misconduct includes an act of patient or 
        resident abuse, financial exploitation, or recurring or serious 
        neglect, as defined in section 626.5572 and applicable rules. 
           If a claimant is convicted of a gross misdemeanor or felony 
        for the same act or acts for which the claimant was discharged, 
        it is conclusively presumed to be gross misconduct; or 
           (3) if the claimant was discharged because the claimant 
        gave notice of intention to quit the employment within 30 
        calendar days.  This clause shall be effective only through the 
        end of the calendar week that includes the intended date of 
        quitting.  Thereafter the separation from employment shall be 
        considered a quit of employment by the claimant, and a 
        disqualification, if any, shall commence begin with the Sunday 
        of the week following the week that includes the intended date 
        of quitting. 
           Sec. 27.  Minnesota Statutes 1997 Supplement, section 
        268.09, subdivision 13, is amended to read: 
           Subd. 13.  [ACT OR OMISSIONS AFTER SEPARATION.] Except as 
        provided for under subdivision 14 8, a claimant shall not be 
        disqualified from benefits for any acts or omissions occurring 
        after the claimant's separation from employment with the 
        employer. 
           Sec. 28.  Minnesota Statutes 1997 Supplement, section 
        268.09, subdivision 16, is amended to read: 
           Subd. 16.  [DISQUALIFICATION DURATION.] (a) A 
        disqualification from the payment of benefits under subdivisions 
        1a 1, 10 4, and 14 8 shall be for the duration of the 
        claimant's unemployment and until the end of the calendar 
        week in which that the claimant had total earnings in subsequent 
        covered employment of eight times the claimant's weekly benefit 
        amount. 
           (b) Any disqualification imposed under subdivisions 1a 1 
        and 10 4 shall commence begin on the Sunday of the week in 
        which that the claimant became separated from employment.  Any 
        disqualification imposed under subdivision 14 8 shall 
        commence begin on the Sunday of the week the claimant failed to 
        apply for, accept, or avoided employment. 
           (c) Notwithstanding paragraph (a), if the claimant was 
        discharged from employment because of gross misconduct that 
        interfered with and adversely affected that employment, the 
        disqualification shall be for the duration of the claimant's 
        unemployment and until the end of the calendar week in which 
        that the claimant had total earnings in subsequent covered 
        employment of 12 times the claimant's weekly benefit amount.  In 
        addition, wage credits from that employment shall be 
        canceled and the claimant's reemployment insurance account 
        redetermined pursuant to section 268.07, subdivision 1, 
        paragraph (d). 
           Sec. 29.  Minnesota Statutes 1997 Supplement, section 
        268.09, subdivision 17, is amended to read: 
           Subd. 17.  [APPLICATION.] This section shall apply to: 
           (1) all covered employment, full time or part time, 
        temporary or limited duration, permanent or indefinite duration, 
        that occurred during the base period, the period between the end 
        of the base period and the effective date of the reemployment 
        insurance account, or the benefit year, except as provided for 
        in subdivisions 1a 1, clause (5); and 10 4, clause (1)(ii); or 
           (2) all covered employment occurring in this state, and 
        employment covered under a reemployment insurance program, (i) 
        of any other state, federal employment, or employment covered 
        under the Railroad Unemployment Compensation Act or (ii) 
        established by an act of Congress. 
           Sec. 30.  Minnesota Statutes 1996, section 268.101, as 
        amended by Laws 1997, chapter 66, sections 55, 56, 57, and 58, 
        is amended to read: 
           268.101 [DETERMINATIONS ON DISQUALIFICATION AND 
        ELIGIBILITY.] 
           Subdivision 1.  [NOTIFICATION.] (a) Upon application for a 
        reemployment insurance account, each claimant shall report the 
        names of all employers and the reasons for no longer working for 
        all employers during the claimant's last 30 days of employment. 
           (b) Upon establishment of a reemployment insurance account, 
        the commissioner shall notify, by mail or electronic 
        transmission, all employers the claimant was employed by during 
        the claimant's last 30 days of employment prior to making an 
        application and all base period employers and determined 
        successors to those employers under section 268.051, subdivision 
        4.  An employer so notified shall have ten calendar days after 
        the mailing sending of the notice to make a protest in a manner 
        prescribed by the commissioner raising any issue of 
        disqualification or any issue of eligibility.  An employer so 
        notified shall be informed of the effect that failure to timely 
        protest may have on the employer charges.  A protest made more 
        than ten calendar days after mailing sending of the notice shall 
        be considered untimely. 
           (c) Each claimant shall report any employment, loss of 
        employment, and offers of employment received, for during those 
        weeks the claimant made continued claims for benefits.  Each 
        claimant who stops making continued claims during the benefit 
        year and later commences begins making continued claims during 
        that same benefit year shall report the name of any employer the 
        claimant worked for during the period between the making of 
        continued claims, up to a period of the last 30 days of 
        employment, and the reason the claimant stopped working for the 
        employer.  The claimant shall report any offers of employment 
        during the period between the making of continued claims.  Those 
        employers from which the claimant has reported a loss of 
        employment or an offer of employment pursuant to this paragraph 
        shall be notified by mail or electronic transmission.  An 
        employer so notified shall have ten calendar days after the 
        mailing sending of the notice to make a protest in a manner 
        prescribed by the commissioner raising any issue of 
        disqualification or any issue of eligibility.  An employer so 
        notified shall be informed of the effect that failure to timely 
        protest may have on the employer charges.  A protest made more 
        than ten calendar days after mailing sending of the notice shall 
        be considered untimely. 
           (d) The purpose for requiring the claimant to report the 
        name of all employers and the reason for no longer working for 
        all employers during the claimant's "last 30 days of employment" 
        is for the commissioner to obtain information from a claimant on 
        all issues that have the potential of disqualifying the claimant 
        from benefits under section 268.095.  If the reason given by the 
        claimant for no longer working for an employer is a discharge, 
        other than a layoff due to lack of work, the claimant shall be 
        required to state all the facts about the cause of the 
        discharge, if known. 
           Subd. 2.  [DISQUALIFICATION DETERMINATION.] (a) The 
        commissioner shall promptly determine any issue of 
        disqualification raised by a timely protest made by an employer, 
        and mail to the claimant and that employer at the last known 
        address a determination of disqualification or a determination 
        of nondisqualification, as is appropriate.  The determination 
        shall set forth the effect on employer charges. 
           (b) The commissioner shall promptly determine any issue of 
        disqualification raised by information obtained from a claimant 
        pursuant to subdivision 1, paragraph (a) or (c), and mail to the 
        claimant and employer at the last known address a determination 
        of disqualification or a determination of nondisqualification, 
        as is appropriate.  The determination shall set forth the effect 
        on employer charges. 
           (c) The commissioner shall promptly determine any issue of 
        disqualification raised by an untimely protest made by an 
        employer and mail to the claimant and that employer at the last 
        known address a determination of disqualification or a 
        determination of nondisqualification as is appropriate.  The 
        determination shall set forth the effect on employer charges.  
        Notwithstanding section 268.09 268.095, any disqualification 
        imposed as a result of determination issued pursuant to this 
        paragraph shall commence begin the Sunday two weeks following 
        the week in which that the untimely protest was made.  
        Notwithstanding any provisions to the contrary, any relief of 
        employer charges as a result of a determination issued pursuant 
        to this paragraph shall commence begin the Sunday two weeks 
        following the week in which that the untimely protest was made. 
           (d) If any time within 24 months from the establishment of 
        a reemployment insurance account the commissioner finds that a 
        claimant failed to report any employment, loss of employment, or 
        offers of employment that were required to be provided by the 
        claimant under this section, the commissioner shall promptly 
        determine any issue of disqualification on that loss of 
        employment or offer of employment and mail to the claimant and 
        involved employer at the last known address a determination of 
        disqualification or a determination of nondisqualification, as 
        is appropriate.  The determination shall set forth the effect on 
        employer charges. 
           This paragraph shall not apply if the involved employer was 
        notified and given the opportunity to protest pursuant to 
        subdivision 1, paragraph (b) or (c). 
           (e) A determination of disqualification or a determination 
        of nondisqualification shall be final unless an appeal is filed 
        by the claimant or notified employer within 15 30 calendar days 
        after mailing of the determination to the last known address.  
        The determination shall contain a prominent statement indicating 
        in clear language the method of appealing, the time within which 
        an appeal must be made, and the consequences of not appealing.  
        Proceedings on the appeal shall be conducted in accordance with 
        section 268.105. 
           (f) An issue of disqualification for purposes of this 
        section shall include any reason for no longer working for an 
        employer other than a layoff due to lack of work, any question 
        of denial of a disqualification from benefits under section 
        268.09 268.095, any question of an exception to disqualification 
        under section 268.09 268.095, any question of benefit charge to 
        an employer under section 268.047, and any question of an 
        otherwise imposed disqualification for which that a claimant has 
        had subsequent earnings sufficient to satisfy the 
        disqualification.  
           (g) Notwithstanding the requirements of this subdivision, 
        the commissioner is not required to mail to a claimant a 
        determination of nondisqualification where the claimant has had 
        subsequent earnings sufficient to satisfy any otherwise 
        potential disqualification.  
           Subd. 3.  [ELIGIBILITY DETERMINATION.] (a) The commissioner 
        shall promptly determine any issue of eligibility raised by a 
        timely protest made by an employer and mail to the claimant and 
        that employer at the last known address a determination of 
        eligibility or a determination of ineligibility, as is 
        appropriate. 
           (b) The commissioner shall promptly determine any issue of 
        eligibility raised by information obtained from a claimant and 
        mail to the claimant and any involved employer at the last known 
        address a determination of eligibility or a determination of 
        ineligibility, as is appropriate. 
           (c) The commissioner shall promptly determine any issue of 
        eligibility raised by an untimely protest made by an employer 
        and mail to the claimant and that employer at the last known 
        address a determination of eligibility or a determination of 
        ineligibility, as is appropriate.  Any denial of benefits 
        imposed as a result of determination issued pursuant to this 
        paragraph shall commence begin the Sunday two weeks following 
        the week in which that the untimely protest was made. 
           (d) If any time within 24 months from the establishment of 
        a reemployment insurance account the commissioner finds the 
        claimant failed to provide requested information regarding the 
        claimant's eligibility for benefits, the commissioner shall 
        determine the issue of eligibility and mail to the claimant and 
        any involved employer at the last known address a determination 
        of eligibility or a determination of ineligibility, as is 
        appropriate. 
           This paragraph shall not apply if the involved employer was 
        notified, was aware, or should have been aware of the issue of 
        eligibility at the time of notification, and was given the 
        opportunity to protest pursuant to subdivision 1, paragraph (b) 
        or (c). 
           (e) A determination of eligibility or determination of 
        ineligibility shall be final unless an appeal is filed by the 
        claimant or notified employer within 15 30 calendar days after 
        mailing of the determination to the last known address.  The 
        determination shall contain a prominent statement indicating in 
        clear language the method of appealing, the time within which an 
        appeal must be made, and the consequences of not appealing.  
        Proceedings on the appeal shall be conducted in accordance with 
        section 268.105. 
           (f) An issue of eligibility for purposes of this section 
        shall include any question of denial of benefits under sections 
        268.08 268.085, 268.115, 268.125, 268.135, and 268.155. 
           Subd. 3a.  [DIRECT HEARING.] Notwithstanding subdivision 2 
        or 3 any provision of sections 268.03 to 268.23, the 
        commissioner may refer any issue of disqualification or, any 
        issue of eligibility, or any other issue, directly for hearing 
        in accordance with section 268.105, subdivision 1.  The status 
        of the issue shall be the same as if a determination had been 
        made and an appeal filed. 
           Subd. 4.  [AMENDED DETERMINATION.] Unless an appeal has 
        been filed, the commissioner, on the commissioner's own motion, 
        upon finding that an error has occurred in the issuing of may 
        reconsider a determination of disqualification or 
        nondisqualification or a determination of eligibility or 
        ineligibility, may that has not become final and issue an 
        amended determination.  An amended determination shall not be 
        done at the request of a claimant or an employer.  Any amended 
        determination shall be mailed to the claimant and any involved 
        employer at the last known address.  Any amended determination 
        shall be final unless an appeal is filed by the claimant or 
        notified employer within 15 30 calendar days after mailing of 
        the amended determination to the last known address.  
        Proceedings on the appeal shall be conducted in accordance with 
        section 268.105. 
           Subd. 5.  [PROMPT PAYMENT.] If a determination or amended 
        determination awards benefits to a claimant, the benefits shall 
        be promptly paid regardless of any appeal period or any appeal 
        having been filed. 
           Subd. 6.  [OVERPAYMENT.] A determination or amended 
        determination which that holds a claimant disqualified or 
        ineligible for benefits for periods a claimant has been paid 
        benefits is an overpayment of those benefits subject to section 
        268.18. 
           Sec. 31.  Minnesota Statutes 1997 Supplement, section 
        268.105, subdivision 3a, is amended to read: 
           Subd. 3a.  [DECISIONS.] (a) If a reemployment insurance 
        judge's decision or the commissioner's decision awards 
        benefits to a claimant, the benefits shall be promptly paid 
        regardless of any appeal period or any appeal having been filed. 
           (b) If a reemployment insurance judge's decision modifies 
        or reverses a determination awarding benefits to a claimant, any 
        benefits paid pursuant to the determination is an overpayment of 
        those benefits subject to section 268.18. 
           (c) Except as provided in paragraph (d), If a 
        commissioner's decision modifies or reverses a reemployment 
        insurance judge's decision awarding benefits to a claimant, any 
        benefits paid pursuant to the reemployment insurance judge's 
        decision is an overpayment of those benefits subject to section 
        268.18. 
           (d) If a reemployment insurance judge's decision affirms a 
        determination on an issue of disqualification awarding benefits 
        or the commissioner affirms a reemployment insurance judge's 
        decision on an issue of disqualification awarding that awards 
        benefits to a claimant, the commissioner's decision, if finally 
        reversed by the Minnesota Court of Appeals or the Supreme Court 
        of Minnesota, shall not result in a disqualification of the 
        claimant from benefits only for weeks following the week in 
        which the decision reversing the award of benefits was issued 
        and benefits paid for that week and previous weeks shall not be 
        deemed overpaid and the benefits paid shall not be charged to a 
        contributing employer's account under section 268.095. 
           (e) If the commissioner, pursuant to subdivision 3, remands 
        a matter to a reemployment insurance judge for the taking of 
        additional evidence, the prior reemployment insurance judge's 
        decision shall continue to be enforced until new findings of 
        fact and decision are made by a reemployment insurance judge. 
           Sec. 32.  Minnesota Statutes 1997 Supplement, section 
        268.125, is amended to read: 
           268.125 [ADDITIONAL REEMPLOYMENT INSURANCE BENEFITS.] 
           Subdivision 1.  [ADDITIONAL BENEFITS; WHEN AVAILABLE.] 
        Additional reemployment insurance benefits are authorized under 
        this section only if the commissioner determines that: 
           (1) an employer has reduced operations at a facility 
        employing that had 100 or more individuals employees for at 
        least six months during the preceding year prior 12 months, the 
        employer reduced operations, resulting within a one-month period 
        in the reduction layoff of at least 50 percent or more of 
        the employer's facility's work force and the layoff of at 
        least amounting to 50 or more employees at that facility, 
        including reductions caused as a result of a major natural 
        disaster declared by the President; 
           (2) the employer has no expressed plan to resume operations 
        which that would lead to the reemployment of those employees at 
        any time in the immediate future; and 
           (3) the seasonally adjusted unemployment rate for in the 
        county in which that the facility is located was ten percent or 
        more during the month of the reduction or any of the three 
        months preceding before or succeeding after the month of the 
        reduction. 
           Subd. 2.  [PAYMENT OF BENEFITS.] All Additional benefits 
        payable under this section are payable from the fund.  
           Subd. 3.  [ELIGIBILITY CONDITIONS.] A claimant is eligible 
        to receive additional benefits under this section for any week 
        during the claimant's benefit year if the commissioner finds 
        that: 
           (1) the claimant's unemployment is the claimant was laid 
        off from employment as a result of a reduction in operations as 
        provided under subdivision 1 or was laid off due to lack of work 
        from that employer during the three-month period before, or the 
        three-month period after the month of the reduction under 
        subdivision 1; 
           (2) the claimant is unemployed and meets the eligibility 
        requirements for the receipt of unemployment benefits under 
        section 268.08 268.085; 
           (3) the claimant is not subject to a disqualification for 
        benefits under section 268.09 268.095; for the purpose of this 
        subdivision, the disqualifying conditions set forth in section 
        268.09 268.095, and the requalifying requirements thereunder, 
        apply to the receipt of additional benefits under this section; 
           (4) the claimant has exhausted all rights to regular 
        benefits payable under section 268.07, is not entitled to 
        receive extended benefits under section 268.115, and is not 
        entitled to receive reemployment insurance benefits under any 
        other state or federal law for the that week in which the 
        claimant is claiming additional benefits; 
           (5) the claimant has made a claim for additional benefits 
        with respect to any week the claimant is claiming benefits in 
        accordance with the regulations as the commissioner may 
        prescribe with respect to claims for regular benefits; and 
           (6) a majority of the claimant's wage credits were earned 
        with an from the employer for whom the commissioner has 
        determined there was that had 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 claimant's weekly benefit amount payable during the 
        individual's current benefit year under section 268.07. 
           Subd. 5.  [MAXIMUM BENEFITS PAYABLE.] A claimant's The 
        maximum amount of additional benefits payable in the 
        individual's claimant's benefit year shall be 13 times the 
        individual's claimant's weekly benefit amount.  Reemployment 
        insurance Benefits paid to an individual a claimant under any 
        state or federal law other than regular benefits payable under 
        section 268.07 shall be deducted from that individual's the 
        maximum amount of additional benefits. 
           Sec. 33.  Minnesota Statutes 1997 Supplement, section 
        268.13, subdivision 1, is amended to read: 
           Subdivision 1.  [AUTHORIZATION.] (a) The commissioner is 
        hereby authorized to enter into reciprocal arrangements with the 
        appropriate and duly authorized agencies of other states and of 
        the federal government, or both, whereby: 
           (1) Service performed employment by an individual employee 
        or individuals employees for a single employing unit for which 
        service employer that is customarily performed in more than one 
        state shall be deemed to be service considered performed 
        entirely within any one of the states: 
           (a) in which (1) where any part of any such individual's 
        service the employee's employment is performed, or 
           (b) in which any such individual (2) where the employee has 
        a residence, or 
           (c) in which (3) where the employing unit employer 
        maintains a place of business; provided, there is in effect, as 
        to such service the employment, an election, approved by 
        the agency charged with the administration of such state's 
        employment security law state, pursuant to which all the service 
        performed employment by such individual the employee or 
        individuals employees for such employing unit the employer is 
        deemed considered to be performed entirely within such that 
        state;. 
           (2) (b) The commissioner shall participate in any 
        reciprocal arrangements with other states and the federal 
        government, or both, for the payment of compensation benefits on 
        the basis of combining an individual's a claimant's wages and 
        employment covered under this law with wages and employment 
        covered under the unemployment compensation reemployment 
        insurance laws of other states which are approved by the United 
        States Secretary of Labor in consultation with the state 
        unemployment compensation agencies as reasonably calculated to 
        assure the prompt and full payment of compensation in such 
        situations and which or the federal government that include 
        provisions for applying the base period of a single state law to 
        a claim an account involving the combining of an individual's a 
        claimant's wages and employment covered under two or more state 
        unemployment compensation laws, and avoiding the duplicate use 
        of wages and employment by reason of such combining;.  No 
        reciprocal arrangement shall be entered into unless it contains 
        provisions for reimbursements to the fund, by the other state or 
        the federal government, for benefits paid from the fund to 
        claimants based upon wages and employment covered under the laws 
        of the other state or the federal government. 
           (3) (c) On any reciprocal arrangement, the wages or 
        services, upon the basis of which an individual may become 
        entitled to benefits paid a claimant from employment covered 
        under an employment security a reemployment insurance law of 
        another state or of the federal government, shall be deemed to 
        be considered wages for insured work from covered employment for 
        the purpose of determining the individual's claimant's rights to 
        benefits under sections 268.03 to 268.23., and wages for insured 
        work, on the basis of which an individual may become entitled to 
        benefits thereunder shall be deemed to be wages or services on 
        the basis of which unemployment compensation under such law of 
        another state or of the federal government is payable, but no 
        such arrangement shall be entered into unless it contains 
        provisions for reimbursements to the fund for such of the 
        benefits paid thereunder upon the basis of such wages or 
        service, and provisions for reimbursements from the fund for 
        such of the compensation paid under such other law upon the 
        basis of wages for insured work; 
           (4) Contributions due thereunder with respect to wages for 
        insured work shall for the purpose of section 268.057 be deemed 
        to have been paid to the fund as of the date payment was made as 
        contributions therefor under another state or federal employment 
        security law, but no such arrangement shall be entered into 
        unless it contains provisions for such reimbursement to the fund 
        of such contributions and the actual earnings thereon.  
           Sec. 34.  Minnesota Statutes 1997 Supplement, section 
        268.13, subdivision 2, is amended to read: 
           Subd. 2.  [REIMBURSEMENTS.] Reimbursements paid from the 
        fund pursuant to subdivision 1 shall be deemed to be benefits 
        for the purposes of sections 268.045 to 268.194.  The 
        commissioner is authorized to make to other state or federal 
        agencies and to receive from such other state or federal 
        agencies, reimbursements from or to the fund, in accordance with 
        reciprocal arrangements entered into pursuant to subdivision 1 
        section 268.131. 
           Sec. 35.  Minnesota Statutes 1996, section 268.13, 
        subdivision 4, is amended to read: 
           Subd. 4.  [UTILIZATION OF FEDERAL BENEFITS COOPERATION WITH 
        FOREIGN GOVERNMENTS.] To the extent permissible under the laws 
        and Constitution of the United States, The commissioner is 
        authorized to enter into or cooperate in arrangements whereby 
        facilities and services provided under sections 268.03 to 268.23 
        and facilities and services provided under the employment 
        security reemployment insurance law of any foreign government, 
        may be utilized used for the taking of applications for benefits 
        and continued claims and the payment of benefits under the 
        employment security this law of this state or under a similar 
        law of such a foreign government.  
           Sec. 36.  Minnesota Statutes 1996, section 268.18, as 
        amended by Laws 1997, chapter 66, sections 71, 72, 73, 74, 75, 
        76, and 81, is amended to read: 
           268.18 [RETURN OF BENEFITS; OFFENSES.] 
           Subdivision 1.  [ERRONEOUS PAYMENTS.] (a) Any claimant who, 
        by reason of the claimant's own mistake or through the error of 
        any individual engaged in the administration of this chapter or 
        because of a determination, redetermination, or amended 
        determination issued pursuant to section 268.07 or 268.101, has 
        received any benefits that the claimant was not entitled to, 
        shall promptly repay the benefits to the department.  If the 
        claimant fails to repay the benefits, the 
        department commissioner shall, as soon as the erroneous payment 
        is discovered, determine the amount due and notify the claimant 
        in writing to repay the benefits. 
           (b) Unless the claimant files an appeal within 15 30 
        calendar days after the mailing of the determination of 
        overpayment to the claimant's last known address, the 
        determination shall become final.  Proceedings on the appeal 
        shall be conducted in accordance with section 268.105.  A 
        claimant may not collaterally attack, by way of an appeal to an 
        overpayment determination, any prior determination issued 
        pursuant to section 268.07 or 268.101, or decision issued 
        pursuant to section 268.105, that has become final. 
           (c) If the claimant fails to repay the benefits, the 
        commissioner may deduct from any future benefits payable to the 
        claimant in either the current or any subsequent benefit year an 
        the amount equivalent to of the overpayment determined, except 
        that no single deduction under this subdivision 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 delinquent 
        contributions taxes.  A determination of overpayment shall state 
        the methods of collection the commissioner will may use to 
        recover the overpayment.  
           (d) If a claimant has been overpaid benefits under the law 
        of another state because of an error and that state certifies to 
        the department commissioner that the claimant is liable under 
        its law to repay the benefits and requests the department 
        commissioner to recover the overpayment, the commissioner may 
        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 under this subdivision shall exceed 50 
        percent of the amount of the payment from which the deduction is 
        made.  
           (d) (e) Benefits paid for weeks more than three years prior 
        to the discovery of error are not erroneous payments. 
           (e) Notwithstanding paragraph (a), the commissioner shall 
        waive recovery of an overpayment if the commissioner's 
        authorized representative under section 268.105, subdivision 3, 
        determines the overpayment resulted from an administrative 
        failure to identify that a claimant's wage credits were not 
        earned in covered employment.  This paragraph shall not apply to 
        misidentification of an employee-employer relationship. 
           Subd. 2.  [FRAUD.] (a) Any claimant who receives benefits 
        by knowingly and willfully misrepresenting, misstating, or 
        failing to disclose any material fact that would have made the 
        claimant not entitled to those benefits has committed fraud. 
        After the discovery of facts indicating fraud, the commissioner 
        shall make a written determination that the claimant was not 
        entitled to benefits that were obtained by fraud and that the 
        claimant must promptly repay the benefits to the department.  In 
        addition, the commissioner may deny benefits to a claimant for 
        one to 52 weeks for which the claimant is otherwise entitled to 
        benefits following the week in which the fraud was determined.  
        A denial imposed for fraud shall not apply to any week more than 
        104 weeks after the week in which the fraud was determined shall 
        assess a penalty equal to 25 percent of the amount fraudulently 
        obtained.  If the claimant had a prior overpayment due to fraud, 
        the commissioner shall, on the present overpayment, assess a 
        penalty equal to 50 percent of the amount fraudulently obtained. 
           (b) Unless the claimant files an appeal within 15 30 
        calendar days after the mailing of the determination of 
        overpayment by fraud to the claimant's last known address, the 
        determination shall become final.  Proceedings on the appeal 
        shall be conducted in accordance with section 268.105.  
           (c) If the claimant fails to repay the benefits, penalty, 
        and any interest assessed under subdivision 2b, the commissioner 
        may shall deduct from future benefits payable to the claimant in 
        either the current or any subsequent benefit year an amount 
        equivalent to the amount of overpayment determined or the 
        overpayment total due may be collected the same as delinquent 
        contributions taxes.  A determination of overpayment by fraud 
        shall state the methods of collection the commissioner may use 
        to recover the overpayment.  Money received in repayment of 
        fraudulently obtained benefits, penalties, and interest shall 
        first be applied to the benefits overpaid, then to the penalty 
        amount due, then to any interest due.  Payments made toward 
        penalty and interest shall be credited to the contingent account.
           (d) If a claimant has been overpaid benefits under the law 
        of another state because of fraud and that state certifies to 
        the department commissioner that the claimant is liable to repay 
        the benefits and requests the department commissioner to recover 
        the overpayment, the commissioner may 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.  
           (d) (e) A determination of overpayment by fraud may be made 
        at any time.  
           Subd. 2a.  [OFFSET OF STATE AND FEDERAL UNEMPLOYMENT 
        BENEFITS.] To the extent permissible under the laws and 
        constitution of the United States, The commissioner is 
        authorized to enter into or cooperate in arrangements or 
        reciprocal agreements with the United States Secretary of Labor, 
        whereby, overpayments of unemployment benefits as determined 
        under applicable federal law, with respect to benefits or 
        allowances for unemployment provided under a federal program 
        administered by this state under an agreement with the United 
        States Secretary of Labor Minnesota, may be recovered by offset 
        from unemployment benefits otherwise payable under this chapter 
        or any such federal program.  As provided by reciprocal 
        agreement, benefit overpayments as determined under subdivisions 
        1 and 2 may be recovered by offset from benefits or allowances 
        for unemployment otherwise payable under a federal program 
        administered by this state. 
           Subd. 2b.  [INTEREST.] (a) On any benefits fraudulently 
        obtained, as determined under subdivision 2, the commissioner 
        shall have the discretion to assess interest at the rate of 
        1-1/2 percent per month on any overpaid amount which that 
        remains unpaid 30 calendar days after the date of the 
        determination of overpayment by fraud.  A determination of 
        overpayment by fraud shall state that interest may be assessed. 
           (b) Any money received in repayment of fraudulently 
        obtained benefits and interest thereon shall be first applied to 
        the overpayment balance. 
           (c) Unpaid interest may be collected the same as delinquent 
        contributions. 
           (b) If this subdivision became effective after the date of 
        the determination of overpayment by fraud, or the determination 
        did not state that interest may be assessed, interest pursuant 
        to this subdivision may be assessed beginning 30 calendar days 
        after written notification to the claimant. 
           Subd. 4.  [CANCELLATION OF BENEFITS PAID THROUGH ERROR OR 
        FRAUD.] (a) If benefits paid through error are not repaid or 
        deducted from subsequent benefit amounts benefits as provided 
        for in subdivision 1 within six years after the date of the 
        determination of overpayment, the commissioner shall cancel the 
        overpayment balance, and no administrative or legal proceedings 
        shall be used to enforce collection of those amounts.  
           (b) If benefits paid as a result of fraud including 
        penalties and interest are not repaid or deducted from 
        subsequent benefits as provided for in subdivision 2 within ten 
        years after the date of the determination of overpayment by 
        fraud, the commissioner shall cancel the overpayment balance and 
        any penalties and interest due, and no administrative or legal 
        proceeding shall be used to enforce collection of those amounts. 
           (c) The commissioner may cancel at any time benefits paid 
        through error or fraud including penalties and interest that the 
        commissioner determines are uncollectible due to death or 
        bankruptcy. 
           Subd. 4a.  [COURT FEES.] (a) If the commissioner is 
        required to pay any court fees in an attempt to enforce 
        collection of overpaid benefits, penalties, or interest, the 
        commissioner may add the amount of the court fees to the total 
        amount due. 
           (b) If a claimant who has been determined overpaid benefits 
        because of fraud seeks to have any portion of the debt 
        discharged under the federal bankruptcy code, and the 
        commissioner files an objection in bankruptcy court to the 
        discharge, the commissioner may add the commissioner's cost of 
        any court fees to the debt if the bankruptcy court does not 
        discharge the debt. 
           Sec. 37.  Minnesota Statutes 1997 Supplement, section 
        268.182, is amended to read: 
           268.182 [FALSE REPRESENTATIONS; CONCEALMENT OF FACTS; 
        PENALTY.] 
           (a) Whoever obtains, or attempts to obtain, or aids or 
        abets any person individual to obtain by means of an intentional 
        false statement or representation, by intentional concealment of 
        a material fact, or by impersonation or other fraudulent means, 
        benefits that the person individual is not entitled or benefits 
        greater than the person individual is entitled under this 
        chapter, or under the law of any state or of the federal 
        government, either personally or for any other person 
        individual, is guilty of theft and shall be sentenced pursuant 
        to section 609.52.  The amount of the benefits incorrectly paid 
        shall be the difference between the amount of benefits paid and 
        the amount that the claimant would have been entitled under 
        state and federal law had the department been informed of all 
        material facts. 
           (b) Any individual who violates paragraph (a) may be 
        assessed an administrative penalty of denial of benefits for one 
        to 52 weeks that the individual would otherwise be entitled to 
        benefits.  A denial shall not apply to any week more than 2 
        years after the week that the violation of paragraph (a) was 
        determined.  A written determination of denial shall be mailed 
        to the individual's last known address.  Unless an appeal is 
        filed within 30 calendar days of mailing, the determination 
        shall be final.  Proceeding on the appeal shall be conducted in 
        accordance with section 268.105.  This paragraph shall not apply 
        if prosecution is commenced under paragraph (a) or a penalty is 
        imposed under section 268.18, subdivision 2. 
           (b) (c) Any employing unit employer or any officer or agent 
        of an employing unit employer or any other person who makes a 
        false statement or representation knowing it to be false, or who 
        knowingly fails to disclose a material fact, to prevent or 
        reduce the payment of benefits to any claimant, is guilty of a 
        gross misdemeanor unless the benefit underpayment exceeds $500, 
        in that case the person is guilty of a felony.  
           Sec. 38.  Minnesota Statutes 1997 Supplement, section 
        268.184, is amended to read: 
           268.184 [EMPLOYER MISCONDUCT; PENALTY.] 
           (a) If the commissioner finds that any employing unit 
        employer or any employee, officer, or agent of any employing 
        unit employer, is in collusion with any claimant for the purpose 
        of assisting the claimant to receive benefits illegally, 
        the employing unit employer shall be penalized $500 or an amount 
        equal to the amount of benefits determined to be overpaid, 
        whichever is greater. 
           (b) If the commissioner finds that any employer or any 
        employee, officer, or agent of an employer has made (1) a false 
        statement or representation knowing it to be false, or (2) has 
        made a false statement or representation without a good faith 
        belief as to correctness of the statement or representation, or 
        (3) who knowingly fails to disclose a material fact, to prevent 
        or reduce the payment of benefits to any claimant or to reduce 
        or prevent a charge of benefits to its account, the employer 
        shall be penalized $500. 
           (c) Penalties assessed under this section shall be in 
        addition to any other penalties provided for and be subject to 
        the same collection procedures that apply to past 
        due contributions under this chapter taxes.  Penalties under 
        this section shall be paid to the department within 30 calendar 
        days of assessment and credited to the contingent fund account. 
           (d) The assessment of the penalty shall be final unless the 
        employing unit employer files a written an appeal within 30 
        calendar days after the mailing sending of the notice of the 
        penalty to the employer's last known address employer by mail or 
        electronic transmission.  Proceedings on the appeal shall be 
        conducted in accordance with section 268.105. 
           Sec. 39.  Minnesota Statutes 1997 Supplement, section 
        268.192, subdivision 1, is amended to read: 
           Subdivision 1.  [WAIVER OF RIGHTS VOID.] Any agreement by 
        an individual to waive, release, or commute rights to benefits 
        or any other rights under sections 268.03 to 268.23 shall be 
        void.  Any agreement by any individual in the employ of any 
        person or concern an employee to pay all or any portion of an 
        employer's contributions, required under these sections from 
        such employer taxes, shall be void.  No employer shall directly 
        or indirectly make or require or accept any deduction from wages 
        to finance pay the employer's contributions taxes, require or 
        accept any waiver of any right hereunder by any employed 
        individual or in any manner obstruct or impede the filing of 
        claims an application or continued claim for benefits.  Any 
        employer or officer or agent of any employer who violates any 
        provision portion of this subdivision shall, for each offense, 
        be guilty of a misdemeanor.  
           Sec. 40.  Minnesota Statutes 1997 Supplement, section 
        268.194, subdivision 2, is amended to read: 
           Subd. 2.  [COMMISSIONER OF FINANCE TO BE CUSTODIAN; 
        SEPARATE ACCOUNTS; BONDS.] The commissioner of finance shall 
        be ex officio the treasurer and custodian of the fund, 
        administer the fund in accordance with the directions of the 
        commissioner, and issue warrants upon it in accordance with such 
        rules as the commissioner shall prescribe.  The commissioner of 
        finance shall maintain within the fund three separate accounts: 
           (1) a clearing account; 
           (2) an unemployment trust fund account; and 
           (3) a benefit account.  
           All money payable to the fund, upon receipt thereof by the 
        commissioner, shall be forwarded to the commissioner of finance 
        who shall immediately deposit them the money in the clearing 
        account.  All money in the clearing account, after 
        clearance thereof, shall, except as herein otherwise provided, 
        be immediately deposited with the secretary of the treasury of 
        the United States to the credit of the account of this state 
        Minnesota in the federal unemployment trust fund established and 
        maintained pursuant to section 904 of the Social Security Act, 
        as amended, any provisions of law in this state relating to the 
        deposit, administration, release, or disbursement of money in 
        the possession or custody of this state to the contrary 
        notwithstanding.  Refunds payable pursuant to sections section 
        268.04, subdivision 12, clause (8) (f), and 268.057, subdivision 
        7, may be paid from the clearing account or the benefit 
        account.  The benefit account shall consist of all money 
        requisitioned from this state's Minnesota's account in the 
        federal unemployment trust fund in the United States Treasury 
        for the payment of benefits.  Except as herein otherwise 
        provided, Money in the clearing and benefit accounts may be 
        deposited by the commissioner of finance, under the direction of 
        the commissioner, in any depository bank in which that general 
        funds of the state Minnesota may be deposited, but no public 
        deposit insurance charge or premium shall be paid out of the 
        fund.  Money in the clearing and benefit accounts shall not be 
        commingled with other state funds, but shall be maintained in 
        separate accounts on the books of the depository bank.  Such 
        This money shall be secured by the depository bank to the same 
        extent and in the same manner as required by the general 
        depository law of this state Minnesota; and collateral pledged 
        for this purpose shall be kept separate and distinct from any 
        collateral pledged to secure other funds of the 
        state Minnesota.  All sums recovered for losses sustained by the 
        fund shall be deposited therein in the fund.  
           Sec. 41.  Minnesota Statutes 1997 Supplement, section 
        268.194, subdivision 3, is amended to read: 
           Subd. 3.  [WITHDRAWALS.] (1) Moneys Money requisitioned 
        from this state's Minnesota's account in the federal 
        unemployment trust fund shall be used exclusively for the 
        payment of benefits and for refunds pursuant to sections 268.04, 
        subdivision 12, clause (8) (f), and section 268.057, subdivision 
        7, except that money credited to this state's Minnesota's 
        account pursuant to United States Code, title 42, section 903 
        1103 of the Social Security Act, as amended, shall be used 
        exclusively as provided in subdivision 5 of this section for the 
        payment of expenses of administration.  The commissioner or a 
        duly authorized agent for that purpose, shall from time to time 
        requisition from the federal unemployment trust fund such the 
        amounts, not exceeding the amount standing to this state's in 
        Minnesota's account therein, as the commissioner deems 
        considers necessary for the payment of such benefits and refunds 
        for a reasonable future period.  Upon receipt thereof the 
        treasurer commissioner of finance shall deposit such moneys the 
        money in the benefit account and issue warrants for the payment 
        of benefits solely from such the benefit account.  Expenditures 
        of such moneys money in the benefit account and refunds from the 
        clearing account shall not be subject to any provisions of law 
        requiring specific appropriations or other formal release by 
        state officers of money in their custody.  All warrants 
        issued by the treasurer for the payment of benefits and refunds 
        shall bear the signature of the treasurer commissioner of 
        finance and the counter signature of the commissioner or a duly 
        authorized agent for that purpose.  
           (2) Any balance of moneys money requisitioned from the 
        unemployment trust fund which that remains unclaimed or unpaid 
        in the benefit account after the expiration of the period for 
        which such the sums were requisitioned shall either be deducted 
        from estimates for, and may be utilized for the payment of, 
        benefits and refunds during succeeding following periods or, in 
        the discretion of the commissioner, shall be redeposited with 
        the secretary of the treasury of the United States, to the 
        credit of this state's account in the federal unemployment trust 
        fund, as provided in subdivision 2. 
           Sec. 42.  Minnesota Statutes 1997 Supplement, section 
        268.194, subdivision 6, is amended to read: 
           Subd. 6.  [ADVANCE ON FEDERAL FUNDS.] (1) (a) The governor 
        is hereby authorized to make application as may be necessary to 
        secure any an advance of funds by the secretary of the treasury 
        of the United States in accordance with the authority extended 
        under section 1201 from the federal unemployment trust fund in 
        accordance with United States Code, title 42, section 1321, of 
        the Social Security Act, as amended. 
           (2) (b) Any amount transferred to the Minnesota 
        reemployment insurance fund by the secretary of the treasury of 
        the United States under the terms of any application made 
        pursuant to this subdivision shall be repayable in the manner as 
        provided in United States Code, title 42, sections 901(d) 1, 
        903(b) 2 and 1202 1101(d)(1), 1103(b)(2), and 1322, of the 
        Social Security Act, as amended. 
           (c) Interest payable on any advance shall be paid in 
        accordance with section 268.051, subdivision 8, paragraph (b). 
           Sec. 43.  Minnesota Statutes 1997 Supplement, section 
        268.196, subdivision 2, is amended to read: 
           Subd. 2.  [STATE TO REPLACE MONEYS MONEY WRONGFULLY USED.] 
        If any moneys money received after June 30, 1941, under Title 
        III United States Code, title 42, section 501, of the Federal 
        Social Security Act, or any unencumbered balances in the 
        economic security administration fund as of that date, or any 
        moneys granted after that date to the state pursuant to the 
        provisions of the Wagner-Peyser Act, are found by the United 
        States Secretary of Labor, because of any action or contingency, 
        to have been lost or been expended for purposes other than, or 
        in amounts in excess of, those found necessary by the secretary 
        of labor for the proper administration of these sections, the 
        commissioner may, with the approval of the commissioner of 
        administration, replace such moneys the money from the economic 
        security contingent fund hereinafter established account.  
        If such moneys are the money is not thus replaced from the 
        contingent account, it is the policy of this state that such 
        moneys shall the money be replaced by moneys money appropriated 
        for such that purpose from the general funds of this state to 
        the economic security administration fund for expenditure as 
        provided in subdivision 1.  Upon receipt of notice of such a 
        finding by the secretary of labor, the commissioner shall 
        promptly report the amount required for such replacement to the 
        governor and the governor shall, at the earliest opportunity, 
        submit to the legislature a request for the appropriation 
        of such that amount.  This subdivision shall not be construed to 
        relieve this state of its obligation with respect to funds 
        received prior to July 1, 1941, pursuant to the provisions of 
        Title III of the Social Security Act.  
           Sec. 44.  [INSTRUCTION TO REVISOR.] 
           The revisor of statutes shall change the words "employing 
        unit" to "employer" wherever it occurs in Minnesota Statutes, 
        sections 268.03 to 268.23. 
           The revisor of statutes shall change the words "employing 
        units" to "employers" wherever it occurs in Minnesota Statutes, 
        sections 268.03 to 268.23. 
           The revisor of statutes shall change the words 
        "agricultural labor" to "agricultural employment" wherever it 
        occurs in Minnesota Statutes, sections 268.03 to 268.23. 
           The revisor of statutes shall change the word 
        "remuneration" to "compensation" wherever it occurs in Minnesota 
        Statutes, sections 268.03 to 268.23. 
           The revisor of statutes shall change the words "department 
        of economic security" to "department" wherever it occurs in 
        Minnesota Statutes, sections 268.03 to 268.23. 
           The revisor of statutes shall change the word "deemed" to 
        "considered" wherever it occurs in Minnesota Statutes, sections 
        268.03 to 268.23. 
           Sec. 45.  [INSTRUCTION TO REVISOR.] 
           The revisor of statutes shall renumber each section of 
        Minnesota Statutes specified in column A with the number set 
        forth in column B.  The revisor shall also make necessary 
        cross-reference changes consistent with the renumbering. 
           Column A                        Column B
           268.08                          268.085
           268.08, subd. 1                 268.085, subd. 1
           268.08, subd. 1a                268.087
           268.08, subd. 2                 268.085, subd. 2
           268.08, subd. 2a                268.085, subd. 13
           268.08, subd. 3                 268.085, subd. 3
           268.08, subd. 3a                268.085, subd. 5
           268.08, subd. 3b                268.085, subd. 6
           268.08, subd. 4                 268.085, subd. 4
           268.08, subd. 6                 268.085, subd. 7
           268.08, subd. 7                 268.085, subd. 11
           268.08, subd. 8                 268.085, subd. 12
           268.08, subd. 9                 268.085, subd. 8
           268.08, subd. 10                268.085, subd. 10
           268.08, subd. 11                268.085, subd. 9
           268.09                          268.095
           268.09, subd. 1a                268.095, subd. 1
           268.09, subd. 2a                268.095, subd. 2
           268.09, subd. 9                 268.095, subd. 3
           268.09, subd. 10                268.095, subd. 4
           268.09, subd. 11                268.095, subd. 5
           268.09, subd. 12                268.095, subd. 6
           268.09, subd. 13                268.095, subd. 7
           268.09, subd. 14                268.095, subd. 8
           268.09, subd. 15                268.095, subd. 9
           268.09, subd. 16                268.095, subd. 10
           268.09, subd. 17                268.095, subd. 11
           268.09, subd. 18                268.095, subd. 12
           268.13                          268.131
           268.13, subd. 1, para. (a)      268.042, subd. 4
           268.13, subd. 1, para. (b)      268.131, subd. 1, para. (a)
           268.13, subd. 1, para. (c)      268.131, subd. 1, para. (b)
           268.13, subd. 2                 268.194, subd. 3a
           268.13, subd. 4                 268.131, subd. 2
           268.18, subd. 2a                268.18, subd. 3a
           Sec. 46.  [REPEALER.] 
           Minnesota Statutes 1996, sections 268.04, as amended by 
        Laws 1997, chapter 66, sections 3 to 9; 268.13, subdivisions 3 
        and 5; and 268.25; and Minnesota Statutes 1997 Supplement, 
        sections 268.042, subdivision 2; and 268.054, are repealed.  
        Minnesota Statutes 1996, Section 268.08, subdivision 5a, is 
        repealed effective December 31, 1998. 
           Sec. 47.  [EFFECTIVE DATE.] 
           Section 1 is effective the day following final enactment.  
        Section 4, subdivision 23, is effective the day following final 
        enactment.  Section 24, subdivision 6, is effective the day 
        following final enactment.  Section 31 is effective the day 
        following final enactment.  Section 36, subdivision 2, paragraph 
        (a), is effective for determinations issued on or after July 1, 
        1999. 
           Presented to the governor March 2, 1998 
           Signed by the governor March 4, 1998, 10:18 a.m.