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Minnesota Legislature

Office of the Revisor of Statutes

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

                            CHAPTER 175-H.F.No. 655 
                  An act relating to unemployment insurance; making 
                  technical and substantive changes; modifying 
                  unemployment compensation provisions for Indian 
                  tribes; providing for workers' compensation and 
                  disability insurance offsets of unemployment benefits 
                  payments; providing that certain applicants on leaves 
                  of absence are ineligible for benefits; modifying 
                  definitions; clarifying procedures; providing 
                  eligibility for benefits for certain victims of 
                  domestic abuse; instructing the revisor to renumber 
                  sections and change terms; amending Minnesota Statutes 
                  2000, sections 268.03, subdivision 1; 268.035, 
                  subdivisions 4, 5, 20, 29, and by adding subdivisions; 
                  268.042, subdivision 1; 268.045; 268.047; 268.051, 
                  subdivisions 1a, 3, 4, and 7; 268.052, subdivisions 1, 
                  2, and by adding a subdivision; 268.053, subdivisions 
                  1 and 3; 268.059; 268.07, subdivisions 1, 2, 3a, and 
                  3b; 268.085, subdivisions 1, 2, 3, 6, 7, 14, 15, and 
                  by adding subdivisions; 268.086, subdivisions 1 and 7; 
                  268.095, subdivisions 1, 2, 8, and 11; 268.101, 
                  subdivisions 1 and 2; 268.105, subdivision 7; 268.131, 
                  subdivision 2; 268.18, subdivision 2b; 268.184; 
                  268.192, subdivision 1; 268.6715; and 268.976, 
                  subdivision 1; proposing coding for new law in 
                  Minnesota Statutes, chapter 268; repealing Laws 1999, 
                  chapter 107, section 22. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  [268.029] [CITATION; UNEMPLOYMENT INSURANCE 
        PROGRAM.] 
           Sections 268.029 to 268.23 shall be known and may be cited 
        as the "Minnesota Unemployment Insurance Program Law." 
           Sec. 2.  Minnesota Statutes 2000, section 268.03, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [STATEMENT.] The public policy 
        underlying purpose of sections 268.03 268.029 to 268.23 is as 
        follows:  Economic insecurity due to involuntary unemployment is 
        a serious threat to the well-being of the people of workers in 
        Minnesota.  Involuntary unemployment is a subject of general 
        interest and concern that requires appropriate action by the 
        legislature to prevent its spread and to lighten its burdens.  
        The public good and the well-being of the citizens of Minnesota 
        will be promoted by providing, under the taxing powers of the 
        state for the compulsory setting aside of reserves to be used 
        for the payment of unemployment benefits to individuals workers 
        who are unemployed through no fault of their own.  Unemployment 
        benefits are a temporary partial wage replacement to assist the 
        unemployed worker to become reemployed.  This program will be 
        known as the "Minnesota unemployment insurance program." 
           Sec. 3.  Minnesota Statutes 2000, section 268.035, 
        subdivision 4, is amended to read: 
           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 an 
        applicant's benefit account; as set forth below: 
        If the benefit account is effective     The base period
        on or between these dates:              is the prior:
        January 1 - March 31                    October 1 - September 30
        April 1 - June 30                       January 1 - December 31
        July 1 - September 30                   April 1 - March 31
        October 1 - December 31                 July 1 - June 30 
           (2) if during the base period under clause (1) an applicant 
        received workers' compensation for temporary disability under 
        chapter 176 or a similar federal law of the United States or 
        similar law of another state, or if an applicant whose own 
        serious illness caused a loss of work for which the applicant 
        received compensation for loss of wages from some other source, 
        the applicant may request a base period as follows: 
           (i) if an applicant was compensated for a loss of work of 
        seven to 13 weeks, the base period shall be the first four of 
        the last six completed calendar quarters prior to the effective 
        date of the benefit account; 
           (ii) if an applicant was compensated for a loss of work of 
        14 to 26 weeks, the base period shall be the first four of the 
        last seven completed calendar quarters prior to the effective 
        date of the benefit account; 
           (iii) if an applicant was compensated for a loss of work of 
        27 to 39 weeks, the base period shall be the first four of the 
        last eight completed calendar quarters prior to the effective 
        date of the benefit account; and 
           (iv) if an applicant was compensated for a loss of work of 
        40 to 52 weeks, the base period shall be the first four of the 
        last nine completed calendar quarters prior to the effective 
        date of the benefit account; 
           (3) if the applicant qualifies for a base period under 
        clause (2), but has insufficient wage credits to establish a 
        benefit account, the applicant may request a base period of the 
        last four completed calendar quarters prior to the date the 
        applicant's benefit account is effective.  This base period may 
        be used only once during any five-calendar-year period; and 
           (4) no base period under clause (1), (2), or (3) shall 
        include wage credits upon which a prior benefit account was 
        established. 
           Sec. 4.  Minnesota Statutes 2000, section 268.035, 
        subdivision 5, is amended to read: 
           Subd. 5.  [UNEMPLOYMENT BENEFITS.] "Unemployment benefits" 
        means the money payments portion of the Minnesota unemployment 
        insurance program available to an applicant. 
           Sec. 5.  Minnesota Statutes 2000, section 268.035, is 
        amended by adding a subdivision to read: 
           Subd. 8a.  [COMMISSIONER.] "Commissioner" means the 
        commissioner of economic security. 
           Sec. 6.  Minnesota Statutes 2000, section 268.035, is 
        amended by adding a subdivision to read: 
           Subd. 12a.  [DEPARTMENT.] "Department" means the department 
        of economic security. 
           Sec. 7.  Minnesota Statutes 2000, section 268.035, 
        subdivision 20, is amended to read: 
           Subd. 20.  [NONCOVERED EMPLOYMENT.] "Noncovered employment" 
        means: 
           (1) employment for the United States government or an 
        instrumentality thereof, including military service; 
           (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) (3) employment for a foreign government; 
           (5) (4) 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) (5) employment covered under United States Code, title 
        45, section 351, the Railroad Unemployment Insurance Act; 
           (7) (6) employment covered by a reciprocal arrangement 
        between the commissioner and another state or the federal 
        government which provides that 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) (7) 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); 
           (9) (8) employment of a duly ordained 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); 
           (10) (9) 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; 
           (11) (10) 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 
        unemployment benefit coverage for the participants; 
           (12) (11) employment for Minnesota or a political 
        subdivision as an elected official, a member of a legislative 
        body, or a member of the judiciary; 
           (13) (12) employment as a member of the Minnesota national 
        guard or air national guard; 
           (14) (13) employment for Minnesota, a political 
        subdivision, or instrumentality thereof, as an employee serving 
        only on a temporary basis in case of fire, flood, tornado, or 
        similar emergency; 
           (15) (14) 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; 
           (16) (15) employment for Minnesota that is a major policy 
        making or advisory position in the unclassified service, 
        including those positions established pursuant to section 
        43A.08, subdivision 1a; 
           (17) (16) employment for a political subdivision of 
        Minnesota that is a nontenured major policy making or advisory 
        position; 
           (18) (17) domestic employment 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 in domestic employment totaled less than 
        $1,000. 
           "Domestic employment" includes all service 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 or business; 
           (19) (18) 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; 
           (20) (19) employment of an inmate of a custodial or penal 
        institution; 
           (21) (20) employment for a school, college, or university 
        by a student who is enrolled and is regularly attending classes 
        at the school, college, or university; 
           (22) (21) employment of an individual who is enrolled as a 
        student in a full-time program at a nonprofit or public 
        educational institution that maintains a regular faculty and 
        curriculum and 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; 
           (23) (22) 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; 
           (24) (23) employment for a hospital by a patient of the 
        hospital.  "Hospital" means an institution that has been 
        licensed by the department of health as a hospital; 
           (25) (24) 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 an accredited nurses' training 
        school; 
           (26) (25) employment as an intern for a hospital by an 
        individual who has completed a four-year course in an accredited 
        medical school; 
           (27) (26) employment as an insurance salesperson, 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; 
           (28) (27) employment as an officer of a township mutual 
        insurance company or farmer's mutual insurance company operating 
        pursuant to chapter 67A; 
           (29) (28) 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; 
           (30) (29) employment as a direct seller as defined in 
        United States Code, title 26, section 3508; 
           (31) (30) 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; 
           (32) (31) casual employment performed for an individual, 
        other than domestic employment under clause (18) (17), that does 
        not promote or advance that employer's trade or business; 
           (33) (32) employment in "agricultural employment" unless 
        considered "covered agricultural employment" under subdivision 
        11; or 
           (34) (33) if employment during one-half or more of any pay 
        period was covered employment, all the employment for the pay 
        period shall be considered covered employment; but if during 
        more than one-half of any pay period the employment was 
        noncovered employment, then all of the employment for the pay 
        period shall be considered noncovered 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. 
           [EFFECTIVE DATE.] This section is effective retroactive to 
        December 31, 2000. 
           Sec. 8.  Minnesota Statutes 2000, section 268.035, 
        subdivision 29, is amended to read: 
           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 employment 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. 
           Sec. 9.  Minnesota Statutes 2000, section 268.042, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [EMPLOYER FOR PART OF YEAR.] Except as 
        provided in subdivision 3, any organization or person that is or 
        becomes an employer subject to sections 268.03 to 268.23 within 
        any calendar year shall be considered to be an employer during 
        subject to these sections the entire calendar year.  
           Sec. 10.  Minnesota Statutes 2000, section 268.045, is 
        amended to read: 
           268.045 [EMPLOYER TAX OR REIMBURSABLE ACCOUNTS.] 
           (a) The commissioner shall maintain a tax account for each 
        taxpaying employer and a reimbursable account for each nonprofit 
        or government employer that is has elected to be liable for 
        payments in lieu of taxes if that employer has employees in 
        covered employment in the current or the prior calendar year, 
        except as provided in this section, and.  The commissioner shall 
        assess the tax account of a taxpaying employer for all the taxes 
        due under section 268.051 and credit the tax account with all 
        taxes paid.  The commissioner shall charge the reimbursable 
        account of a nonprofit or government employer that elects to 
        make payments in lieu of taxes for any unemployment benefits 
        determined chargeable to the employer under section 268.047 
        and shall credit the tax account with all the taxes paid, or if 
        the employer is liable for payments in lieu of taxes, shall 
        credit the reimbursable account with the payments made. 
           (b) Two or more related taxpaying corporations concurrently 
        employing the same employees and compensating those employees 
        through a common paymaster that is one of the corporations may 
        apply to the commissioner to establish a common paymaster tax 
        account that shall be the tax account of the common paymaster 
        corporation.  If approved, the separate tax 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 tax 
        account shall be jointly and severally liable for any unpaid 
        taxes, penalties, and interest owing from the common paymaster 
        tax account.  
           (c) Two or more taxpaying employers having 50 percent or 
        more common ownership and compensating employees through a 
        single payer that is one of the employers may apply to the 
        commissioner for a merging of the experience rating records 
        ratings of the employers into a single experience rating and 
        joint tax account. 
           If approved, the joint tax 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 tax 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 employers in the joint tax account shall be jointly and 
        severally liable for any unpaid taxes, penalties, and interest 
        owing from the joint tax account. 
           (d) Two or more nonprofit or government employers that are 
        have elected to be liable for payments in lieu of taxes may 
        apply to the commissioner for the establishment of a group 
        reimbursable account for the purpose of sharing the cost of 
        unemployment 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 reimbursable account.  If approved, the 
        commissioner shall establish a group reimbursable account for 
        the employers effective as of the beginning of the calendar year 
        that the application is received.  The reimbursable 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.  Each nonprofit or government employer in the group shall 
        be jointly and severally liable for payments in lieu of taxes 
        for all unemployment benefits paid based upon wage credits from 
        all employers in the group during the period the group 
        reimbursable account was in effect.  
           Sec. 11.  Minnesota Statutes 2000, section 268.047, is 
        amended to read: 
           268.047 [EFFECT ON AN EMPLOYER OF UNEMPLOYMENT BENEFITS 
        CHARGED TO EMPLOYER PAID.] 
           Subdivision 1.  [GENERAL RULE.] Unemployment benefits paid 
        to an applicant, including extended, additional, and shared work 
        benefits, shall be used in computing the future tax rate of a 
        taxpaying base period employer or charged to the tax or 
        reimbursable account of the applicant's a base period nonprofit 
        or government employer as and when paid that has elected to be 
        liable for payments in lieu of taxes except as provided in 
        subdivisions 2 and 3.  The amount of unemployment benefits used 
        in computing the future tax rate of taxpaying employers or 
        charged to each base period employer's tax or the reimbursable 
        account of a nonprofit or government employer that has elected 
        to be liable for payments in lieu of taxes shall be the same 
        percentage of the total amount of unemployment benefits paid as 
        the percentage of wage credits from the employer is of the total 
        amount of wage credits from all the applicant's base period 
        employers. 
           In making computations under this subdivision, the amount 
        of wage credits, if not a whole dollar, shall be computed to the 
        nearest whole dollar. 
           Subd. 2.  [EXCEPTIONS TO CHARGES FOR ALL EMPLOYERS.] 
        Unemployment benefits paid shall not be charged to the tax 
        account used in computing the future tax rate of a taxpaying 
        base period employer or charged to the reimbursable account of a 
        base period nonprofit or government employer that is has elected 
        to be liable for payments in lieu of taxes when: 
           (1) the applicant was discharged from the employment 
        because of aggravated employment misconduct as determined under 
        section 268.095.  This exception shall apply only to 
        unemployment benefits paid for periods after the applicant's 
        discharge from employment; 
           (2) an applicant's discharge from that employment occurred 
        because a law required removal of the applicant from the 
        position the applicant held; 
           (3) the employer provided regularly scheduled part-time 
        employment to the applicant during the applicant's base period 
        and continues to provide the applicant with regularly scheduled 
        part-time employment during the benefit year of at least 90 
        percent of the part-time employment provided in the base period, 
        and is an involved employer because of the applicant's loss of 
        other employment.  This exception shall terminate effective the 
        first week that the employer fails to meet the benefit year 
        employment requirements.  This exception shall apply to 
        educational institutions without consideration of the period 
        between academic years or terms; 
           (4) the employer is a fire department or firefighting 
        corporation or operator of a life-support transportation 
        service, and continues to provide employment for the applicant 
        as a volunteer firefighter or a volunteer ambulance service 
        personnel during the benefit year on the same basis that 
        employment was provided in the base period.  This exception 
        shall terminate effective the first week that the employer fails 
        to meet the benefit year employment requirements; 
           (5) the applicant's unemployment from this employer was a 
        direct result of the condemnation of property by a governmental 
        agency, a fire, flood, or act of nature, where 25 percent or 
        more of the employees employed at the affected location, 
        including the applicant, became unemployed as a result.  This 
        exception shall not apply where the unemployment was a direct 
        result of the intentional act of the employer or a person acting 
        on behalf of the employer; 
           (6) the unemployment benefits were paid by another state as 
        a result of the transferring of wage credits under a combined 
        wage arrangement provided for in section 268.131; 
           (7) the applicant stopped working because of a labor 
        dispute at the applicant's primary place of employment if the 
        employer was not a party to the labor dispute; or 
           (8) the unemployment benefits were determined overpaid 
        unemployment benefits under section 268.18; or 
           (9) the fund was reimbursed for the unemployment benefits 
        by the federal government. 
           Subd. 3.  [EXCEPTIONS TO CHARGES FOR TAXPAYING EMPLOYERS.] 
        Unemployment benefits paid shall not be charged to the tax 
        account used in computing the future tax rate of a taxpaying 
        base period employer when: 
           (1) the applicant's wage credits from that employer are 
        less than $500; 
           (2) the applicant quit the employment, unless it was 
        determined under section 268.095, to have been because of a good 
        reason caused by the employer or because the employer notified 
        the applicant of discharge within 30 calendar days.  This 
        exception shall apply only to unemployment benefits paid for 
        periods after the applicant's quitting the employment; or 
           (3) the employer discharged the applicant from employment 
        because of employment misconduct as determined under section 
        268.095.  This exception shall apply only to unemployment 
        benefits paid for periods after the applicant's discharge from 
        employment. 
           Subd. 4.  [LIMITATION ON EXCEPTIONS.] Regardless of 
        subdivisions 2 and 3, an exception under those subdivisions will 
        be limited in accordance with section 268.101, subdivision 2, 
        paragraph (b). 
           Subd. 4.  [FEDERAL REIMBURSED BENEFITS NOT CHARGED.] 
        Regardless of subdivision 1, no employer's account shall be 
        charged for unemployment benefits for which the fund is 
        reimbursed by the federal government. 
           Subd. 5.  [NOTICE OF UNEMPLOYMENT BENEFITS CHARGED PAID.] 
        (a) The commissioner shall notify each employer at least 
        quarterly by mail or electronic transmission of the unemployment 
        benefits paid that will be used in computing the future tax rate 
        of a taxpaying employer, or that have been charged to the 
        employer's reimbursable account of a nonprofit or government 
        employer that has elected to be liable for payments in lieu of 
        taxes.  Unless a protest is filed in a manner prescribed by the 
        commissioner within 30 calendar days from the date of 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 tax rate notice, or application for a credit adjustment or 
        refund, or otherwise. 
           (b) Upon receipt of a protest, the commissioner shall 
        review the charges on the notice unemployment benefits to be 
        used in computing the future tax rate of a taxpaying employer or 
        charged to the reimbursable account of a nonprofit or government 
        employer that has elected to be liable for payments in lieu of 
        taxes and determine whether there has been an error in the 
        charging of the employer's account made.  The commissioner shall 
        either affirm or make a redetermination of the charges 
        unemployment benefits paid to be used in computing the future 
        tax rate of a taxpaying employer or charged to the reimbursable 
        account of a nonprofit or government employer that has elected 
        to be liable for payments in lieu of taxes, and a notice of 
        affirmation or redetermination shall be sent to the employer by 
        mail or electronic transmission. 
           (c) The affirmation or redetermination shall be final 
        unless the employer files an appeal within 30 calendar days 
        after the date 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 unemployment benefits charged paid, any 
        prior determination or decision holding that unemployment 
        benefits paid shall be used in computing the future tax rate of 
        a taxpaying employer or charged to the employer's reimbursable 
        account, that of a nonprofit or government employer that has 
        elected to be liable for payments in lieu of taxes which 
        determination or decision 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 an incorrect notice under 
        paragraph (a). 
           Sec. 12.  Minnesota Statutes 2000, section 268.051, 
        subdivision 1a, is amended to read: 
           Subd. 1a.  [TAX REPORTS.] (a) Every employer, except 
        those making nonprofit and government employers that have 
        elected to make 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.  
           Sec. 13.  Minnesota Statutes 2000, section 268.051, 
        subdivision 3, is amended to read: 
           Subd. 3.  [COMPUTATION OF A TAXPAYING EMPLOYER'S EXPERIENCE 
        RATING.] (a) For each calendar year, the commissioner shall 
        compute an experience rating for each taxpaying employer who has 
        been subject to this chapter for at least the 12 calendar months 
        prior to July 1 of the prior calendar year.  
           (b) The experience rating shall be the ratio obtained by 
        dividing 125 percent of the total unemployment benefits charged 
        to the employer's tax account required under section 268.047 to 
        be used in computing the employer's tax rate during the period 
        the employer has been subject to this chapter, but not more than 
        the 60 calendar months ending on June 30 of the prior calendar 
        year, by the employer's total taxable payroll for the that same 
        period. 
           (b) (c) For purposes of paragraph (a) (b), 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) (d) The experience rating shall be computed to the 
        nearest one-tenth of a percent, to a maximum of 8.9 percent.  
           Sec. 14.  Minnesota Statutes 2000, section 268.051, 
        subdivision 4, is amended to read: 
           Subd. 4.  [EXPERIENCE RATING RECORD TRANSFER.] (a) When 
        an a taxpaying employer acquires the organization, trade or 
        business or substantially all the assets of another 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 computing a tax rate. 
           (b) When an a taxpaying 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 employer, and there is 25 percent or more 
        common ownership, directly or indirectly, between the 
        predecessor and successor, the successor employer shall acquire 
        the experience rating record attributable to the portion it 
        acquired, and the predecessor employer shall retain the 
        experience rating record attributable to the portion that it has 
        retained, if (1) the successor makes a written request to apply 
        for the transfer of the experience rating record attributable to 
        the severable portion acquired from the predecessor within 180 
        calendar days from the date of acquisition, and (2) files an 
        application 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 unemployment benefit charges to the 
        successor for portion of the experience rating purposes.  
           (c) The term "common ownership" for purposes of this 
        subdivision includes ownership by a spouse, parent, child, 
        brother, sister, aunt, uncle, niece, nephew, 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 experience rating of the predecessor 
        shall be combined with the successor's record experience rating 
        for purposes of computing a tax rate. 
           (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 considered to have been terminated if 
        similar employment is offered by the successor employer and 
        accepted by the employee. 
           (f) The commissioner, upon the commissioner's own motion or 
        upon application of an employer shall determine if an employer 
        is a successor within the meaning of this subdivision and shall 
        send the determination to the employer by mail or electronic 
        transmission.  The determination shall be final unless an appeal 
        is filed by the employer within 30 calendar days after the 
        sending of the determination.  Proceedings on the appeal shall 
        be conducted in accordance with section 268.105. 
           (g) The commissioner may, as the result of any 
        determination or decision regarding succession or nonsuccession, 
        recompute the tax rate of all employers affected by the 
        determination or decision for any year, including the year of 
        the acquisition and subsequent years, that is affected by the 
        transfer or nontransfer of part or all of the experience rating 
        record.  This paragraph does not apply to rates that have become 
        final before the filing of a written request to apply for the 
        transfer of a severable portion of the experience rating record 
        under paragraph (b). 
           (h) Should an employer not have been in operation long 
        enough to qualify for an experience rating under subdivision 3, 
        paragraph (a), the experience rating record for purposes of this 
        subdivision shall consist of those factors that normally make up 
        an experience rating, without the 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 all or part of the experience rating record regardless 
        of the requirements or limitations of paragraph (a).  This shall 
        include the transferring of employees from the payroll of an 
        employer with a higher experience rating record to the payroll 
        of an employer with a lower experience rating record. 
           (j) Regardless of paragraph (a), if there is an acquisition 
        or merger of a publicly held corporation by or with another 
        publicly held corporation the experience rating records ratings 
        of the corporations shall be combined as of the date of 
        acquisition or merger for the purpose of computing a tax rate. 
           Sec. 15.  Minnesota Statutes 2000, section 268.051, 
        subdivision 7, is amended to read: 
           Subd. 7.  [TAX RATE BUYDOWN.] (a) Any taxpaying employer 
        who has been assigned a tax rate based upon an experience rating 
        may, upon the voluntary payment of an amount equivalent to any 
        portion or all of the unemployment benefits charged to the 
        employer's account, used in computing the experience rating plus 
        a surcharge of 25 percent, obtain a cancellation of unemployment 
        benefits charged to the account used 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 tax rate.  
           (b) Voluntary payments may be made only during the 30 
        calendar day period immediately following the date of sending of 
        the notice of 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 from the beginning of the 
        calendar year for which the 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 sending of the notice of the new tax rate. 
           Sec. 16.  Minnesota Statutes 2000, section 268.052, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PAYMENTS.] In lieu of taxes payable on a 
        quarterly basis, the state of Minnesota or its political 
        subdivisions shall pay into the fund the amount of unemployment 
        benefits charged to its reimbursable account under section 
        268.047.  Payments in the amount of unemployment benefits 
        charged to the reimbursable account during a calendar quarter 
        shall be made on or before the last day of the month following 
        the month that the notice of unemployment benefits charged paid 
        is sent pursuant to section 268.047, subdivision 5 6.  Past due 
        payments in lieu of taxes shall be subject to the same interest 
        charges and collection procedures that apply to past due taxes. 
           Sec. 17.  Minnesota Statutes 2000, section 268.052, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ELECTION BY STATE OR POLITICAL SUBDIVISION TO BE 
        A TAXPAYING EMPLOYER.] (a) The state or political subdivision 
        may elect to be a taxpaying employer for any calendar year if a 
        notice of election is filed within 30 calendar days following 
        January 1 of that calendar year.  Upon election, the state or 
        political subdivision shall be assigned the new employer tax 
        rate under section 268.051, subdivision 5, for the calendar year 
        of the election and until it qualifies for an experience rating 
        under section 268.051, subdivision 3. 
           (b) An election shall be for a minimum period of three two 
        calendar years following the effective date of the election and 
        continue unless a notice terminating the election is filed not 
        later than 30 calendar days before the beginning of the calendar 
        year.  The termination shall be effective at the beginning of 
        the next calendar year.  Upon election, the commissioner shall 
        establish a reimbursable account for the state or political 
        subdivision.  A termination of election shall be allowed only if 
        the state or political subdivision has a zero, since the 
        beginning of the experience rating and has no period under 
        section 268.051, subdivision 3, paid taxes and made voluntary 
        payments under section 268.051, subdivision 7, equal or more 
        than 125 percent of the unemployment benefit charges to its tax 
        account that have not yet been used in computing an benefits 
        used in computing the experience rating.  In addition, any 
        unemployment benefits paid after the experience rating under 
        section 268.051, subdivision 3.  period shall be transferred to 
        the new reimbursable account of the state or political 
        subdivision.  If the amount of taxes and voluntary payments paid 
        since the beginning of the experience rating period exceeds 125 
        percent of the amount of unemployment benefits paid during the 
        experience rating period, that amount in excess shall be applied 
        against any unemployment benefits paid after the experience 
        rating period. 
           (c) The method of payments to the fund under subdivisions 3 
        and 4 shall apply to all taxes paid by or due from the state or 
        political subdivision that elects to be taxpaying employers 
        under this subdivision. 
           (d) The commissioner may allow a notice of election or a 
        notice terminating election to be filed by mail or electronic 
        transmission.  
           Sec. 18.  Minnesota Statutes 2000, section 268.052, is 
        amended by adding a subdivision to read: 
           Subd. 5.  [CONSIDERED AN ELECTION.] If the state of 
        Minnesota or its political subdivisions choose not to be a 
        taxpaying employer under subdivision 2, the state or its 
        political subdivision shall be considered, for purposes of the 
        Minnesota unemployment insurance program, to have elected to be 
        liable for payments in lieu of taxes under subdivision 1. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 19.  [268.0525] [INDIAN TRIBES.] 
           (a) An Indian tribe, as defined under United States Code, 
        title 25, section 450b(e) of the Indian Self-Determination and 
        Education Assistance Act, and any subdivision, subsidiary, or 
        business enterprise owned by the Indian tribe, shall be treated 
        the same as the state of Minnesota, or a political subdivision 
        of the state, for all purposes of the Minnesota unemployment 
        insurance program law. 
           (b) The Indian tribe may make separate elections under 
        section 268.052, subdivision 2, for itself and each subdivision, 
        subsidiary, or business enterprise wholly owned by the Indian 
        tribe. 
           (c) If an Indian tribe, subdivision, subsidiary, or 
        business enterprise wholly owned by the tribe, which has elected 
        to be liable for payments in lieu of taxes, fails to make the 
        required payments within 90 days of the notice of delinquency, 
        the commissioner shall terminate the election to make payments 
        in lieu of taxes as of the beginning of the next calendar year, 
        unless all past due payments in lieu of taxes, and any interest 
        and penalties, have been paid before the beginning of the next 
        calendar year. 
           An Indian tribe, subdivision, subsidiary, or business 
        enterprise wholly owned by the tribe that has its election 
        terminated under this paragraph shall become a taxpaying 
        employer and assigned the new employer tax rate under section 
        268.051, subdivision 5, until the tribe, subdivision, 
        subsidiary, or business enterprise wholly owned by the Indian 
        tribe qualifies for an experience rating under section 268.051, 
        subdivision 3. 
           [EFFECTIVE DATE.] This section is effective retroactive to 
        December 31, 2000. 
           Sec. 20.  Minnesota Statutes 2000, section 268.053, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ELECTION.] (a) Any nonprofit organization 
        that has employees in covered employment shall pay taxes on a 
        quarterly basis pursuant to section 268.051 unless it elects to 
        make payments in lieu of taxes to the fund the amount of 
        unemployment benefits charged to its employer reimbursable 
        account under section 268.047. 
           The organization may elect to make payments in lieu of 
        taxes for a period of not less than two calendar years beginning 
        with the date that the organization was determined to be an 
        employer with covered employment by filing a notice of election 
        not later than 30 calendar days after the date of the 
        determination. 
           (b) Any nonprofit organization that makes an election will 
        continue to be liable for payments in lieu of taxes until it 
        files a notice terminating its election not later than 30 
        calendar days before the beginning of the calendar year the 
        termination is to be effective.  
           (c) A nonprofit organization that has been making payments 
        in lieu of taxes that files a notice of termination of election 
        shall be assigned the new employer tax rate under section 
        268.051, subdivision 5, for the calendar year of the termination 
        of election and until it qualifies for an experience rating 
        under section 268.051, subdivision 3. 
           (d) Any nonprofit organization that has been paying taxes 
        may elect to make payments in lieu of taxes by filing no less 
        than 30 calendar days before January 1 of any calendar year a 
        notice of election.  Upon election, the commissioner shall 
        establish a reimbursable account for the nonprofit 
        organization.  An election shall be allowed only if the 
        nonprofit organization has, during since the beginning of the 
        experience rating period under section 268.051, subdivision 3, 
        paid taxes or and made voluntary payments under section 268.051, 
        subdivision 7, equal to or more than 125 percent of the 
        unemployment benefit charges during benefits used in computing 
        the experience rating period.  In addition, any 
        unemployment benefit charges to its tax account that come 
        benefits paid after the experience rating period shall be 
        transferred to the new reimbursable account of the nonprofit 
        organization.  If the amount of taxes and voluntary payments 
        paid during since the beginning of the experience rating period 
        exceeds 125 percent of the amount of unemployment benefit 
        charges benefits paid during the experience rating period, that 
        amount in excess shall be applied against any 
        unemployment benefit charges that come benefits paid after the 
        experience rating period.  The election shall not be terminable 
        by the organization for that and the next calendar year. 
           (e) The commissioner may for good cause extend the period 
        that a notice of election, or a notice of termination, must be 
        filed and may permit an election to be retroactive. 
           (f) The commissioner may allow a notice of election or 
        notice terminating election to be filed by mail or electronic 
        transmission. 
           Sec. 21.  Minnesota Statutes 2000, section 268.053, 
        subdivision 3, is amended to read: 
           Subd. 3.  [PAYMENTS.] (a) Payments in lieu of taxes, in the 
        amount of unemployment benefits charged to the reimbursable 
        account, during a calendar quarter, shall be made on or before 
        the last day of the month following the month that the notice of 
        unemployment benefits charged paid is sent pursuant to section 
        268.047, subdivision 5.  
           (b) Past due payments in lieu of taxes shall be subject to 
        the same interest charges and collection procedures that apply 
        to past due taxes. 
           (c) If any nonprofit organization is delinquent in making 
        payments in lieu of taxes, the commissioner may terminate the 
        organization's election to make payments in lieu of taxes as of 
        the beginning of the next calendar year, and the termination 
        shall be effective for that and the following calendar year.  A 
        nonprofit organization that has its election terminated under 
        this paragraph shall be assigned the new employer tax rate under 
        section 268.051, subdivision 5, until the organization qualifies 
        for an experience rating under section 268.051, subdivision 3. 
           Sec. 22.  Minnesota Statutes 2000, section 268.059, is 
        amended to read: 
           268.059 [GARNISHMENT FOR DELINQUENT TAXES AND UNEMPLOYMENT 
        BENEFIT OVERPAYMENTS.] 
           (a) Subdivision 1.  [NOTICE.] The commissioner may give 
        notice to any employer that an employee owes delinquent taxes, 
        payments in lieu of taxes, or overpaid unemployment benefits, 
        including penalties, interest, and costs, and that the 
        obligation to the department fund should be withheld from the 
        employee's wages.  The commissioner may proceed only if the tax, 
        payment in lieu of taxes, or unemployment benefit overpayment is 
        uncontested or if the time for any appeal has expired.  The 
        commissioner shall not proceed until 30 calendar days after 
        mailing to the debtor employee, at the debtor's last known 
        address, a written notice of intent to garnish wages and 
        exemption notice.  That notice shall list: 
           (1) the amount of taxes, payments in lieu of taxes, 
        overpaid unemployment benefits, interest, penalties, or costs 
        due from the debtor; 
           (2) demand for immediate payment; and 
           (3) the intention to serve a garnishment notice on the 
        debtor's employer. 
           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 that is in accordance with this section.  
        The renewed notice shall have the effect of reinstating the 
        priority of the original notice.  The exemption notice shall be 
        in substantially the same form as in section 571.72.  The notice 
        shall inform the debtor of the right to claim exemptions 
        contained in section 550.37, subdivision 14.  If no written 
        claim of exemption is received by the commissioner within 30 
        calendar days after mailing of the notice, the commissioner may 
        proceed with the garnishment.  The notice to the debtor's 
        employer may be served by mail and shall be in substantially the 
        same form as in section 571.75.  
           Subd. 2.  [EMPLOYER ACTION.] (a) Upon receipt of the 
        garnishment notice, the employer shall withhold from the 
        earnings due or to become due to the employee, the amount shown 
        on the notice plus accrued interest, subject to section 
        571.922.  The employer shall continue to 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 withholding a portion of 
        the total amount due the employee each pay period, until the 
        total amount shown on the notice plus accrued interest has been 
        withheld. 
           The "earnings due" any employee is as defined in section 
        571.921.  
           (b) The maximum garnishment allowed for any one pay period 
        shall be decreased by any amounts payable pursuant to any other 
        garnishment action served prior to the garnishment notice, 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 on the form provided by the commissioner. 
           (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 withheld during each pay period. 
           (b) Subd. 3.  [DISCHARGE OR DISCIPLINE PROHIBITED.] (a) If 
        the employee ceases to be employed by the employer before the 
        full amount set forth on the garnishment notice plus accrued 
        interest has been withheld, the employer shall immediately 
        notify the commissioner in writing of the termination date of 
        the employee and the total amount withheld.  No employer may 
        discharge or discipline any employee because the commissioner 
        has proceeded under this section.  If an employer discharges an 
        employee in violation of this 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 withheld during each pay period. 
           (d) Paragraphs (a) to (c) (b) This section shall apply if 
        the employer is the state of Minnesota or any political 
        subdivision. 
           (e) (c) The commissioner shall refund to the employee any 
        excess amounts withheld from the employee. 
           (f) (d) An employer that fails or refuses to comply with 
        this section shall be jointly and severally liable as provided 
        in for the total amount due from the employee.  Any amount due 
        from the employer under this paragraph may be collected in 
        accordance with section 268.058, subdivision 2, paragraph (j). 
           Sec. 23.  Minnesota Statutes 2000, section 268.07, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [APPLICATION FOR UNEMPLOYMENT BENEFITS; 
        DETERMINATION OF BENEFIT ACCOUNT.] (a) An application for 
        unemployment benefits may be filed in person, by mail, by 
        telephone, or by electronic transmission as the commissioner 
        shall require.  The applicant must be unemployed at the time the 
        application is filed and must provide all requested information 
        in the manner required.  If the applicant is not unemployed at 
        the time of the application or fails to provide all requested 
        information, the communication shall not be considered an 
        application for unemployment benefits. 
           (b) The commissioner shall examine each application for 
        unemployment benefits to determine the base period, and the 
        benefit year, and based upon all the covered employment in the 
        base period the commissioner shall determine the weekly 
        unemployment benefit amount available, if any, and the maximum 
        amount of unemployment benefits available, if any.  The 
        determination shall be known as the determination of benefit 
        account.  A determination of benefit account shall be sent to 
        the applicant and all base period employers, by mail or 
        electronic transmission. 
           (c) If a base period employer did not provide wage 
        information for the applicant as provided for in section 
        268.044, the commissioner shall accept an applicant 
        certification as to wage credits, based upon the applicant's 
        records, and issue a determination of benefit account. 
           (d) The commissioner may, at any time within 24 months from 
        the establishment of a benefit account, reconsider any 
        determination of benefit account and make a redetermination an 
        amended determination if the commissioner finds that the 
        determination was incorrect for any reason.  A redetermination 
        An amended determination shall be promptly sent to the applicant 
        and all base period employers, by mail or electronic 
        transmission. 
           If a redetermination an amended determination of benefit 
        account reduces the weekly unemployment benefit amount or 
        maximum amount of unemployment benefits available, any 
        unemployment benefits that have been paid greater than the 
        applicant was redetermined entitled is considered an overpayment 
        of unemployment benefits under section 268.18, subdivision 1. 
           Sec. 24.  Minnesota Statutes 2000, section 268.07, 
        subdivision 2, is amended to read: 
           Subd. 2.  [BENEFIT ACCOUNT REQUIREMENTS AND WEEKLY 
        UNEMPLOYMENT BENEFIT AMOUNT AND MAXIMUM AMOUNT OF UNEMPLOYMENT 
        BENEFITS.] (a) To establish a benefit account, an applicant must 
        have: 
           (1) high quarter wage credits of at least $1,000; and 
           (2) wage credits, in other than the high quarter, of at 
        least $250.  
           (b) If an applicant has established a benefit account, the 
        weekly unemployment benefit amount available during the benefit 
        year shall be the higher of: 
           (1) 50 percent of the applicant's average weekly wage 
        during the base period, to a maximum of 66-2/3 percent of the 
        state's average weekly wage; or 
           (2) 50 percent of the applicant's average weekly wage 
        during the high quarter, to a maximum of the higher of $331 or 
        50 percent of the state's average weekly wage. 
           The applicant's average weekly wage under clause (1) shall 
        be computed by dividing the total wage credits by 52.  The 
        applicant's average weekly wage under clause (2) shall be 
        computed by dividing the high quarter wage credits by 13.  
           (c) The state's maximum weekly unemployment benefit amount 
        and the applicant's weekly unemployment benefit amount and 
        maximum amount of unemployment benefits shall be rounded down to 
        the next lowest whole dollar.  
           (d) The maximum amount of unemployment benefits available 
        on any benefit account shall be the lower of: 
           (1) 33-1/3 percent of the applicant's total wage credits to 
        a maximum of; or 
           (2) 26 times the applicant's weekly unemployment benefit 
        amount.  
           [EFFECTIVE DATE.] This section is effective September 1, 
        2001. 
           Sec. 25.  Minnesota Statutes 2000, section 268.07, 
        subdivision 3a, is amended to read: 
           Subd. 3a.  [RIGHT OF APPEAL.] (a) A determination or 
        redetermination amended determination of a benefit account shall 
        be final unless an applicant or base period employer within 30 
        calendar days after the sending of the determination 
        or redetermination amended determination files an appeal.  Every 
        determination or redetermination amended determination of a 
        benefit account shall contain a prominent statement indicating 
        in clear language the consequences of not appealing.  
        Proceedings on the appeal shall be conducted in accordance with 
        section 268.105. 
           (b) Any applicant or base period employer may appeal from a 
        determination or redetermination amended determination of a 
        benefit account on the issue of whether services performed 
        constitute employment and covered employment.  Proceedings on 
        the appeal shall be conducted in accordance with section 268.105.
           Sec. 26.  Minnesota Statutes 2000, section 268.07, 
        subdivision 3b, is amended to read: 
           Subd. 3b.  [LIMITATIONS.] (a) A benefit account shall be 
        established effective the Sunday of the calendar week that the 
        application for unemployment benefits was filed.  Upon specific 
        request of an applicant, an application for benefits may be 
        backdated one calendar week prior to the Sunday of the week the 
        application was actually filed.  An application shall be 
        backdated only if the applicant was unemployed throughout the 
        period of the backdating.  If an individual attempted to file an 
        application for unemployment benefits, but was prevented from 
        filing an application by the department, the benefit account 
        shall be effective the Sunday of the calendar week the 
        individual first attempted to file an application. 
           (b) A benefit account, once established, may later be 
        withdrawn only if: 
           (1) a new application for unemployment benefits is filed 
        and a new benefit account is established at the time of the 
        withdrawal; and 
           (2) the applicant has not served a waiting week under 
        section 268.085, subdivision 1, clause (3).  
           A determination or amended determination pursuant to 
        section 268.101, that was issued before the withdrawal of the 
        benefit account, shall remain in effect and shall not be voided 
        by the withdrawal of the benefit account.  A determination of 
        disqualification requiring subsequent earnings to satisfy the 
        disqualification under section 268.095, subdivision 10, shall 
        apply to the weekly unemployment benefit amount on the new 
        benefit account. 
           (c) An application for unemployment benefits shall not be 
        allowed prior to the Sunday following the expiration of the 
        benefit year on a prior benefit account.  Except as allowed 
        under paragraph (b), a applicant may establish only one benefit 
        account each 52 calendar weeks. 
           (d) All unemployment benefits shall be available from the 
        fund only for weeks occurring during the applicant's benefit 
        year. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 27.  Minnesota Statutes 2000, section 268.085, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ELIGIBILITY CONDITIONS.] An applicant 
        shall be eligible to receive unemployment benefits for any week 
        if: 
           (1) the applicant has an active benefit account and has 
        filed a continued request for unemployment benefits for that 
        week pursuant to section 268.086; 
           (2) the applicant was able to work and was available 
        for suitable employment, and was actively seeking suitable 
        employment.  The applicant's weekly unemployment benefit amount 
        shall be reduced one-fifth for each day the applicant is unable 
        to work or is unavailable for suitable employment. 
           This clause shall not apply to an applicant who is in 
        reemployment assistance training. 
           The requirement that the applicant be available for 
        employment and actively seeking suitable employment This clause 
        shall not apply each day the applicant is on jury duty; 
           (3) the applicant has served a waiting period of one week 
        that the applicant is otherwise entitled to some amount of 
        unemployment benefits.  This clause shall not apply if the 
        applicant would have been entitled to federal disaster 
        unemployment assistance because of a disaster in Minnesota, but 
        for the applicant's establishment of a benefit account under 
        section 268.07; and 
           (4) the applicant has been participating in reemployment 
        assistance services, such as job search and resume writing 
        classes, if the applicant has been determined in need of 
        reemployment assistance services by the commissioner, unless 
        there is good cause for the applicant's failure to participate. 
           Sec. 28.  Minnesota Statutes 2000, section 268.085, 
        subdivision 2, is amended to read: 
           Subd. 2.  [NOT ELIGIBLE.] An applicant shall not be 
        eligible to receive unemployment benefits for any week: 
           (1) that occurs before the effective date of a benefit 
        account; 
           (2) that occurs in a period when the applicant is a student 
        in attendance at, or on vacation from a secondary school 
        including the period between academic years or terms; 
           (3) that the applicant is incarcerated or performing court 
        ordered community service.  The applicant's weekly unemployment 
        benefit amount shall be reduced by one-fifth for each day the 
        applicant is incarcerated or performing court ordered community 
        service; 
           (4) that the applicant is on a voluntary leave of absence, 
        including a requested period of paid or unpaid vacation.  A 
        leave of absence is voluntary when work, that the applicant can 
        perform, is available with the applicant's employer, but the 
        applicant chooses not to work.  An applicant who is not working 
        as a result of a vacation period assigned by an employer under:  
        (i) a uniform vacation shutdown, (ii) a collective bargaining 
        agreement, or (iii) an established employer policy, shall not be 
        ineligible under this clause that the applicant fails or refuses 
        to provide information on an issue of eligibility required under 
        section 268.101, subdivision 1, paragraph (a), or an issue of 
        disqualification required under section 268.101, subdivision 1, 
        paragraph (d); 
           (5) that the applicant is performing services 32 hours or 
        more, in employment, covered employment, noncovered employment, 
        or self-employment regardless of the amount of any earnings; or 
           (6) with respect to which the applicant is receiving, has 
        received, or has filed an application for unemployment benefits 
        under any federal law or the law of any other state.  If the 
        appropriate agency finally determines that the applicant is not 
        entitled to the unemployment benefits, this clause shall not 
        apply. 
           Sec. 29.  Minnesota Statutes 2000, section 268.085, 
        subdivision 3, is amended to read: 
           Subd. 3.  [DEDUCTIBLE PAYMENTS.] (a) An applicant shall not 
        be eligible to receive unemployment benefits for any week with 
        respect to which the applicant is receiving, has received, or 
        has filed for payment in an amount equal to or in excess of the 
        applicant's weekly unemployment benefit amount in the form of: 
           (1) a severance payment. pay, bonus pay, vacation pay, sick 
        pay, and any other money payments, except earnings under 
        subdivision 5, and back pay under subdivision 6, paid by an 
        employer because of, upon, or after separation from employment 
        that are considered wages under section 268.035, subdivision 29, 
        or United States Code, title 26, section 3121, clause (2) of the 
        Federal Insurance Contribution Act.  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 applicant'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 applicant's last level of regular weekly pay 
        from the employer;. 
           (2) This clause shall not apply to vacation pay, paid 
        directly by an employer for vacation periods assigned by the 
        employer under:  (i) a collective bargaining agreement, (ii) 
        established employer policy, or (iii) uniform vacation shutdown; 
        upon permanent separation from employment. 
           (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 compensation for loss of 
        wages under any other insurance or fund paid in whole or in part 
        by an employer; 
           (4) (2) pension, retirement, or annuity payments from any 
        plan contributed to by a base period employer including the 
        United States government, except social security benefits which 
        are 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. 
           If the applicant receives a lump sum pension payment, that 
        sum shall be divided by the applicant's last level of regular 
        weekly pay to determine the number of weeks of payment.  The 
        number of weeks of payment shall be applied to the period 
        immediately following the last day of employment.  An applicant 
        shall not be considered to have received the lump sum payment if 
        the applicant immediately deposits that payment in a qualified 
        pension plan or account; or 
           (5) (3) holiday pay or sick pay, paid directly by an 
        employer. 
           (b) If the deductible payment is less than the applicant's 
        weekly unemployment benefit amount, unemployment benefits shall 
        be reduced by the amount of the payment.  If the computation of 
        reduced unemployment benefits is not a whole dollar, it shall be 
        rounded down to the next lowest dollar. 
           (c) If the appropriate agency finally determines that the 
        applicant is not entitled to payments, this subdivision shall 
        not apply.  
           Sec. 30.  Minnesota Statutes 2000, section 268.085, is 
        amended by adding a subdivision to read: 
           Subd. 3a.  [WORKERS' COMPENSATION AND DISABILITY INSURANCE 
        OFFSET.] (a) An applicant is not eligible to receive 
        unemployment benefits for any week in which the applicant is 
        receiving or has received compensation for loss of wages equal 
        to or in excess of the applicant's weekly unemployment benefit 
        amount under: 
           (1) the workers' compensation law of this state; 
           (2) the workers' compensation law of any other state or 
        similar federal law; or 
           (3) any insurance or fund paid in whole or in part by an 
        employer. 
           (b) This subdivision shall not apply to an applicant who 
        has a claim pending for loss of wages under paragraph (a); 
        however, before unemployment benefits may be paid when a claim 
        is pending, the issue of the applicant being able to work, as 
        required under subdivision 1, clause (2), shall be determined 
        under section 268.101, subdivision 3.  If the applicant later 
        receives compensation as a result of the pending claim, the 
        applicant is subject to the provisions of paragraph (a) and the 
        unemployment benefits paid shall be subject to recoupment by the 
        commissioner to the extent that the compensation constitutes 
        overpaid unemployment benefits.  
           (c) If the amount of compensation described under paragraph 
        (a) for any week is less than the applicant's weekly 
        unemployment benefit amount, unemployment benefits requested for 
        that week shall be reduced by the amount of that compensation 
        payment. 
           Sec. 31.  Minnesota Statutes 2000, section 268.085, 
        subdivision 6, is amended to read: 
           Subd. 6.  [RECEIPT OF BACK PAY.] (a) Back pay received by 
        an applicant with respect to any week occurring in the 104 weeks 
        prior to the payment of the back pay shall be deducted from 
        unemployment benefits paid for that week. 
           If an arbitration award, administrative or judicial 
        decision, or negotiated settlement that provides for back pay 
        does not specify the period with respect to which it is paid, 
        the back pay shall be applied to the period immediately 
        following the last day of employment. 
           (b) If the back pay is reduced by the amount of 
        unemployment benefits that have been paid, the amount of back 
        pay withheld shall be: 
           (1) paid by the employer to the fund within 30 calendar 
        days and subject to the same collection procedures that apply to 
        past due taxes; 
           (2) applied to unemployment benefit overpayments resulting 
        from the payment of the back pay; and 
           (3) credited to the maximum amount of unemployment benefits 
        available to the applicant in a benefit year that includes the 
        weeks for which back pay was deducted. 
           (c) Charges to the employer's tax or reimbursable account 
        under section 268.047 for Unemployment benefits paid the 
        applicant shall be removed from the employer's computation of 
        the tax rate for taxpaying employers and removed from the 
        reimbursable account for nonprofit and government employers that 
        have elected to be liable for payments in lieu of taxes in the 
        calendar quarter the fund receives payment.  
           (d) Payments to the fund under this subdivision shall be 
        considered as made by the applicant.  
           Sec. 32.  Minnesota Statutes 2000, section 268.085, 
        subdivision 7, is amended to read: 
           Subd. 7.  [SCHOOL EMPLOYEES.] (a) No wage credits in any 
        amount from any employment with any educational institution or 
        institutions earned in any capacity may be used for unemployment 
        benefit purposes for any week during the period between two 
        successive academic years or terms if: 
           (1) the applicant had employment for any educational 
        institution or institutions in the prior academic year or term; 
        and 
           (2) there is a reasonable assurance that the applicant will 
        have employment for any educational institution or institutions 
        in the following academic year or term, unless that subsequent 
        employment is not substantially less favorable than the 
        employment of the prior academic year or term.  
           (b) Paragraph (a) shall not apply to an applicant who, at 
        the end of the prior academic year or term, had an agreement for 
        a definite period of employment between academic years or terms 
        in other than an instructional, research, or principal 
        administrative capacity and the educational institution or 
        institutions failed to provide that employment.  
           (c) If unemployment benefits are denied to any applicant 
        under paragraph (a) who was employed in the prior academic year 
        or term in other than an instructional, research, or principal 
        administrative capacity and who was not offered an opportunity 
        to perform the employment in the following academic year or 
        term, the applicant shall be entitled to retroactive 
        unemployment benefits for each week during the period between 
        academic years or terms that the applicant filed a timely 
        continued request for unemployment benefits, but unemployment 
        benefits were denied solely because of paragraph (a).  
           (d) An educational assistant shall not be considered to be 
        in an instructional, research, or principal administrative 
        capacity. 
           (e) Paragraph (a) shall apply to any vacation period or 
        holiday recess if the applicant was employed immediately before 
        the vacation period or holiday recess, and there is a reasonable 
        assurance that the applicant will be employed immediately 
        following the vacation period or holiday recess.  
           (f) This subdivision shall apply to employment with an 
        educational service agency if the applicant performed the 
        services at an educational institution or institutions.  
        "Educational service agency" means a governmental agency or 
        entity established and operated exclusively for the purpose of 
        providing services to one or more educational institutions.  
        This subdivision shall also apply to employment with Minnesota 
        or a political subdivision, or a nonprofit organization, if the 
        services are provided to or on behalf of an educational 
        institution or institutions. 
           (g) Paragraphs (a) and (e) shall apply beginning the Sunday 
        of the week that there is a reasonable assurance of employment. 
           (h) Employment with multiple education institutions shall 
        be aggregated for purposes of application of this subdivision. 
           (i) If all of the applicant's employment with any 
        educational institution or institutions during the prior 
        academic year or term consisted of on-call employment, and the 
        applicant has a reasonable assurance of any on-call employment 
        with any educational institution or institutions for the 
        following academic year or term, it shall not be considered 
        substantially less favorable employment. 
           (j) Paragraph (a) shall also apply to the period between 
        two regular but not successive terms. 
           (k) A "reasonable assurance" may be written, oral, implied, 
        or established by custom or practice. 
           (l) 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).  
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 33.  Minnesota Statutes 2000, section 268.085, is 
        amended by adding a subdivision to read: 
           Subd. 13a.  [LEAVE OF ABSENCE.] (a) An applicant on a 
        voluntary leave of absence shall be ineligible for benefits for 
        the duration of the leave of absence. 
           A leave of absence is voluntary when work that the 
        applicant can then perform is available with the applicant's 
        employer but the applicant chooses not to work. 
           (b) A period of vacation requested by the applicant, paid 
        or unpaid, shall be considered a voluntary leave of absence.  A 
        vacation period assigned by an employer under:  (1) a uniform 
        vacation shutdown; (2) a collective bargaining agreement; or (3) 
        an established employer policy, shall not be considered a 
        voluntary leave of absence. 
           (c) A leave of absence shall not be considered a quit or a 
        discharge from employment for purposes of section 268.095. 
           (d) An applicant who is on a paid leave of absence, whether 
        the leave of absence is voluntary or involuntary, shall be 
        ineligible for benefits for the duration of the leave. 
           (e) This subdivision shall apply to a leave of absence from 
        a base period employer, an employer during the period between 
        the end of the base period and the effective date of the benefit 
        account, or an employer during the benefit year. 
           Sec. 34.  Minnesota Statutes 2000, section 268.085, 
        subdivision 14, is amended to read: 
           Subd. 14.  [ABLE TO WORK DEFINED.] "Able to work" means an 
        applicant has the physical and mental ability to perform the 
        usual duties of the applicant's customary usual occupation or 
        the usual duties of other suitable comparable employment. 
           Sec. 35.  Minnesota Statutes 2000, section 268.085, 
        subdivision 15, is amended to read: 
           Subd. 15.  [AVAILABLE FOR SUITABLE EMPLOYMENT DEFINED.] (a) 
        "Available for suitable employment" means an applicant is ready 
        and willing to accept suitable employment in the labor market 
        area.  The attachment to the work force must be genuine.  An 
        applicant may restrict availability to suitable employment, but 
        there must be no other restrictions, either self-imposed or 
        created by circumstances, temporary or permanent, that prevent 
        accepting suitable employment. 
           (b) To be considered "available for suitable employment," a 
        student must be willing to quit school to accept suitable 
        employment that would conflict with school attendance. 
           (c) An applicant who is absent from the labor market area 
        for personal reasons, other than to search for work, is not 
        "available for suitable employment." 
           (d) An applicant who has restrictions on the hours of the 
        day or days of the week that the applicant can or will work, 
        that are not normal for the applicant's usual occupation or 
        other suitable employment, is not "available for suitable 
        employment."  An applicant whose usual occupation is normally 
        performed during the daytime must be available for daytime work 
        employment, if suitable employment is performed during the 
        daytime, even though the applicant customarily previously worked 
        the night shift. 
           (e) An applicant must have transportation throughout the 
        labor market area to be considered "available for suitable 
        employment." 
           Sec. 36.  Minnesota Statutes 2000, section 268.086, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ACTIVE BENEFIT ACCOUNT.] (a) A benefit 
        account shall be considered active only when an applicant files 
        continued requests for unemployment benefits in the manner and 
        within the time periods prescribed.  A benefit account shall be 
        considered inactive if an applicant stops filing a continued 
        request or fails to file a continued request within the time 
        period required.  The benefit account shall be considered 
        inactive as of the Sunday following the last week or biweekly 
        period for which a continued request has been timely filed. 
           (b) A benefit account that is inactive shall be reactivated 
        the Sunday of the week that the applicant makes a contact with 
        the department to do so, in the manner prescribed by the 
        commissioner for reactivating that applicant's benefit account.  
        Upon specific request of an applicant, a benefit account may be 
        reactivated effective up to two weeks prior to the week the 
        applicant made contact with the department to reactivate. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment.  
           Sec. 37.  Minnesota Statutes 2000, section 268.086, 
        subdivision 7, is amended to read: 
           Subd. 7.  [IN-PERSON CONTINUED REQUEST FOR UNEMPLOYMENT 
        BENEFITS.] The commissioner may require any applicant who has 
        been designated to make a continued request for unemployment 
        benefits by mail, by telephone, by electronic transmission, or 
        by mail to appear for a personal interview at a place, time, and 
        date designated, during which a written continued request for 
        unemployment benefits form shall be completed and submitted by 
        the applicant.  
           An applicant shall be ineligible for unemployment benefits 
        for the week or biweekly period covered by a continued request 
        and the benefit account shall be considered inactive if the 
        applicant fails, without good cause, to comply with the 
        requirement that the applicant appear for a personal interview 
        and at that time complete and submit a written continued request 
        form. 
           Sec. 38.  Minnesota Statutes 2000, section 268.095, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [QUIT.] An applicant who quit employment 
        shall be disqualified from all unemployment benefits except when:
           (1) the applicant quit the employment because of a good 
        reason caused by the employer; 
           (2) the applicant quit the employment to accept other 
        covered employment that provided substantially better terms and 
        conditions of employment, but the applicant did not work long 
        enough at the other employment to have sufficient subsequent 
        earnings to satisfy the disqualification that would otherwise be 
        imposed; 
           (3) the applicant quit the employment within 30 calendar 
        days of beginning the employment because the employment was 
        unsuitable for the applicant; 
           (4) the employment was unsuitable for the applicant and the 
        applicant quit to enter reemployment assistance training; 
           (5) the employment was part time and the applicant had 
        full-time employment in the base period, that the applicant 
        separated from because of nondisqualifying reasons, sufficient 
        to meet the minimum requirements to establish a benefit account 
        under section 268.07; 
           (6) the applicant quit because the employer notified the 
        applicant that the applicant was going to be laid off due to 
        lack of work within 30 calendar days.  An applicant who quit 
        employment within 30 calendar days of a notified date of layoff 
        due to lack of work shall be disqualified from unemployment 
        benefits through the end of the week that includes the scheduled 
        date of layoff; or 
           (7) the applicant quit the employment because the 
        applicant's serious illness or injury made it medically 
        necessary that the applicant quit, provided that the applicant 
        made reasonable efforts to remain in that employment in spite of 
        the serious illness or injury. 
           Reasonable efforts to remain in that employment are those a 
        reasonable individual would make if interested in remaining with 
        the employer and require that the applicant inform the employer 
        of the serious illness or injury and request accommodation.  
           If the applicant's serious illness is chemical dependency, 
        the applicant has not made reasonable efforts to remain in that 
        employment if the applicant has previously been diagnosed as 
        chemically dependent, or has previously had treatment for 
        chemical dependency, and has failed to make consistent efforts 
        to control the chemical dependency.; or 
           (8) domestic abuse of the applicant or the applicant's 
        minor child, necessitated the applicant's quitting the 
        employment.  Domestic abuse shall be shown by one or more of the 
        following: 
           (i) a court order for protection or other documentation of 
        equitable relief issued by a court; 
           (ii) a police record documenting the domestic abuse; 
           (iii) documentation that the perpetrator of the domestic 
        abuse has been convicted of the offense of domestic abuse; 
           (iv) medical documentation of domestic abuse; or 
           (v) documentation or certification of the domestic abuse 
        provided by a social worker, member of the clergy, shelter 
        worker, or other professional who has assisted the applicant in 
        dealing with the domestic abuse. 
           Domestic abuse for purposes of this clause shall be defined 
        under section 518B.01. 
           Sec. 39.  Minnesota Statutes 2000, section 268.095, 
        subdivision 2, is amended to read: 
           Subd. 2.  [QUIT DEFINED.] (a) A quit from employment occurs 
        when the decision to end the employment was, at the time the 
        employment ended, the employee's.  
           (b) An employee who has been notified that the employee 
        will be discharged in the future, who chooses to end the 
        employment while employment in any capacity is still available, 
        shall be considered to have quit the employment. 
           (c) An employee who seeks to withdraw a previously 
        submitted notice of quitting shall be considered to have quit 
        the employment if the employer does not agree that the notice 
        may be withdrawn. 
           (d) An applicant who, without good cause, fails to 
        affirmatively request an additional job assignment after 
        completion of a temporary job assignment from a staffing service 
        employer shall be considered to have quit employment. 
           This paragraph shall apply only if, at the time of 
        beginning of employment with the staffing service employer, the 
        applicant signed and was provided a copy of a separate document 
        written in clear and concise language that informed the 
        applicant of this paragraph and that unemployment benefits may 
        be affected. 
           For purposes of this paragraph, "good cause" shall be a 
        reason that is significant and would compel an average, 
        reasonable worker, who would otherwise want an additional 
        temporary job assignment with the staffing service employer, to 
        fail to contact the staffing service employer.  The applicant 
        shall be considered to have good cause if the temporary job 
        assignment just completed was not suitable employment for the 
        applicant. 
           For purposes of this paragraph, a "staffing service 
        employer" is an employer whose business involves employing 
        individuals directly for the purpose of furnishing temporary 
        help to clients of the staffing service. 
           Sec. 40.  Minnesota Statutes 2000, section 268.095, 
        subdivision 8, is amended to read: 
           Subd. 8.  [OFFERS OF EMPLOYMENT.] (a) An applicant shall be 
        disqualified from all unemployment benefits if the applicant, 
        without good cause: 
           (1) failed to apply for available, suitable employment of 
        which the applicant was advised by the commissioner or an 
        employer; 
           (2) failed to accept suitable employment when offered; or 
           (3) avoided an offer of suitable employment. 
           (b) "Good cause" is a reason that would cause a reasonable 
        individual who wants suitable employment to fail to apply for, 
        accept, or avoid suitable employment.  Good cause includes: 
           (1) the applicant is employed in other suitable employment; 
           (2) the applicant is in reemployment assistance training; 
           (3) the applicant formerly worked for the employer and the 
        loss of employment occurred prior to the commencement of a labor 
        dispute, was permanent or for an indefinite period, and the 
        applicant failed to apply for or accept the employment because a 
        labor dispute was in progress at the establishment; or 
           (4) the applicant formerly worked for the employer and quit 
        that employment because of a good reason caused by the employer. 
           (c) This subdivision only applies to offers of employment 
        with a new or a former employer and does not apply to any type 
        of job transfers, position reassignments, or changes in job 
        duties or responsibilities during the course of employment with 
        an employer. 
           Sec. 41.  Minnesota Statutes 2000, section 268.095, 
        subdivision 11, is amended to read: 
           Subd. 11.  [APPLICATION.] (a) This section shall apply to: 
           (1) all covered employment, full time or part time, 
        temporary or of limited duration, permanent or of indefinite 
        duration, that occurred in Minnesota during the base period, the 
        period between the end of the base period and the effective date 
        of the benefit account, or the benefit year, except as provided 
        for in subdivision 1, clause (5); or. 
           (2) all covered employment occurring in this state, and (b) 
        Paragraph (a) shall also apply to employment covered under an 
        unemployment insurance program, (i) of any other state or (ii) 
        established by an act of Congress. 
           Sec. 42.  Minnesota Statutes 2000, section 268.101, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [NOTIFICATION.] (a) In an application for 
        unemployment benefits, each applicant shall report the name and 
        the reason for no longer working for the applicant's most recent 
        employer, as well as the names of all employers and the reasons 
        for no longer working for all employers during the applicant's 
        last 30 days of employment six calendar months prior to the date 
        of the application.  If the reason reported for no longer 
        working for any of those employers is other than a layoff due to 
        lack of work, that shall raise an issue of disqualification that 
        the department shall determine.  An applicant's failure to 
        report the name of an employer, or giving an incorrect reason 
        for no longer working for an employer, shall be considered a 
        violation of section 268.182, paragraph (b).  
           In an application, the applicant shall provide all 
        information necessary to determine the applicant's eligibility 
        for unemployment benefits under section 268.085.  If the 
        applicant fails or refuses to provide information necessary to 
        determine the applicant's eligibility for benefits under section 
        268.085, the applicant shall be ineligible for benefits under 
        section 268.085, subdivision 2, until the applicant provides 
        this required information. 
           (b) Upon establishment of a benefit account, the 
        commissioner shall notify, by mail or electronic transmission, 
        all employers the applicant was employed by during the 
        applicant's last 30 days of employment prior to making 
        an required to report on the application and all base period 
        employers and determined successors to those employers under 
        section 268.051, subdivision 4.  An in order to provide the 
        employer shall have ten calendar days after the sending of the 
        notice an opportunity to raise, in a manner prescribed by the 
        commissioner, any issue of disqualification or any issue of 
        eligibility.  An employer shall be informed of the effect that 
        failure to raise an issue of disqualification within ten 
        calendar days after sending of the notice, as provided for under 
        subdivision 2, paragraph (b), may have on the employer charges 
        under section 268.047.  An issue raised more than ten calendar 
        days after sending of the notice shall be considered untimely. 
           (c) Each applicant shall report any employment, loss of 
        employment, and offers of employment received, during those 
        weeks the applicant filed continued requests for unemployment 
        benefits pursuant to section 268.086.  Each applicant who stops 
        filing continued requests during the benefit year and later 
        begins filing continued requests during that same benefit year 
        shall report the name of any employer the applicant worked for 
        during the period between the filing of continued requests, up 
        to a period of the last 30 days of employment, and the reason 
        the applicant stopped working for the employer.  The applicant 
        shall report any offers of employment during the period between 
        the filing of continued requests for unemployment benefits.  
        Those employers from which the applicant 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 shall have ten calendar days after the sending of the 
        notice and provided an opportunity to raise, in a manner 
        prescribed by the commissioner, any issue of disqualification or 
        any issue of eligibility.  An employer shall be informed of the 
        effect that failure to raise an issue may have on the 
        employer charges under section 268.047.  An issue raised more 
        than ten calendar days after sending of the notice shall be 
        considered untimely. 
           (d) The purpose for requiring the applicant to report the 
        name of all employers and the reason for no longer working for 
        all those employers during the applicant's "last 30 days of 
        employment" under paragraphs (a) and (c) is for the commissioner 
        to obtain information from an applicant raising all issues that 
        may have the potential of disqualifying the applicant from 
        unemployment benefits under section 268.095.  If the reason 
        given by the applicant for no longer working for an employer is 
        other than a layoff due to lack of work, that shall raise an 
        issue of disqualification and the applicant shall be required, 
        as part of the determination process under subdivision 2, 
        paragraph (a), to state all the facts about the cause for no 
        longer working for the employer, if known.  If the applicant 
        fails or refuses to provide this information, the applicant 
        shall be ineligible for benefits under section 268.085, 
        subdivision 2, until the applicant provides this required 
        information. 
           Sec. 43.  Minnesota Statutes 2000, section 268.101, 
        subdivision 2, is amended to read: 
           Subd. 2.  [DISQUALIFICATION DETERMINATION.] (a) The 
        commissioner shall determine any issue of disqualification 
        timely raised by an employer, and mail to the applicant and that 
        employer at the last known address a determination of 
        disqualification or a determination of nondisqualification, as 
        is appropriate.  The determination shall state the effect on 
        employer charges under section 268.047. 
           (b) (a) The commissioner shall determine any issue of 
        disqualification raised by information required from an 
        applicant under subdivision 1, paragraph (a) or (c), and mail to 
        the applicant and employer at the last known address a 
        determination of disqualification or a determination of 
        nondisqualification, as is appropriate.  The determination shall 
        state the effect on the employer charges under section 268.047.  
        A determination shall be made pursuant to this paragraph only on 
        those issues involving the applicant's last 30 days of 
        employment and shall be made even if a notified employer has not 
        raised the issue of disqualification. 
           (c) (b) The commissioner shall determine any untimely issue 
        of disqualification raised by an employer and mail to the 
        applicant and that employer at the last known address a 
        determination of disqualification or a determination of 
        nondisqualification as is appropriate.  The determination shall 
        state the effect on the employer charges under section 268.047.  
           If the a base period employer: 
           (1) was not the applicant's most recent employer prior to 
        the application for unemployment benefits; 
           (2) did not employ the applicant during the applicant's 
        last 30 days of employment six calendar months prior to the 
        applicant's application for unemployment benefits, but only 
        employed the applicant for periods prior to that,; and 
           (3) did not raise an issue of disqualification within ten 
        calendar days of notification under subdivision 1, paragraph 
        (b); then any exception to employer charges under section 
        268.047, subdivisions 2 and 3, shall begin the Sunday two weeks 
        following the week that the untimely issue of disqualification 
        was raised by the employer. 
           (d) (c) If any time within 24 months from the establishment 
        of a benefit account the commissioner finds that an applicant 
        failed to report any employment, loss of employment, or offers 
        of employment that were required to be provided by the applicant 
        under this section, the commissioner shall determine any issue 
        of disqualification on that loss of employment or offer of 
        employment and mail to the applicant and involved employer at 
        the last known address a determination of disqualification or a 
        determination of nondisqualification, as is appropriate.  The 
        determination shall state the effect on the employer charges 
        under section 268.047. 
           This paragraph shall not prevent the imposition of any 
        penalty under section 268.18, subdivision 2, or 268.182. 
           (e) (d) An issue of disqualification shall be determined 
        based upon that information required of an applicant, any 
        information that may be obtained from an applicant or employer, 
        and information from any other source, without regard to any 
        common law burden of proof.  
           (f) (e) A determination of disqualification or a 
        determination of nondisqualification shall be final unless an 
        appeal is filed by the applicant or notified employer within 30 
        calendar days after mailing.  The determination shall contain a 
        prominent statement indicating the consequences of not appealing.
        Proceedings on the appeal shall be conducted in accordance with 
        section 268.105. 
           (g) (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 a disqualification from unemployment benefits under section 
        268.095, any question of an exception to disqualification under 
        section 268.095, any question of unemployment benefit charge to 
        effect on an employer under section 268.047, and any question of 
        an otherwise imposed disqualification that an applicant has 
        satisfied under section 268.095, subdivision 10.  
           (h) (g) Regardless of the requirements of this subdivision, 
        the commissioner is not required to mail to an applicant a 
        determination where the applicant has satisfied any otherwise 
        potential disqualification under section 268.095, subdivision 10.
           Sec. 44.  Minnesota Statutes 2000, section 268.105, 
        subdivision 7, is amended to read: 
           Subd. 7.  [JUDICIAL REVIEW.] (a) The Minnesota court of 
        appeals shall, by writ of certiorari to the commissioner, review 
        the decision of the commissioner provided a petition for the 
        writ is filed with the court and a copy is served upon the 
        commissioner and any other involved party within 30 calendar 
        days of the mailing of the commissioner's decision.  
           (b) Any employer petitioning for a writ of certiorari shall 
        pay to the court the required filing fee and upon the service of 
        the writ shall furnish a cost bond to the commissioner in 
        accordance with the rules of civil appellate procedure.  If the 
        employer requests a written transcript of the testimony received 
        at the evidentiary hearing conducted pursuant to subdivision 1, 
        the employer shall pay to the commissioner the cost of preparing 
        the transcript. 
           (c) Upon issuance by the Minnesota court of appeals of a 
        writ of certiorari as a result of an applicant's petition, the 
        commissioner shall furnish to the applicant at no cost a written 
        transcript of the testimony received at the evidentiary hearing 
        conducted pursuant to subdivision 1, and, if requested, a copy 
        of all exhibits entered into evidence.  No filing fee or cost 
        bond shall be required of an applicant petitioning the Minnesota 
        court of appeals for a writ of certiorari.  
           (d) The commissioner shall be considered the primary 
        responding party to any judicial action involving the 
        commissioner's decision and the case title shall be, "In Re the 
        matter of:  (named petitioner) and the commissioner of economic 
        security.".  The commissioner may be represented by an attorney 
        who is a classified employee of the department designated by the 
        commissioner for that purpose. 
           Sec. 45.  Minnesota Statutes 2000, section 268.131, 
        subdivision 2, is amended to read: 
           Subd. 2.  [COOPERATION WITH FOREIGN GOVERNMENTS.] 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 unemployment insurance program of any foreign 
        government, may be used for the taking of applications for 
        unemployment benefits and continued claims requests and the 
        payment of unemployment benefits under this law or under a 
        similar law of a foreign government.  
           Sec. 46.  Minnesota Statutes 2000, section 268.18, 
        subdivision 2b, is amended to read: 
           Subd. 2b.  [INTEREST.] (a) Beginning January 1, 2002, On 
        any unemployment benefits fraudulently obtained, and any penalty 
        amounts assessed under subdivision 2, the commissioner shall may 
        assess interest at the rate of 1-1/2 percent per month on any 
        amount 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 shall be assessed.
           (b) If this subdivision became effective after the date of 
        the determination, or the determination did not state that 
        interest shall be assessed, interest shall be assessed beginning 
        30 calendar days after written notification to the applicant. 
           Sec. 47.  Minnesota Statutes 2000, section 268.184, is 
        amended to read: 
           268.184 [EMPLOYER MISCONDUCT; PENALTY.] 
           (a) If the commissioner finds that any employer or any 
        employee, officer, or agent of any employer, is in collusion 
        with any applicant for the purpose of assisting the applicant to 
        receive unemployment benefits illegally, the employer shall be 
        penalized $500 or the amount of unemployment 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 unemployment benefits to any applicant 
        or to reduce or prevent a charge the effects of unemployment 
        benefits to paid on its tax or reimbursable account, the 
        employer shall be penalized $500. 
           (c) Penalties under this section shall be in addition to 
        any other penalties and subject to the same collection 
        procedures that apply to past due taxes.  Penalties shall be 
        paid to the department within 30 calendar days of assessment and 
        credited to the contingent account. 
           (d) The assessment of the penalty shall be final unless the 
        employer files an appeal within 30 calendar days after the 
        sending of notice of the penalty to the employer by mail or 
        electronic transmission.  Proceedings on the appeal shall be 
        conducted in accordance with section 268.105. 
           (e) Any employer or any officer or agent of an employer or 
        any other individual 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 
        unemployment benefits to any applicant, is guilty of a gross 
        misdemeanor unless the unemployment benefit underpayment exceeds 
        $500, in that case the individual is guilty of a felony.  
           Sec. 48.  Minnesota Statutes 2000, 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 
        unemployment benefits or any other rights under sections 268.03 
        to 268.23 shall be void.  Any agreement by an employee to pay 
        all or any portion of an employer's taxes, shall be void.  No 
        employer shall directly or indirectly make or require or accept 
        any deduction from wages to pay the employer's taxes, require or 
        accept any waiver of any right or in any manner obstruct or 
        impede an application or continued claim request for 
        unemployment benefits.  Any employer or officer or agent of any 
        employer who violates any portion of this subdivision shall, for 
        each offense, be guilty of a misdemeanor.  
           Sec. 49.  Minnesota Statutes 2000, section 268.6715, is 
        amended to read: 
           268.6715 [1997 MINNESOTA EMPLOYMENT AND ECONOMIC 
        DEVELOPMENT PROGRAM.] 
           The 1997 Minnesota employment and economic development 
        program is established to assist businesses and communities to 
        create jobs that provide the wages, benefits, and on-the-job 
        training opportunities necessary to help low-wage workers and 
        people transitioning from public assistance to get and retain 
        jobs, and to help their families to move out of poverty.  
        Employment obtained under this program is not excluded from 
        included in the definition of "noncovered employment" by section 
        268.04 268.035, subdivision 12 20, clause (10), paragraph 
        (d) (11). 
           Sec. 50.  Minnesota Statutes 2000, section 268.976, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [EARLY WARNING INDICATORS.] The 
        commissioner, in cooperation with the commissioners of revenue 
        and trade and economic development, shall establish and oversee 
        an early warning system to identify industries and businesses 
        likely to experience large losses in employment including a 
        plant closing or a substantial layoff, by collecting and 
        analyzing information which may include, but not be limited to, 
        products and markets experiencing declining growth rates, 
        companies and industries subject to competition from production 
        in low wage counties, changes in ownership, layoff and 
        employment patterns, payments of unemployment contributions 
        taxes, and state tax payments.  The commissioner may request the 
        assistance of businesses, business organizations, and trade 
        associations in identifying businesses, industries, and specific 
        establishments that are likely to experience large losses in 
        employment.  The commissioner may request information and other 
        assistance from other state agencies for the purposes of this 
        subdivision. 
           Sec. 51.  [RETROACTIVE ELECTION BY INDIAN TRIBES.] 
           Regardless of any law to the contrary, an Indian tribe, 
        subdivision, subsidiary, or business enterprise wholly owned by 
        the tribe may elect to be liable for payments in lieu of 
        unemployment taxes for the calendar year 2000 or 2001, or both.  
        If such tribe, subdivision, subsidiary, or business enterprise 
        paid unemployment taxes on a quarterly basis during 2000 or 
        2001, and if the tribe elects by December 31, 2002, to be liable 
        for payments in lieu of unemployment taxes for one or both of 
        those calendar years, the department shall grant a refund or 
        credit for the amount that the total of unemployment tax 
        payments exceeded the total payment that would have been due if 
        payments in lieu of unemployment taxes had been made. 
           [EFFECTIVE DATE.] This section is effective December 31, 
        2000. 
           Sec. 52.  [INSTRUCTIONS TO REVISOR.] 
           The revisor of statutes shall renumber each section of 
        Minnesota Statutes listed in column A with the number listed in 
        column B.  The revisor shall also make necessary cross-reference 
        changes consistent with the renumbering. 
             Column A              Column B
             268.035, subd. 5      268.035, subd. 26a
             268.035, subd. 8      268.035, subd. 2a
             268.095, subd. 4a     268.095, subd. 6a
             268.101, subd. 7      268.19, subd. 2
             268.198               268.26 
           In Minnesota Statutes, sections 268.001 to 268.23: 
           The term "or the Federal Economic Security Law" shall be 
        changed to "or Federal Unemployment Insurance Program." 
           The term "section 268.03 to 268.23" shall be changed to 
        "the Minnesota Unemployment Insurance Program Law." 
           The term "administer sections 268.03 to 268.23" shall be 
        changed to "administer the Minnesota unemployment insurance 
        program and the job service." 
           The term "administration of sections 268.03 to 268.23" 
        shall be changed to "administration of the Minnesota 
        unemployment insurance program and the job service." 
           The term "economic security administration account" shall 
        be changed to "administration account." 
           The term "economic security contingent account" shall be 
        changed to "contingent account." 
           The term "notwithstanding" shall be changed to "regardless 
        of." 
           Sec. 53.  [REPEALER.] 
           Laws 1999, chapter 107, section 22, is repealed. 
           Presented to the governor May 23, 2001 
           Signed by the governor May 25, 2001, 12:12 p.m.