Minnesota Office of the Revisor of Statutes
[*Add Subtitle/link: Office]

Menu

Revisor of Statutes Menu

Minnesota Session Laws

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

                             CHAPTER 66-S.F.No. 145 
                  An act relating to reemployment insurance; making 
                  technical and administrative changes; providing civil 
                  and criminal penalties; providing for a waiver from 
                  certain waiting periods for certain individuals; 
                  amending Minnesota Statutes 1996, sections 268.0111, 
                  by adding a subdivision; 268.022, subdivision 1; 
                  268.04, subdivisions 5, 15, 17, 25, and by adding 
                  subdivisions; 268.06, subdivisions 1, 3a, 6, 8, 8a, 
                  18, 19, 20, 21, 22, 24, 25, 26, 27, 28, 29, and 31; 
                  268.07, subdivisions 2, 3, 3a, and 3b; 268.071, 
                  subdivisions 3, 6, and 9; 268.08, subdivisions 1, 2, 
                  3, 3a, 3b, 10, and by adding a subdivision; 268.09, 
                  subdivision 3, and by adding subdivisions; 268.101, 
                  subdivisions 2, 3, 4, and by adding a subdivision; 
                  268.105; 268.11, subdivision 3; 268.12, subdivisions 8 
                  and 9a; 268.121; 268.14, subdivision 1; 268.16, 
                  subdivision 2; 268.161, subdivisions 4, 6, and 7; 
                  268.167; 268.18, subdivisions 1, 2, 3, 4, 6, and by 
                  adding a subdivision; and 268.21; proposing coding for 
                  new law in Minnesota Statutes, chapter 268; repealing 
                  Minnesota Statutes 1996, sections 268.026; 268.04, 
                  subdivisions 8, 13, 14, 20, 21, 32, and 35; 268.06, 
                  subdivisions 2, 4, 5, 30, and 33; 268.073, subdivision 
                  7; 268.09, subdivisions 1, 2, 4, 5, 6, 7, and 8; 
                  268.12, subdivisions 2, 4, 5, 7, and 11; 268.14, 
                  subdivisions 3 and 4; 268.16, subdivision 8; 268.161, 
                  subdivision 3; 268.165; and 268.18, subdivision 5. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1996, section 268.0111, is 
        amended by adding a subdivision to read: 
           Subd. 3a.  [DEPARTMENT.] "Department" means the department 
        of economic security. 
           Sec. 2.  Minnesota Statutes 1996, section 268.022, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DETERMINATION AND COLLECTION OF SPECIAL 
        ASSESSMENT.] (a) In addition to all other contributions, 
        assessments, and payment obligations under chapter 268, each 
        employer, except an employer making payments in lieu of 
        contributions under section 268.06, subdivision 25, 26, 27, or 
        28, is liable for a special assessment levied at the rate of 
        one-tenth of one percent per year on all taxable wages for 
        purposes of the contribution payable under section 268.06, 
        subdivision 2, as defined in section 268.04, subdivision 25 
        25b.  Such The assessment shall become due and be paid by each 
        employer to the department of economic security on the same 
        schedule and in the same manner as other contributions required 
        by section 268.06. 
           (b) The special assessment levied under this section shall 
        not affect the computation of any other contributions, 
        assessments, or payment obligations due under this chapter. 
           (c) Notwithstanding any provision to the contrary, if on 
        June 30 of any year the unobligated balance of the special 
        assessment fund under this section is greater than $30,000,000, 
        the special assessment for the following year only shall be 
        levied at a rate of 1/20th of one percent on all taxable wages 
        identified for this purpose under this subdivision. 
           Sec. 3.  Minnesota Statutes 1996, section 268.04, 
        subdivision 5, is amended to read: 
           Subd. 5.  [CALENDAR QUARTER.] "Calendar quarter" means the 
        period of three consecutive calendar months ending on March 31, 
        June 30, September 30, or December 31, excluding any calendar 
        quarter or portion thereof which occurs prior to January 1, 
        1937, or the equivalent thereof, as the commissioner may by rule 
        prescribe. 
           Sec. 4.  Minnesota Statutes 1996, section 268.04, is 
        amended by adding a subdivision to read: 
           Subd. 12a.  [INDEPENDENT CONTRACTOR/CONSTRUCTION.] A worker 
        doing commercial or residential building construction or 
        improvement, in the public or private sector, performing 
        services in the course of the trade, business, profession, or 
        occupation of the employing unit, shall be considered an 
        employee under the law of master and servant and not an 
        "independent contractor" under subdivision 12, clause (1)(d) 
        unless the worker meets all the following conditions: 
           (1) maintains a separate business with the independent 
        contractor's own office, equipment, materials, and other 
        facilities; 
           (2) holds or has applied for a federal employer 
        identification number; 
           (3) operates under contracts to perform specific services 
        or work for specific amounts of money under which the 
        independent contractor controls the means of performing the 
        services or work; 
           (4) incurs the main expenses related to the service or work 
        that the independent contractor performs under contract; 
           (5) is responsible for the satisfactory completion of work 
        or services that the independent contractor contracts to perform 
        and is liable for a failure to complete the work or service; 
           (6) receives compensation for work or service performed 
        under a contract on a commission or per job or competitive bid 
        basis and not on any other basis; 
           (7) may realize a profit or suffer a loss under contracts 
        to perform work or service; 
           (8) has continuing or recurring business liabilities or 
        obligations; and 
           (9) the success or failure of the independent contractor's 
        business depends on the relationship of business receipts to 
        expenditures. 
           Sec. 5.  Minnesota Statutes 1996, section 268.04, 
        subdivision 15, is amended to read: 
           Subd. 15.  [FILING; FILED.] "Filing" or "filed" means the 
        delivery of any document to the commissioner or any of the 
        commissioner's agents or representatives, or the depositing of 
        the same document in the United States mail properly addressed 
        to the department with postage prepaid thereon, in which case 
        the same document shall have been be considered filed on the day 
        indicated by the cancellation mark of the United States Post 
        Office Department Postal Service. 
           If, where allowed, an application, protest, appeal, or 
        other required action is made by telephone or electronic 
        transmission, it shall be considered filed on the day received 
        by the department. 
           Sec. 6.  Minnesota Statutes 1996, section 268.04, 
        subdivision 17, is amended to read: 
           Subd. 17.  [INSURED WORK.] "Insured work" means employment 
        for employers as defined in this section, except that for the 
        purposes of interstate reciprocal benefit payment arrangements 
        and the clearing satisfying of disqualifications under this law, 
        the term "insured work" shall mean employment in include insured 
        work under this law or a similar law of any other state or 
        employment covered under the Railroad Unemployment Compensation 
        Act, and United States Code, title 5, chapter 85.  Periods for 
        which an individual receives back pay are periods of insured 
        work for benefit purposes, except for the clearing satisfying of 
        disqualifications under this chapter.  
           Sec. 7.  Minnesota Statutes 1996, section 268.04, is 
        amended by adding a subdivision to read: 
           Subd. 22a.  [STATE'S AVERAGE ANNUAL AND AVERAGE WEEKLY 
        WAGE.] (a) On or before June 30 of each year, the commissioner 
        shall calculate the state's average annual wage and the state's 
        average weekly wage in the following manner: 
           (1) The sum of the total monthly employment reported by all 
        employers subject to this law for the previous calendar year 
        shall be divided by 12 to calculate the average monthly 
        employment. 
           (2) The sum of the total wages reported by all employers 
        subject to this law for the previous calendar year shall be 
        divided by the average monthly employment to calculate the 
        state's average annual wage. 
           (3) The state's average annual wage shall be divided by 52 
        to calculate the state's average weekly wage. 
           (b) For purposes of contributions under section 268.06, 
        subdivision 1, the state's average annual wage shall apply to 
        the calendar year succeeding the calculation. 
           (c) For purposes of calculating the maximum weekly benefit 
        amount payable on any reemployment insurance account under 
        section 268.07, subdivision 2, paragraph (c), the state's 
        average weekly wage shall apply to the 12-month period beginning 
        July 1 of the calendar year of the calculation. 
           Sec. 8.  Minnesota Statutes 1996, section 268.04, 
        subdivision 25, is amended to read: 
           Subd. 25.  [WAGES.] "Wages" means all remuneration for 
        services, including commissions; bonuses; 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 remuneration in any medium other than cash, except that such 
        the term shall not include: 
           (a) For the purpose of determining contributions payable 
        under section 268.06, subdivision 2, that part of the 
        remuneration which exceeds, for each calendar year, the greater 
        of $7,000 or that part of the remuneration which exceeds 60 
        percent of the average annual wage rounded to the nearest $100 
        computed in accordance with the provisions of clause (j), paid 
        to an individual by an employer or the employer's predecessor 
        with respect to covered employment in this state or under the 
        reemployment insurance law of any other state.  Credit for 
        remuneration reported under the reemployment insurance law of 
        another state is limited to that state's taxable wage base.  If 
        the term "wages" as contained in the Federal Unemployment Tax 
        Act is amended to include remuneration in excess of the amount 
        required to be paid hereunder to an individual by an employer 
        under the federal act for any calendar year, wages for the 
        purposes of sections 268.03 to 268.23 shall include remuneration 
        paid in a calendar year up to an amount equal to the dollar 
        limitation specified in the Federal Unemployment Tax Act.  For 
        the purposes of this clause, the term "employment" shall include 
        service constituting employment under any employment security 
        law of another state or of the federal government; 
           (b) The amount of any payment made to, or on behalf of, an 
        employee under a plan or system established by an employer which 
        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 fund, to provide for any 
        such a payment), on account of (1) retirement or (2) medical and 
        hospitalization expenses in connection with sickness or accident 
        disability, or (3) death, provided the employee has not the 
        option to receive, instead of provision for such a death 
        benefit, any part of such the payment, or if such the death 
        benefit is insured, any part of the insurance premium (or 
        contributions to premiums) paid by the employer and has not the 
        no right, under the provisions of the plan or system or policy 
        of insurance providing for such death benefit, to assign such 
        the benefit, or to receive a cash consideration in lieu of such 
        a benefit either upon withdrawal from the plan or 
        system providing for such benefit or upon termination of such 
        the plan or system or policy of insurance or of employment 
        with such the employer; 
           (c) (b) The payment by an employer (without deduction from 
        the remuneration of the employee) (1) of the tax imposed upon an 
        employee under section 3101 of the federal Internal Revenue 
        Code, or (2) of any payment required from an employee under a 
        state reemployment insurance law, with respect to remuneration 
        paid to an employee for domestic service in a private home of 
        the employer or for agricultural labor; 
           (d) (c) Any payments made to a former employee during the 
        period of active military service in the armed forces of the 
        United States by such the employer, whether legally required or 
        not; 
           (e) (d) Any payment made to, or on behalf of, an employee 
        or beneficiary (1) from or to a trust described in section 401(a)
        of the federal Internal Revenue Code which that is exempt from 
        tax under section 501(a) of such the code at the time of such 
        the payment unless such the payment is made to an employee of 
        the trust as remuneration for services rendered as an employee 
        and not as a beneficiary of the trust, or (2) under or to an 
        annuity plan which that, at the time of such the payment is a 
        plan described in section 403(a) of the federal Internal Revenue 
        Code; 
           (f) (e) Sickness or accident disability payments made by 
        the employer after the expiration of six calendar months 
        following the last calendar month in which the individual worked 
        for the employer; 
           (g) (f) Disability payments made under the provisions of 
        any workers' compensation law; 
           (h) (g) Sickness or accident disability payments made by a 
        third party payer such as an insurance company; 
           (i) (h) 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 which that provides for the 
        employer's employees generally or for a class or classes of 
        employees; 
           (j) On or before July 1 of each year the commissioner shall 
        determine the average annual wage paid by employers subject to 
        sections 268.03 to 268.23 in the following manner: 
           (1) The sum of the total monthly employment reported for 
        the previous calendar year shall be divided by 12 to determine 
        the average monthly employment; 
           (2) The sum of the total wages reported for the previous 
        calendar year shall be divided by the average monthly employment 
        to determine the average annual wage. 
           The average annual wage determined shall be effective for 
        the calendar year next succeeding the determination; 
           (k) (i) Nothing in this subdivision, other than clause (a), 
        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 sections 401(k) and 125, respectively, 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 1996, section 268.04, is 
        amended by adding a subdivision to read: 
           Subd. 25b.  [TAXABLE WAGES.] (a) "Taxable wages" means 
        those wages paid to an employee each calendar year up to an 
        amount equal to 60 percent of the state's average annual wage, 
        rounded to the nearest $100. 
           (b) Taxable wages includes the amount of wages paid by the 
        employer's predecessor in this state or under the reemployment 
        insurance law of any other state.  Any credit given for amounts 
        reported under the reemployment insurance law of another state 
        shall be limited to that state's taxable wage base. 
           Sec. 10.  [268.047] [BENEFITS CHARGED TO EMPLOYER.] 
           Subdivision 1.  [GENERAL RULE.] Benefits paid to a claimant 
        pursuant to a reemployment insurance account, including 
        extended, additional, and shared work benefits, shall be charged 
        to the account of the claimant's base period employer as and 
        when paid except as provided in subdivisions 2 and 3.  The 
        amount of benefits chargeable to each base period employer's 
        account shall bear the same ratio to the total benefits paid to 
        a claimant as the wage credits the claimant was paid by the 
        employer bear to the total amount of wage credits the claimant 
        was paid by all the claimant's base period employers. 
           In making computations under this subdivision, the amount 
        of wage credits, if not a multiple of $1, shall be computed to 
        the nearest multiple of $1. 
           Subd. 2.  [EXCEPTIONS TO CHARGES FOR ALL 
        EMPLOYERS.] Benefits paid to a claimant shall not be charged to 
        the account of a contributing base period employer or to the 
        account of a base period employer that is liable for payments in 
        lieu of contributions under the following conditions: 
           (a) the claimant was discharged from the employment because 
        of gross misconduct as determined under section 268.09, 
        subdivision 10, clause (2).  This paragraph shall apply only to 
        benefits paid for weeks occurring subsequent to the claimant's 
        discharge from employment; 
           (b) a claimant's discharge from that employment was 
        required by a law mandating a background check, or the 
        claimant's discharge from that employment was required by law 
        because of a criminal conviction; 
           (c) the employer: 
           (1) provided regularly scheduled part-time employment to 
        the claimant during the claimant's base period; 
           (2) during the claimant's benefit year, continues to 
        provide the claimant with regularly scheduled employment 
        approximating 90 percent of the employment provided the claimant 
        by that employer in the base period, or, for a fire department 
        or firefighting corporation or operator of a life-support 
        transportation service, continues to provide employment for a 
        volunteer firefighter or a volunteer ambulance service personnel 
        on the same basis that employment was provided in the base 
        period; and 
           (3) is an involved employer because of the claimant's loss 
        of other employment.  The exception to charges shall terminate 
        effective the first week in the claimant's benefit year that the 
        employer fails to meet the provisions of clause (2); 
           (d) the claimant's unemployment: 
           (1) was directly caused by a major natural disaster 
        declared by the president pursuant to Section 102(2) of the 
        Disaster Relief Act of 1974, United States Code, title 42, 
        section 5122(2), if the claimant would have been eligible for 
        disaster unemployment assistance with respect to that 
        unemployment but for the claimant's receipt of reemployment 
        insurance benefits; or 
           (2) was directly caused by the condemnation of property by 
        a governmental agency, a fire, flood, or act of God where 70 
        percent or more of the employees employed in the affected 
        location became unemployed as a result and the employer 
        substantially reopens its operations in that same area within 18 
        months.  Benefits shall be charged to the employer where the 
        unemployment is caused by the willful act of the employer or a 
        person acting on behalf of the employer; 
           (e) the benefits were paid by another state as a result of 
        the transferring of wage credits under a federally combined wage 
        agreement provided for in section 268.13; 
           (f) on a second reemployment insurance account established 
        pursuant to section 268.07, subdivision 3, where the employer 
        provided 90 percent or more of the wage credits in the 
        claimant's preceding base period and the claimant did not 
        perform services for the employer during the subsequent base 
        period; 
           (g) the claimant left or partially or totally lost 
        employment because of a strike or other labor dispute at the 
        claimant's primary place of employment if the employer was not a 
        party to the particular strike or labor dispute; or 
           (h) the benefits were determined overpaid benefits under 
        section 268.18. 
           Subd. 3.  [EXCEPTIONS TO CHARGES FOR CONTRIBUTING 
        EMPLOYERS.] Benefits paid to a claimant shall not be charged to 
        the account of a contributing base period employer under the 
        following conditions: 
           (a) the claimant's wage credits from that employer are less 
        than $500; 
           (b) the claimant quit the employment, unless it was 
        determined under section 268.09, subdivisions 1a and 9, to have 
        been because of a good reason caused by the employer.  This 
        paragraph shall apply only to benefits paid for periods 
        occurring subsequent to the claimant's quitting the employment; 
           (c) the employer discharged the claimant from employment 
        because of misconduct as determined pursuant to section 268.09, 
        subdivisions 10 and 12.  This paragraph shall apply only to 
        benefits paid for periods occurring subsequent to the claimant's 
        discharge from employment; 
           (d) the employer discharged the claimant from employment 
        because of reasons resulting directly from the claimant's 
        serious illness provided the employer made a reasonable effort 
        to retain the claimant in employment in spite of the claimant's 
        serious illness; or 
           (e) the claimant avoided or failed to accept an offer of 
        suitable reemployment, or reemployment that offered 
        substantially the same or better hourly wages or conditions of 
        employment, or both, as were previously provided by that 
        employer.  This paragraph shall apply to benefits paid for weeks 
        occurring after the claimant's refusal or avoidance. 
           Subd. 4.  [FEDERAL REIMBURSED BENEFITS NOT 
        CHARGED.] Notwithstanding subdivision 1, no employer's account 
        shall be charged for benefits for which the reemployment 
        insurance fund is reimbursed by the federal government. 
           Sec. 11.  Minnesota Statutes 1996, section 268.06, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PAYMENTS.] (1) (a) Contributions shall 
        accrue and become payable by each employer for each calendar 
        year in which that the employer is subject to sections 268.03 to 
        268.23 with respect to wages paid (as defined in section 268.04, 
        subdivision 25a) for employment this chapter, except for:  (1) 
        nonprofit corporations as provided in section 268.053, and (2) 
        the state and political subdivisions as provided in section 
        268.052.  Each employer shall pay contributions quarterly, at 
        the employer's assigned contribution rate, on the taxable wages 
        paid to each employee.  Such The contributions shall become due 
        and be paid by each employer to the department of economic 
        security for the fund in accordance with such rules as the 
        commissioner may prescribe, and shall not be deducted, in whole 
        or in part, from the wages of individuals in such employer's 
        employ Minnesota reemployment insurance fund on or before the 
        last day of the month following the end of the calendar quarter. 
        No rule of the commissioner shall be put in force which will 
        permit the payment of such contributions at a time or under 
        conditions which will not allow the employer to take credit for 
        such contribution against the tax imposed by section 3301 of the 
        Internal Revenue Code. 
           (2) In (b) The payment of any contribution, a fractional 
        part of a cent shall may be disregarded unless it amounts to 
        one-half cent or more in which case it shall be increased to one 
        cent paid in an amount to the nearest whole dollar. 
           (3) (c) When the contribution rate applied to an employer's 
        taxable payroll for any given calendar quarter results in a 
        computed contribution of for any calendar quarter is less than 
        $1, the contribution shall be disregarded. 
           Sec. 12.  Minnesota Statutes 1996, section 268.06, 
        subdivision 3a, is amended to read: 
           Subd. 3a.  [RATE FOR NEW EMPLOYERS.] Notwithstanding the 
        provisions of subdivision 2, (a) Each employer, who becomes 
        subject to this law, that does not qualify for an experience 
        rating, except employers in the construction industry, shall pay 
        contributions at a be assigned a contribution rate: (a) Not 
        exceeding 5-4/10 percent, that is the higher of (1) one 
        percent and or (2) the state's five-year benefit cost rate for 
        the 60 consecutive month period immediately preceding July 1 of 
        each year for each employer, except employers in the 
        construction industry; to a maximum of 5-4/10 percent.  For 
        purposes of this clause paragraph, the state's five-year benefit 
        cost rate shall be computed annually and shall be derived by 
        dividing the total dollar amount of benefits paid to claimants 
        under this law during the 60 consecutive calendar months 
        immediately preceding July 1 of each year by the total dollar 
        amount of taxable wages subject to contributions under this law 
        of all contributing employers during the same period.  The This 
        rate so determined shall be applicable for the calendar year 
        next succeeding each the computation date.  
           (b) Each employer in the construction industry who becomes 
        subject to this chapter that does not qualify for an experience 
        rating shall pay contributions at a be assigned a contribution 
        rate, not exceeding the maximum contribution rate for all 
        employers as provided under subdivision 8, that is the higher of 
        (1) one percent, or (2) the state's five-year benefit cost rate 
        for construction employers for the 60 consecutive month period 
        immediately preceding July 1 of each year to a maximum of 9.0 
        percent.  For purposes of this clause paragraph, the 
        state's five-year benefit cost rate shall be computed annually 
        and shall be derived by dividing the total dollar amount of 
        benefits paid to claimants of construction industry employers 
        during the 60 consecutive calendar months immediately preceding 
        July 1 of each year by the total dollar amount of taxable wages 
        of construction industry employers subject to contributions 
        during the same period.  The This rate so determined shall be 
        applicable for the calendar year next succeeding each the 
        computation date.  
           For purposes of this subdivision an employer is in the 
        construction industry if assigned an industrial classification 
        the employer is within division C of the Standard Industrial 
        Classification Manual issued by the United States Office of 
        Management and Budget as determined by the tax branch of the 
        department, except as excluded by rules adopted by the 
        commissioner. 
           Sec. 13.  Minnesota Statutes 1996, section 268.06, 
        subdivision 6, is amended to read: 
           Subd. 6.  [COMPUTATION OF EACH EMPLOYER'S EXPERIENCE 
        RATIO RATING.] The commissioner shall compute an 
        experience ratio rating for each employer whose account has been 
        chargeable with benefits during the 60 consecutive calendar 
        months immediately preceding July 1 of the preceding calendar 
        year except that, for any employer who has not been subject to 
        the Minnesota economic security law this chapter for a period of 
        time sufficient to meet the 60 consecutive months requirement, 
        the commissioner shall compute an experience ratio if the 
        employer's account has been chargeable with benefits during at 
        least the 12 15 consecutive calendar months immediately 
        preceding July 1 of the preceding calendar year.  Such The 
        experience ratio rating shall be the quotient ratio obtained by 
        dividing 1-1/4 times the total benefits charged to the 
        employer's account during the period the account has been 
        chargeable employer has been subject to this chapter but not 
        less than the 12 15 or more than the 60 consecutive calendar 
        months ending on June 30 of the preceding calendar year by the 
        employer's total taxable payroll for the same period on which 
        all contributions due have been paid to the department of 
        economic security on or before October 31 of the preceding 
        calendar year.  Such The experience ratio rating shall be 
        computed to the nearest one-tenth of a percent.  
           Sec. 14.  Minnesota Statutes 1996, section 268.06, 
        subdivision 8, is amended to read: 
           Subd. 8.  [DETERMINATION COMPUTATION OF CONTRIBUTION 
        RATES.] (a) For each calendar year the commissioner 
        shall determine compute the contribution rate of each employer 
        by adding the minimum contribution rate to the employer's 
        experience ratio rating. 
           (b) The minimum rate for all employers shall be 
        eight-tenths of one percent for 1988; seven-tenths of one 
        percent for 1989; and six-tenths of one percent for 1990.  The 
        minimum contribution rate for all employers in 1991 and 
        thereafter shall be six-tenths of one percent if the amount in 
        the reemployment insurance fund is less than $200,000,000 on 
        June 30 of the preceding calendar year; or five-tenths of one 
        percent if the fund is more than $200,000,000 but less than 
        $225,000,000; or four-tenths of one percent if the fund is more 
        than $225,000,000 but less than $250,000,000; or three-tenths of 
        one percent if the fund is more than $250,000,000 but less than 
        $275,000,000; or two-tenths of one percent if the fund is 
        $275,000,000 but less than $300,000,000; or one-tenth of one 
        percent if the fund is $300,000,000 or more. 
           (c) The maximum contribution rate for all employers shall 
        be 8.0 percent in 1988; 8.5 percent in 1989; 9.0 percent in 1990 
        and thereafter. 
           (d) For the purposes of this section subdivision the 
        reemployment insurance fund shall not include any money advanced 
        from the federal Unemployment Account in the unemployment trust 
        fund in accordance with Title XII of the Social Security Act, as 
        amended. 
           Sec. 15.  Minnesota Statutes 1996, section 268.06, 
        subdivision 8a, is amended to read: 
           Subd. 8a.  [SOLVENCY ASSESSMENT.] (a) If the fund balance 
        is greater than $75,000,000 but less than $150,000,000 on June 
        30 of any year, a solvency assessment will be in effect for the 
        following calendar year.  Each employer, except those making 
        payments in lieu of contributions under subdivisions 25, 26, 27, 
        and 28, shall pay a quarterly solvency assessment of ten percent 
        multiplied by the contributions paid or due and payable for each 
        calendar quarter in that year.  Quarterly contributions and the 
        solvency assessment payments shall be combined and will be 
        computed notwithstanding the maximum contribution rate 
        established in subdivision 3a or 8, by multiplying the quarterly 
        taxable payroll by the assigned contribution rate multiplied by 
        1.10. 
           (b) If the fund balance is less than $75,000,000 on June 30 
        of any year, a solvency assessment will be in effect for the 
        following calendar year.  Each employer, except those making 
        payments in lieu of contributions under subdivisions 25, 26, 27, 
        and 28, shall pay a quarterly solvency assessment of 15 percent 
        multiplied by the contributions paid or due and payable for each 
        calendar quarter in that year.  Quarterly contributions and the 
        solvency assessment payments shall be combined and will be 
        computed notwithstanding the maximum contribution rate 
        established in subdivision 3a or 8, by multiplying the quarterly 
        taxable payroll by the assigned contribution rate multiplied by 
        1.15 rounded to the nearest one-hundredth of a percent.  
           Sec. 16.  Minnesota Statutes 1996, section 268.06, 
        subdivision 18, is amended to read: 
           Subd. 18.  [NOTICE TO EMPLOYER OF BENEFITS CHARGED.] (a) 
        The commissioner shall mail to the last known address of each 
        employer a quarterly notice of the benefits which that have been 
        charged to the employer's account, as determined by the 
        department.  Unless reviewed in the manner hereinafter provided, 
        a written protest is filed within 30 calendar days from the date 
        of mailing of the notice, the charges set forth in such the 
        notice, or as modified by a redetermination, a decision of a 
        reemployment insurance judge, or the commissioner, shall be 
        final and shall be used in determining the contribution rates 
        for all years in which the charges occur within the employer's 
        experience period and shall not be subject to collateral attack 
        by way of review of a contribution rate determination notice, 
        application for adjustment or refund, or otherwise. 
           (b) Upon receipt of a protest, the commissioner shall 
        review the charges on the notice and determine whether there has 
        been an error in the charging of the employer's account.  The 
        commissioner shall either affirm or make a redetermination of 
        the charges, and a notice of affirmation or redetermination 
        shall be mailed to the employer. 
           (c) The affirmation or redetermination shall be final 
        unless the employer files a written appeal within 30 calendar 
        days after the date of mailing.  Proceedings on the appeal shall 
        be conducted in accordance with section 268.105. 
           (d) An employer may not collaterally attack, by way of a 
        protest to a notice of benefits charged, any prior determination 
        or decision holding that benefits shall be charged to the 
        employer's account, that has become final. 
           (e) The commissioner may at any time upon the 
        commissioner's own motion correct a clerical error that resulted 
        in charges to an employer's account. 
           Sec. 17.  Minnesota Statutes 1996, section 268.06, 
        subdivision 19, is amended to read: 
           Subd. 19.  [NOTICE OF CONTRIBUTION RATE.] (a) The 
        commissioner shall mail to the last known address of each 
        employer notice of the employer's contribution rate as 
        determined for any calendar year pursuant to this section.  Such 
        The notice shall contain the contribution rate, and the factors 
        used in determining the individual employer's experience rating, 
        and such other information as the commissioner may prescribe.  
        Unless changed by the procedure provided in this subdivision a 
        protest of the rate is made, the assigned rate as initially 
        determined or as changed by a redetermination by the tax branch 
        of this department, a decision of a reemployment insurance 
        judge, or the commissioner shall be final except for fraud and 
        shall be the rate upon which contributions shall be computed 
        paid for the calendar year for which such the rate was assigned, 
        and.  The contribution rate shall not be subject to collateral 
        attack for any errors, clerical or otherwise, whether by way of 
        claim for adjustment or refund, or otherwise.  
           (b) If the legislature, subsequent to the mailing of the 
        contribution rate, changes any of the factors used to determine 
        the contribution rate of any employer for any year subsequent to 
        the original mailing of such notice for the year, the earlier 
        notice shall be void.  The notice A new contribution rate based 
        on the new factors shall be deemed to be the only notice of rate 
        of contributions for that year and shall be subject to the same 
        finality, redetermination, and review procedures as provided 
        above computed and mailed to the employer.  
           Sec. 18.  Minnesota Statutes 1996, section 268.06, 
        subdivision 20, is amended to read: 
           Subd. 20.  [PROTEST, REVIEW, REDETERMINATION, APPEAL.] A 
        review of the charges made to an employer's account as set forth 
        in the notice of charges referred to in subdivision 18 and (a) A 
        review of an employer's contribution rate as set forth in the 
        notice of the employer's rate for any calendar year as provided 
        in subdivision 19, may be had obtained by the employer by filing 
        with the commissioner a written protest setting forth reasons 
        therefor within 30 calendar days from the date of the mailing of 
        the notice of charges or contribution rate notice to the 
        employer.  The date shall appear on the notice.  Upon receipt of 
        the protest, the commissioner shall refer the matter to an 
        official designated by the commissioner to review the charges 
        appearing on the notice appealed from or the computations of the 
        protesting employer's contribution rate, as the case may be, to 
        determine whether or not there has been any clerical error or 
        error in computation in either case.  The official commissioner 
        shall either affirm or make a redetermination rectifying the 
        charges or of the rate as the case may be, and a notice of the 
        affirmation or redetermination shall immediately be mailed to 
        the employer.  If the employer is not satisfied with The 
        affirmation or redetermination, shall be final unless the 
        employer may files a written appeal by filing a written notice 
        with the department within 30 calendar days after the date of 
        mailing appearing upon the redetermination.  Proceedings on the 
        appeal shall be conducted in accordance with section 268.105.  
           (b) The commissioner may at any time upon the 
        commissioner's own motion correct any clerical error of the 
        department resulting in charges against an employer's account or 
        any error in the computation or the assignment of an employer's 
        contribution rate.  
           Sec. 19.  Minnesota Statutes 1996, section 268.06, 
        subdivision 21, is amended to read: 
           Subd. 21.  [SEPARATE ACCOUNT FOR EACH EMPLOYER 
        ACCOUNTS.] (1) (a) The commissioner shall maintain a separate 
        account for each employer, except as provided in clause (2) this 
        section, and shall charge the account for any benefits 
        determined chargeable to the employer under section 268.047 and 
        shall credit an the account with all the contributions paid by 
        an employer.  Nothing in sections 268.03 to 268.23 shall be 
        construed to grant any employer or individuals in the employer's 
        service prior claims or rights to the amounts paid by the 
        employer into the fund, or if the employer is liable for 
        payments in lieu of contributions, the payments made. 
           (2) (b) Two or more related corporations concurrently 
        employing the same individual employees and compensating the 
        individual those employees through a common paymaster which is 
        one of the corporations may apply to the commissioner to 
        establish a joint common paymaster account or to merge their 
        several individual accounts into a joint account that shall be 
        the account of the common paymaster corporation.  Upon approval 
        of the application If approved, a joint account shall be 
        maintained as if it constituted a single employer's account the 
        separate accounts shall be maintained, but the employees 
        compensated through the common paymaster shall be reported as 
        employees of the common paymaster corporation.  The corporations 
        using the common paymaster account shall be jointly and 
        severally liable for any unpaid contributions, penalties, and 
        interest owing from the common paymaster account.  The 
        commissioner may prescribe rules as to for the establishment, 
        maintenance and termination of joint common paymaster accounts. 
           (c) Two or more employing units having 50 percent or more 
        common ownership and compensating employees through a single 
        payee that is one of the employing units may apply to the 
        commissioner for a merging of the experience rating records of 
        the employing units into a single joint account. 
           If approved, the joint account shall be effective on that 
        date assigned by the commissioner and shall remain in effect for 
        not less than two calendar years, and continuing unless written 
        notice terminating the joint account is filed with the 
        commissioner.  The termination shall be effective on January 1 
        next following the filing of the written notice of termination. 
           The employing units in the joint account shall be jointly 
        and severally liable for any unpaid contributions, penalties, 
        and interest owing from the joint account. 
           Sec. 20.  Minnesota Statutes 1996, section 268.06, 
        subdivision 22, is amended to read: 
           Subd. 22.  [EMPLOYMENT EXPERIENCE RATING RECORD TRANSFER.] 
        (a) When an employing unit succeeds to or acquires the 
        organization, trade or business or substantially all the assets 
        of another employing unit which that at the time of the 
        acquisition was an employer subject to this law, and 
        continues such the organization, trade or business, the 
        experience rating record of the predecessor employer shall be 
        transferred as of the date of acquisition to the successor 
        employer for the purpose of computation of a contribution rate 
        determination. 
           (b) When an employing unit succeeds to or acquires a 
        distinct severable portion of the organization, trade, business, 
        or assets which that is less than substantially all of the 
        employing enterprises of another employing unit, the successor 
        employing unit shall acquire the experience rating record 
        attributable to the portion to which it has succeeded, and the 
        predecessor employing unit shall retain the experience rating 
        record attributable to the portion which that it has retained, 
        if (1) the successor continues the organization, trade, or 
        business of the portion acquired, (2) the successor makes a 
        written request to file an application for the transfer of the 
        experience rating record for the severable portion acquired from 
        the predecessor (3) and within 90 days from the date of mailing 
        the application is mailed to the last known address of the 
        successor the successor and predecessor employing units jointly 
        sign and file a properly completed, written an application as 
        prescribed by the commissioner that furnishes the commissioner 
        with sufficient information to substantiate the severable 
        portion and to assign the appropriate total and taxable wages 
        and benefit charges to the successor for experience rating 
        purposes.  Previously assigned contribution rates that have 
        become final in accordance with subdivision 19 prior to the 
        filing of the written request to file an application shall not 
        be affected by the transfer. 
           (c) If the successor employer under paragraphs (a) and (b) 
        had an experience rating record at the time of the acquisition, 
        the transferred record of the predecessor shall be combined with 
        the successor's record for purposes of computation of a 
        contribution rate. 
           (d) If there has been a transfer of an experience rating 
        record under paragraph (a) or (b), employment with a predecessor 
        employer shall not be deemed to have been terminated if similar 
        employment is offered by the successor employer and accepted by 
        the employee. 
           (d) An official, designated by (e) The commissioner, upon 
        the official's commissioner's own motion or upon application of 
        an employing unit shall determine if an employing unit is a 
        successor within the meaning of this subdivision and shall 
        mail notice of such the determination to the last known address 
        of the employing unit.  The determination shall be final unless 
        a written appeal is filed by the employing unit within 
        30 calendar days after mailing of the notice of determination.  
        Proceedings on the appeal shall be conducted in accordance with 
        section 268.105. 
           (e) Notwithstanding subdivision 19, (f) The commissioner 
        may shall, as the result of any determination or decision 
        regarding succession or nonsuccession, recompute 
        the contribution rate of all employers affected by the 
        determination or decision for any year, including the year of 
        the acquisition or succession and subsequent years, that is 
        affected by the transfer or nontransfer of part or all of the 
        experience rating record under this subdivision.  This paragraph 
        does not apply to rates that have become final in accordance 
        with subdivision 19 prior to the filing of a written request to 
        file an application for the transfer of a severable portion of 
        the experience rating record as provided in paragraph (b). 
           (g) The experience rating record for purposes of this 
        subdivision shall consist of those factors which make up an 
        experience rating, without the 15-month minimum. 
           Sec. 21.  Minnesota Statutes 1996, section 268.06, 
        subdivision 24, is amended to read: 
           Subd. 24.  [VOLUNTARY CONTRIBUTIONS CONTRIBUTION RATE 
        BUYDOWN.] Notwithstanding any inconsistent provisions of law (a) 
        Any employer who has been assigned a contribution rate pursuant 
        to subdivisions 4, 6, and 8 based upon an experience rating may, 
        for the calendar year 1967, or any calendar year thereafter, 
        upon the voluntary payment of an amount equivalent to any 
        portion or all of the benefits charged to the employer's account 
        during the period ending June 30 of the preceding year used for 
        the purpose of computing an employer's experience ratio as 
        authorized by said subdivisions 4, 6, and 8, plus a surcharge of 
        25 percent, obtain a cancellation of benefits charged to the 
        account during such period equal to such the payment so 
        voluntarily made, less the surcharge.  Upon the payment of such 
        voluntary contribution, plus a surcharge of 25 percent of such 
        benefit charged, within the applicable period prescribed by the 
        provisions of this subdivision, the commissioner shall cancel 
        the benefits equal to such payment, excluding the 25 percent 
        surcharge, so voluntarily made and compute a new experience 
        ratio rating for such the employer, and determine a new 
        contribution rate.  The employer then shall be assigned the 
        contribution rate applicable to the category within which the 
        recomputed experience ratio is included. 
           Such (b) Voluntary payments may be made only during the 
        30-day 30 calendar day period immediately following the date of 
        mailing to the employer of the notice of contribution rate. as 
        prescribed in this section; provided that the commissioner may 
        extend this period if the commissioner finds that the employer's 
        failure to make such payment within such 30-day period was for 
        good cause; and provided further that notwithstanding any of the 
        foregoing provisions of this subdivision, in no event shall any 
        new experience ratio be computed for any employer or a 
        contribution rate be reduced as a result of any such voluntary 
        payment which is made after the expiration of the 120-day period 
        commencing with the first day of the calendar year for which 
        such rate is effective.  This period may be extended, upon a 
        showing of good cause, but in no event shall a voluntary payment 
        be allowed after 120 calendar days immediately following the 
        beginning of the calendar year for which the contribution rate 
        is effective. 
           (c) Voluntary contributions payments made within the time 
        required time limits will not be refunded unless a request is 
        made in writing at the time of payment that the department 
        refund the voluntary contribution if it does not result in a 
        lower rate within 30 calendar days after mailing of the notice 
        of the new contribution rate. 
           When all or a part of the benefits charged to an employer's 
        account are for the unemployment of 75 percent or more of the 
        employees in an employing unit and the unemployment is caused by 
        closure of the business by the condemnation of property by a 
        governmental agency, or damages to the unit by fire, flood, wind 
        or other act of God, the employer may obtain a cancellation of 
        benefits incurred because of that unemployment in the manner 
        provided by this subdivision without being subject to the 
        surcharge of 25 percent otherwise required. 
           Sec. 22.  Minnesota Statutes 1996, section 268.06, 
        subdivision 25, is amended to read: 
           Subd. 25.  [PAYMENTS TO FUND BY STATE AND POLITICAL 
        SUBDIVISIONS IN LIEU OF CONTRIBUTIONS.] In lieu of contributions 
        required of employers under this law, the state of Minnesota or 
        its political subdivisions governed by this law shall pay into 
        the reemployment insurance fund an amount equivalent to the 
        amount of benefits charged, and as to weeks of unemployment 
        beginning after January 1, 1979, all of the extended benefits 
        paid based on wages paid by the state of Minnesota or such 
        political subdivisions.  If benefits paid an individual are 
        based on wages paid by both the state of Minnesota or such 
        political subdivisions and one or more other employers, the 
        amount payable by the state of Minnesota or such political 
        subdivisions to the fund shall bear the same ratio to total 
        benefits paid to the individual as the base-period wages paid to 
        the individual by the state of Minnesota or such political 
        subdivisions bear to the total amount of base-period wages paid 
        to the individual by all base-period employers.  The amount of 
        payment required under this subdivision shall be ascertained by 
        the commissioner at least four times per year to its account.  
        Payments in the amount of benefits charged to the account during 
        a calendar quarter shall be made and become due on or before the 
        last day of the month next following the month in which the 
        notice of benefits charged is mailed to the employer.  Past due 
        payments of amounts determined due under this subdivision shall 
        be subject to the same interest charges and collection 
        procedures that apply to past due contributions under sections 
        268.16 and 268.161. 
           Sec. 23.  Minnesota Statutes 1996, section 268.06, 
        subdivision 26, is amended to read: 
           Subd. 26.  [REIMBURSEMENT OF FUND BY STATE METHOD OF 
        PAYMENT BY STATE TO FUND.] To facilitate the discharge by the 
        state of Minnesota and its wholly owned instrumentalities of 
        their obligations under subdivision 25 of this section, the 
        state and its wholly owned instrumentalities shall reimburse pay 
        the reemployment insurance fund as provided in the following 
        clauses follows: 
           (1) (a) Every self-sustaining department, institution and 
        wholly owned instrumentality of the state shall pay into the 
        reemployment insurance fund such the amounts as the department 
        of economic security commissioner shall certify has been paid 
        from the fund to eligible individuals that were charged to its 
        account.  For the purposes of this clause a "self-sustaining 
        department, institution or wholly owned instrumentality" is one 
        in which the dedicated income and revenue substantially offsets 
        its cost of operation. 
           (2) (b) Every partially self-sustaining department, 
        institution and wholly owned instrumentality of the state shall 
        pay into the reemployment insurance fund such the proportion of 
        the sum which that the department of economic security 
        commissioner certifies has been paid from the fund to eligible 
        individuals as the total of its income and revenue bears to its 
        annual cost of operation. 
           (3) (c) Every department, institution or wholly owned 
        instrumentality of the state which is not self-sustaining shall 
        pay to the reemployment insurance fund such sums as the 
        department of economic security amount the commissioner 
        certifies have has been paid from the fund to eligible 
        individuals which were charged to their accounts to the extent 
        funds are available from appropriated funds. 
           (4) (d) The departments, institutions and wholly owned 
        instrumentalities of the state, including the University of 
        Minnesota, which have money available shall immediately 
        reimburse pay the reemployment insurance fund for benefits paid 
        which were charged to their accounts upon receiving notification 
        from the department of economic security commissioner of such 
        the charges.  If an individual to whom benefits were paid a 
        claimant was paid by a department, institution or wholly owned 
        instrumentality during the individual's claimant's base period 
        from a special or administrative account or fund provided by 
        law, the payment into the reemployment insurance fund shall be 
        made from such the special or administrative account or fund 
        with the approval of the department of administration and such 
        the amounts are hereby appropriated. 
           (5) (e) For those departments, institutions and wholly 
        owned instrumentalities of the state which cannot immediately 
        reimburse pay the reemployment insurance fund for benefits that 
        were charged to their accounts, the commissioner of economic 
        security shall certify on November 1 of each calendar year to 
        the department of finance as to the unpaid balances due and 
        owing.  Upon receipt of the certification the commissioner of 
        the department of finance shall include such the unpaid balances 
        in the biennial budget to be submitted to the legislature. 
           Sec. 24.  Minnesota Statutes 1996, section 268.06, 
        subdivision 27, is amended to read: 
           Subd. 27.  [METHOD OF PAYMENT BY POLITICAL SUBDIVISION TO 
        FUND.] Effective January 1, 1974, A political subdivision or 
        instrumentality thereof is hereby authorized and directed to pay 
        its obligations under subdivision 25 this chapter by moneys 
        collected from taxes or other revenues.  Each and Every 
        political subdivision authorized to levy taxes may include in 
        its tax levy the amount necessary to pay such its obligations.  
        If the taxes authorized to be levied under this subdivision 
        cause the total amount of taxes levied to exceed any 
        limitation whatsoever upon the power of a political subdivision 
        to levy taxes, such the political subdivision may levy taxes in 
        excess of the limitations in such the amounts as is necessary to 
        meet its obligation under subdivision 25 this chapter.  The 
        expenditures authorized to be made under subdivision 25 shall 
        not be included in computing the cost of government as defined 
        in any home rule charter of any city affected thereby.  The 
        governing body of a municipality, for the purpose of meeting its 
        liabilities under subdivision 25 this chapter, in the event of a 
        deficit, may issue its obligations payable in not more than two 
        years, in an amount which that may cause its indebtedness to 
        exceed any statutory or charter limitations, without an 
        election, and may levy taxes to pay therefor in the manner 
        provided in section 475.61. 
           Sec. 25.  Minnesota Statutes 1996, section 268.06, 
        subdivision 28, is amended to read: 
           Subd. 28.  [PAYMENT TO FUND BY NONPROFIT CORPORATION AND 
        ALLOCATION OF BENEFIT COSTS BY BASE PERIOD REIMBURSERS 
        CORPORATIONS.] (1) Benefits paid to employees of nonprofit 
        organizations shall be financed in accordance with the 
        provisions of this subdivision.  For the purpose of this 
        subdivision, a nonprofit organization is an organization (or 
        group of organizations) described in section 501(c)(3) of the 
        United States Internal Revenue Code which is exempt from income 
        tax under section 501(a) of such code. (a) Any nonprofit 
        organization which, pursuant to section 268.04, subdivision 10, 
        clause (9) is, or becomes, subject to this law on or after 
        January 1, 1972, that is determined to be an employer shall pay 
        contributions under the provisions of subdivision 1, unless it 
        elects, in accordance with this paragraph, to pay make payments 
        in lieu of contributions to the commissioner for the 
        unemployment reemployment insurance fund an amount equal to the 
        amount of regular benefits and the state share of the extended 
        benefits charged, that is attributable to service in the employ 
        of such nonprofit organization, to individuals for weeks of 
        unemployment which begin during the effective period of such 
        election charged to the employer's account. 
           (a) (1) Any nonprofit organization which becomes subject to 
        this law after January 1, 1972, may elect to become liable for 
        payments in lieu of contributions for a period of not less than 
        two calendar years beginning with the date on which such 
        subjectivity begins that the organization was determined to be 
        an employer by filing a written notice of its election with the 
        commissioner not later than 30 calendar days immediately 
        following the date of the determination of such subjectivity. 
           (b) (2) Any nonprofit organization which that makes an 
        election in accordance with clause (a) will continue to be 
        liable for payments in lieu of contributions until it files with 
        the commissioner a written notice terminating its election not 
        later than 30 calendar days prior to the beginning of the 
        calendar year for which such the termination shall first be 
        effective.  
           (c) (3) Any nonprofit organization which that has been 
        paying contributions under this law for a period subsequent to 
        January 1, 1972, may change to a reimbursable basis making 
        payments in lieu of contributions by filing with the 
        commissioner not later than 30 calendar days prior to the 
        beginning January 1 of any calendar year a written notice of 
        election to become liable for payments in lieu of 
        contributions.  Such The election shall not be terminable by the 
        organization for that and the next calendar year. 
           (d) (4) The commissioner may for good cause extend the 
        period within which that a notice of election, or a notice of 
        termination, must be filed and may permit an election to be 
        retroactive but not any earlier than with respect to benefits 
        paid after December 31, 1971. 
           (e) (5) The commissioner, in accordance with such rules as 
        the commissioner may prescribe, shall notify each nonprofit 
        organization of any determination which the commissioner may 
        make of its status as an employer and of the effective date of 
        any election which it makes and of any or termination of such 
        election.  Such The determinations shall be final unless 
        reviewed in accordance with the provisions of section 268.12, 
        subdivision 13 a written appeal is filed within 30 calendar days 
        after mailing of the determination.  Proceedings on the appeal 
        shall be conducted in accordance with section 268.105. 
           (2) (b) Payments in lieu of contributions, in the amount of 
        benefits charged to the employer's account, during a calendar 
        quarter, shall be made at the end of each calendar quarter, or 
        at the end of any other period as determined by the commissioner 
        and become due on or before the last day of the month next 
        following the month in which the notice of benefits charged is 
        mailed to the employer.  The commissioner shall bill each 
        nonprofit organization (or group of such organizations) which 
        has elected to make payments in lieu of contributions for an 
        amount equal to the full amount of regular benefits plus 
        one-half of the amount of extended benefits charged during such 
        quarter or other prescribed period that is attributable to 
        service in the employ of such organization. 
           (3) (c) Past due payments of amounts in lieu of 
        contributions shall be subject to the same interest charges and 
        collection procedures that apply to past due contributions under 
        sections 268.16 and 268.161. 
           (4) (d) If any nonprofit organization is delinquent in 
        making payments in lieu of contributions as required under this 
        subdivision, the commissioner may terminate such the 
        organization's election to make payments in lieu of 
        contributions as of the beginning of the next taxable calendar 
        year, and such the termination shall be effective for that and 
        the following taxable calendar year. 
           (e) For purposes of this subdivision, a nonprofit 
        organization is an organization, or group of organizations, 
        described in section 501(c)(3) of the Internal Revenue Code that 
        is exempt from income tax under section 501(a) of the code. 
           Sec. 26.  Minnesota Statutes 1996, section 268.06, 
        subdivision 29, is amended to read: 
           Subd. 29.  [GROUP ACCOUNTS.] Two or more employers that 
        have become are liable for payments in lieu of contributions may 
        file a joint application apply to the commissioner for the 
        establishment of a group account for the purpose of sharing the 
        cost of benefits paid that are attributable to service in the 
        employ of such charged based upon wage credits from all 
        employers in the group.  Each such The application shall 
        identify and authorize a group representative to act as the 
        group's agent for the purposes of this subdivision the account.  
        Upon the commissioner's approval of the application If approved, 
        the commissioner shall establish a group account for such the 
        employers effective as of the beginning of the calendar year in 
        which that the application is received by the commissioner and 
        shall notify the group's representative of the effective date of 
        the account.  Such The account shall remain in effect for not 
        less than two calendar years and thereafter until terminated at 
        the discretion of the commissioner or upon application by the 
        group at least 30 calendar days prior to the end of such the two 
        year period or 30 calendar days prior to January 1 of any 
        calendar year subsequent to such two calendar years.  
        Each member of employer in the group shall be jointly and 
        severally liable for payments in lieu of contributions for all 
        benefits paid based upon wage credits earned with a from all 
        employers in the group member during the period the group 
        account was in effect.  The commissioner shall may prescribe 
        such rules as the commissioner deems necessary with respect to 
        applications for the establishment, maintenance and termination 
        of group accounts that are authorized by this subdivision, for 
        addition of new members to, and withdrawal of active members 
        from, such account, and for the determination of the amounts 
        that are payable under this subdivision by members of the group 
        and the time and manner of such payments. 
           Sec. 27.  Minnesota Statutes 1996, section 268.06, 
        subdivision 31, is amended to read: 
           Subd. 31.  [ELECTION BY STATE OR POLITICAL SUBDIVISION TO 
        BE A CONTRIBUTING EMPLOYER.] (1) Notwithstanding the provisions 
        of section 268.06, subdivisions 25 and 26, after December 31, 
        1977 an employer as defined in section 268.04, subdivision 10, 
        clauses (14) and (15) (a) The state or political subdivision may:
           (a) elect to be a contributing employer subject to the 
        provisions of subdivisions 1, 2, 3a, 4, 5, 6, 8, 18, 19, 20 and 
        24 and section 268.16 beginning with January 1, 1978 for any 
        calendar year if it files with the commissioner a written notice 
        of its election is filed with the commissioner within 30 
        calendar days immediately following January 1, 1978; or of that 
        calendar year. 
           (b) Elect for a subsequent calendar year, not having 
        elected to be a contributing employer beginning with January 1, 
        1978, to be a contributing employer subject to the provisions of 
        subdivisions 1, 2, 3a, 4, 5, 6, 8, 18, 19, 20 and 24 and section 
        268.16 if it files with the commissioner a written notice of its 
        election within 30 days immediately following the first day of 
        the subsequent calendar year. 
           An election shall continue be for a minimum period of two 
        calendar years immediately following the effective date of the 
        election and thereafter continue unless a written notice 
        terminating the election is filed with the commissioner not 
        later than 30 calendar days prior to the beginning of the 
        calendar year for which.  The termination shall first be 
        effective at the beginning of the next calendar year. 
           (2) (b) The provisions of subdivisions 25, 26, and 27 as to 
        the method of payments to the reemployment insurance fund shall 
        apply to all contributions paid by or due from employers 
        electing the state or political subdivision that elects to be 
        contributing employers under clause (1) of this subdivision. 
           Sec. 28.  [268.069] [PAYMENT OF BENEFITS.] 
           (a) The commissioner shall pay reemployment insurance 
        benefits from the Minnesota reemployment insurance fund to a 
        claimant who has met each of the following requirements: 
           (1) the claimant has established a reemployment insurance 
        account in accordance with section 268.07; 
           (2) the claimant is not subject to a disqualification from 
        benefits under section 268.09; 
           (3) the claimant has met all of the eligibility 
        requirements under section 268.08; and 
           (4) the claimant does not have an outstanding overpayment 
        of benefits under section 268.18; 
           (b) Benefits shall not be considered as paid by an employer.
        The commissioner shall determine a claimant's entitlement to 
        benefits based upon that information available and any agreement 
        between a claimant and an employer shall not be binding on the 
        commissioner in determining a claimant's entitlement.  Any 
        obligation on an employer as a result of benefits charged to the 
        employer is to the fund only. 
           Sec. 29.  Minnesota Statutes 1996, section 268.07, 
        subdivision 2, is amended to read: 
           Subd. 2.  [WEEKLY BENEFIT AMOUNT AND DURATION.] (a) To 
        establish a reemployment insurance account, a claimant must have:
           (1) wage credits in two or more calendar quarters of the 
        claimant's base period; 
           (2) minimum total base period wage credits equal to or 
        greater than the high quarter wages wage credits multiplied by 
        1.25; 
           (3) high quarter wage credits of not less than $1,000; and 
           (4) performed work in 15 or more calendar weeks in the base 
        period.  
           (b) If the commissioner finds that a claimant has 
        sufficient wage credits and weeks worked within the base period 
        to establish established a reemployment insurance account, the 
        weekly benefit amount payable to the claimant during the 
        claimant's benefit year shall be equal to 1/26 of the claimant's 
        high quarter wage credits, rounded to the next lower whole 
        dollar.  
           (c) Notwithstanding paragraph (b), the maximum weekly 
        benefit amount shall be a percentage of the average weekly wage 
        as determined under paragraphs (d) and (e).  
           (d) On or before June 30 of each year, the commissioner 
        shall determine the average weekly wage for purposes of 
        paragraph (c) paid by employers subject to sections 268.03 to 
        268.23 in the following manner:  
           (1) The sum of the total monthly employment reported for 
        the previous calendar year shall be divided by 12 to determine 
        the average monthly employment.  
           (2) The sum of the total wages reported for the previous 
        calendar year shall be divided by the average monthly employment 
        to determine the average annual wage.  
           (3) The average annual wage shall be divided by 52 to 
        determine the average weekly wage.  
           (e) The maximum weekly benefit amount for any reemployment 
        insurance account established during the 12-month period 
        subsequent to June 30 of any year shall be determined on the 
        basis of the unemployment reemployment insurance fund balance on 
        December 31 of the preceding year.  If the fund balance is less 
        than $70,000,000 on that date, the maximum weekly benefit amount 
        shall be 66-2/3 percent of the state's average weekly wage; if 
        the fund balance is more than $70,000,000 but less than 
        $100,000,000, the maximum weekly benefit amount is 66 percent of 
        the state's average weekly wage; if the fund balance is more 
        than $100,000,000 but less than $150,000,000, the maximum weekly 
        benefit amount is 65 percent of the state's average weekly wage; 
        if the fund balance is more than $150,000,000 but less than 
        $200,000,000, the maximum weekly benefit amount is 64 percent of 
        the state's average weekly wage; if the fund balance is more 
        than $200,000,000 but less than $250,000,000, the maximum weekly 
        benefit amount is 63 percent of the state's average weekly wage; 
        if the fund balance is more than $250,000,000 but less than 
        $300,000,000, the maximum weekly benefit amount is 62 percent of 
        the state's average weekly wage; if the fund balance is more 
        than $300,000,000 but less than $350,000,000, the maximum weekly 
        benefit amount is 61 percent of the state's average weekly wage; 
        if the fund balance is more than $350,000,000, the maximum 
        weekly benefit amount is 60 percent.  The maximum weekly benefit 
        amount as determined under this paragraph shall be computed to 
        the nearest whole dollar shall apply to reemployment insurance 
        accounts established subsequent to June 30 of each year.  
           (f) (d) The maximum benefit amount payable for on any 
        benefit year reemployment insurance account shall equal 
        one-third of the claimant's total base period wage credits 
        rounded to the next lower dollar, not to exceed 26 times the 
        claimant's weekly benefit amount.  
           Sec. 30.  Minnesota Statutes 1996, section 268.07, 
        subdivision 3, is amended to read: 
           Subd. 3.  [SECOND ACCOUNT PROHIBITED REQUIREMENTS.] (a) To 
        establish a second reemployment insurance account following the 
        expiration of a benefit year on a preceding reemployment 
        insurance account, a claimant must have sufficient wage 
        credits and weeks of employment to establish a reemployment 
        insurance account under the provisions of subdivision 2 and must 
        have performed services in covered employment after the 
        establishment of the preceding reemployment insurance account.  
        The services performed must have been in insured work and The 
        wages paid for those services must equal not less than ten eight 
        times the weekly benefit amount of the second preceding 
        reemployment insurance account.  A reemployment insurance 
        account established sufficiently in advance of anticipated 
        unemployment to make the limitations of this paragraph 
        ineffective shall not be allowed.  It is the purpose of this 
        provision that to prevent a claimant cannot establish from 
        establishing more than one reemployment insurance account as a 
        result of one separation from employment. 
           (b) No employer who provided 90 percent or more of the wage 
        credits in a claimant's base period shall be charged for 
        benefits based upon wages paid during a subsequent base period 
        unless the claimant performed services for the employer in any 
        part of the subsequent base period. 
           Sec. 31.  Minnesota Statutes 1996, section 268.07, 
        subdivision 3a, is amended to read: 
           Subd. 3a.  [RIGHT OF APPEAL.] (a) A determination or 
        redetermination of a reemployment insurance account shall be 
        final unless a claimant or base period employer within 
        15 calendar days after the mailing of the determination or 
        redetermination to the last known address files a written 
        appeal.  Every determination or redetermination of a 
        reemployment insurance account shall contain a prominent 
        statement indicating in clear language the method of appealing, 
        the time within which the appeal must be made, and the 
        consequences of not appealing.  Proceedings on the appeal shall 
        be conducted in accordance with section 268.105. 
           (b) Any claimant or base period employer may appeal from a 
        determination or redetermination of a reemployment insurance 
        account on the issue of whether an employing unit is an employer 
        within the meaning of this chapter or whether services performed 
        constitute employment within the meaning of this chapter.  
        Proceedings on the appeal shall be conducted in accordance with 
        section 268.105. 
           Sec. 32.  Minnesota Statutes 1996, section 268.07, 
        subdivision 3b, is amended to read: 
           Subd. 3b.  [LIMITATIONS.] (a) A reemployment insurance 
        account shall be established the Sunday of the calendar week in 
        which the application for reemployment insurance benefits was 
        made.  If an individual attempted to make an application for a 
        reemployment insurance account, but was prevented from making an 
        application by the department of economic security, the 
        reemployment insurance account shall be established the Sunday 
        of the calendar week the individual first attempted to make an 
        application. 
           (b) A reemployment insurance account, once established, may 
        be withdrawn if benefits have not been paid, and benefit credit 
        has not been claimed and a new account established only if the 
        claimant has not been credited with a waiting week under section 
        268.08, subdivision 1, clause (3).  A determination or amended 
        determination pursuant to section 268.101, that was issued 
        before the withdrawal of the reemployment insurance account, 
        shall remain in effect and shall not be voided by the withdrawal 
        of the reemployment insurance account.  A determination of 
        disqualification requiring subsequent earnings to satisfy the 
        disqualification shall apply to the weekly benefit amount on the 
        new account. 
           (c) A reemployment insurance account shall not be 
        established prior to the Sunday following the expiration of the 
        benefit year on a prior preceding reemployment insurance account.
           (d) All benefits shall be payable from the Minnesota 
        reemployment insurance fund only for weeks occurring during the 
        benefit year. 
           Sec. 33.  Minnesota Statutes 1996, section 268.071, 
        subdivision 3, is amended to read: 
           Subd. 3.  [ELIGIBILITY REQUIREMENTS FOR EXTENDED BENEFITS.] 
        An individual A claimant shall be eligible to receive extended 
        benefits with respect to any week of unemployment in the 
        individual's claimant's eligibility period only if the 
        commissioner finds that with respect to such that week the 
        individual claimant: 
           (1)  is an "exhaustee" as defined in subdivision 1, clause 
        paragraph (9); 
           (2)  has satisfied the requirements of this law for the 
        receipt of regular benefits that are applicable to individuals 
        claimants claiming extended benefits, including not being 
        subject to a disqualification for the receipt of benefits, 
        except that an individual disqualified for benefits pursuant to 
        section 268.09, subdivision 1, clause (g) is not eligible for 
        extended benefits unless the individual has, subsequent to the 
        disciplinary suspension, earned at least four times the 
        individual's weekly extended benefit amount; and 
           (3)  has, during the individual's claimant's base period 
        earned wage credits available for benefit purposes of not less 
        than 40 times the individual's claimant's weekly benefit amount 
        as determined pursuant to section 268.07, subdivision 2. 
           Sec. 34.  Minnesota Statutes 1996, section 268.071, 
        subdivision 6, is amended to read: 
           Subd. 6.  [BEGINNING AND TERMINATION OF EXTENDED BENEFIT 
        PERIOD.] (1) (a) Whenever an extended benefit period is to 
        become effective in this state as a result of a state "on" 
        indicator, or an extended benefit period is to be terminated in 
        this state as a result of a state "off" indicator the 
        commissioner shall make an appropriate public announcement. 
           (2) (b) Computations required by the provisions of 
        subdivision 1, clause paragraph (4) shall be made by the 
        commissioner, in accordance with regulations prescribed by the 
        United States Secretary of Labor. 
           (3) Except as otherwise provided, the state share of the 
        benefits paid to an individual under this section shall be 
        charged to the employment experience record of the base period 
        employer of the individual to the extent regular benefits were 
        charged to the base period employer under sections 268.06, 
        subdivision 5, and 268.09, subdivision 1, clause (e). 
           (4) With respect to an employer which has elected to be a 
        contributing employer under the provisions of section 268.06, 
        subdivision 31, all benefits paid under this section which are 
        based upon services for such contributing employer shall be 
        charged to such contributing employer's account as to weeks of 
        unemployment beginning after January 1, 1979. 
           Sec. 35.  Minnesota Statutes 1996, section 268.071, 
        subdivision 9, is amended to read: 
           Subd. 9.  [ELIGIBILITY REQUIREMENTS.] Notwithstanding the 
        provisions of subdivision 2, an individual a claimant shall be 
        ineligible for the payment of extended benefits for any week of 
        unemployment in the individual's claimant's eligibility period 
        if the commissioner finds that during that week the individual 
        claimant failed to accept any offer of suitable work employment, 
        failed to apply for any suitable work employment to which 
        referred by the commissioner or failed to actively engage in 
        seeking work seek employment.  
           Any individual claimant who has been found ineligible for 
        extended benefits for any week by reason of this subdivision 
        shall also be denied benefits for the week following the week in 
        which the failure occurred and until the individual claimant has 
        been employed in each of four subsequent weeks, whether or not 
        consecutive, and has earned remuneration of not less than four 
        times the individual's claimant's extended weekly benefit amount.
           For the purpose of this subdivision "suitable work 
        employment" means, with respect to any individual, any work 
        employment which is within that individual's the claimant's 
        capabilities and which has a gross average weekly remuneration 
        payable which exceeds the sum of the individual's claimant's 
        weekly benefit amount as determined under subdivision 4 plus the 
        amount, if any, of supplemental unemployment reemployment 
        insurance benefits, as defined in section 501(c) (17) (D) of the 
        Internal Revenue Code of 1954, as amended, payable to 
        the individual claimant for that week.  The work employment must 
        pay wages not less than the higher of the federal minimum wage 
        provided by section 6(a) (1) of the Fair Labor Standards Act of 
        1938, as amended, without regard to any exemption, or the 
        applicable state or local minimum wage.  
           No individual claimant shall be denied extended benefits 
        for failure to accept an offer of or apply for any suitable work 
        employment if:  (a) the position was not offered to the 
        individual claimant in writing or was not listed with employment 
        service; (b) the failure could not result in a denial of 
        benefits under the definition of suitable work employment for 
        regular benefit claimants in section 268.09, subdivision 2 to 
        the extent that the criteria of suitability therein are is not 
        inconsistent with this subdivision; or (c) the 
        individual claimant furnishes satisfactory evidence to the 
        commissioner that prospects for obtaining work employment in the 
        individual's claimant's customary occupation within a reasonably 
        short period are good.  If the evidence furnished is found to be 
        satisfactory for this purpose, the determination of whether 
        any work employment is suitable for the individual claimant 
        shall be made in accordance with the definition of suitable work 
        for regular benefit claimants employment in section 268.09, 
        subdivision 2, clause 15, paragraph (a), without regard to the 
        definition or special disqualification specified in this 
        subdivision.  
           No work employment shall be found to be suitable work 
        employment for an individual a claimant which does would not 
        accord with the labor standard provisions required by section 
        3304(a) (5) of the Internal Revenue Code of 1954, as amended, 
        and set forth in be suitable employment under section 268.09, 
        subdivision 2 15, clauses paragraph (b) (1) (2) and (3).  
           For the purpose of this subdivision an individual a 
        claimant is "actively seeking work employment" during any week 
        if the individual claimant has engaged in a systematic and 
        sustained effort to obtain work employment during the week, and 
        the individual claimant furnishes tangible evidence of engaging 
        in that effort during the week.  
           The employment service shall refer any claimant entitled to 
        extended benefits under this section to any work employment 
        which is suitable work employment for that individual claimant 
        under this subdivision. 
           Sec. 36.  Minnesota Statutes 1996, section 268.08, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ELIGIBILITY CONDITIONS.] A claimant shall 
        be eligible to receive benefits with respect to for any week of 
        unemployment in the claimant's benefit year only if the 
        commissioner finds that the claimant: 
           (1) has registered for work at and thereafter has continued 
        to report to an employment office, or agent of the office, in 
        accordance with rules the commissioner may adopt; except that 
        the commissioner may by rule waive or alter either or both of 
        the requirements of this clause as to types of cases or 
        situations with respect to which the commissioner finds that 
        compliance with the requirements would be oppressive or would be 
        inconsistent with the purposes of sections 268.03 to 268.23; 
           (2) (1) the claimant has made a continued claim for 
        benefits in person, by mail, by telephone, or by electronic 
        transmission as the commissioner shall require.  The 
        commissioner may by rule adopt other requirements for a 
        continued claim; 
           (3) (2) the claimant was able to work and was available for 
        work employment, and was actively seeking work employment.  The 
        claimant's weekly benefit amount shall be reduced one-fifth for 
        each day the claimant is unable to work or is unavailable 
        for work employment.  
           Benefits shall not be denied by application of this clause 
        to a claimant who is in training with the approval of the 
        commissioner, is a dislocated worker as defined in section 
        268.975, subdivision 3, who is in training approved by the 
        commissioner, or in training approved pursuant to section 236 of 
        the Trade Act of 1974, as amended. 
           A claimant is deemed unavailable for work with respect to 
        any week which occurs in a period when the claimant is a 
        full-time student in attendance at, or on vacation from an 
        established school, college, or university unless a majority of 
        the claimant's wages paid during the 52 weeks preceding the 
        establishment of a reemployment insurance account were for 
        services performed during weeks in which the student was 
        attending school as a full-time student.  
           A claimant serving as a juror shall be considered as 
        available for work employment and actively seeking 
        work employment on each day the claimant is on jury duty; 
           (4) (3) the claimant has been unemployed for a waiting 
        period of one week during which the claimant is otherwise 
        entitled to benefits under sections 268.03 to 268.23; and 
           (5) (4) the claimant has been participating in reemployment 
        services, such as job search assistance services, if the 
        claimant has been determined to be likely to exhaust regular 
        benefits and in need of reemployment services pursuant to a 
        profiling system established by the commissioner, unless there 
        is justifiable cause for the claimant's failure to participate. 
           Sec. 37.  Minnesota Statutes 1996, section 268.08, 
        subdivision 2, is amended to read: 
           Subd. 2.  [WEEK OF UNEMPLOYMENT NOT ELIGIBLE.] No week 
        shall be counted as A claimant shall not be eligible to receive 
        benefits for any week of unemployment for the purposes of this 
        section: 
           (1) unless it occurs subsequent to the establishment of a 
        reemployment insurance account; 
           (2) Unless it occurs after benefits first could become 
        payable to any claimant under sections 268.03 to 268.23; which 
        occurs in a period when the claimant is a full-time student in 
        attendance at, or on vacation from an established school, 
        college, or university unless a majority of the claimant's wages 
        paid during the 52 weeks preceding the establishment of a 
        reemployment insurance account were for services performed 
        during weeks that the claimant was attending school as a 
        full-time student; 
           (3) in which the claimant is incarcerated.  The claimant's 
        weekly benefit amount shall be reduced by one-fifth for each day 
        the claimant is incarcerated; 
           (4) in which the claimant is on a voluntary leave of 
        absence; 
           (5) in which the claimant is performing services on a 
        full-time basis, in covered employment, noncovered employment, 
        self-employment, or volunteer work regardless of the amount of 
        any earnings; or 
           (3) (6) with respect to which the claimant is receiving, 
        has received, or has filed a claim for reemployment insurance 
        benefits under any other law of this state, or of any other 
        state, or the federal government, including readjustment 
        allowances under Title V, Servicemen's Readjustment Act, 1944, 
        but not including benefits under the Veterans Readjustment 
        Assistance Act of 1952 or any other federal or state benefits 
        which that are merely supplementary to those provided for under 
        sections 268.03 to 268.23 this chapter; provided that if the 
        appropriate agency of such other state or the federal government 
        finally determines that the claimant is not entitled to such the 
        benefits, this provision clause shall not apply. 
           Sec. 38.  Minnesota Statutes 1996, section 268.08, is 
        amended by adding a subdivision to read: 
           Subd. 2a.  [SUSPENSION FROM EMPLOYMENT.] (a) A claimant who 
        has been suspended from employment for 30 calendar days or less, 
        as a result of misconduct as defined under section 268.09, 
        subdivision 12, shall be ineligible for benefits commencing the 
        Sunday of the week in which the claimant was suspended and 
        continuing for the duration of the suspension. 
           (b) A suspension from employment for more than 30 calendar 
        days shall be considered a discharge from employment under 
        section 268.09, subdivision 11. 
           Sec. 39.  Minnesota Statutes 1996, section 268.08, 
        subdivision 3, is amended to read: 
           Subd. 3.  [NOT ELIGIBLE DEDUCTIBLE PAYMENTS.] A claimant 
        shall not be eligible to receive benefits for any week with 
        respect to which the claimant is receiving, has received, or has 
        filed a claim for remuneration payment in an amount equal to or 
        in excess of the claimant's weekly benefit amount in the form of:
           (1) termination, severance, or dismissal payment or wages 
        in lieu of notice whether legally required or not; provided that 
        if a termination, severance, or dismissal payment is made in a 
        lump sum, such lump sum payment shall be allocated over a period 
        equal to the lump sum divided by the claimant's regular pay 
        while employed by such employer; provided such payment shall be 
        applied for a period immediately following the last day of 
        employment but not to exceed 28 calendar days provided that 50 
        percent of the total of any such payments in excess of eight 
        weeks shall be similarly allocated to the period immediately 
        following the 28 days; or.  This clause shall apply to the first 
        four weeks of payment and to one-half of the total number of any 
        additional weeks of payment.  This clause shall be applied to 
        the period immediately following the last day of employment.  
        The number of weeks of payment shall be determined as follows: 
           (i) if the payments are made periodically, the total of the 
        payments to be received shall be divided by the claimant's last 
        level of regular weekly pay from the employer; or 
           (ii) if the payment is made in a lump sum, that sum shall 
        be divided by the claimant's last level of regular weekly pay 
        from the employer; 
           (2) vacation allowance paid directly by the employer for a 
        period of requested vacation, including vacation periods 
        assigned by the employer under the provisions of a collective 
        bargaining agreement, or uniform vacation shutdown; or 
           (3) compensation for loss of wages under the workers' 
        compensation law of this state or any other state or under a 
        similar law of the United States, or under other insurance or 
        fund established and paid for by the employer; or 
           (4) 50 percent of the pension payments from any fund, 
        annuity or insurance maintained or contributed to by a base 
        period employer including the armed forces of the United States 
        if the employee claimant contributed to the fund, annuity or 
        insurance and all of the pension payments if the claimant did 
        not contribute to the fund, annuity or insurance; or 
           (5) 50 percent of a primary insurance benefit under title 
        II of the Social Security Act, as amended, or similar old age 
        benefits under any act of Congress or this state or any other 
        state. 
           Provided, that if such remuneration the payment is less 
        than the benefits which would otherwise be due under sections 
        268.03 to 268.23 claimant's weekly benefit amount, the claimant 
        shall be entitled to receive for such that week, if otherwise 
        eligible, benefits reduced by the amount of such 
        remuneration the payment; provided, further, that if the 
        appropriate agency of such this state or any other state or the 
        federal government finally determines that the claimant is not 
        entitled to such benefits payments, this provision subdivision 
        shall not apply.  If the computation of reduced benefits, 
        required by this subdivision, is not a whole dollar amount, it 
        shall be rounded down to the next lower dollar amount. 
           Sec. 40.  Minnesota Statutes 1996, section 268.08, 
        subdivision 3a, is amended to read: 
           Subd. 3a.  [DEDUCTIBLE EARNINGS.] Each eligible claimant 
        who is unemployed in any week shall be paid with respect to such 
        week a benefit in an amount equal to the claimant's weekly 
        benefit amount less that part of the claimant's earnings, 
        including holiday pay, payable to the claimant with respect to 
        such week which is in excess of $200 for earnings from service 
        in the national guard or a United States military reserve unit 
        and the greater of $50 or 25 percent of the earnings in other 
        work; provided that no deduction may be made from the weekly 
        benefit amount for earnings from service as a volunteer 
        firefighter or volunteer ambulance service personnel.  Jury duty 
        pay is not considered as earnings and shall not be deducted from 
        benefits paid.  The resulting benefit, if not a whole dollar 
        amount, shall be rounded down to the next lower dollar 
        amount.  (a) If the claimant has earnings, including holiday 
        pay, with respect to any week, from covered employment, 
        noncovered employment, self-employment, or volunteer work, equal 
        to or in excess of the claimant's weekly benefit amount, the 
        claimant shall be ineligible for benefits for that week. 
           (b) If the claimant has earnings, including holiday pay, 
        with respect to any week, from covered employment, noncovered 
        employment, self-employment, or volunteer work, that is less 
        than the claimant's weekly benefit amount, the following shall 
        be deducted from the claimant's weekly benefit amount: 
           (1) that amount in excess of $50 if the claimant's earnings 
        were $200 or less, and that amount in excess of 25 percent of 
        the claimant's earnings if those earnings were more than $200; 
        and 
           (2) that amount in excess of $200 for earnings from service 
        in the National Guard or a United States military reserve unit. 
           The resulting benefit, if not a whole dollar, shall be 
        rounded to the next lower dollar. 
           (c) No deduction shall be made from a claimant's weekly 
        benefit amount for earnings from service as a volunteer 
        firefighter or volunteer ambulance service personnel.  No 
        deduction shall be made for jury duty pay. 
           Sec. 41.  Minnesota Statutes 1996, section 268.08, 
        subdivision 3b, is amended to read: 
           Subd. 3b.  [RECEIPT OF BACK PAY.] Back pay received by a 
        claimant with respect to any weeks of unemployment occurring in 
        the 104 weeks immediately preceding the payment of the back pay 
        shall be deducted from benefits paid for those weeks.  
           The amount deducted shall not reduce the benefits for which 
        that the claimant is otherwise eligible for that week below 
        zero.  If the amount of benefits after the deduction of back pay 
        is not a whole dollar amount, it shall be rounded to the next 
        lower dollar.  
           If the back pay awarded the claimant is reduced by benefits 
        paid, the amounts withheld shall be:  (a) paid by the employer 
        into the fund within 30 days of the award and are subject to the 
        same collection procedures that apply to past due contributions 
        under this chapter; (b) applied to benefit overpayments 
        resulting from the payment of the back pay; (c) credited to the 
        claimant's maximum amount of benefits payable in a benefit year 
        which that includes the weeks of unemployment for which back pay 
        was deducted.  Benefit charges for those weeks shall be removed 
        from the employer's account as of the calendar quarter in which 
        the fund receives payment.  
           Payments to the fund under this subdivision are shall be 
        considered as made by the employer on behalf of the claimant and 
        are not voluntary contributions under section 268.06, 
        subdivision 24.  
           Sec. 42.  Minnesota Statutes 1996, section 268.08, 
        subdivision 10, is amended to read: 
           Subd. 10.  [SEASONAL EMPLOYMENT.] (a) If the commissioner 
        finds that a claimant has earned wage credits in from seasonal 
        employment, benefits shall be payable only if the commissioner 
        finds that the claimant has earned wage credits in 15 or more 
        calendar weeks equal to or in excess of 30 times the claimant's 
        weekly benefit amount, in employment which is not seasonal, in 
        addition to any can establish a reemployment insurance account 
        under section 268.07, subdivision 2, excluding the wage credits 
        in from seasonal employment.  For purposes of this subdivision, 
        "seasonal employment" means employment with a single employer in 
        the recreation or tourist industry which that is available with 
        the employer for 15 consecutive weeks or less each calendar year.
           (b) Wages paid in Wage credits from seasonal employment are 
        may not available be used for benefit purposes during weeks in 
        which there is no seasonal employment available with the 
        employer outside the normal season. 
           Sec. 43.  Minnesota Statutes 1996, section 268.09, is 
        amended by adding a subdivision to read: 
           Subd. 1a.  [QUIT.] A claimant who quits employment shall be 
        disqualified from benefits: 
           (1) unless the claimant quit the employment because of a 
        good reason caused by the employer; 
           (2) unless the claimant quit the employment to accept other 
        covered employment that provided substantially higher wages or 
        substantially better conditions of employment or both, but the 
        claimant did not work long enough at the other employment to 
        have sufficient subsequent earnings to satisfy the 
        disqualification that would otherwise be imposed; 
           (3) unless the claimant quit the employment within 30 
        calendar days of commencing the employment because the 
        employment was unsuitable for the claimant; 
           (4) unless the employment was unsuitable for the claimant 
        and the claimant quit to enter approved training; 
           (5) unless the employment was part time and the claimant 
        had full-time employment in the base period, that the claimant 
        separated from because of nondisqualifying reasons, sufficient 
        to meet the minimum requirements to establish a reemployment 
        insurance account under section 268.07, subdivision 2; or 
           (6) unless the claimant quit the employment because of the 
        claimant's serious illness, provided that the claimant made 
        reasonable efforts to retain that employment in spite of the 
        serious illness. 
           A claimant who quit employment because of the claimant's 
        serious illness of chemical dependency, has not made reasonable 
        efforts to retain the employment if the claimant has previously 
        been professionally diagnosed as chemically dependent, or has 
        previously voluntarily submitted to treatment for chemical 
        dependency, and has failed to make consistent efforts to 
        maintain the treatment the claimant knows or has been 
        professionally advised is necessary to control the chemical 
        dependency. 
           Sec. 44.  Minnesota Statutes 1996, section 268.09, is 
        amended by adding a subdivision to read: 
           Subd. 2a.  [QUIT DEFINED.] A quit from employment occurs 
        when the decision to end the employment was, at the time the 
        employment ended, the employee's.  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. 
           Sec. 45.  Minnesota Statutes 1996, section 268.09, 
        subdivision 3, is amended to read: 
           Subd. 3.  [LABOR DISPUTE.] (a) An individual A claimant who 
        has left or partially or totally lost employment with an 
        employer because of a strike or other labor dispute at the 
        establishment in which where the individual claimant is or was 
        employed shall be disqualified for from benefits:  
           (1) for each until the end of the calendar week during 
        which that the strike or labor dispute is was in active 
        progress if the claimant is participating in or directly 
        interested in the strike or labor dispute; or 
           (2) for one week following the commencement of until the 
        end of the calendar week that the strike or labor 
        dispute commenced if the individual claimant is not 
        participating in or directly interested in the strike or labor 
        dispute.  
           Participation includes the failure or refusal of an 
        individual by a claimant to accept and perform available and 
        customary work at the establishment.  
           (b) An individual A claimant who has left or partially or 
        totally lost employment with an employer because of a 
        jurisdictional controversy between two or more labor 
        organizations at the establishment in which where the individual 
        claimant is or was employed shall be disqualified for benefits 
        for each until the end of the calendar week during which that 
        the jurisdictional controversy is was in progress. 
           (c) For the purpose of this subdivision the term "labor 
        dispute" shall have the same definition as provided in the 
        Minnesota labor relations act.  Nothing in this subdivision 
        shall be deemed to deny benefits to any employee A claimant 
        shall not be disqualified from benefits under this subdivision 
        if: 
           (1) who the claimant becomes unemployed because of a strike 
        or lockout caused by an employer's willful failure to observe 
        the terms of the safety and health section of a union contract 
        or failure to comply with an official citation for a violation 
        of federal and state laws involving occupational safety and 
        health; provided, however, that benefits paid in accordance with 
        this provision shall not be charged to the employer's experience 
        rating account if, following official appeal proceedings, it is 
        held that there was no willful failure on the part of the 
        employer; or 
           (2) who the claimant becomes unemployed because of a 
        lockout; or 
           (3) who the claimant is dismissed discharged during the 
        period of negotiation in any labor dispute and prior to the 
        commencement of a strike or other labor dispute.  
           (d) A voluntary separation quit from employment by the 
        claimant during the time that the strike or other labor dispute 
        is in active progress at the establishment shall not be deemed 
        to terminate the individual's claimant's participation in or 
        direct interest in such the strike or other labor dispute for 
        purposes of this subdivision. 
           (e) Benefits paid to an employee who has left or partially 
        or totally lost employment because of a strike or other labor 
        dispute at the employee's primary place of employment shall not 
        be charged to the employer's account unless the employer was a 
        party to the particular strike or labor dispute For the purpose 
        of this subdivision, the term "labor dispute" shall have the 
        same definition as provided in section 179.01, subdivision 7. 
           (f) Notwithstanding any other provision of this section, an 
        individual whose last separation from employment with an 
        employer occurred prior to the commencement of the strike or 
        other labor dispute and was permanent or for an indefinite 
        period, shall not be denied benefits or waiting week credit 
        solely by reason of failure to apply for or to accept recall to 
        work or reemployment with the employer during any week in which 
        the strike or other labor dispute is in progress at the 
        establishment in which the individual was employed. 
           Sec. 46.  Minnesota Statutes 1996, section 268.09, is 
        amended by adding a subdivision to read: 
           Subd. 9.  [GOOD REASON CAUSED BY THE EMPLOYER DEFINED.] (a) 
        A good reason caused by the employer for quitting is a reason:  
           (1) that is directly related to the employment and for 
        which the employer is responsible; and 
           (2) that is significant and would compel an average, 
        reasonable worker to quit. 
           (b) A claimant has a good reason caused by the employer for 
        quitting if it results from sexual harassment.  Sexual 
        harassment means unwelcome sexual advances, requests for sexual 
        favors, sexually motivated physical contact or other conduct or 
        communication of a sexual nature when:  
           (1) the claimant's submission to the conduct or 
        communication is made a term or condition of the employment; 
           (2) the claimant's submission to or rejection of the 
        conduct or communication is the basis for decisions affecting 
        employment; or 
           (3) the conduct or communication has the purpose or effect 
        of substantially interfering with a claimant's work performance 
        or creating an intimidating, hostile, or offensive working 
        environment and the employer knows or should know of the 
        existence of the harassment and fails to take timely and 
        appropriate action. 
           Sec. 47.  Minnesota Statutes 1996, section 268.09, is 
        amended by adding a subdivision to read: 
           Subd. 10.  [DISCHARGE.] A claimant who is discharged from 
        employment by an employer shall not be disqualified from 
        benefits: 
           (1) unless the claimant was discharged because of 
        misconduct that interfered with and adversely affected that 
        employment.  This clause shall not apply if: 
           (i) the misconduct was a direct result of the claimant's 
        serious illness provided that the claimant made reasonable 
        efforts to retain the employment in spite of the serious 
        illness.  If the misconduct was a direct result of the 
        claimant's chemical dependency, the claimant has not made 
        reasonable efforts to retain employment if the claimant has 
        previously been professionally diagnosed chemically dependent or 
        the claimant has previously voluntarily submitted to treatment 
        for chemical dependency and has failed to make consistent 
        efforts to maintain the treatment the claimant knows or has been 
        professionally advised is necessary to control the chemical 
        dependency; or 
           (ii) the employment was part time and the claimant had 
        full-time employment in the base period, that the claimant 
        separated from because of nondisqualifying reasons, sufficient 
        to meet the minimum requirements to establish a reemployment 
        insurance account under section 268.07, subdivision 2; 
           (2) unless the claimant was discharged because of gross 
        misconduct that interfered with and adversely affected that 
        employment.  For the purpose of this clause, "gross misconduct" 
        means: 
           (i) the commission of any act that amounts to a gross 
        misdemeanor or felony; or 
           (ii) for an employee of a facility as defined in section 
        626.5572, gross misconduct includes an act of patient or 
        resident abuse, financial exploitation, or recurring or serious 
        neglect, as defined in section 626.5572 and applicable rules. 
           If a claimant is convicted of a gross misdemeanor or felony 
        for the same act or acts for which the claimant was discharged, 
        it is conclusively presumed to be gross misconduct; or 
           (3) if the claimant was discharged because the claimant 
        gave notice of intention to quit the employment within 30 
        calendar days.  This clause shall be effective only through the 
        end of the calendar week that includes the intended date of 
        quitting.  Thereafter the separation from employment shall be 
        considered a quit of employment by the claimant, and a 
        disqualification, if any, shall commence with the Sunday of the 
        week following the week that includes the intended date of 
        quitting. 
           Sec. 48.  Minnesota Statutes 1996, section 268.09, is 
        amended by adding a subdivision to read: 
           Subd. 11.  [DISCHARGE DEFINED.] A discharge from employment 
        occurs when any words or actions by an employer would lead a 
        reasonable employee to believe that the employee's services are 
        no longer desired by the employer.  A layoff due to lack of work 
        shall be considered a discharge.  A suspension from employment 
        of more than 30 calendar days shall be considered a discharge. 
           Sec. 49.  Minnesota Statutes 1996, section 268.09, is 
        amended by adding a subdivision to read: 
           Subd. 12.  [MISCONDUCT DEFINED.] Misconduct is intentional 
        conduct showing a disregard of: 
           (1) the employer's interest; 
           (2) the standards of behavior that an employer has the 
        right to expect of the employee; or 
           (3) the employee's duties and obligations to the employer.  
        Misconduct also includes negligent conduct by an employee 
        demonstrating a substantial lack of concern for the employment.  
        Inefficiency, inadvertence, simple unsatisfactory conduct, or 
        poor performance as a result of inability or incapacity are not 
        misconduct. 
           Sec. 50.  Minnesota Statutes 1996, section 268.09, is 
        amended by adding a subdivision to read: 
           Subd. 13.  [ACT OR OMISSIONS AFTER SEPARATION.] Except as 
        provided for under subdivision 14, a claimant shall not be 
        disqualified from benefits for any acts or omissions occurring 
        after the claimant's separation from employment with the 
        employer. 
           Sec. 51.  Minnesota Statutes 1996, section 268.09, is 
        amended by adding a subdivision to read: 
           Subd. 14.  [OFFERS OF EMPLOYMENT.] (a) A claimant shall be 
        disqualified from benefits if the claimant, without good cause: 
           (1) failed to apply for available, suitable employment of 
        which the claimant 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) The claimant shall not be disqualified from benefits 
        under paragraph (a) if the claimant: 
           (1) was in approved training; or 
           (2) formerly worked for the employer and the claimant's 
        last separation from employment with the employer occurred prior 
        to the commencement of a strike or other labor dispute, was 
        permanent or for an indefinite period, and the claimant failed 
        to apply for or accept reemployment because a strike or other 
        labor dispute was in progress at the establishment where the 
        claimant was previously employed by that employer. 
           Sec. 52.  Minnesota Statutes 1996, section 268.09, is 
        amended by adding a subdivision to read: 
           Subd. 15.  [SUITABLE EMPLOYMENT DEFINED.] (a) Suitable 
        employment is employment in the claimant's labor market area 
        that is reasonably related to the claimant's qualifications.  In 
        determining whether any employment is suitable for a claimant, 
        the degree of risk involved to the health and safety, physical 
        fitness, prior training, experience, length of unemployment, 
        prospects for securing local employment in the claimant's 
        customary occupation, and the distance of the employment from 
        the claimant's residence shall be considered. 
           (b) No employment shall be considered suitable if: 
           (1) the position offered is vacant due directly to a 
        strike, lockout, or other labor dispute; 
           (2) the wages, hours, or other conditions of employment are 
        substantially less favorable than those prevailing for similar 
        employment in the locality; or 
           (3) as a condition of becoming employed, the claimant would 
        be required to join a company union or to resign from or refrain 
        from joining any bona fide labor organization. 
           Sec. 53.  Minnesota Statutes 1996, section 268.09, is 
        amended by adding a subdivision to read: 
           Subd. 16.  [DISQUALIFICATION DURATION.] (a) A 
        disqualification from the payment of benefits under subdivisions 
        1a, 10, and 14 shall be for the duration of the claimant's 
        unemployment and until the end of the calendar week in which the 
        claimant had total earnings in subsequent covered employment of 
        eight times the claimant's weekly benefit amount. 
           (b) Any disqualification imposed under subdivisions 1a and 
        10 shall commence on the Sunday of the week in which the 
        claimant became separated from employment.  Any disqualification 
        imposed under subdivision 14 shall commence on the Sunday of the 
        week the claimant failed to apply for, accept, or avoided 
        employment. 
           (c) Notwithstanding paragraph (a), if the claimant was 
        discharged from employment because of gross misconduct that 
        interfered with and adversely affected that employment the 
        disqualification shall be for the duration of the claimant's 
        unemployment and until the end of the calendar week in which the 
        claimant had total earnings in subsequent covered employment of 
        12 times the claimant's weekly benefit amount.  In addition, 
        wage credits from that employment shall be canceled and the 
        claimant's reemployment insurance account redetermined pursuant 
        to section 268.07, subdivision 1, paragraph (d). 
           Sec. 54.  Minnesota Statutes 1996, section 268.09, is 
        amended by adding a subdivision to read: 
           Subd. 17.  [APPLICATION.] This section shall apply to: 
           (1) all covered employment, full time or part time, 
        temporary or limited duration, permanent or indefinite duration, 
        that occurred during the base period, the period between the end 
        of the base period and the effective date of the reemployment 
        insurance account, or the benefit year, except as provided for 
        in subdivisions 1a, clause (5); and 10, clause (1)(ii); or 
           (2) all covered employment occurring in this state, any 
        other state, federal employment, or employment covered under the 
        Railroad Unemployment Compensation Act. 
           Sec. 55.  Minnesota Statutes 1996, section 268.101, 
        subdivision 2, is amended to read: 
           Subd. 2.  [DISQUALIFICATION DETERMINATION.] (a) The 
        commissioner shall promptly determine any issue of 
        disqualification raised by a timely protest made by an employer, 
        and mail to the claimant and that employer at the last known 
        address a determination of disqualification or a determination 
        of nondisqualification, as is appropriate.  The determination 
        shall set forth the effect on employer charges. 
           (b) The commissioner shall promptly determine any issue of 
        disqualification raised by information obtained from a claimant 
        pursuant to subdivision 1, paragraph (a) or (c), and mail to the 
        claimant and employer at the last known address a determination 
        of disqualification or a determination of nondisqualification, 
        as is appropriate. 
           (c) The commissioner shall promptly determine any issue of 
        disqualification raised by an untimely protest made by an 
        employer and mail to the claimant and that employer at the last 
        known address a determination of disqualification or a 
        determination of nondisqualification as is appropriate.  
        Notwithstanding section 268.09, any disqualification imposed as 
        a result of determination issued pursuant to this paragraph 
        shall commence the Sunday two weeks following the week in which 
        the untimely protest was made.  Notwithstanding any provisions 
        to the contrary, any relief of employer charges as a result of a 
        determination issued pursuant to this paragraph shall commence 
        the Sunday two weeks following the week in which the untimely 
        protest was made. 
           (d) If any time within 24 months from the establishment of 
        a reemployment insurance account the commissioner finds that a 
        claimant failed to report any employment, loss of employment, or 
        offers of employment received which that were required to be 
        provided by the claimant under this section, the commissioner 
        shall promptly determine any issue of disqualification on that 
        loss of employment or offer of employment and mail to the 
        claimant and involved employer at the last known address a 
        determination of disqualification or a determination of 
        nondisqualification, as is appropriate.  The determination shall 
        set forth the effect on employer charges. 
           This paragraph shall not apply if the involved employer was 
        notified and given the opportunity to protest pursuant to 
        subdivision 1, paragraph (b) or (c). 
           (e) A determination of disqualification or a determination 
        of nondisqualification shall be final unless a written an appeal 
        is filed by the claimant or notified employer within 15 calendar 
        days after mailing of the determination to the last known 
        address.  The determination shall contain a prominent statement 
        indicating in clear language the method of appealing, the time 
        within which an appeal must be made, and the consequences of not 
        appealing.  Proceedings on the appeal shall be conducted in 
        accordance with section 268.105. 
           (f) An issue of disqualification for purposes of this 
        section shall include any question of denial of benefits under 
        section 268.09, any question of an exception to disqualification 
        under section 268.09, subdivision 1, paragraph (c), any question 
        of benefit charge to an employer, and any question of an 
        otherwise imposed disqualification for which a claimant has had 
        requalifying subsequent earnings sufficient to satisfy the 
        disqualification.  
           (g) Notwithstanding the requirements of this subdivision, 
        the commissioner is not required to mail to a claimant a 
        determination of nondisqualification where the claimant has had 
        requalifying subsequent earnings sufficient to satisfy any 
        otherwise potential disqualification.  
           Sec. 56.  Minnesota Statutes 1996, section 268.101, 
        subdivision 3, is amended to read: 
           Subd. 3.  [ELIGIBILITY DETERMINATION.] (a) The commissioner 
        shall promptly determine any issue of eligibility raised by a 
        timely protest made by an employer and mail to the claimant and 
        that employer at the last known address a determination of 
        eligibility or a determination of ineligibility, as is 
        appropriate. 
           (b) The commissioner shall promptly determine any issue of 
        eligibility raised by information obtained from a claimant and 
        mail to the claimant and any involved employer at the last known 
        address a determination of eligibility or a determination of 
        ineligibility, as is appropriate. 
           (c) The commissioner shall promptly determine any issue of 
        eligibility raised by an untimely protest made by an employer 
        and mail to the claimant and that employer at the last known 
        address a determination of eligibility or a determination of 
        ineligibility, as is appropriate.  Any denial of benefits 
        imposed as a result of determination issued pursuant to this 
        paragraph shall commence the Sunday two weeks following the week 
        in which the untimely protest was made. 
           (d) If any time within 24 months from the establishment of 
        a reemployment insurance account the commissioner finds the 
        claimant failed to provide requested information regarding the 
        claimant's eligibility for benefits, the commissioner shall 
        determine the issue of eligibility and mail to the claimant and 
        any involved employer at the last known address a determination 
        of eligibility or a determination of ineligibility, as is 
        appropriate. 
           This paragraph shall not apply if the involved employer was 
        notified, was aware, or should have been aware of the issue of 
        eligibility at the time of notification, and was given the 
        opportunity to protest pursuant to subdivision 1, paragraph (b) 
        or (c). 
           (e) A determination of eligibility or determination of 
        ineligibility shall be final unless a written an appeal is filed 
        by the claimant or notified employer within 15 calendar days 
        after mailing of the determination to the last known address.  
        The determination shall contain a prominent statement indicating 
        in clear language the method of appealing, the time within which 
        an appeal must be made, and the consequences of not appealing.  
        Proceedings on the appeal shall be conducted in accordance with 
        section 268.105. 
           (f) An issue of eligibility for purposes of this section 
        shall include any question of denial of benefits under sections 
        268.071, 268.072, 268.073, 268.074, and 268.08, 268.115, 
        268.125, 268.135, and 268.155. 
           Sec. 57.  Minnesota Statutes 1996, section 268.101, is 
        amended by adding a subdivision to read: 
           Subd. 3a.  [DIRECT HEARING.] Notwithstanding subdivision 2 
        or 3, the commissioner may refer any issue of disqualification 
        or any issue of eligibility directly for hearing in accordance 
        with section 268.105, subdivision 1.  The status of the issue 
        shall be the same as if a determination had been made and an 
        appeal filed. 
           Sec. 58.  Minnesota Statutes 1996, section 268.101, 
        subdivision 4, is amended to read: 
           Subd. 4.  [AMENDED DETERMINATION.] Unless an appeal has 
        been filed, the commissioner, on the commissioner's own motion, 
        upon finding that an error has occurred in the issuing of a 
        determination of disqualification or nondisqualification or a 
        determination of eligibility or ineligibility, may issue an 
        amended determination.  Any amended determination shall be 
        mailed to the claimant and any involved employer at the last 
        known address.  Any amended determination shall be final unless 
        a written an appeal is filed by the claimant or notified 
        employer within 15 calendar days after mailing of the amended 
        determination to the last known address.  Proceedings on the 
        appeal shall be conducted in accordance with section 268.105. 
           Sec. 59.  [268.103] [APPEALS BY TELEPHONE; ELECTRONIC 
        TRANSMISSION.] 
           Subdivision 1.  [IN COMMISSIONER'S DISCRETION.] (a) Unless 
        the statutory provision providing for an appeal requires that 
        the appeal be in writing, the commissioner shall have the 
        discretion to allow an appeal to be made by telephone or by 
        electronic transmission.  If the commissioner allows an appeal 
        to be made by telephone or by electronic transmission, that 
        shall be clearly set out on the determination or decision 
        subject to appeal. 
           (b) The commissioner may restrict the conditions under 
        which an appeal by telephone or electronic transmission may be 
        made.  Any restrictions as to days, hours, telephone number, 
        electronic transmission address, or other conditions, shall be 
        clearly set out on the determination or decision subject to 
        appeal. 
           (c) All information requested by the commissioner when an 
        appeal is made by telephone or by electronic transmission must 
        be supplied or the communication will not constitute an appeal. 
           Subd. 2.  [APPEAL IN WRITING.] An appeal may be made in 
        writing even if an appeal by telephone or by electronic 
        transmission is allowed. 
           Subd. 3.  [EXCLUSIVE MEANS OF APPEAL.] A written appeal, or 
        if allowed an appeal by telephone or electronic transmission, 
        shall be the only manner of appeal. 
           Sec. 60.  Minnesota Statutes 1996, section 268.105, is 
        amended to read: 
           268.105 [REEMPLOYMENT INSURANCE HEARINGS; APPEALS.] 
           Subdivision 1.  [HEARING.] (a) Upon appeal the department 
        shall set a time and place for a de novo hearing and give the 
        interested parties any involved claimant and any involved 
        employer written notice of it, by mail, not less than 
        ten calendar days prior to the time date of the hearing.  
           (b) The commissioner shall by rule adopt a procedure by 
        which reemployment insurance judges hear and decide appeals, 
        subject to further appeal to the commissioner.  The rules need 
        not conform to common law or statutory rules of evidence and 
        other technical rules of procedure.  The written report of any 
        employee of the department of economic security, except a 
        determination, made in the regular course of the performance of 
        the employee's duties, shall be competent evidence of the facts 
        contained in it. 
           (c) After the conclusion of the hearing, upon the evidence 
        presented, the reemployment insurance judge shall mail findings 
        of fact and decision to all interested involved parties.  The 
        reemployment insurance judge's decision is final unless a 
        further appeal is filed pursuant to subdivision 3. 
           Subd. 2.  [REEMPLOYMENT INSURANCE JUDGES.] The commissioner 
        shall designate one or more regular salaried employees of the 
        department as impartial reemployment insurance judges to conduct 
        hearings on appeals.  The commissioner or authorized 
        representative may personally hear or transfer to another 
        reemployment insurance judge any proceedings pending before a 
        reemployment insurance judge.  Any proceedings removed to the 
        commissioner or authorized representative shall be heard in 
        accordance with subdivision 1. 
           Subd. 3.  [COMMISSIONER REVIEW.] (a) Within 30 calendar 
        days after mailing of the reemployment insurance judge's 
        decision, an interested any involved party may appeal in writing 
        and obtain a review by the commissioner or an authorized 
        representative.  The commissioner within the same period of time 
        may on the commissioner's own motion order a review of a 
        decision.  
           (b) Upon review, the commissioner or authorized 
        representative shall, on the basis of the evidence submitted at 
        the hearing before the reemployment insurance judge, make 
        findings of fact and decision, or remand the matter back to the 
        a reemployment insurance judge for the taking of additional 
        evidence and new findings and decision based on all the 
        evidence.  The commissioner may disregard the findings of fact 
        of the reemployment insurance judge and examine the evidence and 
        make any findings of fact as the evidence may, in the judgment 
        of the commissioner require, and make any decision as the facts 
        found by the commissioner require.  
           (c) The commissioner shall mail to all interested 
        parties any involved party the findings of fact and decision.  
        The decision of the commissioner is final unless judicial review 
        is sought as provided by subdivision 7. 
           Subd. 3a.  [DECISIONS.] (a) If a reemployment insurance 
        judge's decision or the commissioner's decision awards benefits, 
        the benefits shall be promptly paid regardless of any appeal 
        period or any appeal having been filed. 
           (b) If a reemployment insurance judge's decision modifies 
        or reverses a determination awarding benefits, any benefits paid 
        pursuant to the determination is an overpayment of those 
        benefits subject to section 268.18. 
           (c) Except as provided in paragraph (d), if a 
        commissioner's decision modifies or reverses a reemployment 
        insurance judge's decision awarding benefits, any benefits paid 
        pursuant to the reemployment insurance judge's decision is an 
        overpayment of those benefits subject to section 268.18. 
           (d) If a reemployment insurance judge's decision affirms a 
        determination on an issue of disqualification awarding benefits 
        or the commissioner affirms a reemployment insurance judge's 
        decision on an issue of disqualification awarding benefits, the 
        decision, if finally reversed, shall result in a 
        disqualification from benefits only for weeks following the week 
        in which the decision reversing the award of benefits was issued 
        and benefits paid for that week and previous weeks shall neither 
        not be deemed overpaid nor shall and the benefits paid shall not 
        be considered in determining the employer's future contribution 
        rate under section 268.06 charged to a contributing employer's 
        account. 
           (e) If the commissioner, pursuant to subdivision 3, remands 
        a matter to a reemployment insurance judge for the taking of 
        additional evidence, the prior reemployment insurance judge's 
        decision shall continue to be enforced until new findings of 
        fact and decision are made by a reemployment insurance judge. 
           Subd. 4.  [TESTIMONIAL POWERS.] In the discharge of the 
        duties imposed by this section, the reemployment insurance 
        judge, the commissioner, or authorized representative, may 
        administer oaths and affirmations, take depositions, certify to 
        official acts, and issue subpoenas to compel the attendance of 
        witnesses and the production of books, papers, correspondence, 
        memoranda, and other records deemed necessary as evidence in 
        connection with the subject matter of the hearing.  The 
        subpoenas shall be enforceable through the district court in the 
        district in which the subpoena is issued.  Witnesses, other than 
        an interested party involved claimant or involved employer or 
        officers and employees of an interested party involved employer, 
        subpoenaed pursuant to this section shall be allowed fees the 
        same as witness fees in a civil action in district court.  These 
        fees shall be deemed a part of the expense of administering 
        sections 268.03 to 268.23 this chapter. 
           Subd. 5.  [USE OF INFORMATION.] (a) All testimony at any 
        hearing conducted pursuant to subdivision 1 shall be recorded, 
        but shall be transcribed only if the disputed claim is appealed 
        further and is requested by a party, or as directed by the 
        commissioner or an authorized representative.  A copy of any 
        recorded testimony and exhibits received into evidence at the 
        hearing shall, upon request, or upon directive of the 
        commissioner, be furnished to a party at no cost.  If requested, 
        the representative of a commissioner shall make available a 
        device for listening to the recording. 
           (b) Testimony obtained under subdivision 1, may not be used 
        or considered in any civil, administrative, or contractual 
        proceeding, except by a local, state, or federal human 
        rights group agency with enforcement powers, unless the 
        proceeding is initiated by the department. 
           (c) No findings of fact or decision issued by a 
        reemployment insurance judge or the commissioner or authorized 
        representative may be held conclusive or binding or used as 
        evidence in any separate or subsequent action in any other 
        forum, except proceedings provided for under this chapter, 
        regardless of whether the action involves the same or related 
        parties or involves the same facts. 
           Subd. 6.  [REPRESENTATION; FEES.] In any proceeding under 
        these sections, a party may be represented by any agent.  Except 
        for services provided by an attorney-at-law, a claimant for 
        benefits shall not be charged fees or costs of any kind in a 
        proceeding before a reemployment insurance judge, the 
        commissioner or authorized representative, or by any court or 
        any of its officers. 
           Subd. 7.  [COURT OF APPEALS; ATTORNEY FOR COMMISSIONER.] (a)
        The court of appeals may, by writ of certiorari to the 
        commissioner, review any decision of the commissioner provided a 
        petition for the writ is filed and served upon the commissioner 
        and the adverse any other involved party within 30 calendar days 
        of the mailing of the commissioner's decision.  
           (b) Any interested party, except a claimant for 
        benefits involved employer, upon the service of the writ shall 
        furnish a cost bond to the commissioner in accordance with rule 
        107 of the rules of civil appellate procedure.  Upon review 
        before the court of appeals, the commissioner shall, if 
        requested, furnish to the claimant at no cost a written 
        transcript of the testimony received at the hearing conducted 
        pursuant to subdivision 1.  
           (c) The commissioner shall be deemed to be a party to any 
        judicial action involving any decision and shall be represented 
        by any qualified attorney who is a regular salaried employee of 
        the department of economic security and has been designated by 
        the commissioner for that purpose or, at the commissioner's 
        request, by the attorney general. 
           Sec. 61.  Minnesota Statutes 1996, section 268.11, 
        subdivision 3, is amended to read: 
           Subd. 3.  [ELECTION AGREEMENTS; TERMINATION POWERS OF 
        COMMISSIONER.] (1) An employing unit, not otherwise subject to 
        sections 268.03 to 268.23 defined as an employer under this 
        chapter, which that files with the commissioner its a written 
        election to become an employer subject thereto for not less than 
        two calendar years, shall, with the written approval of such 
        election by the commissioner, become an employer subject hereto 
        for not less than two calendar years to the same extent as all 
        other employers, as of the date stated in such the approval and. 
        The employing unit shall cease to be subject hereto an employer 
        as of the first day of January of any calendar year subsequent 
        to such two calendar years, only, if at least 30 calendar days 
        prior to such the first day of January, it the employing unit 
        has filed with the commissioner a written notice to that effect. 
           (2) Any employing unit for which that has services 
        performed for it that do not constitute employment are 
        performed, may file with the commissioner a written election 
        that all such service performed by individuals in its employ, in 
        one or more distinct establishments or places of business, shall 
        be deemed to constitute employment for all the purposes of 
        sections 268.03 to 268.23 this chapter for not less than two 
        calendar years.  Upon the written approval of such election by 
        the commissioner, such the services shall be deemed to 
        constitute employment subject to these sections from and after 
        the date stated in such the approval.  Such The services shall 
        cease to be deemed employment subject hereto as of the first day 
        of January of any calendar year subsequent to such two calendar 
        years only if at least 30 calendar days prior to such the first 
        day of January such the employing unit has filed with the 
        commissioner a written notice to that effect.  
           (3) The commissioner must terminate any election agreement 
        under this subdivision upon 30 calendar days notice to the 
        employer employing unit, if the employer employing unit fails to 
        pay all contributions due under section 268.06, subdivision 1, 
        or reimburse payments in lieu of contributions due the 
        unemployment reemployment insurance fund in accordance with 
        section 268.06, subdivisions 25, 26, 27, and 28. 
           Sec. 62.  Minnesota Statutes 1996, section 268.12, 
        subdivision 8, is amended to read: 
           Subd. 8.  [RECORDS; REPORTS.] (1) (a) Each employing unit 
        shall keep true and accurate records for such the periods of 
        time and containing such the information as the commissioner may 
        prescribe require.  For the purpose of determining compliance 
        with this chapter, or for the purpose of collection of any 
        amounts due under this chapter, the commissioner or 
        any authorized delegated representative of the commissioner has 
        the power to examine, or cause to be examined or copied, any 
        books, correspondence, papers, records, or memoranda which are 
        relevant to making these determinations, whether the books, 
        correspondence, papers, records, or memoranda are the property 
        of or in the possession of the employing unit or any other 
        person or corporation at any reasonable time and as often as may 
        be necessary. 
           (2) (b) The commissioner or any other duly authorized 
        delegated representative of the commissioner may cause to be 
        made such make summaries, compilations, photographs, 
        duplications, or reproductions of any records, or reports, or 
        transcripts thereof as that the commissioner may deem considers 
        advisable for the effective and economical preservation of the 
        information contained therein, and such any summaries, 
        compilations, photographs, duplications or reproductions, duly 
        authenticated, shall be admissible in any proceeding under this 
        chapter, if the original record or records would have been 
        admissible therein.  Notwithstanding any restrictions contained 
        in section 16B.50, except restrictions as to quantity, the 
        commissioner is hereby authorized to duplicate, on equipment 
        furnished by the federal government or purchased with funds 
        furnished for that purpose by the federal government, records, 
        reports, summaries, compilations, instructions, determinations, 
        or any other written matter pertaining to the administration of 
        the Minnesota economic security law. 
           (3) (c) Notwithstanding any inconsistent provisions 
        elsewhere, the commissioner may provide for the destruction or 
        disposition of any records, reports, transcripts, or 
        reproductions thereof, or other papers in the commissioner's 
        custody, which that are more than two years old, the 
        preservation of which is no longer necessary for the 
        establishment of contribution determining employer liability 
        or a claimant's benefit rights or for any purpose necessary to 
        the proper administration of this chapter, including any 
        required audit thereof, provided, that the commissioner may 
        provide for the destruction or disposition of any record, 
        report, or transcript, or other paper in the commissioner's 
        custody which has been photographed, duplicated, or reproduced. 
           (4) Notwithstanding the provisions of the Minnesota State 
        Archives Act the commissioner shall with the approval of the 
        legislative auditor destroy all benefit checks and benefit check 
        authorization cards that are more than two years old and no 
        person shall make any demand, bring any suit or other proceeding 
        to recover from the state of Minnesota any sum alleged to be due 
        on any claim for benefits after the expiration of two years from 
        the date of filing such claim. 
           Sec. 63.  Minnesota Statutes 1996, section 268.12, 
        subdivision 9a, is amended to read: 
           Subd. 9a.  [TESTIMONIAL POWERS SUBPOENAS; OATHS.] (1) (a) 
        In the discharge of the duties imposed by sections 268.03 to 
        268.23, the commissioner, appeal referee, or any duly authorized 
        delegated representative of the commissioner, shall have power 
        to administer oaths and affirmations, take depositions, certify 
        to official acts, and issue subpoenas to compel the attendance 
        of witnesses persons and the production of books, papers, 
        correspondence, memoranda, and other records deemed necessary as 
        evidence in connection with a disputed claim or the 
        administration of these sections. 
           (2) Witnesses (b) Persons, other than interested 
        parties claimants or officers and employees of an employing unit 
        which that is an interested party the subject of the inquiry, 
        subpoenaed pursuant to this subdivision or sections 268.03 to 
        268.23, shall be allowed fees the same as witness fees in civil 
        actions in district court, which.  The fees need not be paid in 
        advance of the time of giving of testimony, and such fees of 
        witnesses so subpoenaed shall be deemed part of the expense of 
        administering these sections. 
           (3) In case of contumacy by, or refusal to obey, a subpoena 
        issued to any person, any court of this state within the 
        jurisdiction of which the inquiry is carried on or within the 
        jurisdiction of which such person guilty of contumacy or refusal 
        to obey is found or resides or transacts business, upon 
        application by the commissioner, or referee, or any duly 
        authorized representative of the commissioner, shall have 
        jurisdiction to issue to such person an order requiring such 
        person to appear before the commissioner, the chair of an appeal 
        tribunal, referee, or any duly authorized representative of the 
        commissioner, there to produce evidence if so ordered or there 
        to give testimony relative to the matter under investigation or 
        in question; and any failure to obey such order of the court may 
        be punished by the court as a contempt thereof. 
           (c) The subpoena shall be enforceable through the district 
        court in the district in which the subpoena is issued. 
           Sec. 64.  Minnesota Statutes 1996, section 268.121, is 
        amended to read: 
           268.121 [WAGE REPORTING.] 
           Beginning on April 1, 1984, Subdivision 1.  [WAGE DETAIL 
        REPORT.] (a) Each employer subject to this chapter shall provide 
        the commissioner with a quarterly report of the wages paid to 
        each employee of that employer covered by this chapter.  The 
        report must known as the wage detail report, that shall include, 
        for each employee covered by this chapter, the employee's name, 
        social security number, and the total wages paid to the employee 
        , and the number of weeks in which work was performed.  The 
        report is due and must be filed at the same time as the 
        contribution report in accordance with rules established by the 
        commissioner for filing of quarterly contribution reports.  For 
        the purpose of this section, "wages paid" includes wages 
        actually or constructively paid and wages overdue and delayed 
        beyond the usual time of payment on or before the last day of 
        the month following the end of the calendar quarter. 
           (b) An employer need not include the name of the employee 
        or other required information on the wage detail report if 
        disclosure is specifically exempted by federal law. 
           Subd. 2.  [FAILURE TO FILE REPORT.] Any employer who fails 
        to file the wage detail report shall pay to the department, for 
        each month the report is delinquent, a penalty of one-half of 
        one percent of total wages paid that quarter.  The penalty shall 
        not be assessed if the wage detail report is properly made and 
        filed within 30 calendar days after a demand for the report is 
        mailed to the employer's address of record.  In no case shall 
        the amount of the penalty, if assessed, be less than $25.  
        Penalties due under this subdivision may be waived where good 
        cause for late filing is found by the commissioner.  
           Subd. 3.  [MISSING OR ERRONEOUS INFORMATION.] Any employer 
        who files the wage detail report, but knowingly fails to include 
        any of the required information or knowingly enters erroneous 
        information, shall be subject to a penalty of $25 for each 
        employee for whom the information is missing or erroneous.  
           Subd. 4.  [PENALTIES.] The penalties provided for in 
        subdivisions 2 and 3 are in addition to interest and other 
        penalties imposed by this chapter and shall be collected in the 
        same manner as delinquent contributions and shall be credited to 
        the contingent account. 
           Sec. 65.  Minnesota Statutes 1996, section 268.14, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ACCEPTANCE OF FEDERAL ACT.] A state 
        employment service is hereby established in the department of 
        economic security.  The commissioner in the conduct of such 
        service shall establish and maintain free public employment 
        offices, in such that number and in such those places as may be 
        necessary for the proper administration of sections 268.03 to 
        268.23 and for the purpose of performing such the functions as 
        are within the purview of the act of Congress entitled "An act 
        to provide for the establishment of a national employment system 
        for the cooperation with the states in the promotion of such 
        system and for other purposes," approved June 6, 1933, as 
        amended.  The provisions of such act of Congress are hereby 
        accepted by this state and the department of economic security 
        is hereby designated and constituted the agency of this state 
        for the purposes of such act.  The commissioner, pending the 
        return of the employment service, its facilities, property, and 
        personnel, to state control after the war emergency, may loan to 
        the United States employment service facilities, property and 
        personnel Wagner-Peyser Act, United States Code, title 29, 
        chapter 4B. 
           Sec. 66.  Minnesota Statutes 1996, section 268.16, 
        subdivision 2, is amended to read: 
           Subd. 2.  [REPORTS; DELINQUENCIES; PENALTIES.] (a) Any 
        employer who knowingly fails to make and submit to the 
        department commissioner any contribution report at the time the 
        report is required by rules prescribed by the commissioner shall 
        pay to the department a penalty in the of up to $25 or an amount 
        of 1-1/2 percent of contributions accrued during the period for 
        which the report is required, for each month from and after the 
        due date until the report is properly made and submitted to the 
        department.  In no case shall the amount of the penalty imposed 
        hereby be less than $5 per month.  The maximum penalty imposed 
        hereby shall be $25 or the amount determined at the rate of 
        1-1/2 percent per month, whichever is greater.  
           (b) If any employing unit employer required by sections 
        268.03 to 268.23 to make and submit contribution reports shall 
        fail fails to do so within the time prescribed by these sections 
        or by rules under the authority thereof required, or shall make 
        makes, willfully or otherwise, an incorrect, false or fraudulent 
        contribution report, it the employer shall, on the written 
        demand of the commissioner, make such the contribution report, 
        or corrected report, within ten days after the mailing of such 
        the written demand and at the same time pay the whole 
        contribution, or any additional contribution, due on the basis 
        thereof.  If such the employer shall fail fails within that 
        time to make such the report, or corrected report, the 
        commissioner shall make a report, or corrected report, from the 
        commissioner's own knowledge and from such information as the 
        commissioner can may obtain through testimony, or otherwise, and 
        assess a contribution on the that basis thereof, which 
        contribution, plus any penalties and interest which thereafter 
        accrued (less any payments theretofore made) shall be paid 
        within ten days after the commissioner has mailed to such the 
        employer a written notice of the amount thereof due and demand 
        for its payment.  Any such contribution report or assessment 
        made by the commissioner on account of the failure of the 
        employer to make a report or corrected report shall be prima 
        facie correct and valid, and the employer shall have the burden 
        of establishing its incorrectness or invalidity in 
        any subsequent action or proceeding in respect thereto.  
        Whenever such the delinquent employer shall file files a report 
        or corrected report, the commissioner may, on finding it 
        substantially correct, substitute it for the commissioner's 
        report.  
           (c) Any employer who fails to file the wage detail report 
        required by section 268.121 shall pay to the department for the 
        contingent account for each month the report is delinquent a 
        penalty of one-half of one percent of total wages paid and wages 
        due but not paid during the period for each month the report is 
        delinquent.  The penalty shall not be assessed if the wage 
        detail report is properly made and filed within 30 days after a 
        demand for the report is mailed to the employer's address of 
        record.  In no case shall the amount of the penalty, if 
        assessed, be less than $25.  Penalties due under this 
        subdivision may be waived where good cause for late filing is 
        found by the commissioner. 
           (d) Any employer who files the wage detail report required 
        by section 268.121, but knowingly fails to include any of the 
        required information or knowingly enters erroneous information, 
        shall be subject to a penalty of $25 for each individual for 
        whom the information is missing or erroneous. 
           (c) If the commissioner finds that any part of any 
        employer's contribution deficiency is due to fraud with intent 
        to avoid payment of contributions to the fund, 50 percent of the 
        total amount of the deficiency or $500, whichever is greater, 
        shall be assessed as a penalty against the employer and 
        collected in addition to the deficiency. 
           (e) (d) Any employing unit which that fails to make and 
        submit to the commissioner any report, other than a contribution 
        report or wage detail report, as and when required by rule, 
        shall be subject to a penalty in the sum of $50 payable to the 
        department for the contingent account. 
           (f) (e) The penalties provided for in paragraphs (a), (c), 
        (d), and (e) (d) are in addition to interest and any other 
        penalties imposed by sections 268.03 to 268.23 and shall be 
        collected as provided by section 268.161 and shall be paid to 
        the department and credited to the contingent account. 
           (f) An employer or officer or agent of an employer is 
        guilty of a gross misdemeanor, unless the contribution or other 
        payment involved exceeds $500, in which case the person is 
        guilty of a felony, if the individual: 
           (1) in order to avoid becoming or remaining a subject 
        employer or to avoid or reduce any contribution or other payment 
        required under this chapter: 
           (i) makes a false statement or representation knowing it to 
        be false; or 
           (ii) knowingly fails to disclose a material fact; or 
           (2) willfully fails or refuses to make any contributions or 
        other payment at the time required. 
           Sec. 67.  Minnesota Statutes 1996, section 268.161, 
        subdivision 4, is amended to read: 
           Subd. 4.  [COLLECTION BY CIVIL ACTION.] (1) (a) In addition 
        to all other collection methods authorized, if, after due 
        notice, any employer defaults in is delinquent on any payment of 
        contributions or interest due thereon or penalties for failure 
        to file returns a contribution report and other reports as 
        required by sections 268.03 to 268.23 this chapter or by any 
        rule of the commissioner, the amount due may be collected by 
        civil action in the name of the state of Minnesota, and any 
        money recovered shall be credited to the funds provided for 
        under those sections.  Any employer adjudged in default 
        delinquent shall pay the costs of the action.  Civil actions 
        brought under this section to collect contributions, interest 
        due thereon, or penalties from an employer subdivision shall be 
        heard by the court at the earliest possible date as provided 
        under section 16D.14.  No action for the collection of 
        contributions or, interest thereon, or penalties shall be 
        commenced more than six years after the contributions have been 
        reported by the employer or determined by the commissioner to be 
        due and payable.  In any action, judgment shall be entered 
        against any defendant employer in default for the relief 
        demanded in the complaint without proof, together with costs and 
        disbursements, upon the filing of an affidavit of default. 
           (2) (b) Any employing unit which employer that is not a 
        resident of this state and which exercises the privilege of 
        having one or more individuals perform service for it within 
        this state, and any resident employing unit which exercises that 
        privilege and thereafter removes employer removed from this 
        state, shall be deemed thereby to appoint the secretary of state 
        as its agent and attorney for the acceptance of process in any 
        civil action under this subdivision.  In instituting an action 
        against any employing unit employer, the commissioner 
        shall cause file process or notice to be filed with the 
        secretary of state, together with a payment of a fee of $15 and 
        that service shall be considered sufficient service upon the 
        employing unit employer, and shall be of have the same force and 
        validity as if served upon it the employer personally within 
        this state.  The commissioner shall forthwith send notice of the 
        service of process or notice, together with a copy thereof of 
        the process, by certified mail, return receipt requested, to the 
        employing unit employer at its last known address.  The return 
        receipt, The commissioner's affidavit of compliance with the 
        provisions of this section, and a copy of the notice of service 
        shall be appended to the original of the process and filed in 
        the court in which the civil action is pending.  
           (c) No court filing fees, docketing fees, or release of 
        judgment fees may be assessed against the state for actions 
        pursuant to this subdivision. 
           Sec. 68.  Minnesota Statutes 1996, section 268.161, 
        subdivision 6, is amended to read: 
           Subd. 6.  [CONTRIBUTION OR REIMBURSEMENT PAYMENT IN LIEU OF 
        CONTRIBUTION PRESUMED VALID.] The contribution and reimbursement 
        payment in lieu of contribution, as assessed by the 
        commissioner, including any penalties, shall be presumed to be 
        valid and correctly determined and assessed, and the burden 
        shall be upon the employer to show its incorrectness or 
        invalidity.  The A statement filed by the commissioner with the 
        court administrator, as provided in subdivision 3, or any other 
        certificate by the commissioner of the amount of the 
        contribution, reimbursement payment in lieu of contribution, 
        interest and penalties as determined or assessed by the 
        commissioner, shall be admissible in evidence in any court or 
        administrative proceeding and shall establish be prima facie 
        evidence of the facts set forth therein in the statement. 
           Sec. 69.  Minnesota Statutes 1996, section 268.161, 
        subdivision 7, is amended to read: 
           Subd. 7.  [CONFESSION OF JUDGMENT.] (a) Any contribution 
        report or other form that is required to be filed with the 
        commissioner concerning contributions or reimbursements payments 
        in lieu of contributions due, shall contain a written 
        declaration that it is made under the penalties of section 
        268.18, subdivision 3 for willfully making a false report and 
        shall contain a confession of judgment for the amount of the 
        contribution or reimbursement payments in lieu of contributions 
        shown due thereon to the extent not timely paid together with 
        any interest and penalty due under this chapter. 
           (b) The commissioner may, within six years after a the 
        report or other form is filed, notwithstanding section 541.09, 
        enter judgment on any confession of judgment contained in the 
        contribution report or form after 20 days calendar days' notice 
        served upon the employer by mail at the address shown in the 
        employer's report.  The judgment shall be entered by the court 
        administrator of any county upon the filing of a photocopy or 
        similar reproduction of that part of the contribution report or 
        form containing of the confession of judgment along with a 
        statement of the commissioner or agent that the contribution or 
        reimbursement payment in lieu of contribution has not been paid. 
           Sec. 70.  Minnesota Statutes 1996, section 268.167, is 
        amended to read: 
           268.167 [GARNISHMENT FOR DELINQUENT TAXES AND BENEFIT 
        OVERPAYMENTS.] 
           (a) The commissioner or an authorized a delegated 
        representative may, within six years after the date of 
        assessment of the tax, or payment in lieu of contribution, or 
        determination of benefit overpayment, or if a lien has been 
        filed under section 268.161, within the statutory period for 
        enforcement of the lien, give notice to any employer that an 
        employee of that employer owes delinquent unemployment 
        reemployment insurance taxes or reimbursements payments in lieu 
        of contributions including penalties, interest, and costs, or 
        has an unpaid benefit overpayment.  The commissioner can proceed 
        under this subdivision section only if the tax, payment in lieu 
        of contributions, or benefit overpayment is uncontested or if 
        the time for any appeal has expired.  The commissioner shall not 
        proceed under this subdivision section until the expiration of 
        30 calendar days after mailing to the debtor employee, at the 
        debtor's last known address, a written notice of garnishment. 
        The notice shall list: 
           (1) the amount of taxes, reimbursements payments in lieu of 
        contributions, interest, penalties, costs, or benefit 
        overpayment due from the debtor; 
           (2) demand for immediate payment; and 
           (3) the commissioner's intention to serve a garnishment on 
        the debtor's employer pursuant to this subdivision section. 
           The effect of the notice shall expire 180 calendar days 
        after it has been mailed to the debtor provided that the notice 
        may be renewed by mailing a new notice which is in accordance 
        with this subdivision section.  The renewed notice shall have 
        the effect of reinstating the priority of the original claim.  
        The notice to the debtor shall be in substantially the same form 
        as that provided in section 571.72.  The notice shall further 
        inform the debtor of the wage exemptions contained in section 
        550.37, subdivision 14.  If no statement of exemption is 
        received by the commissioner within 30 calendar days from the 
        mailing of the notice, the commissioner may proceed under 
        this subdivision section.  The notice to the debtor's employer 
        may be served by mail or by delivery by an employee of the 
        commissioner and shall be in substantially the same form as 
        provided in section 571.75.  Upon receipt of the notice, the 
        employer shall retain the earnings due or to become due to the 
        employee, the total amount shown by the notice, subject to the 
        provisions of section 571.922.  The employer shall continue to 
        retain each pay period until the notice is released by the 
        commissioner under section 268.161, subdivision 8.  Upon receipt 
        of notice by the employer, the claim of the commissioner shall 
        have priority over any subsequent garnishments or wage 
        assignments.  The commissioner may arrange between the employer 
        and employee for retaining a portion of the total amount due the 
        employee each pay period, until the total amount shown by the 
        notice plus accrued interest has been retained. 
           The "earnings due" any employee is defined in accordance 
        with section 571.921.  The maximum garnishment allowed under 
        this subdivision section for any one pay period shall be 
        decreased by any amounts payable pursuant to a garnishment 
        action with respect to which the employer was served prior to 
        being served with the notice of delinquency, and any amounts 
        covered by any irrevocable and previously effective assignment 
        of wages; the employer shall give notice to the commissioner of 
        the amounts and the facts relating to such the assignment within 
        ten days after the service of the notice of delinquency on the 
        form provided by the commissioner as noted in this subdivision 
        section. 
           (b) If the employee ceases to be employed by the employer 
        before the full amount set forth in a notice of garnishment plus 
        accrued interest has been retained, the employer shall 
        immediately notify the commissioner in writing of the 
        termination date of the employee and the total amount retained.  
        No employer may discharge or otherwise discipline any employee 
        by the reason of the fact that the commissioner has proceeded 
        under this subdivision section.  If an employer discharges an 
        employee in violation of this provision, the employee shall have 
        the same remedy as provided in section 571.927, subdivision 2. 
           (c) Within ten calendar days after the expiration of such 
        the pay period, the employer shall remit to the commissioner, on 
        a form and in the manner prescribed by the commissioner, the 
        amount retained during each pay period under this subdivision 
        section. 
           (d) Paragraphs (a) to (c), except provisions imposing a 
        liability on the employer for failure to retain or remit, shall 
        apply to cases in which the employer is the United States or any 
        instrumentality thereof or this state or any political 
        subdivision thereof. 
           (e) The commissioner shall refund to the employee excess 
        amounts retained from the employee under this subdivision 
        section.  If any excess results from payments by the employer 
        because of willful failure to retain or remit as prescribed in 
        paragraph (c), the excess attributable to the employer's payment 
        shall be refunded to the employer. 
           (f) Employers required to retain delinquent amounts under 
        this subdivision section shall not be required to compute any 
        additional interest, costs, or other charges to be retained. 
           (g) The collection remedy provided to the commissioner by 
        this subdivision shall have the same legal effect as if it were 
        a levy made pursuant to section 268.161 An employer that fails 
        or refuses to comply with the requirements of this section shall 
        be liable as provided in section 268.058, subdivision 3, 
        paragraph (i). 
           Sec. 71.  Minnesota Statutes 1996, section 268.18, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ERRONEOUS PAYMENTS.] (a) Any claimant for 
        benefits who, by reason of the claimant's own mistake or through 
        the error of any individual engaged in the administration 
        of sections 268.03 to 268.23 this chapter or because of a 
        determination, redetermination, or amended determination issued 
        pursuant to section 268.07 or 268.101, has received any sum as 
        benefits to which that the claimant was not entitled under these 
        sections to, shall promptly return those repay the benefits in 
        cash to the nearest office of the Minnesota department of 
        economic security.  If the claimant fails to return repay the 
        benefits, the department of economic security shall, as soon as 
        it discovers the erroneous payment is discovered, determine the 
        amount due and notify the individual claimant in writing to 
        return it repay the benefits. 
           (b) Unless the claimant files a written an appeal with the 
        department of economic security within 15 calendar days after 
        the mailing of the notice of determination of overpayment to the 
        claimant's last known address or personal delivery of the 
        notice, the determination shall become final.  Proceedings on 
        the appeal shall be conducted in accordance with section 
        268.105.  A claimant may not collaterally attack, by way of an 
        appeal to an overpayment determination, any prior determination 
        issued pursuant to section 268.07 or 268.101, or decision issued 
        pursuant to section 268.105, that has become final. 
           (c) If the claimant fails to repay the benefits, the 
        commissioner of the department of economic security is 
        authorized to may deduct from any future benefits payable to the 
        claimant under these sections in either the current or any 
        subsequent benefit year an amount equivalent to the overpayment 
        determined, except that no single deduction under this 
        subdivision shall exceed 50 percent of the amount of the payment 
        from which the deduction is made, or the overpayment may be 
        collected the same as delinquent contributions or reimbursements 
        under section 268.161.  A determination of overpayment shall 
        state the methods of collection the commissioner will use to 
        recover the overpayment.  If a claimant has been overpaid 
        benefits under the law of another state due to because of an 
        error and that state certifies to the department the facts 
        involved and that the individual claimant is liable under its 
        law to repay the benefits and requests the department to recover 
        the overpayment, the commissioner is authorized to may deduct 
        from future benefits payable to the claimant in either the 
        current or any subsequent benefit year an amount equivalent to 
        the amount of overpayment determined by that state, except that 
        no single deduction under this subdivision shall exceed 50 
        percent of the amount of the payment from which the deduction is 
        made.  
           (d) Benefits paid for weeks more than three years prior to 
        the discovery of error are not erroneous payments. 
           (d) (e) Notwithstanding paragraph (a), the commissioner 
        shall waive recovery of an overpayment if a reemployment 
        insurance judge or the commissioner's authorized representative 
        under section 268.105, subdivision 3, determines the overpayment 
        resulted from an administrative failure to identify that a 
        claimant's wage credits were not earned in covered 
        employment.  This paragraph shall not apply to misidentification 
        of an employee-employer relationship. 
           Sec. 72.  Minnesota Statutes 1996, section 268.18, 
        subdivision 2, is amended to read: 
           Subd. 2.  [FRAUD.] (a) Any claimant who files a claim for 
        or receives benefits by knowingly and willfully misrepresenting 
        or, misstating any material fact or by knowingly and willfully, 
        or failing to disclose any material fact which that would 
        make have made the claimant ineligible for not entitled to those 
        benefits under sections 268.03 to 268.23 is guilty of has 
        committed fraud.  After the discovery of facts by the 
        commissioner indicating fraud in claiming or obtaining benefits 
        under sections 268.03 to 268.23, the commissioner is hereby 
        authorized to shall make a written determination that the 
        claimant was ineligible for each week with reference to which 
        not entitled to benefits that were claimed or obtained by fraud 
        for the amount as was in excess of what the claimant would have 
        been entitled to had the claimant not made the fraudulent 
        statements or failed to disclose any material facts. and that 
        the claimant must promptly repay the benefits to the 
        department.  In addition, the commissioner also may disqualify 
        an individual from deny benefits to a claimant for one to 52 
        weeks in for which the claimant is otherwise eligible for 
        entitled to benefits following the week in which the fraud was 
        determined.  A disqualification denial imposed for fraud shall 
        not be removed by subsequent insured work or the expiration of a 
        benefit year but shall not apply to any week more than 104 weeks 
        after the week in which the fraud was determined.  The claimant 
        shall promptly repay in cash to the department of economic 
        security any benefits fraudulently obtained.  
           (b) Unless the claimant files a written an appeal with the 
        department of economic security within 15 calendar days after 
        the mailing of the notice of determination of overpayment by 
        fraud to the claimant's last known address or personal delivery 
        of the notice, the determination shall become final.  
        Proceedings on the appeal shall be conducted in accordance with 
        section 268.105.  
           (c) If the claimant fails to repay the benefits, the 
        commissioner is hereby authorized to may deduct from future 
        benefits payable to the claimant in either the current or any 
        subsequent benefit year an amount equivalent to the amount of 
        overpayment determined disregarding the 50 percent limitation 
        provided for in subdivision 1 or the overpayment may be 
        collected the same as delinquent contributions or reimbursements 
        under section 268.161.  A determination of overpayment by fraud 
        shall state the methods of collection the commissioner may use 
        to recover the overpayment.  If a claimant has been overpaid 
        benefits under the law of another state due to because of fraud 
        and that state certifies to the department the facts involved 
        and that the individual claimant is liable to repay the benefits 
        and requests the department to recover the overpayment, the 
        commissioner is authorized to may deduct from future benefits 
        payable to the claimant in either the current or any subsequent 
        benefit year an amount equivalent to the amount of overpayment 
        determined by that state disregarding the 50 percent limitation 
        provided for in subdivision 1.  
           (d) A determination of fraud may be made at any time.  
           Sec. 73.  Minnesota Statutes 1996, section 268.18, is 
        amended by adding a subdivision to read: 
           Subd. 2b.  [INTEREST.] (a) On any benefits fraudulently 
        obtained, as determined under subdivision 2, the commissioner 
        shall have the discretion to assess interest at the rate of 
        1-1/2 percent per month on any overpaid amount which remains 
        unpaid 30 calendar days after the date of the determination of 
        overpayment by fraud.  A determination of overpayment by fraud 
        shall state that interest may be assessed. 
           (b) Any money received in repayment of fraudulently 
        obtained benefits and interest thereon shall be first applied to 
        the overpayment balance. 
           (c) Unpaid interest may be collected the same as delinquent 
        contributions. 
           Sec. 74.  Minnesota Statutes 1996, section 268.18, 
        subdivision 3, is amended to read: 
           Subd. 3.  [FALSE REPRESENTATIONS; CONCEALMENT OF FACTS; 
        PENALTY.] (a) Whoever obtains, or attempts to obtain, or aids or 
        abets any person to obtain by means of a willfully an 
        intentional false statement or representation, by intentional 
        concealment of a material fact, or by impersonation or other 
        fraudulent device means, benefits to which that the person is 
        not entitled or benefits greater than that to which the person 
        is entitled under this chapter, or under the employment security 
        law of any state or of the federal government or of a foreign 
        government, either personally or for any other person, shall be 
        is guilty of theft and shall be sentenced pursuant to section 
        609.52, subdivision 3, clauses (2), (3)(a), (c), and (d), (4), 
        and (5).  The amount of the benefits incorrectly paid shall be 
        the difference between the amount of benefits actually received 
        paid and the amount which that the person claimant would have 
        been entitled under state and federal law had the department 
        been informed of all material facts. 
           (b) Any employing unit or any officer or agent of an 
        employing unit or any other person who makes a false statement 
        or representation knowing it to be false, or who knowingly fails 
        to disclose a material fact, to prevent or reduce the payment of 
        benefits to any individual entitled thereto, or to avoid 
        becoming or remaining a subject employer or to avoid or reduce 
        any contribution or other payment required from an employing 
        unit under this chapter or under the employment security law of 
        any state or of the federal government, or who willfully fails 
        or refuses to make any such contributions or other payment at 
        the time required shall be claimant, is guilty of a gross 
        misdemeanor unless the benefit underpayment, contribution, or 
        other payment involved exceeds $250 $500, in which event that 
        case the person is guilty of a felony.  
           (c) Any person who willfully fails to produce or permit the 
        inspection or copying of books, papers, records, or memoranda as 
        required or when requested under section 268.12, subdivision 8, 
        or to furnish any required reports other than contribution 
        reports shall be guilty of a gross misdemeanor. 
           Sec. 75.  Minnesota Statutes 1996, section 268.18, 
        subdivision 4, is amended to read: 
           Subd. 4.  [CANCELLATION OF BENEFITS PAID THROUGH ERROR OR 
        FRAUD.] When (a) If benefits paid through error or fraud are not 
        repaid or deducted from subsequent benefit amounts as provided 
        for in subdivisions subdivision 1 and 2 within six years after 
        the date of the determination that benefits were paid through 
        error or fraud irrespective of subsequent partial recovery dates 
        of overpayment, the commissioner shall cancel the overpayment 
        balance, and no administrative or legal proceedings shall 
        be instituted under the Minnesota economic security law used to 
        enforce collection of those amounts.  
           (b) If benefits paid as a result of fraud are not repaid or 
        deducted from subsequent benefits as provided for in subdivision 
        2 within ten years after the date of the determination of 
        overpayment by fraud, the commissioner shall cancel the 
        overpayment balance and any interest due, and no administrative 
        or legal proceeding shall be used to enforce collection of those 
        amounts. 
           (c) The commissioner may cancel at any time benefits paid 
        through error or fraud which that the commissioner determines 
        are uncollectible due to death or bankruptcy. 
           Sec. 76.  Minnesota Statutes 1996, section 268.18, 
        subdivision 6, is amended to read: 
           Subd. 6.  [EMPLOYER MISCONDUCT; PENALTY.] If the 
        commissioner finds that any employing unit or any employee, 
        officer, or agent of any employing unit, is in collusion with 
        any employee claimant for the purpose of assisting the claimant 
        to receive benefits illegally, the employing unit shall be 
        penalized $500 or an amount equal to the amount of benefits 
        determined to be overpaid, whichever is greater. 
           If the commissioner finds that any part of any employer's 
        contribution deficiency is due to fraud with intent to avoid 
        payment of contributions to the fund, 50 percent of the total 
        amount of the deficiency or $500, whichever is greater, shall be 
        assessed as a penalty against the employer and collected in 
        addition to the deficiency.  
           Penalties assessed under this section shall be in addition 
        to any other penalties provided for by sections 268.03 to 268.23 
        and be subject to the same collection procedures that apply to 
        past due contributions under this chapter.  Penalties under this 
        section shall be paid to the department and credited to the 
        contingent fund. 
           The assessment of the penalty shall be final unless the 
        employer employing unit files a written appeal with the 
        department within 15 30 calendar days after the mailing of the 
        notice of determination penalty to the employer's last known 
        address.  Proceedings on the appeal shall be conducted in 
        accordance with section 268.105. 
           Sec. 77.  Minnesota Statutes 1996, section 268.21, is 
        amended to read: 
           268.21 [NONLIABILITY OF STATE.] 
           (a) Benefits shall be deemed to be due and payable under 
        sections 268.03 to 268.23 only to the extent provided therein in 
        this chapter and to the extent that moneys are money is 
        available therefor to the credit of in the reemployment 
        insurance fund and neither the state nor the commissioner shall 
        be liable for any amount in excess of such sums.  
           (b) No person shall make any demand, bring any suit, or 
        other proceeding to recover from the state any sum alleged to be 
        due on a reemployment insurance account after the expiration of 
        two years from the effective date of the reemployment insurance 
        account. 
           Sec. 78.  [WAITING PERIOD WAIVER.] 
           Subdivision 1.  [WAIVER OF WAITING PERIOD.] The waiting 
        period requirement under Minnesota Statutes, section 268.08, 
        subdivision 1, clause (4), is waived for a claimant who would 
        have been eligible for federal disaster unemployment assistance 
        but for the claimant's establishment of a reemployment insurance 
        account.  The waiver applies to accounts established effective 
        March 23, 1997, through May 31, 1997.  
           Subd. 2.  [EFFECTIVE DATE.] Subdivision 1 is effective the 
        day following final enactment. 
           Sec. 79.  [INSTRUCTION TO REVISOR.] 
           The revisor of statutes shall renumber each section of 
        Minnesota Statutes specified in column A with the number set 
        forth in column B.  The revisor shall also make necessary 
        cross-reference changes consistent with the renumbering. 
                    Column A                     Column B 
                    268.041                      268.043 
                    268.05                       268.194 
                    268.06, subd. 1              268.051, subd. 1
                    268.06, subd. 3a             268.051, subd. 5
                    268.06, subd. 6              268.051, subd. 3
                    268.06, subd. 8              268.051, subd. 2
                    268.06, subd. 8a             268.051, subd. 8
                    268.06, subd. 18             268.047, subd. 5
                    268.06, subd. 19             268.051, subd. 6
                    268.06, subd. 20,            268.051, subd. 6,
                      paragraph (a)                paragraph (c)
                    268.06, subd. 20,            268.051, subd. 6,
                      paragraph (b)                paragraph (d)
                    268.06, subd. 21             268.045
                    268.06, subd. 22             268.051, subd. 4
                    268.06, subd. 24             268.051, subd. 7
                    268.06, subd. 25             268.052, subd. 1
                    268.06, subd. 26             268.052, subd. 3
                    268.06, subd. 27             268.052, subd. 4
                    268.06, subd. 28             268.053
                    268.06, subd. 29             268.045 (d)
                    268.06, subd. 31             268.052, subd. 2
                    268.06, subd. 34             268.054
                    268.061                      268.068
                    268.071                      268.115
                    268.072                      268.155
                    268.073                      268.125
                    268.074                      268.135
                    268.075                      268.145
                    268.09, subd. 3              268.09, subd. 18
                    268.11                       268.042
                    268.12, subd. 8              268.186
                    268.12, subd. 9a             268.188
                    268.12, subd. 12             268.19
                    268.121                      268.044
                    268.14, subd. 1              268.198, subd. 1
                    268.14, subd. 2              268.198, subd. 2
                    268.14, subd. 5              268.198, subd. 3
                    268.15                       268.196
                    268.16, subd. 1              268.057, subd. 5
                    268.16, subd. 1a             268.057, subd. 6
                    268.16, subd. 2              268.057, subd. 1
                    268.16, subd. 3a             268.057, subd. 4
                    268.16, subd. 4              268.067
                    268.16, subd. 5              268.057, subd. 10
                    268.16, subd. 6              268.057, subd. 7
                    268.16, subd. 7              268.057, subd. 8
                    268.16, subd. 9              268.057, subd. 9
                    268.161, subd. 1             268.058, subd. 1
                    268.161, subd. 1a            268.058, subd. 2
                    268.161, subd. 2             268.058, subd. 6
                    268.161, subd. 4             268.058, subd. 5
                    268.161, subd. 5             268.058, subd. 4
                    268.161, subd. 6             268.057, subd. 2
                    268.161, subd. 7             268.057, subd. 3
                    268.161, subd. 8             268.058, subd. 3
                    268.161, subd. 9             268.063
                    268.162                      268.064
                    268.163                      268.065
                    268.164                      268.062
                    268.166                      268.066
                    268.167                      268.059
                    268.17                       268.192
                    268.18, subd. 3              268.182
                    268.18, subd. 6              268.184
           Sec. 80.  [INSTRUCTION TO REVISOR.] 
           The revisor of statutes shall change the words 
        "unemployment insurance," "unemployment insurance benefits," and 
        "unemployment benefits" whenever they appear in Minnesota 
        Statutes to "reemployment insurance benefits" in Minnesota 
        Statutes 1998 and subsequent editions of the statutes. 
           The revisor of statutes shall change the words 
        "unemployment fund" whenever they appear in Minnesota Statutes 
        to "reemployment insurance fund" in Minnesota Statutes 1998 and 
        subsequent editions of the statutes. 
           The revisor of statutes shall change the words "insured 
        work" whenever they appear in Minnesota Statutes, sections 
        268.03 to 268.23 to "covered employment" in Minnesota Statutes 
        1998 and subsequent editions of the statutes. 
           The revisor of statutes shall change the word "contribution"
        whenever it appears in Minnesota Statutes, sections 268.022 to 
        268.23 to "tax" in Minnesota Statutes 1998 and subsequent 
        editions of the statutes. 
           The revisor of statutes shall change the word 
        "contributions" whenever it appears in Minnesota Statutes, 
        sections 268.022 to 268.23, except in section 268.196, 
        subdivision 3, to "taxes" in Minnesota Statutes 1998 and 
        subsequent editions of the statutes. 
           The revisor of statutes shall change the word "contributing"
        whenever it appears in Minnesota Statutes, sections 268.03 to 
        268.23 to "taxpaying" in Minnesota Statutes 1998 and subsequent 
        editions of the statutes. 
           The revisor of statutes shall change the words 
        "unemployment tax" whenever they appear in Minnesota Statutes, 
        sections 268.03 to 268.23 to "reemployment insurance tax" in 
        Minnesota Statutes 1998 and subsequent editions of the statutes. 
           The revisor of statutes shall change the words 
        "unemployment taxes" whenever they appear in Minnesota Statutes, 
        sections 268.03 to 268.23 to "reemployment insurance taxes" in 
        Minnesota Statutes 1998 and subsequent editions of the statutes. 
           The revisor of statutes shall change the word 
        "reimbursement" whenever it appears in Minnesota Statutes, 
        sections 268.057, 268.058, 268.059, 268.062, 268.063, 268.066, 
        and 268.067 to "payment in lieu of taxes" in Minnesota Statutes 
        1998 and subsequent editions of the statutes. 
           The revisor of statutes shall change the term 
        "reimbursements" whenever it appears in Minnesota Statutes, 
        sections 268.057, 268.058, 268.059, 268.062, 268.063, 268.066, 
        and 268.067 to "payments in lieu of taxes" in Minnesota Statutes 
        1998 and subsequent editions of the statutes. 
           The revisor of statutes shall change the term "reimbursable 
        account" whenever it appears in Minnesota Statutes, sections 
        268.03 to 268.23, to "payment in lieu of taxes account." 
           Sec. 81.  [REPEALER.] 
           Minnesota Statutes 1996, sections 268.026; 268.04, 
        subdivisions 8, 13, 14, 20, 21, 32, and 35; 268.06, subdivisions 
        2, 4, 5, 30, and 33; 268.073, subdivision 7; 268.09, 
        subdivisions 1, 2, 4, 5, 6, 7, and 8; 268.12, subdivisions 2, 4, 
        5, 7, and 11; 268.14, subdivisions 3 and 4; 268.16, subdivision 
        8; 268.161, subdivision 3; 268.165; and 268.18, subdivision 5, 
        are repealed. 
           Sec. 82.  [EFFECTIVE DATE.] 
           Sections 1 to 59, 61 to 77, and 79 to 81 are effective July 
        1, 1997.  Section 60 is effective the day following final 
        enactment. 
           Presented to the governor April 23, 1997 
           Signed by the governor April 23, 1997, 2:03 p.m.

700 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155 ♦ Phone: (651) 296-2868 ♦ TTY: 1-800-627-3529 ♦ Fax: (651) 296-0569