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

  
    
KEY: stricken = old language to be removed
     underscored = new language to be added
    
                            CHAPTER 417-S.F.No. 1919 
                  An act relating to reemployment insurance; making 
                  technical and administrative changes; amending 
                  Minnesota Statutes 1994, sections 268.04, subdivisions 
                  2, 4, and by adding a subdivision; 268.06, 
                  subdivisions 5 and 24; 268.07; 268.072, subdivisions 
                  2, 3, and 5; 268.073, subdivisions 3, 4, and 7; 
                  268.074, subdivision 4; 268.08, as amended; 268.09, 
                  subdivision 2; 268.12, by adding a subdivision; 
                  268.16, subdivision 4; 268.164, subdivisions 1 and 2; 
                  and 268.23; Minnesota Statutes 1995 Supplement, 
                  sections 268.041; 268.06, subdivision 20; 268.09, 
                  subdivision 1; 268.105, by adding a subdivision; 
                  268.161, subdivision 9; and 268.18, subdivision 1; 
                  proposing coding for new law in Minnesota Statutes, 
                  chapter 268; repealing Minnesota Statutes 1994, 
                  sections 268.04, subdivisions 18 and 24; 268.10, 
                  subdivision 1; and 268.231; Minnesota Statutes 1995 
                  Supplement, section 268.10, subdivision 2; Laws 1994, 
                  chapter 503, section 5. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1994, section 268.04, 
        subdivision 2, is amended to read: 
           Subd. 2.  [BASE PERIOD.] "Base period" means the first four 
        of the last five completed calendar quarters immediately 
        preceding the first day of an individual's a claimant's benefit 
        year; except:  (a) if during the base period an individual a 
        claimant received workers' compensation for temporary disability 
        under chapter 176 or a similar law of the United States, or 
        if an individual a claimant whose own serious illness caused a 
        loss of work for which the individual claimant received 
        compensation due to the illness from some other source or under 
        a law of this state other than chapter 176 or a similar law of 
        the United States, the individual's claimant's base period shall 
        be lengthened to the extent stated as follows: 
           (1) if an individual a claimant was compensated, as 
        described above, for a loss of work of seven to 13 weeks, the 
        original base period shall be extended to include one calendar 
        quarter preceding the original base period; or 
           (2) if an individual a claimant was compensated, as 
        described above, for a loss of work of 14 to 26 weeks, the 
        original base period shall be extended to include two calendar 
        quarters preceding the original base period; or 
           (3) if an individual a claimant was compensated, as 
        described above, for a loss of work of 27 to 39 weeks, the 
        original base period shall be extended to include the first 
        three calendar quarters preceding the original base period; or 
           (4) if an individual a claimant was compensated, as 
        described above, for a loss of work of 40 to 52 weeks, the 
        original base period shall be extended to include the first four 
        quarters preceding the original base period; or 
           (b) if the commissioner finds that, during the base period 
        described above, the individual claimant subject to clause (a) 
        has insufficient wage credits to establish a valid claim 
        reemployment insurance account, the individual claimant may 
        request a determination of validity a reemployment insurance 
        account using an alternate base period of the last four 
        completed calendar quarters preceding the first day of an 
        individual's a claimant's benefit year.  This alternate base 
        period may be used by an individual a claimant only once during 
        any five calendar year period to establish a valid claim 
        reemployment insurance account. 
           In no instance shall the base period be extended to include 
        more than four additional calendar quarters. 
           No base period, extended base period, or alternate base 
        period under paragraph (b) shall include wage credits upon which 
        a claim was established and benefits were paid with respect to 
        that valid claim reemployment insurance account. 
           Sec. 2.  Minnesota Statutes 1994, section 268.04, 
        subdivision 4, is amended to read: 
           Subd. 4.  [BENEFIT YEAR.] "Benefit year" with respect to 
        any individual claimant means the period of 52 calendar weeks 
        beginning with the first day of the first week with respect to 
        which the individual files a valid claim for benefits claimant 
        establishes a reemployment insurance account.  For 
        individuals claimants with a claim reemployment insurance 
        account established effective January 1, April 1, July 1, or 
        October 1, the benefit year will be a period of 53 weeks 
        beginning with the first week with respect to which the 
        individual files a valid claim for benefits claimant establishes 
        a reemployment insurance account.  A benefit year, once 
        established, can be withdrawn if benefits have not been paid, 
        and benefit credit has not been claimed, unless otherwise 
        provided under federal law or regulation. 
           Sec. 3.  Minnesota Statutes 1994, section 268.04, is 
        amended by adding a subdivision to read: 
           Subd. 5a.  [CLAIMANT.] "Claimant" means an individual who 
        has made an application for a reemployment insurance account and 
        has established or is actively pursuing the establishment of a 
        reemployment insurance account. 
           Sec. 4.  Minnesota Statutes 1995 Supplement, section 
        268.041, is amended to read: 
           268.041 [DETERMINATIONS OF COVERAGE.] 
           An official, designated by the commissioner, upon the 
        commissioner's own motion or upon application of an employing 
        unit, shall determine if an employing unit is an employer within 
        the meaning of this chapter or as to whether services performed 
        for it constitute employment within the meaning of this chapter, 
        or whether the remuneration for services constitutes wages as 
        defined in section 268.04, subdivision 25, and shall notify the 
        employing unit of the determination.  The determination shall be 
        final unless the employing unit, within 30 days after the 
        mailing of notice of the determination to the employing unit's 
        last known address, files a written appeal from it.  Proceedings 
        on the appeal shall be conducted in accordance with section 
        268.105.  The commissioner may at any time upon the 
        commissioner's own motion correct any error of the department 
        resulting in an erroneous determination under this section, 
        except for those matters that have been appealed to the court of 
        appeals and heard on the merits.  The commissioner shall issue a 
        redetermination which shall be final unless the employing unit, 
        within 30 days after the mailing of notice of the 
        redetermination to the employing unit's last known address, 
        files a written appeal from it.  Proceedings on the appeal shall 
        be conducted in accordance with section 268.105. 
           Sec. 5.  Minnesota Statutes 1994, section 268.06, 
        subdivision 5, is amended to read: 
           Subd. 5.  [BENEFITS CHARGED AS AND WHEN PAID.] (a) Benefits 
        paid to an individual a claimant pursuant to a valid claim 
        reemployment insurance account shall be charged against the 
        account of the individual's claimant's base period employer as 
        and when paid, except that benefits paid to an individual a 
        claimant who earned base period wages for part-time employment 
        shall not be charged to an employer that is liable for payments 
        in lieu of contributions or to the experience rating account of 
        an employer if the employer:  (1) provided regularly scheduled 
        part-time employment to the individual claimant during the 
        individual's claimant's base period; (2) during the individual's 
        claimant's benefit year, continues to provide the 
        individual 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 volunteer ambulance service personnel 
        on the same basis that employment was provided in the base 
        period; and (3) is an interested party involved employer because 
        of the individual's claimant's loss of other employment.  The 
        relief of charges shall terminate effective the first week in 
        the claimant's benefit year that the employer fails to meet the 
        provisions of clause (2).  The amount of benefits so chargeable 
        against each base period employer's account shall bear the same 
        ratio to the total benefits paid to an individual a claimant as 
        the base period wage credits of the individual claimant earned 
        from such employer bear to the total amount of base period wage 
        credits of the individual claimant earned from all 
        the individual's claimant's base period employers. 
           In making computations under this provision, the amount of 
        wage credits if not a multiple of $1, shall be computed to the 
        nearest multiple of $1. 
           Benefits shall not be charged to an employer that is liable 
        for payments in lieu of contributions or to the experience 
        rating account of an employer for unemployment (1) that is 
        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 
        unemployed individual claimant would have been eligible for 
        disaster unemployment assistance with respect to that 
        unemployment but for the individual's claimant's receipt of 
        unemployment insurance benefits, or (2) that is 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 become unemployed as 
        a result and the employer substantially reopens its operations 
        in that same area within 360 days 18 months of the closure of 
        the business due to condemnation of property by a governmental 
        agency, fire, flood, or act of God.  Benefits shall be charged 
        to the employer's account where the unemployment is caused by 
        the willful act of the employer or a person acting on behalf of 
        the employer. 
           (b) Benefits paid a claimant whose separation from 
        employment was required by a law or Minnesota administrative 
        rule mandating a background check, or whose separation from 
        employment was required by law or Minnesota administrative rule 
        because of a criminal conviction, shall not be charged to an 
        employer that is liable for payments in lieu of contributions or 
        to the experience rating account of an employer.  
           This paragraph shall be retroactive to the date the law or 
        Minnesota administrative rule mandating a background check is 
        effective or to the date the law or Minnesota administrative 
        rule requiring a separation for a criminal conviction is 
        effective. 
           (c) Benefits paid by another state as a result of the 
        transferring of wage credits under a federally required combined 
        wage agreement shall not be charged to an employer that is 
        liable for payments in lieu of contributions or to the 
        experience rating account of an employer. 
           (d) Notwithstanding paragraph (a), benefits paid to a 
        claimant shall not be charged to the experience rating account 
        of an employer if the claimant's base period wage credits paid 
        by that employer are less than $500.  This paragraph shall be in 
        effect until August 1, 1998.  
           Sec. 6.  Minnesota Statutes 1995 Supplement, 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 
        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 by the employer by filing with the 
        commissioner a written protest setting forth reasons therefor 
        within 30 days from the date of the mailing of the notice of 
        charges or contribution rate 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 
        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 shall either affirm or make a redetermination 
        rectifying the charges or 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, the employer may appeal by 
        filing a written notice with the department within ten 30 days 
        after the date of mailing appearing upon the redetermination.  
        Proceedings on the appeal shall be conducted in accordance with 
        section 268.105.  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. 7.  Minnesota Statutes 1994, section 268.06, 
        subdivision 24, is amended to read: 
           Subd. 24.  [VOLUNTARY CONTRIBUTIONS.] Notwithstanding any 
        inconsistent provisions of law any employer who has been 
        assigned a contribution rate pursuant to subdivisions 4, 6, and 
        8 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, obtain a 
        cancellation of benefits charged to the account during such 
        period equal to such payment so voluntarily made.  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 for such employer.  The employer 
        then shall be assigned the contribution rate applicable to the 
        category within which the recomputed experience ratio is 
        included.  Such voluntary payments may be made only during the 
        30-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.  Voluntary contributions made within the 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. 
           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. 8.  [268.062] [NOTICE TO WORKERS.] 
           Each employer shall post and maintain printed statements of 
        an individual's right to apply for reemployment insurance 
        benefits in places readily accessible to individuals in the 
        employer's service.  Such printed statements must be supplied by 
        the commissioner at no cost to an employer. 
           Sec. 9.  Minnesota Statutes 1994, section 268.07, is 
        amended to read: 
           268.07 [BENEFITS PAYABLE REEMPLOYMENT INSURANCE ACCOUNT.] 
           Subdivision 1.  [PAID FROM THE FUND APPLICATION; 
        DETERMINATION.] All benefits provided herein shall be payable 
        from the fund and shall be paid through employment offices, in 
        accordance with such rules as the commissioner may 
        prescribe. (a) An application for reemployment insurance 
        benefits may be made in person, by mail, by telephone, or by 
        electronic transmission as the commissioner shall require.  The 
        commissioner may by rule adopt other requirements for an 
        application. 
           (b) An official, designated by the commissioner, shall 
        promptly examine each application for benefits to determine the 
        base period, the benefit year, the weekly benefit amount 
        payable, if any, and the maximum benefit amount payable, if any. 
        The determination shall be known as the determination of 
        reemployment insurance account.  A written determination of 
        reemployment insurance account must be promptly mailed to the 
        claimant and all base period employers. 
           (c) If a base period employer failed to provide wage 
        information for the claimant as required in section 268.121, the 
        commissioner shall accept a claimant certification as to wage 
        credits, based upon the claimant's records, and issue a 
        determination of reemployment insurance account. 
           (d)(1) The commissioner may, at any time within 24 months 
        from the establishment of a reemployment insurance account, 
        reconsider any determination of reemployment insurance account 
        and make a redetermination if the commissioner finds that the 
        determination was incorrect for any reason.  A written 
        redetermination of reemployment insurance account shall be 
        promptly mailed to the claimant and all base period employers. 
           (2) If a redetermination of reemployment insurance account 
        reduces the weekly or maximum benefit amount payable, any 
        benefits paid greater than the claimant was entitled is an 
        overpayment of those benefits subject to section 268.18, except 
        when, in the absence of fraud, a redetermination is due to an 
        error or omission by an employer in providing wage information 
        as required in section 268.121. 
           Subd. 2.  [WEEKLY BENEFIT AMOUNT AND DURATION.] (a) To 
        establish a benefit year for unemployment insurance benefits, 
        effective after January 1, 1988, and thereafter reemployment 
        insurance account, an individual a claimant must have:  
           (1) wage credits in two or more calendar quarters of the 
        individual's claimant's base period; 
           (2) minimum total base period wage credits equal to the 
        high quarter wages multiplied by 1.25; 
           (3) high quarter wage credits of not less than $1,000; and 
           (4) performed work in 15 or more calendar weeks in the base 
        period.  
           (b) If the commissioner finds that an individual a claimant 
        has sufficient wage credits and weeks worked within the base 
        period to establish a valid claim reemployment insurance 
        account, the weekly benefit amount payable to the individual 
        claimant during the individual's claimant's benefit year shall 
        be equal to 1/26 of the individual's claimant's high quarter 
        wage credits, rounded to the next lower whole dollar.  
           (c) Notwithstanding paragraph (b), the maximum weekly 
        benefit amount of claims for benefits which establish a benefit 
        year subsequent to July 1, 1979, shall be 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 
        268.231 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 claim filed 
        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 fund balance on December 31 of the 
        preceding year.  If the fund balance is less than $70,000,000 on 
        that date, the maximum weekly benefit amount shall be 66-2/3 
        percent of the average weekly wage; if the fund balance is more 
        than $70,000,000 but less than $100,000,000, the maximum weekly 
        benefit amount is 66 percent of the average weekly wage; if the 
        fund balance is more than $100,000,000 but less than 
        $150,000,000, the maximum weekly benefit amount is 65 percent of 
        the average weekly wage; if the fund balance is more than 
        $150,000,000 but less than $200,000,000, the maximum weekly 
        benefit amount is 64 percent of the average weekly wage; if the 
        fund balance is more than $200,000,000 but less than 
        $250,000,000, the maximum weekly benefit amount is 63 percent of 
        the average weekly wage; if the fund balance is more than 
        $250,000,000 but less than $300,000,000, the maximum weekly 
        benefit amount is 62 percent of the average weekly wage; if the 
        fund balance is more than $300,000,000 but less than 
        $350,000,000, the maximum weekly benefit amount is 61 percent of 
        the average weekly wage; if the fund balance is more than 
        $350,000,000, the maximum weekly benefit amount is 60 percent.  
        The maximum weekly benefit amount as determined under this 
        paragraph computed to the nearest whole dollar shall apply 
        to claims for benefits which establish a benefit year which 
        begins reemployment insurance accounts established subsequent to 
        June 30 of each year.  
           (f) Any eligible individual shall be entitled during The 
        maximum benefit amount payable for any benefit year to a total 
        amount of benefits shall equal to one-third of the individual's 
        claimant's total base period wage credits rounded to the next 
        lower dollar, not to exceed 26 times the individual's claimant's 
        weekly benefit amount.  
           (g) Each eligible individual who is unemployed in any week 
        shall be paid with respect to such week a benefit in an amount 
        equal to the individual's weekly benefit amount less that part 
        of the individual's earnings, including holiday pay, payable to 
        the individual with respect to such week which is in excess of 
        $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.  Such 
        benefit, if not a whole dollar amount, shall be rounded down to 
        the next lower dollar amount.  
           Subd. 2a.  [EXCEPTION.] Notwithstanding the provisions of 
        subdivision 2, if the commissioner finds that an individual has 
        earned wage credits in seasonal employment, benefits shall be 
        payable only if the commissioner finds that the individual has 
        earned wage credits in 15 or more calendar weeks equal to or in 
        excess of 30 times the individual's weekly benefit amount, in 
        employment which is not seasonal, in addition to any wage 
        credits in seasonal employment.  For the purposes of this 
        subdivision, "seasonal employment" means employment with a 
        single employer in the recreation or tourist industry which is 
        available with the employer for 15 consecutive weeks or less 
        each calendar year.  
           Subd. 3.  [WHEN WAGE CREDITS ARE NOT AVAILABLE SECOND 
        ACCOUNT PROHIBITED.] (1) (a) To establish a second benefit year 
        reemployment insurance account following the expiration of an 
        immediately preceding a benefit year on a preceding reemployment 
        insurance account, an individual a claimant must have sufficient 
        wage credits and weeks of employment to establish a 
        claim reemployment insurance account under the provisions of 
        subdivision 2 and must have performed services after the 
        establishment of the expired benefit year 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 times the weekly benefit amount of the 
        second benefit year reemployment insurance account.  A claim 
        filed reemployment insurance account established sufficiently in 
        advance of anticipated unemployment to make the limitations of 
        this clause paragraph ineffective shall be invalid not be 
        allowed.  It is the purpose of this provision that an individual 
        a claimant cannot establish more than one benefit year 
        reemployment insurance account as a result of one separation 
        from employment. 
           (2) (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 earnings of the claimant wages paid during a 
        subsequent base period unless the employer has employed the 
        claimant performed services for the employer in any part of the 
        subsequent base period. 
           (3) Wages paid by an employing unit may not be used for 
        benefit purposes by any claimant who (a) individually, jointly, 
        or in combination with the claimant's spouse, parent, or child 
        owns or controls directly or indirectly 25 percent or more 
        interest in the employing unit; or (b) is the spouse, parent, or 
        minor child of any individual who owns or controls directly or 
        indirectly 25 percent or more interest in the employing unit; 
        and (c) is not permanently separated from employment. 
           This clause is effective when the individual has been paid 
        four times the individual's weekly benefit amount in the current 
        benefit year. 
           (4) Wages paid in seasonal employment, as defined in 
        subdivision 2a, are not available for benefit purposes during 
        weeks in which there is no seasonal employment available with 
        the employer. 
           (5) No employer shall be charged for benefits if the 
        employer is a base period employer on a second claim solely 
        because of the transition from a base period consisting of the 
        52-week period preceding the claim date to a base period as 
        defined in section 268.04, subdivision 2. 
           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 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. 
           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. 
           (c) A reemployment insurance account shall not be 
        established prior to the Sunday following the expiration of the 
        benefit year on a prior reemployment insurance account. 
           (d) All benefits shall be payable from the Minnesota 
        reemployment insurance fund only for weeks occurring during the 
        benefit year. 
           Sec. 10.  Minnesota Statutes 1994, section 268.072, 
        subdivision 2, is amended to read: 
           Subd. 2.  [NOTICE OF CLAIM.] An individual filing a new 
        claim for Upon application for a reemployment insurance account, 
        the claimant shall, at the time of filing the claim, disclose 
        whether or not the individual claimant owes child support 
        obligations.  If any individual the claimant discloses that the 
        individual claimant owes child support obligations, and is 
        determined to be eligible for establishes a reemployment 
        insurance account, the commissioner shall notify the child 
        support agency that the individual claimant has been determined 
        to be eligible for established a reemployment insurance account. 
           Sec. 11.  Minnesota Statutes 1994, section 268.072, 
        subdivision 3, is amended to read: 
           Subd. 3.  [WITHHOLDING OF BENEFITS.] The commissioner shall 
        deduct and withhold from any reemployment insurance payable 
        to an individual a claimant that owes child support obligations: 
           (a) The amount specified by the individual claimant to the 
        commissioner to be deducted and withheld under this section, if 
        neither clause (b) or (c) is applicable; or 
           (b) The amount determined pursuant to an agreement 
        submitted to the commissioner under section 454 (20) (B) (i) of 
        the Social Security Act by the child support agency, unless (c) 
        is applicable; or 
           (c) Any amount otherwise required to be so deducted and 
        withheld from the unemployment compensation pursuant to "legal 
        process" as defined in section 462(e) of the Social Security 
        Act, properly served upon the commissioner.  
           Sec. 12.  Minnesota Statutes 1994, section 268.072, 
        subdivision 5, is amended to read: 
           Subd. 5.  [EFFECT OF PAYMENTS.] Any amount deducted and 
        withheld under subdivision 3 shall for all purposes be treated 
        as if it were paid to the individual claimant as reemployment 
        insurance and paid by the individual claimant to the public 
        agency responsible for child support enforcement in satisfaction 
        of the individual's claimant's child support obligations.  
           Sec. 13.  Minnesota Statutes 1994, section 268.073, 
        subdivision 3, is amended to read: 
           Subd. 3.  [ELIGIBILITY CONDITIONS.] An individual A 
        claimant is eligible to receive additional benefits under this 
        section for any week during the individual's claimant's benefit 
        year if the commissioner finds that: 
           (1) the individual's claimant's unemployment is the result 
        of a reduction in operations as provided under subdivision 1; 
           (2) the individual claimant is unemployed and meets the 
        eligibility requirements for the receipt of unemployment 
        benefits under section 268.08; 
           (3) the individual claimant is not subject to a 
        disqualification for benefits under section 268.09; for the 
        purpose of this subdivision, the disqualifying conditions set 
        forth in section 268.09, and the requalifying requirements 
        thereunder, apply to the receipt of additional benefits under 
        this section; 
           (4) the individual claimant has exhausted all rights to 
        regular benefits payable under section 268.07, is not entitled 
        to receive extended benefits under section 268.071, and is not 
        entitled to receive reemployment insurance benefits under any 
        other state or federal law for the week in which the individual 
        claimant is claiming additional benefits; 
           (5) the individual claimant has made a claim for additional 
        benefits with respect to any week the individual claimant is 
        claiming benefits in accordance with the regulations as the 
        commissioner may prescribe with respect to claims for regular 
        benefits; and 
           (6) the individual claimant has worked at least 26 weeks 
        during the individual's claimant's base period in employment 
        with an employer for whom the commissioner has determined there 
        was a reduction in operations under subdivision 1. 
           Sec. 14.  Minnesota Statutes 1994, section 268.073, 
        subdivision 4, is amended to read: 
           Subd. 4.  [WEEKLY BENEFIT AMOUNT.] A claimant's weekly 
        benefit amount under this section shall be the same as the 
        individual's weekly benefit amount payable during the 
        individual's current benefit year under section 268.08 268.07. 
           Sec. 15.  Minnesota Statutes 1994, section 268.073, 
        subdivision 7, is amended to read: 
           Subd. 7.  [BENEFIT CHARGES.] (a) Except as otherwise 
        provided, benefits paid to an individual a claimant under this 
        section shall be charged to the employment experience record of 
        the base period employer of the individual claimant to the 
        extent regular benefits were charged to the base period employer 
        under sections 268.06, subdivision 5, and 268.09, subdivision 1, 
        paragraph (e). 
           (b) With respect to an employer who 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 the contributing employer shall be 
        charged to the contributing employer's account. 
           Sec. 16.  Minnesota Statutes 1994, section 268.074, 
        subdivision 4, is amended to read: 
           Subd. 4.  [WEEKLY BENEFIT AMOUNT.] (a) An individual who is 
        eligible for shared work benefits under this section shall be 
        paid, with respect to any week of unemployment, a weekly shared 
        work unemployment insurance benefit amount.  The amount shall be 
        equal to the individual's regular weekly benefit amount 
        multiplied by the nearest full percentage of reduction of the 
        individual's regular weekly hours of work as set forth in the 
        employer's plan.  The benefit payment, if not a multiple of $1 
        shall be rounded to the next lower dollar. 
           (b) The provisions of section 268.07 268.08, subdivision 2, 
        paragraph (g) 3a, shall not apply to earnings from the shared 
        work employer of an individual eligible for payments under this 
        section unless the resulting payment would be less than the 
        regular benefit payment for which the individual would otherwise 
        be eligible without regard to shared work unemployment insurance 
        benefits. 
           (c) An individual shall not be disqualified eligible for 
        benefits payable under this section for any week in which paid 
        work is performed for the shared work employer in excess of the 
        reduced hours set forth in the approved plan. 
           Sec. 17.  [268.075] [INCOME TAX WITHHOLDING.] 
           Subdivision 1.  [NOTIFICATION.] (a) Upon application for a 
        reemployment insurance account the claimant shall be informed 
        that: 
           (1) reemployment insurance benefits are subject to federal 
        and state income tax; 
           (2) there are requirements for filing estimated tax 
        payments; 
           (3) the claimant may elect to have federal income tax 
        withheld from benefits; 
           (4) if the claimant elects to have federal income tax 
        withheld, the claimant may, in addition, elect to have Minnesota 
        state income tax withheld; and 
           (5) at any time during the benefit year the claimant may 
        change a prior election. 
           (b) If a claimant elects to have federal income tax 
        withheld, the commissioner shall deduct that percentage required 
        by the Internal Revenue Code.  If a claimant, in addition to 
        federal income tax withholding, elects to have Minnesota state 
        income tax withheld, the commissioner shall make an additional 
        five percent deduction for Minnesota state income tax.  Any 
        amounts deducted pursuant to sections 268.072, 268.165, and 
        268.18 have priority over any amounts deducted under this 
        section.  Federal income tax withholding has priority over 
        Minnesota state income tax withholding. 
           (c) An election to have federal income tax, or federal and 
        Minnesota state income tax, withheld shall not be retroactive 
        and shall only apply to benefits paid after the election. 
           Subd. 2.  [TRANSFER OF FUNDS.] The amount of any benefits 
        deducted under this section shall remain in the Minnesota 
        reemployment insurance fund until transferred to the federal 
        Internal Revenue Service, or the Minnesota department of 
        revenue, as an income tax payment on behalf of the claimant. 
           Subd. 3.  [CORRECTION OF ERRORS.] Any error which resulted 
        in underwithholding under this section shall not be corrected 
        retroactively. 
           Subd. 4.  [FEDERAL REQUIREMENT.] The commissioner shall 
        follow all federal requirements for the deduction and 
        withholding of federal and Minnesota state income tax from 
        reemployment insurance benefits. 
           Subd. 5.  [APPLICATION.] This section applies to any 
        payments under federal or state law as compensation, assistance, 
        or allowance with respect to unemployment. 
           Sec. 18.  Minnesota Statutes 1994, section 268.08, as 
        amended by Laws 1995, chapters 54, sections 8 and 9; and 231, 
        article 1, section 32, is amended to read: 
           268.08 [PERSONS ELIGIBLE TO RECEIVE BENEFITS.] 
           Subdivision 1.  [ELIGIBILITY CONDITIONS.] An individual A 
        claimant shall be eligible to receive benefits with respect to 
        any week of unemployment only if the commissioner finds that the 
        individual 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 268.231.  
        The method of reporting allowed must not require an in-person 
        appearance, and may incorporate appropriate new technology; 
           (2) has made a continued claim for benefits in accordance 
        with rules as the commissioner may adopt 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) was able to work and was available for work, and was 
        actively seeking work.  The individual's claimant's weekly 
        benefit amount shall be reduced one-fifth for each day 
        the individual claimant is unable to work or is unavailable for 
        work.  Benefits shall not be denied by application of this 
        clause to an individual 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. 
           An individual A claimant is deemed unavailable for work 
        with respect to any week which occurs in a period when the 
        individual claimant is a full-time student in attendance at, or 
        on vacation from an established school, college, or university 
        unless a majority of the individual's claimant's wages paid 
        during the 52 weeks preceding the claim date establishment of a 
        reemployment insurance account were for services performed 
        during weeks in which the student was attending school as a 
        full-time student.  
           An individual A claimant serving as a juror shall be 
        considered as available for work and actively seeking work on 
        each day the individual claimant is on jury duty; 
           (4) has been unemployed for a waiting period of one week 
        during which the individual claimant is otherwise eligible for 
        entitled to benefits under sections 268.03 to 268.231.  No 
        individual is required to serve a waiting period of more than 
        one week within the one-year period subsequent to filing a valid 
        claim and commencing with the week within which the valid claim 
        was filed; and 
           (5) has been participating in reemployment services, such 
        as job search assistance services, if the individual claimant 
        has been determined to be likely to exhaust regular benefits and 
        need reemployment services pursuant to a profiling system 
        established by the commissioner, unless there is justifiable 
        cause for the claimant's failure to participate. 
           Subd. 1a.  [BENEFITS DUE DECEASED PERSONS.] Upon the death 
        of any claimant for benefits, and in the event it is found by 
        the commissioner that benefits have accrued and are due and 
        payable to that claimant and remain wholly or partially unpaid 
        at the time of the claimant's death, or in the event there have 
        been issued and unpaid one or more benefit checks, those checks 
        may, upon application therefor, be paid to the duly qualified 
        administrator or executor of the estate of the deceased 
        claimant.  In the event that no administrator or executor is 
        appointed to administer the estate of the deceased, if any, the 
        benefits may, upon the order and direction of the commissioner 
        be paid to any person designated by the commissioner in the 
        following order:  (1) the surviving spouse, (2) the surviving 
        child or children, or (3) the surviving parent or parents. 
           A person seeking payment under this subdivision shall 
        complete an affidavit on a form prescribed by the department and 
        the payment of benefits to a person pursuant to an affidavit 
        under this subdivision shall discharge the obligations of the 
        department to the claimant to the extent of the payment, and no 
        other person shall claim or assert any right with respect 
        thereto. 
           Subd. 2.  [WEEK OF UNEMPLOYMENT.] No week shall be counted 
        as a week of unemployment for the purposes of this section: 
           (1) Unless it occurs subsequent to the filing of a valid 
        claim for benefits establishment of a reemployment insurance 
        account; 
           (2) Unless it occurs after benefits first could become 
        payable to any individual claimant under sections 268.03 to 
        268.231; 
           (3) With respect to which the individual 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 are merely supplementary to those provided for under 
        sections 268.03 to 268.231; provided that if the appropriate 
        agency of such other state or the federal government finally 
        determines that the individual claimant is not entitled to such 
        benefits, this provision shall not apply. 
           Subd. 3.  [NOT ELIGIBLE.] An individual A claimant shall 
        not be eligible to receive benefits for any week with respect to 
        which the individual claimant is receiving, has received, or has 
        filed a claim for remuneration in an amount equal to or in 
        excess of the individual's 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 employee's 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 
           (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 contributed to the fund, annuity or insurance 
        and all of the pension payments if the employee 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 is less than the 
        benefits which would otherwise be due under sections 268.03 to 
        268.231, the individual claimant shall be entitled to receive 
        for such week, if otherwise eligible, benefits reduced by the 
        amount of such remuneration; provided, further, that if the 
        appropriate agency of such other state or the federal government 
        finally determines that the individual claimant is not entitled 
        to such benefits, this provision 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. 
           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. 
           Subd. 3b.  [RECEIPT OF BACK PAY.] Back pay received by an 
        individual 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 
        the individual 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 individual 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 individual's claimant's maximum amount of 
        benefits payable in a benefit year which 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 made by the 
        employer on behalf of the individual claimant and are not 
        voluntary contributions under section 268.06, subdivision 24.  
           Subd. 4.  [SOCIAL SECURITY AMOUNT DEDUCTED FROM BENEFITS.] 
        Any claimant aged 62 or over who has not established a valid 
        claim reemployment insurance account based on employment 
        subsequent to the first receipt of primary insurance benefits 
        under Title II of the federal social security act, as amended, 
        or similar old age benefits under any act of Congress or this 
        state or any other state shall be required to state in writing 
        at the time of the filing of a claim establishing a reemployment 
        insurance account whether the claimant intends to seek Title II 
        social security benefits for any week during which the claimant 
        will receive unemployment benefits, and if the claimant so 
        intends there shall be withheld from the claimant's weekly 
        unemployment benefits an amount sufficient to cover the weekly 
        equivalent of the social security benefit.  Any claimant 
        disclaiming such intention but who nevertheless receives such 
        social security benefits for weeks for which the claimant 
        previously received unemployment benefits shall be liable for 
        repayment of such unemployment benefits and otherwise subject to 
        the provisions of section 268.18. 
           Subd. 5a.  [SELF-EMPLOYMENT.] (a) An individual A claimant 
        who is determined to be likely to exhaust regular reemployment 
        insurance benefits and is enrolled in a dislocated worker 
        program shall be considered in approved training for purposes of 
        this chapter for each week the individual claimant is engaged on 
        a full-time basis in activities, including training, relating to 
        the establishment of a business and becoming self-employed.  An 
        individual A claimant who meets the requirements of this 
        subdivision shall be considered unemployed for purposes of this 
        chapter.  Income earned from the self-employment activity shall 
        not be considered for purposes of section 268.07, subdivision 2, 
        paragraph (g) subdivision 3a.  Under no circumstances shall more 
        than five percent of the number of individuals claimants 
        receiving regular reemployment insurance benefits be actively 
        enrolled in this program at any time.  This subdivision shall 
        not apply to persons claimants claiming state or federal 
        extended or additional benefits. 
           (b) This subdivision shall apply to weeks beginning after 
        April 18, 1995, or weeks beginning after approval of this 
        subdivision by the United States Department of Labor whichever 
        date is later.  This subdivision shall have no force or effect 
        for any purpose as of the end of the week preceding the date 
        when federal law no longer authorizes the provisions of this 
        subdivision, unless such date is a Saturday in which case this 
        subdivision shall have no force and effect for any purpose as of 
        that date. 
           Subd. 6.  [SERVICES PERFORMED FOR STATE, MUNICIPALITIES, OR 
        CHARITABLE CORPORATION.] Benefits based on service in employment 
        defined in section 268.04, subdivision 12, clauses (7), (8) and 
        (9), are payable in the same amount, on the same terms and 
        subject to the same conditions as benefits payable on the basis 
        of other service subject to this chapter; except that: 
           (a) Benefits based upon service performed in an 
        instructional, research, or principal administrative capacity 
        for an educational institution, shall not be paid for any week 
        of unemployment commencing during the period between two 
        successive academic years or terms, or during a similar period 
        between two regular but not successive terms, or during a period 
        of paid sabbatical leave provided for in the individual's 
        claimant's contract, to any individual claimant if the 
        individual claimant performs the services in the first of the 
        academic years or terms and if there is a contract or a 
        reasonable assurance that the individual claimant will perform 
        services in any such capacity for an educational institution in 
        the second of the academic years or terms; 
           (b) With respect to service performed in any capacity other 
        than those capacities described in clause (a) of this 
        subdivision, including instructional assistants, for an 
        educational institution, benefits shall not be paid on the basis 
        of these services to any individual for any week which commences 
        during a period between two successive academic years or terms 
        if the individual performs the services in the first of the 
        academic years or terms and there is a reasonable assurance that 
        the individual will perform the services in the second of the 
        academic years or terms.  An individual With respect to 
        employment in any capacity other than those described in 
        paragraph (a), including educational assistants, benefits shall 
        not be paid based upon wage credits earned with any educational 
        institution for any week which commences during a period between 
        two successive academic years or terms if the claimant was 
        employed in the first academic year or term by any educational 
        institution and there is reasonable assurance that the claimant 
        will be employed under similar terms and conditions by any 
        educational institution in the second academic year or term.  A 
        claimant who has an agreement for a definite period of 
        employment between academic years or terms shall be eligible for 
        any weeks within that period the educational institution fails 
        to provide employment.  If benefits are denied to any individual 
        claimant under this clause paragraph and the individual 
        claimant was not offered an opportunity to perform the services 
        employment in the second of the academic years or term, 
        the individual claimant shall be entitled to a retroactive 
        payment of benefits for each week in which the individual 
        claimant filed a timely continued claim for benefits, but 
        the continued claim was denied solely because of this clause 
        paragraph; 
           (c) With respect to services described in clause 
        paragraph (a) or (b), benefits payable on the basis of the 
        services shall not be paid to any individual claimant for any 
        week which commences during an established and customary 
        vacation period or holiday recess if the individual claimant 
        performs the services in the period immediately before the 
        vacation period or holiday recess, and there is a reasonable 
        assurance that the individual claimant will perform the services 
        in the period immediately following the vacation period or 
        holiday recess; 
           (d) With respect to services described in clause 
        paragraph (a) or (b), benefits shall not be payable on the basis 
        of services in any capacity specified in clauses paragraphs (a), 
        (b), and (c) to any individual claimant who performed those 
        services in an educational institution while in the employ of an 
        educational service agency.  For purposes of this clause 
        paragraph, "educational service agency" means a governmental 
        agency or governmental entity which is established and operated 
        exclusively for the purpose of providing services to one or more 
        educational institutions; and 
           (e) With respect to services to state and local government, 
        or nonprofit organizations covered by section 501(c)(3) of the 
        Internal Revenue Code of 1986, as amended through December 31, 
        1992, if services are provided to or on behalf of an educational 
        institution, benefits must be denied under the same 
        circumstances as described in clauses paragraphs (a) to (d). 
           Subd. 7.  [PROFESSIONAL ATHLETES.] Benefits shall not be 
        paid to an individual a claimant on the basis of any service 
        substantially all of which consist of participating in sports or 
        athletic events or training or preparing to so participate for 
        any week which commences during the period between two 
        successive sport seasons (or similar periods) if such individual 
        the claimant performed such service in the first of such seasons 
        (or similar period) and there is a reasonable assurance 
        that such individual the claimant will perform such service in 
        the later of such seasons (or similar periods). 
           Subd. 8.  [ILLEGAL ALIENS.] (a) Benefits shall not be paid 
        on the basis of services performed by an alien unless such alien 
        is an individual a claimant who was lawfully admitted for 
        permanent residence at the time such services were performed, 
        was lawfully present for the purposes of performing such 
        services, or was permanently residing in the United States under 
        color of law at the time such services were performed (including 
        an alien who was lawfully present in the United States as a 
        result of the application of the provision of section 203(a)(7) 
        or section 212(d)(5) of the Immigration and Nationality Act). 
           (b) Any data or information required of individuals 
        claimants applying for benefits to determine whether benefits 
        are not payable to them because of their alien status shall be 
        uniformly required from all applicants for benefits. 
           (c) In the case of an individual a claimant whose 
        application for benefits would otherwise be approved, no 
        determination that benefits to such individual claimant are not 
        payable because of alien status shall be made except upon a 
        preponderance of the evidence. 
           Subd. 9.  [SERVICES FOR CERTAIN CONTRACTORS.] Benefits 
        based upon services performed for an employer are subject to 
        subdivision 6, clauses paragraphs (b) and (c) if:  
           (a) the employment was provided pursuant to a contract 
        between the employer and a public or private school; 
           (b) the contract was for services which the public or 
        private school could have had performed by its employees; 
           (c) the employment was not as defined in section 268.04, 
        subdivision 12, clauses (7), (8), and (9); and 
           (d) the individual is claimant was notified in writing of 
        the provisions of this subdivision while employed in 1983 or 
        prior to or at the time of commencing the employment.  
           Subd. 10.  [SEASONAL EMPLOYMENT.] (a) If the commissioner 
        finds that a claimant has earned wage credits in 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 wage credits in seasonal employment.  For 
        purposes of this subdivision, "seasonal employment" means 
        employment with a single employer in the recreation or tourist 
        industry which is available with the employer for 15 consecutive 
        weeks or less each calendar year. 
           (b) Wages paid in seasonal employment are not available for 
        benefit purposes during weeks in which there is no seasonal 
        employment available with the employer. 
           Subd. 11.  [BUSINESS OWNERS.] Wages paid by an employing 
        unit may not be used for benefit purposes by any claimant who:  
           (1) individually, jointly, or in combination with the 
        claimant's spouse, parent, or child owns or controls directly or 
        indirectly 25 percent or more interest in the employing unit, or 
        is the spouse, parent, or minor child of any individual who owns 
        or controls directly or indirectly 25 percent or more interest 
        in the employing unit; and 
           (2) is not permanently separated from employment. 
           This subdivision is effective when the claimant has been 
        paid four times the claimant's weekly benefit amount in the 
        current benefit year. 
           Sec. 19.  Minnesota Statutes 1995 Supplement, section 
        268.09, subdivision 1, is amended to read: 
           Subdivision 1.  [DISQUALIFYING CONDITIONS.] An individual A 
        claimant separated from any employment under paragraph (a), (b), 
        or (d) shall be disqualified for waiting week credit and 
        benefits.  For separations under paragraphs (a) and (b), the 
        disqualification shall continue until four calendar weeks have 
        elapsed following the individual's claimant's separation and the 
        individual claimant has earned eight times the individual's 
        claimant's weekly benefit amount in insured work. 
           (a)  [VOLUNTARY LEAVE.] The individual claimant voluntarily 
        and without good cause attributable to the employer discontinued 
        employment with such employer.  For the purpose of this 
        paragraph, a separation from employment by reason of its 
        temporary nature or for inability to pass a test or for 
        inability to meet performance standards necessary for 
        continuation of employment shall not be deemed voluntary.  
           A separation shall be for good cause attributable to the 
        employer if it occurs as a consequence of sexual harassment.  
        Sexual harassment means unwelcome sexual advances, requests for 
        sexual favors, sexually motivated physical contact or other 
        conduct or communication of a sexual nature when:  (1) the 
        employee's claimant's submission to such conduct or 
        communication is made a term or condition of the employment, (2) 
        the employee's claimant's submission to or rejection of such 
        conduct or communication is the basis for decisions affecting 
        employment, or (3) such conduct or communication has the purpose 
        or effect of substantially interfering with an individual's 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.  
           (b)  [DISCHARGE FOR MISCONDUCT.] The individual claimant 
        was discharged for misconduct, not amounting to gross misconduct 
        connected with work employment or for misconduct which 
        interferes with and adversely affects employment. 
           (c)  [EXCEPTIONS TO DISQUALIFICATION.] An individual A 
        claimant shall not be disqualified under paragraphs (a) and (b) 
        under any of the following conditions: 
           (1) the individual claimant voluntarily discontinued 
        employment to accept employment offering substantially better 
        conditions or substantially higher wages or both; 
           (2) the individual claimant is separated from employment 
        due to personal, serious illness provided that such individual 
        has the claimant made reasonable efforts to retain employment. 
           An individual A claimant who is separated from employment 
        due to the individual's claimant's illness of chemical 
        dependency which has been professionally diagnosed or for which 
        the individual claimant has voluntarily submitted to treatment 
        and who fails to make consistent efforts to maintain the 
        treatment the individual claimant knows or has been 
        professionally advised is necessary to control that illness has 
        not made reasonable efforts to retain employment. 
           (3) the individual claimant accepts work employment from a 
        base period employer which involves a change in location of work 
        employment so that said work employment would not have been 
        deemed to be suitable work employment under the provisions of 
        subdivision 2 and within a period of 13 weeks from the 
        commencement of said work employment voluntarily discontinues 
        employment due to reasons which would have caused the 
        work employment to be unsuitable under the provision of said 
        subdivision 2; 
           (4) the individual claimant left employment because of 
        reaching mandatory retirement age and was 65 years of age or 
        older; 
           (5) the individual claimant is terminated by the employer 
        because the individual claimant gave notice of intention to 
        terminate employment within 30 days.  This exception shall be 
        effective only through the calendar week which includes the date 
        of intended termination, provided that this exception shall not 
        result in the payment of benefits for any week for which the 
        individual claimant receives the individual's claimant's normal 
        wage or salary which is equal to or greater than the weekly 
        benefit amount; 
           (6) the individual claimant is separated from employment 
        due to the completion of an apprenticeship program, or segment 
        thereof, approved pursuant to chapter 178; 
           (7) the individual claimant voluntarily leaves part-time 
        employment with a base period employer while continuing 
        full-time employment if the individual claimant attempted to 
        return to part-time employment after being separated from the 
        full-time employment, and if substantially the same part-time 
        employment with the base period employer was not available for 
        the individual claimant; 
           (8) the individual claimant is separated from employment 
        based solely on a provision in a collective bargaining agreement 
        by which an individual a claimant has vested discretionary 
        authority in another to act on behalf of the individual 
        claimant; 
           (9) except as provided in paragraph (d), separations from 
        part-time employment will not be disqualifying when the claim is 
        based on claimant has sufficient full-time employment to 
        establish a valid claim reemployment insurance account from 
        which the claimant has been separated for nondisqualifying 
        reasons; or 
           (10) the individual claimant accepts employment which 
        represents a substantial departure from the individual's 
        claimant's customary occupation and experience and would not be 
        deemed suitable work employment as defined under subdivision 2, 
        paragraphs (a) and (b), and within a period of 30 days from the 
        commencement of that work employment voluntarily discontinues 
        the employment due to reasons which would have caused the work 
        employment to be unsuitable under the provisions of subdivision 
        2 or, if in commission sales, because of a failure to earn gross 
        commissions averaging an amount equal to or in excess of the 
        individual's weekly benefit amount.  Other provisions 
        notwithstanding, applying this provision precludes the use of 
        these wage credits to clear a disqualification. 
           (d)  [DISCHARGE FOR GROSS MISCONDUCT.] The individual 
        claimant was discharged for gross misconduct connected with work 
        employment or gross misconduct which interferes with and 
        adversely affects the individual's claimant's employment.  For a 
        separation under this clause, the commissioner shall impose a 
        total disqualification for the benefit year and cancel all of 
        the wage credits from the last employer from whom the individual 
        claimant was discharged for gross misconduct connected with work 
        employment. 
           For the purpose of this paragraph "gross misconduct" is 
        defined as misconduct involving assault and battery or the 
        malicious destruction of property or arson or sabotage or 
        embezzlement or any other act, including theft, the commission 
        of which amounts to a felony or gross misdemeanor.  For an 
        employee of a facility, as defined in section 626.5572, gross 
        misconduct also includes misconduct involving an act of patient 
        or resident abuse, financial exploitation, or recurring or 
        serious neglect, as defined in section 626.5572 and applicable 
        rules. 
           If an individual a claimant is convicted of a felony or 
        gross misdemeanor for the same act or acts of misconduct for 
        which the individual claimant was discharged, the misconduct is 
        conclusively presumed to be gross misconduct if it was connected 
        with the individual's work claimant's employment. 
           (e)  [LIMITED OR NO CHARGE OF BENEFITS.] Benefits paid 
        subsequent to an individual's a claimant's separation under any 
        of the foregoing paragraphs, excepting paragraphs (c)(3), 
        (c)(5), and (c)(8), shall not be used as a factor in determining 
        the future contribution rate of the employer from whose 
        employment such individual the claimant separated. 
           Benefits paid subsequent to an individual's failure to 
        accept an offer of suitable reemployment or to accept 
        reemployment which offered substantially the same or better 
        hourly wages and conditions of work as were previously provided 
        by that employer, but was deemed unsuitable under subdivision 2, 
        shall not be used as a factor in determining the future 
        contribution rate of the employer whose offer of reemployment 
        was not accepted or whose offer of reemployment was refused 
        solely due to the distance of the available work from the 
        individual's residence, the individual's own serious illness, 
        the individual's other employment at the time of the offer, or 
        if the individual is in training with the approval of the 
        commissioner. 
           Benefits paid by another state as a result of Minnesota 
        transferring wage credits under the federally required combined 
        wage agreement shall not be directly charged to either the 
        taxpaying or reimbursing employer. 
           (f)  [ACTS OR OMISSIONS.] An individual A claimant who was 
        employed by an employer shall not be disqualified for benefits 
        under this subdivision for any acts or omissions occurring after 
        separation from employment with the employer.  
           (g)  [DISCIPLINARY SUSPENSIONS.] An individual A claimant 
        shall be disqualified for waiting week credit and benefits for 
        the duration of any disciplinary suspension of 30 days or less 
        resulting from the individual's claimant's own misconduct.  
        Disciplinary suspensions of more than 30 days shall constitute a 
        discharge from employment. 
           Sec. 20.  Minnesota Statutes 1994, section 268.09, 
        subdivision 2, is amended to read: 
           Subd. 2.  [FAILURE TO APPLY FOR OR ACCEPT SUITABLE 
        WORK EMPLOYMENT OR REEMPLOYMENT.] An individual A claimant shall 
        be disqualified for waiting week credit and benefits during the 
        week of occurrence and until four calendar weeks have elapsed 
        following the refusal or failure and the individual claimant has 
        earned eight times the individual's claimant's weekly benefit 
        amount in insured work if the commissioner finds that 
        the individual claimant has failed, without good cause, either 
        (1) to apply for available, suitable work employment of which 
        advised by an employer, the employment office, or the 
        commissioner; or (2) to accept suitable work employment, or 
        suitable reemployment with a former employer, when offered, or 
        to accept an offer of suitable reemployment from either a base 
        period employer or an employer who provided employment following 
        the base period but prior to the claim date. 
           Failure to apply or accept shall include avoidance of an 
        offer of suitable employment.  Avoidance shall include, but is 
        not limited to, a claimant's refusal to respond or failure to 
        monitor potential offers communicated by voice mail, electronic 
        messaging, or other technology.  Avoidance shall be found only 
        if the communication included a definite starting date and time, 
        location, wage level, and type of employment to be performed.  
           (a) In determining whether or not any work employment is 
        suitable for an individual a claimant, the commissioner shall 
        consider the degree of risk involved to health, safety, and 
        morals, physical fitness and prior training, experience, length 
        of unemployment and prospects of securing local work employment 
        in the individual's claimant's customary occupation, and the 
        distance of the available work employment from the 
        individual's claimant's residence.  
           (b) Notwithstanding any other provisions of sections 268.03 
        to 268.231, no work employment shall be deemed suitable, and 
        benefits shall not be denied thereunder to any otherwise 
        eligible individual claimant for refusing to accept new work 
        employment under any of the following conditions: 
           (1) if the position offered is vacant due directly to a 
        strike, lockout, or other labor dispute; 
           (2) if the wages, hours, or other conditions of the work 
        employment offered are substantially less favorable to 
        the individual claimant than those prevailing for similar work 
        employment in the locality; 
           (3) if as a condition of being employed the individual 
        claimant would be required to join a company union or to resign 
        from or refrain from joining any bona fide labor organization; 
           (4) if the individual claimant is in training with the 
        approval of the commissioner. 
           (c) Benefits paid subsequent to a claimant's avoidance or 
        failure to accept an offer of suitable reemployment or 
        reemployment which offered substantially the same or better 
        hourly wages and conditions of employment as were previously 
        provided by that employer, but was deemed unsuitable under 
        paragraph (a) or because the claimant was in training with the 
        approval of the commissioner, shall not be used as a factor in 
        determining the future contribution rate of the employer whose 
        offer was avoided or not accepted.  
           This paragraph shall not apply when the failure or 
        avoidance merely delayed acceptance of the offer and the 
        claimant later began full-time employment with the employer, or 
        when the employment was temporary in nature and the claimant 
        accepted other temporary employment from the employer within 30 
        days of the date of refusal or avoidance.  
           Sec. 21.  [268.101] [DETERMINATIONS ON DISQUALIFICATION AND 
        ELIGIBILITY.] 
           Subdivision 1.  [NOTIFICATION.] (a) Upon application for a 
        reemployment insurance account each claimant shall report the 
        name of all employers and the reasons for no longer working for 
        all employers during the claimant's last 30 days of employment. 
           (b) Upon establishment of a reemployment insurance account, 
        the commissioner shall notify all employers the claimant was 
        employed by during the claimant's last 30 days of employment 
        prior to making an application and all base period employers and 
        determined successors to those employers under section 268.06, 
        subdivision 22.  An employer so notified shall have ten days 
        after the mailing of the notice to make a protest in a manner 
        prescribed by the commissioner raising any issue of 
        disqualification or any issue of eligibility.  An employer so 
        notified shall be informed of the effect that failure to timely 
        protest may have on the employer charges.  A protest made more 
        than ten days after mailing of the notice shall be considered 
        untimely. 
           (c) Each claimant shall report any employment, loss of 
        employment, and offers of employment received, for those weeks 
        the claimant made continued claims for benefits.  Each claimant 
        who stops making continued claims during the benefit year and 
        later commences making continued claims during that same benefit 
        year shall report the name of any employer the claimant worked 
        for during the period between the making of continued claims, up 
        to a period of the last 30 days of employment, and the reason 
        the claimant stopped working for the employer.  The claimant 
        shall report any offers of employment during the period between 
        the making of continued claims.  Those employers from which the 
        claimant has reported a loss of employment or an offer of 
        employment pursuant to this paragraph shall be notified.  An 
        employer so notified shall have ten days after the mailing of 
        the notice to make a protest in a manner prescribed by the 
        commissioner raising any issue of disqualification or any issue 
        of eligibility.  An employer so notified shall be informed of 
        the effect that failure to timely protest may have on the 
        employer charges.  A protest made more than ten days after 
        mailing of the notice shall be considered untimely. 
           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 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 appeal is 
        filed by the claimant or notified employer within 15 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 earnings.  
           (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 earnings sufficient to satisfy any otherwise 
        potential disqualification.  
           Subd. 3.  [ELIGIBILITY DETERMINATION.] (a) The commissioner 
        shall promptly determine any issue of eligibility raised by a 
        timely protest made by an employer and mail to the claimant and 
        that employer at the last known address a determination of 
        eligibility or a determination of ineligibility, as is 
        appropriate. 
           (b) The commissioner shall promptly determine any issue of 
        eligibility raised by information obtained from a claimant and 
        mail to the claimant and any involved employer at the last known 
        address a determination of eligibility or a determination of 
        ineligibility, as is appropriate. 
           (c) The commissioner shall promptly determine any issue of 
        eligibility raised by an untimely protest made by an employer 
        and mail to the claimant and that employer at the last known 
        address a determination of eligibility or a determination of 
        ineligibility, as is appropriate.  Any denial of benefits 
        imposed as a result of determination issued pursuant to this 
        paragraph shall commence 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 appeal is filed by 
        the claimant or notified employer within 15 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. 
           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 appeal is filed by the claimant or notified employer 
        within 15 days after mailing of the amended determination to the 
        last known address.  Proceedings on the appeal shall be 
        conducted in accordance with section 268.105. 
           Subd. 5.  [PROMPT PAYMENT.] If a determination or amended 
        determination awards benefits, the benefits shall be promptly 
        paid regardless of any appeal period or any appeal having been 
        filed. 
           Subd. 6.  [OVERPAYMENT.] A determination or amended 
        determination which holds a claimant disqualified or ineligible 
        for benefits for periods a claimant has been paid benefits is an 
        overpayment of those benefits subject to section 268.18. 
           Sec. 22.  Minnesota Statutes 1995 Supplement, section 
        268.105, is amended by adding a subdivision to read: 
           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 
        be deemed overpaid nor shall the benefits paid be considered in 
        determining the employer's future contribution rate under 
        section 268.06. 
           (e) If the commissioner, pursuant to subdivision 3, remands 
        a matter to a reemployment insurance judge for the taking of 
        additional evidence, the prior reemployment insurance judge's 
        decision shall continue to be enforced until new findings of 
        fact and decision are made by a reemployment insurance judge. 
           Sec. 23.  Minnesota Statutes 1994, section 268.12, is 
        amended by adding a subdivision to read: 
           Subd. 9a.  [TESTIMONIAL POWERS.] (1) In the discharge of 
        the duties imposed by sections 268.03 to 268.23, the 
        commissioner, appeal referee, or any duly authorized 
        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 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, other than interested parties or officers 
        and employees of an employing unit which is an interested party, 
        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 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. 
           Sec. 24.  Minnesota Statutes 1994, section 268.16, 
        subdivision 4, is amended to read: 
           Subd. 4.  [COMPROMISE AGREEMENTS.] The commissioner, or any 
        officer or employee of the state department of economic security 
        authorized in writing by the commissioner, is authorized to 
        enter into an agreement in writing with any employer relating to 
        the liability of such employer in respect to delinquent 
        contributions, reimbursements, interest, penalties, and costs.  
        The commissioner may also enter into an agreement, with respect 
        to liability for delinquent contributions, interest, penalties 
        and costs, with any employer who has never paid any 
        contributions to the fund and such failure to pay contributions 
        was, in the opinion of the commissioner, due to an honest belief 
        on the part of such employer that the employer was not covered 
        by sections 268.03 to 268.231.  Any agreements made under this 
        subdivision shall be subject to the approval of the attorney 
        general. 
           If such agreements are approved by the commissioner and the 
        attorney general, the same shall be final and conclusive; and, 
        except upon a showing of fraud or malfeasance or 
        misrepresentation of a material fact, the case shall not be 
        reopened as to the matters agreed upon or the agreement modified 
        by any officer, employee or agent of the state; and, in any 
        suit, action or proceeding, such agreement, or any 
        determination, assessment, collection, payment, abatement, 
        refund, or credit made in accordance therewith, shall not be 
        annulled, modified, set aside or destroyed. 
           (a) The commissioner, or an authorized representative, may 
        compromise in whole or in part any action, determination, or 
        decision which affects an employer and which has become final 
        during the preceding 24 months. 
           (b) The commissioner, or an authorized representative, may 
        at any time compromise delinquent employer contributions, 
        reimbursements, interest, penalties, and costs under this 
        section. 
           (c) Any compromise under paragraphs (a) and (b) shall be by 
        written agreement signed by the employing unit and the 
        commissioner or authorized representative. 
           The department shall enter into a compromise agreement only 
        if it is in the best interest of the state of Minnesota.  The 
        written agreement must set forth the reason and all the terms of 
        the agreement.  Any agreements under this section must be 
        approved by an attorney who is a regularly salaried employee of 
        the department and who has been designated by the commissioner 
        for that purpose. 
           Sec. 25.  Minnesota Statutes 1995 Supplement, section 
        268.161, subdivision 9, is amended to read: 
           Subd. 9.  [PERSONAL LIABILITY.] Any officer, director, or 
        employee of a corporation or any manager, governor, member, or 
        employee of a limited liability company which is an employer 
        under sections 268.03 to 268.231, who 
           (1) either individually or jointly with others, have or 
        should have had control of, supervision over, or responsibility 
        for the filing of the tax reports or the making of payments 
        under this chapter, and 
           (2) willfully fails to file the reports or to make payments 
        as required, shall be personally liable for contributions or 
        reimbursement, including interest, penalties, and costs in the 
        event the corporation employer does not pay to the department 
        those amounts for which the employer is liable. 
           For purposes of this subdivision, "willfulness" means that 
        the facts demonstrate that the responsible party used or allowed 
        the use of corporate or company assets to pay other creditors 
        knowing that the payments required under this chapter were 
        unpaid.  An evil motive or intent to defraud is not necessary to 
        satisfy the willfulness requirement.  
           Any partner of a limited liability partnership, or 
        professional limited liability partnership, shall be jointly and 
        severally liable for contributions or reimbursement, including 
        interest, penalties, and costs in the event the employer does 
        not pay to the department those amounts for which the employer 
        is liable.  
           Any personal representative of the estate of a decedent or 
        fiduciary who voluntarily distributes the assets filed therein 
        without reserving a sufficient amount to pay the contributions, 
        interest, and penalties due pursuant to this chapter shall be 
        personally liable for the deficiency. 
           The personal liability of any person as provided herein 
        shall survive dissolution, reorganization, receivership, or 
        assignment for the benefit of creditors.  For the purposes of 
        this subdivision, all wages paid by the corporation employer 
        shall be considered earned from the person determined to be 
        personally liable. 
           An official designated by the commissioner shall make an 
        initial determination as to the personal liability under this 
        section.  The determination shall be final unless the person 
        found to be personally liable shall within 30 days after mailing 
        of notice of determination to the person's last known address 
        file a written protest.  Upon receipt of the protest, the 
        official shall reexamine the personal liability determination 
        and either affirm or redetermine the assessment of personal 
        liability and a notice of the affirmation or redetermination 
        shall be mailed to the person's last known address.  The 
        affirmation or redetermination shall become final unless a 
        written appeal is filed within ten 30 days of the date of 
        mailing.  Proceedings on the appeal shall be conducted in 
        accordance with section 268.105.  
           Sec. 26.  Minnesota Statutes 1994, section 268.164, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [UNEMPLOYMENT CLEARANCE REQUIRED.] The 
        state or a political subdivision of the state may not issue, 
        transfer, or renew, and must revoke a license for the conduct of 
        any profession, trade, or business, if the commissioner notifies 
        the licensing authority that the applicant owes the state 
        delinquent contributions, reimbursements, or benefit 
        overpayments.  The commissioner may not notify the licensing 
        authority unless the applicant owes $500 or more to the 
        reemployment insurance fund.  A licensing authority that has 
        received a notice from the commissioner may issue, transfer, or 
        renew, or not revoke the applicant's license only if (a) the 
        commissioner issues an unemployment tax clearance certificate; 
        and (b) the commissioner or the applicant forwards a copy of the 
        clearance to the licensing authority. 
           Sec. 27.  Minnesota Statutes 1994, section 268.164, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ISSUANCE OF CLEARANCE.] The commissioner may 
        issue an unemployment tax clearance certificate only if (a) the 
        applicant does not owe the state any delinquent contributions, 
        reimbursements, or benefit overpayments; or (b) the applicant 
        has entered into a payment agreement to liquidate the delinquent 
        contributions, reimbursements, or benefit overpayments and is 
        current with all the terms of that payment agreement. 
           For the purposes of this section, "applicant" means:  (a) 
        an individual if the license is issued to or in the name of an 
        individual, or the corporation, limited liability company, or 
        partnership if the license is issued to or in the name of a 
        corporation, limited liability company, or partnership; or (b) 
        an officer of a corporation, manager of a limited liability 
        company, or a member of a partnership, or an individual who is 
        liable for the delinquent contributions, reimbursements, or 
        benefit overpayments, either for the entity for which the 
        license is at issue or for another entity for which the 
        liability was incurred, or personally as a licensee.  In the 
        case of a license transfer, "applicant" means both the 
        transferor and the transferee of the license.  "Applicant" also 
        means any holder of a license. 
           Sec. 28.  [268.167] [GARNISHMENT FOR DELINQUENT TAXES AND 
        BENEFIT OVERPAYMENTS.] 
           (a) The commissioner or an authorized representative may, 
        within six years after the date of assessment of the tax 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 taxes or 
        reimbursements including penalties, interest, and costs, or has 
        an unpaid benefit overpayment.  The commissioner can proceed 
        under this subdivision only if the tax or benefit overpayment is 
        uncontested or if the time for appeal has expired.  The 
        commissioner shall not proceed under this subdivision until the 
        expiration of 30 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, 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. 
        The effect of the notice shall expire 180 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.  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 days from the mailing of the notice, the 
        commissioner may proceed under this subdivision.  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 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 assignment within ten days after 
        the service of the notice of delinquency on the form provided by 
        the commissioner as noted in this subdivision. 
           (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.  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 days after the expiration of such 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. 
           (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.  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 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. 
           Sec. 29.  Minnesota Statutes 1995 Supplement, section 
        268.18, subdivision 1, is amended to read: 
           Subdivision 1.  [ERRONEOUS PAYMENTS.] (a) Any claimant for 
        benefits who, by reason of the claimant's own mistake or through 
        the error of any individual engaged in the administration of 
        sections 268.03 to 268.231 or because of a determination or, 
        redetermination, or amended determination issued pursuant to 
        section 268.10, subdivision 2 268.07 or 268.101, has received 
        any sum as benefits to which the claimant was not entitled under 
        these sections, shall promptly return those benefits in cash to 
        the nearest office of the Minnesota department of economic 
        security.  If the claimant fails to return the benefits, the 
        department of economic security shall, as soon as it discovers 
        the erroneous payment, determine the amount due and notify the 
        individual to return it. 
           (b) Unless the claimant files a written appeal with the 
        department of economic security within 15 days after the mailing 
        of the notice of determination to the claimant's last known 
        address or personal delivery of the notice, the determination 
        shall become final.  Proceedings on the appeal shall be 
        conducted in accordance with section 268.105. 
           (c) The commissioner of the department of economic security 
        is authorized to deduct from any future benefits payable to the 
        claimant under these sections in either the current or any 
        subsequent benefit year an amount equivalent to the overpayment 
        determined, except that no single deduction shall exceed 50 
        percent of the amount of the payment from which the deduction is 
        made, or the overpayment may be collected the same as 
        contributions or reimbursements under section 268.161.  If a 
        claimant has been overpaid benefits under the law of another 
        state due to error and that state certifies to the department 
        the facts involved and that the individual is liable under its 
        law to repay the benefits and requests the department to recover 
        the overpayment, the commissioner is authorized to deduct from 
        future benefits payable to the claimant in either the current or 
        any subsequent benefit year an amount equivalent to the amount 
        of overpayment determined by that state, except that no single 
        deduction shall exceed 50 percent of the amount of the payment 
        from which the deduction is made.  Benefits paid for weeks more 
        than three years prior to the discovery of error are not 
        erroneous payments. 
           (d) Notwithstanding paragraph (a), the commissioner shall 
        waive recovery of an overpayment if a reemployment insurance 
        judge or the commissioner's representative determines the 
        overpayment resulted from an administrative failure to identify 
        that a claimant's wage credits were not earned in covered 
        employment. 
           Sec. 30.  Minnesota Statutes 1994, section 268.23, is 
        amended to read: 
           268.23 [SEVERABLE.] 
           In the event that the United States department of labor 
        shall determine that any provision of sections 268.03 to 
        268.231, or any other provision of Minnesota Statutes relating 
        to reemployment insurance, is not in conformity with various 
        provisions of the Federal Internal Revenue Code or the Social 
        Security Act then such provision shall have no force or effect 
        for any purpose but if any such provision of sections 268.03 to 
        268.231, or the application thereof to any person or 
        circumstances, is held invalid, the remainder of said sections 
        and the application of such provision to other persons or 
        circumstances shall not be affected thereby. 
           Sec. 31.  [REVISOR INSTRUCTION.] 
           In the next edition of Minnesota Statutes, the revisor 
        shall change the phrase "268.03 to 268.231" to "268.03 to 268.23", 
        wherever it appears. 
           Sec. 32.  [REPEALER.] 
           (a) Minnesota Statutes 1994, section 268.04, subdivisions 
        18 and 24, are repealed. 
           (b) Minnesota Statutes 1994, section 268.10, subdivision 1, 
        and Minnesota Statutes 1995 Supplement, section 268.10, 
        subdivision 2, are repealed. 
           (c) Minnesota Statutes 1994, section 268.231, is repealed. 
           (d) Laws 1994, chapter 503, section 5, is repealed. 
           Sec. 33.  [EFFECTIVE DATE.] 
           Sections 1 to 3, 5, 7 to 16, 18 to 22, 29, and 32 are 
        effective July 1, 1996. 
           Sections 4, 6, 24 to 28, 30, and 31 are effective the day 
        following final enactment. 
           Section 17 is effective December 31, 1996. 
           Presented to the governor March 30, 1996 
           Signed by the governor April 2, 1996, 12:45 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