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

                            CHAPTER 512-H.F.No. 2159 
                  An act relating to limited liability companies; 
                  providing for the application of workers' compensation 
                  and unemployment compensation laws; amending Minnesota 
                  Statutes 1992, section 176.041, subdivision 1; 
                  Minnesota Statutes 1993 Supplement, sections 176.041, 
                  subdivision 1a; and 268.04, subdivision 12. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1992, section 176.041, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [EMPLOYMENTS EXCLUDED.] This chapter does 
        not apply to any of the following:  
           (a) a person employed by a common carrier by railroad 
        engaged in interstate or foreign commerce and who is covered by 
        the Federal Employers' Liability Act, United States Code, title 
        45, sections 51 to 60, or other comparable federal law; 
           (b) a person employed by a family farm as defined by 
        section 176.011, subdivision 11a; 
           (c) the spouse, parent, and child, regardless of age, of a 
        farmer-employer working for the farmer-employer; 
           (d) a sole proprietor, or the spouse, parent, and child, 
        regardless of age, of a sole proprietor; 
           (e) a partner engaged in a farm operation or a partner 
        engaged in a business and the spouse, parent, and child, 
        regardless of age, of a partner in the farm operation or 
        business; 
           (f) an executive officer of a family farm corporation; 
           (g) an executive officer of a closely held corporation 
        having less than 22,880 hours of payroll in the preceding 
        calendar year, if that executive officer owns at least 25 
        percent of the stock of the corporation; 
           (h) a spouse, parent, or child, regardless of age, of an 
        executive officer of a family farm corporation as defined in 
        section 500.24, subdivision 2, and employed by that family farm 
        corporation; 
           (i) a spouse, parent, or child, regardless of age, of an 
        executive officer of a closely held corporation who is referred 
        to in paragraph (g); 
           (j) another farmer or a member of the other farmer's family 
        exchanging work with the farmer-employer or family farm 
        corporation operator in the same community; 
           (k) a person whose employment at the time of the injury is 
        casual and not in the usual course of the trade, business, 
        profession, or occupation of the employer; 
           (l) persons who are independent contractors as defined by 
        rules adopted by the commissioner pursuant to section 176.83 
        except that this exclusion does not apply to an employee of an 
        independent contractor; 
           (m) an officer or a member of a veterans' organization 
        whose employment relationship arises solely by virtue of 
        attending meetings or conventions of the veterans' organization, 
        unless the veterans' organization elects by resolution to 
        provide coverage under this chapter for the officer or member; 
           (n) a person employed as a household worker in, for, or 
        about a private home or household who earns less than $1,000 in 
        cash in a three-month period from a single private home or 
        household provided that a household worker who has earned $1,000 
        or more from the household worker's present employer in a 
        three-month period within the previous year is covered by this 
        chapter regardless of whether or not the household worker has 
        earned $1,000 in the present quarter; 
           (o) persons employed by a closely held corporation who are 
        related by blood or marriage, within the third degree of kindred 
        according to the rules of civil law, to an officer of the 
        corporation, who is referred to in paragraph (g), if the 
        corporation files a written election with the commissioner to 
        exclude such individuals.  A written election is not required 
        for a person who is otherwise excluded from this chapter by this 
        section; 
           (p) a nonprofit association which does not pay more than 
        $1,000 in salary or wages in a year; 
           (q) persons covered under the Domestic Volunteer Service 
        Act of 1973, as amended, United States Code, title 42, sections 
        5011, et. seq.; 
           (r) a manager of a limited liability company having ten or 
        fewer members and having less than 22,880 hours of payroll in 
        the preceding calendar year, if that manager owns at least a 25 
        percent membership interest in the limited liability company; 
           (s) a spouse, parent, or child, regardless of age, of a 
        manager of a limited liability company described in paragraph 
        (r); 
           (t) persons employed by a limited liability company having 
        ten or fewer members and having less than 22,880 hours of 
        payroll in the preceding calendar year who are related by blood 
        or marriage, within the third degree of kindred according to the 
        rules of civil law, to a manager of a limited liability company 
        described in paragraph (r), if the company files a written 
        election with the commissioner to exclude these persons.  A 
        written election is not required for a person who is otherwise 
        excluded from this chapter by this section; or 
           (u) members of limited liability companies who satisfy the 
        requirements of paragraph (l). 
           Sec. 2.  Minnesota Statutes 1993 Supplement, section 
        176.041, subdivision 1a, is amended to read: 
           Subd. 1a.  [ELECTION OF COVERAGE.] The persons, 
        partnerships, limited liability companies, and corporations 
        described in this subdivision may elect to provide the insurance 
        coverage required by this chapter. 
           (a) An owner or owners of a business or farm may elect 
        coverage for themselves.  
           (b) A partnership owning a business or farm may elect 
        coverage for any partner.  
           (c) A family farm corporation as defined in section 500.24, 
        subdivision 2, clause (c), may elect coverage for any executive 
        officer.  
           (d) A closely held corporation which had less than 22,880 
        hours of payroll in the previous calendar year may elect 
        coverage for any executive officer if that executive officer is 
        also an owner of at least 25 percent of the stock of the 
        corporation.  
           (e) A limited liability company which had less than 22,880 
        hours of payroll in the previous calendar year may elect 
        coverage for any manager if that manager is also an owner of at 
        least 25 percent membership interest in the limited liability 
        company.  
           (f) A person, partnership, limited liability company, or 
        corporation hiring an independent contractor, as defined by 
        rules adopted by the commissioner, may elect to provide coverage 
        for that independent contractor.  
           A person, partnership, limited liability company, or 
        corporation may charge the independent contractor a fee for 
        providing the coverage only if the independent contractor (1) 
        elects in writing to be covered, (2) is issued an endorsement 
        setting forth the terms of the coverage, the name of the 
        independent contractors, and the fee and how it is calculated. 
           The persons, partnerships, limited liability companies, and 
        corporations described in this subdivision may also elect 
        coverage for an employee who is a spouse, parent, or child, 
        regardless of age, of an owner, partner, manager, or executive 
        officer, who is eligible for coverage under this subdivision.  
        Coverage may be elected for a spouse, parent, or child whether 
        or not coverage is elected for the related owner, 
        partner, manager, or executive director and whether or not the 
        person, partnership, limited liability company, or corporation 
        employs any other person to perform a service for hire.  Any 
        person for whom coverage is elected pursuant to this subdivision 
        shall be included within the meaning of the term employee for 
        the purposes of this chapter. 
           Notice of election of coverage or of termination of 
        election under this subdivision shall be provided in writing to 
        the insurer.  Coverage or termination of coverage is effective 
        the day following receipt of notice by the insurer or at a 
        subsequent date if so indicated in the notice.  The insurance 
        policy shall be endorsed to indicate the names of those persons 
        for whom coverage has been elected or terminated under this 
        subdivision.  An election of coverage under this subdivision 
        shall continue in effect as long as a policy or renewal policy 
        of the same insurer is in effect.  
           Nothing in this subdivision shall be construed to limit the 
        responsibilities of owners, partnerships, limited liability 
        companies, or corporations to provide coverage for their 
        employees, if any, as required under this chapter. 
           Sec. 3.  Minnesota Statutes 1993 Supplement, section 
        268.04, subdivision 12, is amended to read: 
           Subd. 12.  [EMPLOYMENT.] "Employment" means:  (1) Any 
        service performed, including service in interstate commerce, by; 
           (a) any officer of any corporation; 
           (b) any member of a limited liability company who owns less 
        than ten percent of the governance rights of the limited 
        liability company is a servant under the law of master and 
        servant; 
           (c) any individual who performs services for remuneration 
        for any person as an agent-driver or commission-driver engaged 
        in distributing meat products, vegetable products, fruit 
        products, bakery products, beverages, or laundry or dry cleaning 
        services, for a principal, or as a traveling or city 
        salesperson, other than as an agent-driver or commission-driver, 
        engaged upon a full-time basis in the solicitation on behalf of, 
        and the transmission to, a principal (except for sideline sales 
        activities on behalf of some other person) of orders from 
        wholesalers, retailers, contractors, or operators of hotels, 
        restaurants, or other similar establishments for merchandise for 
        resale or supplies for use in their business operations; or 
           (d) any individual who is a servant under the law of master 
        and servant or who performs services for any employing unit, 
        unless such services are performed by an independent contractor. 
           Provided, that for purposes of clause (1)(c), the term 
        "employment" shall include services described above only if the 
        contract of service contemplates that substantially all of the 
        services are to be performed personally by such individual, the 
        individual does not have a substantial investment in facilities 
        used in connection with the performance of the services (other 
        than in facilities for transportation), and the services are not 
        in the nature of a single transaction that is not part of a 
        continuing relationship with the person for whom the services 
        are performed. 
           (2) The term "employment" shall include an individual's 
        entire service, performed within or both within and without this 
        state if (a) the service is localized in this state; or (b) the 
        service is not localized in any state but some of the service is 
        performed in this state and (1) the base of operations, or, if 
        there is no base of operations, then the place from which such 
        service is directed or controlled, is in this state; or (2) the 
        base of operations or place from which such service is directed 
        or controlled is not in any state in which some part of the 
        service is performed, but the individual's residence is in this 
        state. 
           (3) Service shall be deemed to be localized within a state 
        if (a) the service is performed entirely within such state; or 
        (b) the service is performed both within and without such state, 
        but the service performed without such state is incidental to 
        the individual's service within the state, for example, is 
        temporary or transitory in nature or consists of isolated 
        transactions. 
           (4) The term "employment" shall include an individual's 
        service wherever performed within the United States or Canada, 
        if 
           (a) such service is not covered under the unemployment 
        compensation law of any other state or Canada, and 
           (b) the place from which the service is directed or 
        controlled is in this state. 
           (5)(a) Service covered by an election pursuant to section 
        268.11, subdivision 3; and 
           (b) service covered by an arrangement pursuant to section 
        268.13 between the commissioner and the agency charged with the 
        administration of any other state or federal employment security 
        law, pursuant to which all service performed by an individual 
        for an employing unit is deemed to be performed entirely within 
        this state, shall be deemed to be employment if the commissioner 
        has approved an election of the employing unit for which such 
        service is performed, pursuant to which the entire service of 
        such individual during the period covered by such election is 
        deemed to be employment. 
           (6) Notwithstanding any inconsistent provisions of sections 
        268.03 to 268.231, the term "employment" shall include any 
        services which are performed by an individual with respect to 
        which an employing unit is liable for any federal tax against 
        which credit may be taken for contributions required to be paid 
        into a state unemployment compensation fund or which as a 
        condition for full tax credit against the tax imposed by the 
        Federal Unemployment Tax Act is required to be covered under 
        this law. 
           (7) Service performed by an individual in the employ of the 
        state of Minnesota or any instrumentality which is wholly owned 
        by the state of Minnesota or in the employ of this state and one 
        or more other states or an instrumentality of this state and one 
        or more of its political subdivisions or an instrumentality of 
        this state and another state or an instrumentality of this state 
        and one or more political subdivisions of another state if such 
        service is excluded from "employment" as defined by section 
        3306(c)(7) of the Federal Unemployment Tax Act and is not 
        excluded from "employment" under clause (10). 
           (8) Service performed by an individual in the employ of any 
        political subdivision of the state of Minnesota or 
        instrumentality thereof or an instrumentality of two or more 
        political subdivisions of this state or any instrumentality of a 
        political subdivision of this state and another state or 
        political subdivisions of another state if such service is 
        excluded from "employment" as defined by section 3306(c)(7) of 
        the Federal Unemployment Tax Act and is not excluded from 
        "employment" under clause (10). 
           (9) Service performed by an individual in the employ of a 
        religious, charitable, educational or other organization but 
        only if the following conditions are met: 
           (a) the service is excluded from "employment" as defined in 
        the Federal Unemployment Tax Act solely by reason of section 
        3306(c)(8) of that act; and 
           (b) the organization had one or more individuals in 
        employment for some portion of a day in each of 20 different 
        weeks, whether or not such weeks were consecutive, within either 
        the current or preceding calendar year, regardless of whether 
        they were employed at the same moment of time. 
           (10) For the purposes of clauses (7), (8), and (9), the 
        term "employment" does not apply to service performed 
           (a) in the employ of a church or convention or association 
        of churches, or an organization which is operated primarily for 
        religious purposes and which is operated, supervised, 
        controlled, or principally supported by a church or convention 
        or association of churches; or 
           (b) by a duly ordained, commissioned, or licensed minister 
        of a church in the exercise of a ministry or by a member of a 
        religious order in the exercise of duties required by such 
        order; or 
           (c) in a facility conducted for the purpose of carrying out 
        a program of rehabilitation for individuals whose earning 
        capacity is impaired by age or physical or mental deficiency or 
        injury or a program providing remunerative work for individuals 
        who because of an impaired physical or mental capacity cannot be 
        readily absorbed in the competitive labor market, by an 
        individual receiving the rehabilitation or remunerative work.  
        This exclusion applies only to services performed in a facility 
        which is certified by the Minnesota department of jobs and 
        training, division of rehabilitative services or in day training 
        and habilitation programs licensed by the department of human 
        services, and is limited to the effective period of the 
        certificate or license; or 
           (d) as part of an unemployment work relief or work training 
        program assisted or financed in whole or in part by any federal 
        agency or an agency of a state or political subdivision thereof, 
        by an individual receiving such work relief or work training.  
        This exclusion shall not apply to programs that provide for and 
        require unemployment insurance coverage for the participants; or 
           (e) by an inmate of a custodial or penal institution; or 
           (f) in the employ of governmental entities referred to in 
        clauses (7) and (8) if such service is performed by an 
        individual in the exercise of duties 
           (i) as an elected official, 
           (ii) as a member of a legislative body, or a member of the 
        judiciary, 
           (iii) as a member of the Minnesota national guard or air 
        national guard, 
           (iv) as an employee serving only on a temporary basis in 
        case of fire, storm, snow, earthquake, flood or similar 
        emergency, 
           (v)(a) in a position with the state of Minnesota which is a 
        major nontenured policy making or advisory position in the 
        unclassified service, or 
           (b) a policy making position with the state of Minnesota or 
        a political subdivision the performance of the duties of which 
        ordinarily does not require more than eight hours per week; or 
           (c) in a position with a political subdivision which is a 
        major nontenured policy making or advisory position. 
           (11) The term "employment" shall include the service of an 
        individual who is a citizen of the United States, performed 
        outside the United States, except in Canada, in the employ of an 
        American employer (other than service which is deemed 
        "employment" under the provisions of clause (2), (3), or (4) or 
        the parallel provisions of another state's law) if: 
           (a) The employer's principal place of business in the 
        United States is located in this state; or 
           (b) The employer has no place of business in the United 
        States, but the employer is an individual who is a resident of 
        this state, or the employer is a corporation which is organized 
        under the laws of this state, or the employer is a partnership 
        or a trust and the number of partners or trustees who are 
        residents of this state is greater than the number who are 
        residents of any one other state; or 
           (c) None of the criteria of clauses (a) and (b) is met but 
        the employer has elected coverage in this state, or the employer 
        having failed to elect coverage in any state, the individual has 
        filed a claim for benefits, based on such service, under the law 
        of this state. 
           (d) An "American employer," for the purposes of this 
        subdivision, means a person who is an individual who is a 
        resident of the United States, or a partnership if two-thirds or 
        more of the partners are residents of the United States, or a 
        trust, if all of the trustees are residents of the United 
        States, or a corporation organized under the laws of the United 
        States or of any state; 
           (e) As used in this subdivision, the term "United States" 
        includes the states, the District of Columbia, the Commonwealth 
        of Puerto Rico, and the Virgin Islands. 
           (12) Notwithstanding clause (2), all service performed by 
        an officer or member of the crew of an American vessel on or in 
        connection with such vessel, if the operating office, from which 
        the operations of such vessel operating on navigable waters 
        within, or within and without, the United States are ordinarily 
        and regularly supervised, managed, directed, and controlled is 
        within this state. 
           (13) Service performed by an individual in agricultural 
        labor as defined in clause (15)(a) when: 
           (a) Such service is performed for a person who: 
           (i) during any calendar quarter in either the current or 
        the preceding calendar year paid wages of $20,000 or more to 
        individuals employed in agricultural labor, or 
           (ii) for some portion of a day in each of 20 different 
        calendar weeks, whether or not such weeks were consecutive, in 
        either the current or preceding calendar year employed in 
        agricultural labor four or more individuals regardless of 
        whether they were employed at the same time. 
           (b) For the purpose of this clause (13) any individual who 
        is a member of a crew furnished by a crew leader to perform 
        service in agricultural labor for any other person shall be 
        treated as an employee of the crew leader: 
           (i) if the crew leader holds a valid certificate of 
        registration under the Migrant and Seasonal Agricultural Worker 
        Protection Act; or substantially all of the members of the crew 
        operate or maintain tractors, mechanized harvesting or crop 
        dusting equipment, or any other mechanized equipment, which is 
        provided by the crew leader; and 
           (ii) if the individual is not an employee of another person 
        as determined by clause (1). 
           (c) For the purpose of this clause (13) in the case of any 
        individual who is furnished by a crew leader to perform service 
        in agricultural labor for any other person and who is not 
        treated as an employee of the crew leader under subclause 
        (13)(b): 
           (i) such other person and not the crew leader shall be 
        treated as the employer of such individual; and 
           (ii) such other person shall be treated as having paid 
        wages to such individual in an amount equal to the amount of 
        wages paid to such individual by the crew leader (either on the 
        crew leader's behalf or on behalf of such other person) for the 
        service in agricultural labor performed for such other person. 
           (d) For the purposes of this clause (13) the term "crew 
        leader" means an individual who: 
           (i) furnishes individuals to perform service in 
        agricultural labor for any other person, 
           (ii) pays (either on the crew leader's own behalf or on 
        behalf of such other person) the individuals so furnished by the 
        crew leader for the service in agricultural labor performed by 
        them, and 
           (iii) has not entered into a written agreement with such 
        other person under which such furnished individual is designated 
        as an employee of such other person. 
           (e) For the purposes of this clause (13) services performed 
        by an officer or shareholder of a family farm corporation shall 
        be excluded from agricultural labor and employment unless said 
        corporation is an employer as defined in section 3306(a)(2) of 
        the Federal Unemployment Tax Act. 
           (f) For the purposes of this clause (13), services 
        performed by an individual 16 years of age or under shall be 
        excluded from agricultural labor and employment unless the 
        employer is an employer as defined in section 3306(a)(2) of the 
        Federal Unemployment Tax Act. 
           (14) Domestic service in a private home, local college 
        club, or local chapter of a college fraternity or sorority 
        performed for a person who paid wages of $1,000 or more in any 
        calendar quarter in either the current or preceding calendar 
        year to individuals employed in domestic service. 
           "Domestic service" includes all service for an individual 
        in the operation and maintenance of a private household, for a 
        local college club, or local chapter of a college fraternity or 
        sorority as distinguished from service as an employee in the 
        pursuit of an employer's trade, occupation, profession, 
        enterprise, or vocation. 
           (15) The term "employment" shall not include: 
           (a) Agricultural labor.  Service performed by an individual 
        in agricultural labor, except as provided in clause (13).  The 
        term "agricultural labor" includes all services performed: 
           (1) On a farm, in the employ of any person or family farm 
        corporation, in connection with cultivating the soil, or in 
        connection with raising or harvesting any agricultural or 
        horticultural commodity, including the raising, shearing, 
        feeding, caring for, training, and management of livestock, 
        bees, poultry, fur-bearing animals and wildlife; 
           (2) In the employ of the owner or tenant or other operator 
        of a farm, in connection with the operation, management, 
        conservation, improvement, or maintenance of such farm and its 
        tools and equipment, or in salvaging timber or clearing land of 
        brush and other debris left by a tornadic-like storm, if the 
        major part of such service is performed on a farm; 
           (3) In connection with the production or harvesting of any 
        commodity defined as an agricultural commodity in section 15(g) 
        of the Agricultural Marketing Act, as amended (46 Statutes 1550, 
        section 3; United States Code, title 12, section 1141j) or in 
        connection with the ginning of cotton, or in connection with the 
        operation or maintenance of ditches, canals, reservoirs, or 
        waterways, not owned or operated for profit, used exclusively 
        for supplying and storing water for farming purposes; 
           (4) In the employ of the operator of a farm in handling, 
        planting, drying, packing, packaging, processing, freezing, 
        grading, storing, or delivering to storage or to market or to a 
        carrier for transportation to market, in its unmanufactured 
        state, any agricultural or horticultural commodity; but only if 
        such operator produced more than one-half of the commodity with 
        respect to which such service is performed, or in the employ of 
        a group of operators of farms (or a cooperative organization of 
        which such operators are members) in the performance of service 
        described herein, but only if such operators produced more than 
        one-half of the commodity with respect to which such service is 
        performed; however, the provisions of this paragraph shall not 
        be deemed to be applicable with respect to service performed in 
        connection with commercial canning or commercial freezing or in 
        connection with any agricultural or horticultural commodity 
        after its delivery to a terminal market for distribution for 
        consumption; or 
           (5) On a farm operated for profit if such service is not in 
        the course of the employer's trade or business. 
           As used herein, the term "farm" includes stock, dairy, 
        poultry, fruit, fur-bearing animal, and truck farms, 
        plantations, ranches, nurseries, ranges, greenhouses or other 
        similar structures used primarily for the raising of 
        agricultural or horticultural commodities, and orchards. 
           (b) Casual labor not in the course of the employing unit's 
        trade or business; 
           (c) Service performed on the navigable waters of the United 
        States as to which this state is prohibited by the constitution 
        and laws of the United States of America from requiring 
        contributions of employers with respect to wages as provided in 
        sections 268.03 to 268.231; 
           (d) Service performed by an individual in the employ of a 
        son, daughter, or spouse, and service performed by a child under 
        the age of 18 in the employ of the child's father or mother; 
           (e) Service performed in the employ of the United States 
        government, or any instrumentality of the United States exempt 
        under the constitution of the United States from the 
        contributions imposed by sections 268.03 to 268.231, except that 
        with respect to such service and to the extent that the congress 
        of the United States shall permit states to require any 
        instrumentalities of the United States to make payments into an 
        unemployment compensation fund under a state unemployment 
        compensation act; then, to the extent permitted by congress, and 
        from and after the date as of which such permission becomes 
        effective, all of the provisions of these sections shall be 
        applicable to such instrumentalities and to services performed 
        for such instrumentalities in the same manner, to the same 
        extent, and on the same terms as to all other employers, 
        employing units, individuals, and services; provided, that if 
        this state shall not be certified for any year by the United 
        States Department of Labor under section 3304(c) of the federal 
        Internal Revenue Code, the payments required of such 
        instrumentalities with respect to such year shall be refunded by 
        the commissioner from the fund in the same manner and within the 
        same period as is provided in section 268.16, subdivision 6, 
        with respect to contributions erroneously collected; 
           (f) Service with respect to which unemployment compensation 
        is payable under an unemployment compensation system established 
        by an act of congress; 
           (g)(1) Service performed in any calendar quarter in the 
        employ of any organization exempt from income tax under section 
        501(a) (other than an organization described in section 401(a)) 
        or section 521 of the federal Internal Revenue Code, if the 
        remuneration for such service is less than $50; or 
           (2) Service performed in the employ of a school, college, 
        or university, if such service is performed by a student who is 
        enrolled and is regularly attending classes at such school, 
        college, or university; or 
           (3) Service performed by an individual who is enrolled at a 
        nonprofit or public educational institution which normally 
        maintains a regular faculty and curriculum and normally has a 
        regularly organized body of students in attendance at the place 
        where its educational activities are carried on as a student in 
        a full-time program, taken for credit at such institution, which 
        combines academic instruction with work experience, if such 
        service is an integral part of such program, and such 
        institution has so certified to the employer, except that this 
        paragraph shall not apply to service performed in a program 
        established for or on behalf of an employer or group of 
        employers; 
           (h) Service performed in the employ of a foreign government 
        (including service as a consular or other officer or employee or 
        a nondiplomatic representative); 
           (i) Service performed in the employ of an instrumentality 
        wholly owned by a foreign government, if 
           (1) The service is of a character similar to that performed 
        in foreign countries by employees of the United States 
        government or of an instrumentality thereof; and 
           (2) The commissioner finds that the United States Secretary 
        of State has certified to the United States Secretary of the 
        Treasury that the foreign government, with respect to whose 
        instrumentality exemption is claimed, grants an equivalent 
        exemption with respect to similar service performed in the 
        foreign country by employees of the United States government and 
        of instrumentalities thereof. 
           (j) Service covered by an arrangement between the 
        commissioner and the agency charged with the administration of 
        any other state or federal employment security law pursuant to 
        which all services performed by an individual for an employing 
        unit during the period covered by such employing unit's duly 
        approved election, are deemed to be performed entirely within 
        such agency's state; 
           (k) Service performed in the employ of a hospital, if such 
        service is performed by a patient of the hospital, as defined in 
        clause (17); 
           (l) Service performed as a student nurse in the employ of a 
        hospital or a nurses' training school by an individual who is 
        enrolled and is regularly attending classes in a nurses' 
        training school chartered and approved pursuant to state law; 
        and service performed as an intern in the employ of a hospital 
        by an individual who has completed a four years' course in a 
        medical school chartered and approved pursuant to state law; 
           (m) Service performed by an individual other than a 
        corporate officer, for a person as an insurance agent or as an 
        insurance solicitor, if all such service performed by such 
        individual for such person is performed for remuneration solely 
        by way of commission (the word "insurance" as used in this 
        subdivision shall include an annuity and an optional annuity); 
           (n) Service performed by an individual under the age of 18 
        in the delivery or distribution of newspapers or shopping news, 
        not including delivery or distribution to any point for 
        subsequent delivery or distribution; 
           (o) Service performed by an individual other than a 
        corporate officer, for a person as a real estate salesperson, if 
        all such service performed by such individual for such person is 
        performed for remuneration solely by way of commission; 
           (p) If the service performed during one-half or more of any 
        pay period by an individual for the person employing the 
        individual constitutes employment, all the service of such 
        individual for such period shall be deemed to be employment; but 
        if the service performed during more than one-half of any such 
        pay period by an individual for the person employing the 
        individual does not constitute employment, then none of the 
        service of such individual for such period shall be deemed to be 
        employment.  As used in this subdivision, the term "pay period" 
        means a period of not more than a calendar month for which a 
        payment or remuneration is ordinarily made to the individual by 
        the person employing the individual. 
           (q) Services performed for a state, other than the state of 
        Minnesota, or an instrumentality wholly owned by such other 
        state or political subdivision of such other state; 
           (r) Services performed as a direct seller as defined in 
        United States Code, title 26, section 3508; 
           (s) Notwithstanding clauses (1)(a) and (15)(m), services 
        performed as an officer of a township mutual insurance company 
        or farmer's mutual insurance company operating pursuant to 
        chapter 67A.  
           (16) "Institution of higher education," for the purposes of 
        this chapter, means an educational institution which: 
           (a) Admits as regular students only individuals having a 
        certificate of graduation from a high school, or the recognized 
        equivalent of such a certificate; 
           (b) Is legally authorized in this state to provide a 
        program of education beyond high school; 
           (c) Provides an educational program for which it awards a 
        bachelor's or higher degree, or provides a program which is 
        acceptable for credit toward such a degree, a program of 
        postgraduate or postdoctoral studies, or a program of training 
        to prepare students for gainful employment in a recognized 
        occupation; and 
           (d) Is a public or other nonprofit institution. 
           (e) Notwithstanding any of the foregoing provisions of this 
        clause, all colleges and universities in this state are 
        institutions of higher education for purposes of this section. 
           (17) "Hospital" means an institution which has been 
        licensed, certified or approved by the department of health as a 
        hospital. 
           Sec. 4.  [EFFECTIVE DATE.] 
           Section 3 is effective January 1, 1995. 
           Presented to the governor April 22, 1994 
           Signed by the governor April 25, 1994, 1:13 p.m.

Official Publication of the State of Minnesota
Revisor of Statutes