2000 Minnesota Statutes

CHAPTER 268. Department of economic security

     268.001 Citation; Economic Security Law. 

    This chapter shall be known and may be cited as the 
 "Minnesota Economic Security Law." 

    HIST: 1987 c 385 s 47; 1994 c 483 s 1 

  268.01 Repealed, 1965 c 45 s 73 

  268.011 Repealed, 1Sp1985 c 14 art 9 s 78 subd 1 

     268.0111 Definitions. 

    Subdivision 1.    Applicability.  The definitions in 
 this section apply to this chapter. 

    Subd. 2.    Commissioner.  "Commissioner" means the 
 commissioner of economic security. 

    Subd. 3. Repealed, 1987 c 403 art 2 s 164 

    Subd. 3a.    Department.  "Department" means the 
 department of economic security. 

    Subd. 4.    Employment and training services.  
 "Employment and training services" means programs, activities, 
 and services related to job training, job placement, and job 
 creation including job service programs, Job Training 
 Partnership Act programs, wage subsidies, work readiness 
 programs, job search, counseling, case management, community 
 work experience programs, displaced homemaker programs, 
 disadvantaged job training programs, grant diversion, employment 
 experience programs, youth employment programs, conservation 
 corps, apprenticeship programs, community investment programs, 
 community development corporations, economic development 
 programs, and opportunities industrialization centers. 

    Subd. 4a.    Homeless individual.  "Homeless 
 individual," or "homeless person" means: 

    (1) an individual who lacks a fixed, regular, and adequate 
 nighttime residence; and 

    (2) an individual who has a primary nighttime residence 
 that is:  

    (i) a supervised publicly or privately operated shelter or 
 dwelling designed to provide temporary living accommodations, 

    (ii) an institution that provides a temporary residence for 
 individuals intended to be institutionalized, or 

    (iii) a public or private place not designed for, or 
 ordinarily used as, a regular sleeping accommodation for humans. 

    The term "homeless individual" does not include any 
 individual imprisoned or otherwise detained pursuant to federal 
 or state law. 

    Subd. 5.    Income maintenance and support services.  
 "Income maintenance and support services" means programs through 
 which the state or its subdivisions provide direct financial or 
 in-kind support to unemployed or underemployed persons, 
 including unemployment benefits, the Minnesota family investment 
 program, general assistance, food stamps, energy assistance, 
 disability determinations, and child care.  Income maintenance 
 and support services do not include medical assistance, aging 
 services, social services, community social services, mental 
 health services, or services for the emotionally disturbed, the 
 mentally retarded, or residents of nursing homes. 

    Subd. 5a.    Indian tribe.  For purposes of employment 
 and training services, "Indian tribe" means a tribe, band, 
 nation, or other organized group or community of Indians that is 
 recognized as eligible for the special programs and services 
 provided by the United States to Indians because of their status 
 as Indians, and for which a reservation exists as is consistent 
 with Public Law Number 100-485, as amended. 

    Subd. 6.    Local service unit.  "Local service unit" 
 means a county, counties operating under a joint powers 
 agreement, one or more counties and one or more cities of the 
 first class operating under a joint powers agreement, or a city 
 of the first class. 

    Subd. 7.    Public assistance.  "Public assistance" 
 means the Minnesota family investment program and general 
 assistance.  

    Subd. 8.    Service provider.  "Service provider" means 
 a public, private, or nonprofit agency that is capable of 
 providing or administrating one or more of the employment and 
 training services or income maintenance and support services. 

    Subd. 9.    Wage subsidies.  "Wage subsidies" means 
 issuing of payments to employers to offset the costs of wages, 
 fringe benefits, and training for eligible employees under the 
 limitations established in sections 268.672 to 268.682, and may 
 be referred to as Minnesota employment and economic development 
 (MEED) wage subsidies.  

    HIST: 1Sp1985 c 14 art 9 s 38; 1987 c 403 art 2 s 128; 1988 c 
 689 art 2 s 219; 1989 c 282 art 5 s 121,122; 1990 c 568 art 4 s 
 61; 1994 c 483 s 1; 1994 c 488 s 8; 1997 c 66 s 1; 1997 c 85 art 
 4 s 24,25; 1999 c 107 s 66; 1999 c 159 s 117,118; 2000 c 343 s 4 

  268.012 Repealed, 1Sp1985 c 14 art 9 s 78 subd 1 

     268.0121 Creation. 

    Subdivision 1.    Purpose.  The department of economic 
 security has broad responsibility to increase the economic 
 independence of Minnesotans with special effort toward those who 
 are currently unemployed or who face special disadvantages in 
 the labor market.  The department shall develop employment 
 policies and link training and employment-related services with 
 temporary income replacement and income maintenance programs, 
 veterans' programs, workers' compensation, vocational and 
 post-secondary education, federal income insurance programs, and 
 economic development programs. 

    Subd. 2.    Commissioner.  The governor shall appoint 
 the commissioner of economic security with the advice and 
 consent of the senate. 

    Subd. 3.    Unclassified positions.  The commissioner 
 may establish positions in the unclassified service in 
 accordance with section 43A.08.  The commissioner may appoint 
 and define the duties of other subordinate officers and 
 employees as the commissioner deems necessary to discharge the 
 functions of the department. 

    The commissioner may establish the position of director of 
 the state job training office in the unclassified service. 

    Subd. 4.    Delegation of powers.  The commissioner may 
 delegate, in written orders filed with the secretary of state, 
 any powers or duties subject to the commissioner's control to 
 officers and employees in the department.  Notwithstanding any 
 other law, the commissioner may delegate the execution of 
 specific contracts or specific types of contracts to the 
 commissioner's deputies, an assistant commissioner, or a program 
 director if the delegation has been approved by the commissioner 
 of administration and filed with the secretary of state. 

    Subd. 5.    Receipt of gifts, money.  The commissioner 
 may accept gifts, bequests, grants, payments for services, and 
 other public and private money to help finance the activities of 
 the department. 

    HIST: 1Sp1985 c 14 art 9 s 39; 1990 c 571 s 42; 1990 c 589 art 
 1 s 2; 1994 c 483 s 1 

     268.0122 Powers and duties. 

    Subdivision 1.    State agency.  The commissioner of 
 economic security is designated the "state agency" as defined by 
 United States Code, title 29, section 49c, the Wagner-Peyser 
 Act, as amended through December 31, 1984.  

    Subd. 2.    Specific powers.  The commissioner of 
 economic security shall: 

    (1) administer and supervise all forms of unemployment 
 benefits provided for under federal and state laws that are 
 vested in the commissioner, including make investigations and 
 audits, secure and transmit information, and make available 
 services and facilities as the commissioner considers necessary 
 or appropriate to facilitate the administration of any other 
 states, or the federal Economic Security Law, and accept and use 
 information, services, and facilities made available by other 
 states or the federal government; 

    (2) administer and supervise all employment and training 
 services assigned to the department under federal or state law; 

    (3) review and comment on local service unit plans and 
 community investment program plans and approve or disapprove the 
 plans; 

    (4) establish and maintain administrative units necessary 
 to perform administrative functions common to all divisions of 
 the department; 

    (5) supervise the county boards of commissioners, local 
 service units, and any other units of government designated in 
 federal or state law as responsible for employment and training 
 programs; 

    (6) establish administrative standards and payment 
 conditions for providers of employment and training services; 

    (7) act as the agent of, and cooperate with, the federal 
 government in matters of mutual concern, including the 
 administration of any federal funds granted to the state to aid 
 in the performance of functions of the commissioner; 

    (8) obtain reports from local service units and service 
 providers for the purpose of evaluating the performance of 
 employment and training services; and 

    (9) review and comment on plans for Indian tribe employment 
 and training services and approve or disapprove the plans. 

    Subd. 3.    Duties as state agency.  The commissioner 
 shall: 

    (1) administer the unemployment insurance program and 
 related programs; 

    (2) administer the aspects of the Minnesota family 
 investment program, general assistance, and food stamps that 
 relate to employment and training services, subject to the 
 contract under section 268.86, subdivision 2; 

    (3) administer wage subsidies and the discretionary 
 employment and training fund; 

    (4) administer a national system of public employment 
 offices as prescribed by United States Code, title 29, chapter 
 4B, the Wagner-Peyser Act, and other federal employment and 
 training programs; 

    (5) cooperate with the federal government and its 
 employment and training agencies in any reasonable manner as 
 necessary to qualify for federal aid for employment and training 
 services and money; 

    (6) enter into agreements with other departments of the 
 state and local units of government as necessary; 

    (7) certify employment and training service providers and 
 decertify service providers that fail to comply with performance 
 criteria according to standards established by the commissioner; 

    (8) provide consistent, integrated employment and training 
 services across the state; 

    (9) establish the standards for all employment and training 
 services administered under this chapter; 

    (10) develop standards for the contents and structure of 
 the local service unit plans and plans for Indian tribe 
 employment and training services; 

    (11) provide current state and substate labor market 
 information and forecasts, in cooperation with other agencies; 

    (12) identify underserved populations, unmet service needs, 
 and funding requirements; 

    (13) consult with the council for the blind on matters 
 pertaining to programs and services for the blind and visually 
 impaired; and 

    (14) enter into agreements with Indian tribes as necessary 
 to provide employment and training services as funds become 
 available. 

    Subd. 4.    Demonstration projects.  The commissioner 
 may conduct and administer demonstration projects to test 
 methods and procedures for providing employment and training 
 services.  The demonstration must provide new methods and 
 procedures of administration and must not conflict with the 
 basic purposes, coverage, or benefits provided by law.  No 
 demonstration project authorized by this section is effective 
 until any required approval by a federal agency is obtained and 
 the comprehensive plan, including the estimated project costs, 
 is filed with the commissioner of administration.  

    Subd. 5.    Rulemaking.  (a) The commissioner may make 
 rules to carry out this chapter. 

    (b) Effective July 1, 1997, the commissioner may make rules 
 to carry out section 256J.51. 

    Subd. 6.    Mission; efficiency.  It is part of the 
 department's mission that within the department's resources the 
 commissioner shall endeavor to: 

    (1) prevent the waste or unnecessary spending of public 
 money; 

    (2) use innovative fiscal and human resource practices to 
 manage the state's resources and operate the department as 
 efficiently as possible; 

    (3) coordinate the department's activities wherever 
 appropriate with the activities of other governmental agencies; 

    (4) use technology where appropriate to increase agency 
 productivity, improve customer service, increase public access 
 to information about government, and increase public 
 participation in the business of government; 

    (5) utilize constructive and cooperative labor-management 
 practices to the extent otherwise required by chapters 43A and 
 179A; 

    (6) report to the legislature on the performance of agency 
 operations and the accomplishment of agency goals in the 
 agency's biennial budget according to section 16A.10, 
 subdivision 1; and 

    (7) recommend to the legislature appropriate changes in law 
 necessary to carry out the mission and improve the performance 
 of the department. 

    Subd. 7.    Classification of data on individuals.  Data 
 collected on individuals pursuant to a program operated by the 
 commissioner are private data on individuals as defined in 
 section 13.02, subdivision 12, unless more restrictively 
 classified by law. 

    HIST: 1Sp1985 c 14 art 9 s 40; 1987 c 403 art 2 s 129,130; art 
 3 s 50; 1989 c 282 art 5 s 123,124; 1994 c 483 s 1; 1995 c 248 
 art 11 s 19; 1995 c 259 art 1 s 40; 1996 c 339 s 2,3; 1997 c 7 
 art 5 s 34; 1997 c 66 s 80; 1997 c 85 art 4 s 26; 1997 c 245 art 
 4 s 6; 1998 c 265 s 2; 1998 c 366 s 65; 1999 c 107 s 66; 1999 c 
 159 s 119; 2000 c 343 s 4 

     268.0124 Plain language in written materials. 

    (a) To the extent reasonable and consistent with the goals 
 of providing easily understandable and readable materials and 
 complying with federal and state laws governing the programs, 
 all written materials relating to services and determinations of 
 eligibility for or amounts of benefits that will be given to 
 applicants for or recipients of assistance under a program 
 administered or supervised by the commissioner of economic 
 security must be understandable to a person of average 
 intelligence and education. 

    (b) All written materials relating to determinations of 
 eligibility for or amounts of benefits that will be given to 
 applicants for or recipients of assistance under programs 
 administered or supervised by the commissioner of economic 
 security must be developed to satisfy the plain language 
 requirements of the Plain Language Contract Act under sections 
 325G.29 to 325G.36.  Materials may be submitted to the attorney 
 general for review and certification.  Notwithstanding section 
 325G.35, subdivision 1, the attorney general shall review 
 submitted materials to determine whether they comply with the 
 requirements of section 325G.31.  The remedies available 
 pursuant to sections 8.31 and 325G.33 to 325G.36 do not apply to 
 these materials.  Failure to comply with this section does not 
 provide a basis for suspending the implementation or operation 
 of other laws governing programs administered by the 
 commissioner. 

    (c) The requirements of this section apply to all materials 
 modified or developed by the commissioner on or after July 1, 
 1988.  The requirements of this section do not apply to 
 materials that must be submitted to a federal agency for 
 approval, to the extent that application of the requirements 
 prevents federal approval. 

    (d) Nothing in this section may be construed to prohibit a 
 lawsuit brought to require the commissioner to comply with this 
 section. 

    HIST: 1988 c 689 art 2 s 220; 1994 c 483 s 1; 1995 c 259 art 1 
 s 41; 1996 c 339 s 4; 1997 c 7 art 1 s 104 

     268.0125 Annual report to legislature. 

    The commissioner shall provide to the legislature no later 
 than January 15 of each year a report of department programs and 
 services.  The report must include: 

    (1) a description of the department's programs and 
 services; 

    (2) the number of clients served by each program or 
 service; 

    (3) an evaluation of each program or service; and 

    (4) recommendations for changes or improvements to the 
 programs or services. 

    HIST: 1996 c 339 s 5 

  268.013 Repealed, 1Sp1985 c 14 art 9 s 78 subd 1 

     268.014 Cooperation with other state agencies. 

    To effectively coordinate job training and placement 
 services with future job needs of the state the commissioner 
 shall maintain close liaison, coordination and cooperation with 
 the commissioner of trade and economic development and any other 
 state agency involved in employment issues affecting the state. 

    HIST: 1977 c 430 s 13; 1981 c 356 s 186; 1983 c 289 s 115 subd 
 1; 1987 c 312 art 1 s 26 subd 2 

  268.02 Repealed, 1965 c 45 s 73 

  268.021 Repealed, 1999 c 107 s 67 

     268.022 Workforce development fund. 

    Subdivision 1.    Determination and collection of special 
 assessment.  (a) In addition to all other taxes, assessments, 
 and payment obligations under chapter 268, each employer, except 
 an employer making payments in lieu of taxes is liable for a 
 special assessment levied at the rate of one-tenth of one 
 percent per year until June 30, 2000, and seven-hundredths of 
 one percent per year on and after July 1, 2000, on all taxable 
 wages, as defined in section 268.04, subdivision 25b.  The 
 assessment shall become due and be paid by each employer to the 
 department on the same schedule and in the same manner as other 
 taxes. 

    (b) The special assessment levied under this section shall 
 not affect the computation of any other taxes, assessments, or 
 payment obligations due under this chapter. 

    Subd. 2.    Disbursement of special assessment funds.  
 (a) The money collected under this section shall be deposited in 
 the state treasury and credited to the workforce development 
 fund to provide for employment and training programs.  The 
 workforce development fund is created as a special account in 
 the state treasury. 

    (b) All money in the fund not otherwise appropriated or 
 transferred is appropriated to the commissioner who must act as 
 the fiscal agent for the money and must disburse that money for 
 the purposes of this section, not allowing the money to be used 
 for any other obligation of the state.  All money in the 
 workforce development fund shall be deposited, administered, and 
 disbursed in the same manner and under the same conditions and 
 requirements as are provided by law for the other special 
 accounts in the state treasury, except that all interest or net 
 income resulting from the investment or deposit of money in the 
 fund shall accrue to the fund for the purposes of the fund. 

    (c) No more than five percent of the funds collected in 
 each fiscal year may be used by the department of economic 
 security for its administrative costs. 

    (d) Reimbursement for costs related to collection of the 
 special assessment shall be in an amount negotiated between the 
 commissioner and the United States Department of Labor. 

    (e) The funds appropriated to the commissioner, less 
 amounts under paragraphs (c) and (d) shall be allocated as 
 follows:  

    (1) 40 percent to be allocated annually to substate 
 grantees for provision of expeditious response activities under 
 section 268.9771 and worker adjustment services under section 
 268.9781; and 

    (2) 60 percent to be allocated to activities and programs 
 authorized under sections 268.975 to 268.98. 

    (f) Any funds not allocated, obligated, or expended in a 
 fiscal year shall be available for allocation, obligation, and 
 expenditure in the following fiscal year. 

    HIST: 1990 c 568 art 6 s 1,4; 1990 c 612 s 17; 1991 c 292 art 
 3 s 33,41; 1993 c 369 s 78,79; 1994 c 483 s 1; 1997 c 66 s 2,80; 
 1999 c 223 art 3 s 3 

  268.025 Repealed, 1965 c 45 s 73 

  268.026 Repealed, 1997 c 66 s 81 

     268.027 Department of economic security; Minneapolis 
  location; right of eminent domain. 

    Notwithstanding section 16B.24 or chapter 94, the 
 commissioner of administration, in consultation with the 
 commissioner of economic security, is authorized to buy and sell 
 real property in Minneapolis and the greater Minneapolis area 
 for the purpose of relocating department offices to locations 
 more accessible to the residents of Minneapolis and colocating 
 with other social service agencies. 

    Property acquired under authority of this section may be 
 acquired by gift, purchase, or condemnation proceedings.  
 Condemnation proceedings must be done under chapter 117.  
 Condemnation proceedings authorized by this section may be used 
 to acquire property at only one proposed office site. 

    HIST: 1988 c 641 s 5; 1989 c 300 art 1 s 32; 1994 c 483 s 1; 
 1998 c 254 art 1 s 72 

     268.028 Alien labor certification; performance standards.

    The department of economic security shall have as a goal to 
 process completed applications for certification for permanent 
 alien laborers within 60 days of receipt of the completed 
 application. 

    HIST: 2000 c 488 art 2 s 16 

     268.03 Declaration of public policy. 

    Subdivision 1.    Statement.  The public policy 
 underlying sections 268.03 to 268.23 is as follows:  Economic 
 insecurity due to involuntary unemployment is a serious threat 
 to the well-being of the people of Minnesota.  Involuntary 
 unemployment is a subject of general interest and concern that 
 requires appropriate action by the legislature to prevent its 
 spread and to lighten its burdens.  The public good and the 
 well-being of the citizens of Minnesota will be promoted by 
 providing, under the taxing powers of the state for the 
 compulsory setting aside of reserves to be used for the payment 
 of unemployment benefits to individuals unemployed through no 
 fault of their own.  Unemployment benefits are a temporary 
 partial wage replacement to assist the unemployed worker to 
 become reemployed.  This program will be known as the "Minnesota 
 unemployment insurance program." 

    Subd. 2.    Standard of proof.  All issues of fact under 
 sections 268.03 to 268.23 shall be determined by a preponderance 
 of the evidence.  Preponderance of the evidence means evidence 
 in substantiation of a fact that, when weighed against the 
 evidence opposing the fact, is more convincing and has a greater 
 probability of truth. 

    HIST: (4337-21) Ex1936 c 2 s 1; 1989 c 209 art 2 s 1; 1994 c 
 488 s 1; 1997 c 7 art 1 s 105; 1998 c 265 s 3; 1999 c 107 s 66; 
 2000 c 343 s 1 

     268.035 Definitions. 

    Subdivision 1.    Scope.  Unless the language or context 
 clearly indicates that a different meaning is intended, the 
 words, terms, and phrases in this section shall, for the 
 purposes of sections 268.03 to 268.23, have the meaning stated. 

    Subd. 2.    Agricultural employment.  "Agricultural 
 employment" means services: 

    (1) on a farm, in the employ of any person or family farm 
 corporation in connection with cultivating the soil, or in 
 connection with raising or harvesting any agricultural or 
 horticultural commodity, including the raising, shearing, 
 feeding, caring for, training, and management of livestock, 
 bees, poultry, fur-bearing animals, and wildlife; 

    (2) in the employ of the owner or tenant or other operator 
 of a farm, in connection with the operation, management, 
 conservation, improvement, or maintenance of the farm and its 
 tools and equipment, or in salvaging timber or clearing land of 
 brush and other debris left by a tornado-like storm, if the 
 major part of the employment is performed on a farm; 

    (3) in connection with the production or harvesting of any 
 commodity defined as an agricultural product in United States 
 Code, title 7, section 1626 of the Agricultural Marketing Act, 
 or in connection with cotton ginning, or in connection with the 
 operation or maintenance of ditches, canals, reservoirs, or 
 waterways, not owned or operated for profit, used exclusively 
 for supplying and storing water for farming purposes; 

    (4) in the employ of the operator of a farm in handling, 
 planting, drying, packing, packaging, processing, freezing, 
 grading, storing, or delivering to storage or to market or to a 
 carrier for transportation to market, in its unmanufactured 
 state, any agricultural or horticultural commodity; but only if 
 the operator produced more than one-half of the commodity with 
 respect to which the employment is performed, or in the employ 
 of a group of operators of farms or a cooperative organization 
 of which the operators are members, but only if the operators 
 produced more than one-half of the commodity with respect to 
 which the employment is performed; however, this clause shall 
 not be applicable to employment performed in connection with 
 commercial canning or commercial freezing or in connection with 
 any agricultural or horticultural commodity after its delivery 
 to a terminal market for distribution for consumption; or 

    (5) on a farm operated for profit if the employment is not 
 in the course of the employer's trade or business. 

    For purposes of this subdivision, the term "farm" includes 
 stock, dairy, poultry, fruit, fur-bearing animals, and truck 
 farms, plantations, ranches, nurseries, orchards, ranges, 
 greenhouses, or other similar structures used primarily for the 
 raising of agricultural or horticultural commodities. 

    Subd. 3.    Back pay.  "Back pay" means a retroactive 
 payment of money by an employer to an employee or former 
 employee for lost wages as determined by an arbitration award, 
 administrative or judicial decision, or negotiated settlement.  

    Subd. 4.    Base period.  "Base period" means: 

    (1) the first four of the last five completed calendar 
 quarters immediately prior to the effective date of an 
 applicant's benefit account; 

    (2) if during the base period under clause (1) an applicant 
 received workers' compensation for temporary disability under 
 chapter 176 or a similar law of the United States, or if an 
 applicant whose own serious illness caused a loss of work for 
 which the applicant received compensation for loss of wages from 
 some other source, the applicant may request a base period as 
 follows: 

    (i) if an applicant was compensated for a loss of work of 
 seven to 13 weeks, the base period shall be the first four of 
 the last six completed calendar quarters prior to the effective 
 date of the benefit account; 

    (ii) if an applicant was compensated for a loss of work of 
 14 to 26 weeks, the base period shall be the first four of the 
 last seven completed calendar quarters prior to the effective 
 date of the benefit account; 

    (iii) if an applicant was compensated for a loss of work of 
 27 to 39 weeks, the base period shall be the first four of the 
 last eight completed calendar quarters prior to the effective 
 date of the benefit account; and 

    (iv) if an applicant was compensated for a loss of work of 
 40 to 52 weeks, the base period shall be the first four of the 
 last nine completed calendar quarters prior to the effective 
 date of the benefit account; 

    (3) if the applicant qualifies for a base period under 
 clause (2), but has insufficient wage credits to establish a 
 benefit account, the applicant may request a base period of the 
 last four completed calendar quarters prior to the date the 
 applicant's benefit account is effective.  This base period may 
 be used only once during any five-calendar-year period; and 

    (4) no base period under clause (1), (2), or (3) shall 
 include wage credits upon which a prior benefit account was 
 established. 

    Subd. 5.    Unemployment benefits.  "Unemployment 
 benefits" means the money payments available to an applicant. 

    Subd. 6.    Benefit year.  "Benefit year" means the 
 period of 52 calendar weeks beginning the date a benefit account 
 is effective.  For a benefit account established effective any 
 January 1, April 1, July 1, October 1, or January 2, 2000, or 
 October 2, 2011, the benefit year will be a period of 53 
 calendar weeks. 

    Subd. 7.    Calendar quarter.  "Calendar quarter" means 
 the period of three consecutive calendar months ending on March 
 31, June 30, September 30, or December 31. 

    Subd. 8.    Applicant.  "Applicant" means an individual 
 who has filed an application for unemployment benefits and has 
 established or is pursuing the establishment of a benefit 
 account. 

    Subd. 9.    Construction/independent contractor.  A 
 worker doing commercial or residential building construction or 
 improvement, in the public or private sector, performing 
 services in the course of the trade, business, profession, or 
 occupation of the employer, shall be considered an employee and 
 not an "independent contractor" unless the worker meets all the 
 following conditions: 

    (1) maintains a separate business with the independent 
 contractor's own office, equipment, materials, and other 
 facilities; 

    (2) holds or has applied for a federal employer 
 identification number; 

    (3) operates under contracts to perform specific services 
 or work for specific amounts of money under which the 
 independent contractor controls the means of performing the 
 services or work; 

    (4) incurs the main expenses related to the service or work 
 that the independent contractor performs under contract; 

    (5) is responsible for the satisfactory completion of work 
 or services that the independent contractor contracts to perform 
 and is liable for a failure to complete the work or service; 

    (6) receives compensation for work or service performed 
 under a contract on a commission or per job or competitive bid 
 basis and not on any other basis; 

    (7) may realize a profit or suffer a loss under contracts 
 to perform work or service; 

    (8) has continuing or recurring business liabilities or 
 obligations; and 

    (9) the success or failure of the independent contractor's 
 business depends on the relationship of business receipts to 
 expenditures. 

    Subd. 10.    Corporation.  "Corporation" includes 
 associations, joint-stock companies, and insurance companies.  
 This definition shall not be exclusive. 

    Subd. 11.    Covered agricultural employment.  "Covered 
 agricultural employment" means agricultural employment where: 

    (1) The employment is performed for a person who: 

    (i) during any calendar quarter in either the current or 
 the prior calendar year paid wages of $20,000 or more to 
 employees in agricultural employment; or 

    (ii) for some portion of a day in each of 20 different 
 calendar weeks, whether or not the weeks were consecutive, in 
 either the current or prior calendar year employed in 
 agricultural employment four or more employees, regardless of 
 whether they were employed at the same time. 

    (2) Any employee who is a member of a crew furnished by a 
 crew leader to be employed in agricultural employment for any 
 other person shall be treated as an employee of the crew leader: 

    (i) if the crew leader holds a valid certificate of 
 registration under United States Code, title 29, section 1802, 
 the Migrant and Seasonal Agricultural Worker Protection Act; or 
 substantially all of the members of the crew operate or maintain 
 tractors, mechanized harvesting or crop dusting equipment, or 
 any other mechanized equipment, that is provided by the crew 
 leader; and 

    (ii) if the employee is not an employee of another person. 

    (3) Any employee who is furnished by a crew leader to be 
 employed in agricultural employment for any other person and who 
 is not treated as an employee of the crew leader under clause 
 (2): 

    (i) the other person and not the crew leader shall be 
 treated as the employer of the employee; and 

    (ii) the other person shall be treated as having paid wages 
 to the employee in an amount equal to the amount of wages paid 
 to the employee by the crew leader (either on the crew leader's 
 behalf or on behalf of the other person) for the agricultural 
 employment performed for the other person. 

    (4) The term "crew leader" means an individual who: 

    (i) furnishes employees to be employed in agricultural 
 employment for any other person; 

    (ii) pays (either on the crew leader's own behalf or on 
 behalf of the other person) the employees furnished by the crew 
 leader for the agricultural employment performed by them; and 

    (iii) has not entered into a written agreement with the 
 other person under which the furnished employee is designated as 
 an employee of the other person. 

    (5) Employment of an officer or shareholder of a family 
 farm corporation shall be excluded from covered agricultural 
 employment unless the corporation is an employer under United 
 States Code, title 26, section 3306(a)(2) of the Federal 
 Unemployment Tax Act. 

    (6) Employment of an individual 16 years of age or under 
 shall be excluded from covered agricultural employment unless 
 the employer is an employer under United States Code, title 26, 
 section 3306(a)(2) of the Federal Unemployment Tax Act. 

    Subd. 12.    Covered employment.  "Covered employment" 
 means the following unless excluded as "noncovered employment" 
 under subdivision 20: 

    (1) an employee's entire employment if: 

    (i) the employment is performed entirely in Minnesota; 

    (ii) the employment is performed primarily in Minnesota, 
 and the employment performed outside Minnesota is incidental to 
 the employment in Minnesota; or 

    (iii) the employment is not performed primarily in any one 
 state but some of the employment is performed in Minnesota and 
 the base of operations or the place from which the employment is 
 directed or controlled is in Minnesota; or the base of 
 operations or place from which the employment is directed or 
 controlled is not in any state in which part of the employment 
 is performed, but the employee's residence is in Minnesota; 

    (2) an employee's employment wherever performed within the 
 United States or Canada, if: 

    (i) the employment is not covered under the unemployment 
 insurance program of any other state or Canada; and 

    (ii) the place from which the employment is directed or 
 controlled is in Minnesota; 

    (3) the employment of an employee who is a citizen of the 
 United States, performed outside the United States, except in 
 Canada, in the employ of an American employer if: 

    (i) the employer's principal place of business in the 
 United States is located in Minnesota; 

    (ii) the employer has no place of business in the United 
 States, but the employer is an individual who is a resident of 
 Minnesota, or the employer is a corporation that is organized 
 under the laws of Minnesota, or the employer is a partnership or 
 a trust and the number of partners or trustees who are residents 
 of Minnesota is greater than the number who are residents of any 
 one other state; 

    (iii) none of the criteria of subclauses (i) and (ii) is 
 met but the employer has elected coverage in Minnesota, or the 
 employer having failed to elect coverage in any state, an 
 applicant has made an application for unemployment benefits 
 under section 268.07, based on the employment; 

    (iv) an "American employer," for the purposes of this 
 subdivision, means an individual who is a resident of the United 
 States, or a partnership if two-thirds or more of the partners 
 are residents of the United States, or a trust, if all of the 
 trustees are residents of the United States, or a corporation 
 organized under the laws of the United States, or of any state; 
 or 

    (v) as used in this subdivision, the term "United States" 
 includes the states, the District of Columbia, the Commonwealth 
 of Puerto Rico, and the Virgin Islands; 

    (4) all employment performed by an officer or member of the 
 crew of an American vessel on or in connection with the vessel, 
 if the operating office from which the operations of the vessel 
 operating on navigable waters within, or within and without, the 
 United States are ordinarily and regularly supervised, managed, 
 directed, and controlled is in Minnesota; and 

    (5) for the purposes of satisfying disqualifications under 
 section 268.095, subdivision 10, "covered employment" shall 
 include covered employment under an unemployment insurance 
 program of any other state or employment covered under an 
 unemployment insurance program established by an act of Congress.

    Subd. 13.    Employee.  "Employee" means every 
 individual, who is performing, or has performed services for an 
 employer in employment. 

    Subd. 14.    Employer.  "Employer" means any of the 
 following which has had one or more employees during the current 
 or the prior calendar year: 

    (1) any individual or type of organization, resident or 
 nonresident, for profit or nonprofit, religious, charitable, or 
 educational, including any partnership, limited liability 
 company, trust, estate, or corporation, domestic or foreign, or 
 the receiver, trustee in bankruptcy, trustee or successor of any 
 of the foregoing, or the legal representative of a deceased 
 person; 

    (2) any government entity, state or federal, foreign or 
 domestic, Indian tribe, including any subdivision thereof and 
 any instrumentality thereof owned wholly or in part; 

    (3) any organization or person that has elected, under 
 section 268.042, to be subject to sections 268.03 to 268.23; 

    (4) a joint venture composed of one or more employers; 

    (5) any nonprofit organization or government agency 
 providing or authorizing the hiring of homeworkers, personal 
 care attendants, or other individuals performing similar 
 services in a private home is the employer of the homeworker, 
 attendant, or similar worker whether the organization or agency 
 pays the employee directly or provides funds to the recipient of 
 the services to pay for the services.  This clause does not 
 apply to the state of Minnesota or any county that provides 
 federal, state, or local funds to a child care provider either 
 directly or indirectly through a parent who is a child care 
 assistance recipient; or 

    (6) each individual employed to perform or assist in 
 performing the work of any agent or employee shall be considered 
 to be employed by that employer whether the individual was hired 
 or paid directly by that employer or by the agent or employee, 
 provided the employer had actual or constructive knowledge of 
 the work. 

    Subd. 15.    Employment.  "Employment" means service 
 performed by: 

    (1) an individual who is considered an employee under the 
 common law of employer-employee and not considered an 
 independent contractor; 

    (2) an officer of a corporation; 

    (3) a member of a limited liability company who is 
 considered an employee under the common law of 
 employer-employee; or 

    (4) an individual who performs services for a person for 
 compensation, as: 

    (i) an agent-driver or commission-driver engaged in 
 distributing meat products, vegetable products, fruit products, 
 beverages, or laundry or dry cleaning services; or 

    (ii) a traveling or city salesperson, other than as an 
 agent-driver or commission-driver, engaged full-time in the 
 solicitation on behalf of the person, of orders from 
 wholesalers, retailers, contractors, or operators of hotels, 
 restaurants, or other similar establishments for merchandise for 
 resale or supplies for use in their business operations. 

    This clause shall apply only if the contract of service 
 provides that substantially all of the services are to be 
 performed personally by the individual, and the services are 
 part of a continuing relationship with the person for whom the 
 services are performed, and the individual does not have a 
 substantial investment in facilities used in connection with the 
 performance of the services, other than facilities for 
 transportation. 

    Subd. 16.    Family farm corporation.  "Family farm 
 corporation" has the meaning given to it in section 500.24, 
 subdivision 2. 

    Subd. 17.    Filing; filed.  "Filing" or "filed" means 
 the delivery of any document to the commissioner or any of the 
 commissioner's agents, or the depositing of the document in the 
 United States mail properly addressed to the department with 
 postage prepaid, in which case the document shall be considered 
 filed on the day indicated by the cancellation mark of the 
 United States Postal Service. 

    If, where allowed, an application, protest, appeal, or 
 other required action is made by telephone or electronic 
 transmission, it shall be considered filed on the day received 
 by the department. 

    Subd. 18.    Fund.  "Fund" means the Minnesota 
 unemployment insurance program trust fund established by section 
 268.194. 

    Subd. 19.    High quarter.  "High quarter" means the 
 calendar quarter in an applicant's base period with the highest 
 amount of wage credits. 

    Subd. 20.    Noncovered employment.  "Noncovered 
 employment" means: 

    (1) employment for the United States government or an 
 instrumentality thereof, including military service; 

    (2) employment for an Indian, an Indian-controlled 
 employer, and Indian tribe, or any wholly controlled 
 subsidiaries or subdivisions, if the employment is performed on 
 an Indian reservation or Indian Trust Land; 

    (3) employment for a state, other than Minnesota, or a 
 political subdivision or instrumentality thereof; 

    (4) employment for a foreign government; 

    (5) employment for an instrumentality wholly owned by a 
 foreign government, if the employment is of a character similar 
 to that performed in foreign countries by employees of the 
 United States government or an instrumentality thereof and the 
 United States Secretary of State has certified that the foreign 
 government grants an equivalent exemption to similar employment 
 performed in the foreign country by employees of the United 
 States government and instrumentalities thereof; 

    (6) employment covered under United States Code, title 45, 
 section 351, the Railroad Unemployment Insurance Act; 

    (7) employment covered by a reciprocal arrangement between 
 the commissioner and another state or the federal government 
 which provides that all employment performed by an individual 
 for an employer during the period covered by the reciprocal 
 arrangement is considered performed entirely within another 
 state; 

    (8) employment for a church or convention or association of 
 churches, or an organization operated primarily for religious 
 purposes that is operated, supervised, controlled, or 
 principally supported by a church or convention or association 
 of churches described in United States Code, title 26, section 
 501(c)(3) of the federal Internal Revenue Code and exempt from 
 income tax under section 501(a); 

    (9) employment of a duly ordained or licensed minister of a 
 church in the exercise of a ministry or by a member of a 
 religious order in the exercise of duties required by the order, 
 for Minnesota or a political subdivision or an organization 
 described in United States Code, title 26, section 501(c)(3) of 
 the federal Internal Revenue Code and exempt from income tax 
 under section 501(a); 

    (10) employment of an individual receiving rehabilitation 
 of "sheltered" work in a facility conducted for the purpose of 
 carrying out a program of rehabilitation for individuals whose 
 earning capacity is impaired by age or physical or mental 
 deficiency or injury or a program providing "sheltered" work for 
 individuals who because of an impaired physical or mental 
 capacity cannot be readily absorbed in the competitive labor 
 market.  This clause applies only to services performed for 
 Minnesota or a political subdivision or an organization 
 described in United States Code, title 26, section 501(c)(3) of 
 the federal Internal Revenue Code and exempt from income tax 
 under section 501(a) in a facility certified by the 
 rehabilitation services branch of the department or in a day 
 training or habilitation program licensed by the department of 
 human services; 

    (11) employment of an individual receiving work relief or 
 work training as part of an unemployment work relief or work 
 training program assisted or financed in whole or in part by any 
 federal agency or an agency of a state or political subdivision 
 thereof.  This clause applies only to employment for Minnesota 
 or a political subdivision or an organization described in 
 United States Code, title 26, section 501(c)(3) of the federal 
 Internal Revenue Code and exempt from income tax under section 
 501(a).  This clause shall not apply to programs that require 
 unemployment benefit coverage for the participants; 

    (12) employment for Minnesota or a political subdivision as 
 an elected official, a member of a legislative body, or a member 
 of the judiciary; 

    (13) employment as a member of the Minnesota national guard 
 or air national guard; 

    (14) employment for Minnesota, a political subdivision, or 
 instrumentality thereof, as an employee serving only on a 
 temporary basis in case of fire, flood, tornado, or similar 
 emergency; 

    (15) employment as an election official or election worker 
 for Minnesota or a political subdivision, but only if the 
 compensation for that employment was less than $1,000 in a 
 calendar year; 

    (16) employment for Minnesota that is a major policy making 
 or advisory position in the unclassified service, including 
 those positions established pursuant to section 43A.08, 
 subdivision 1a; 

    (17) employment for a political subdivision of Minnesota 
 that is a nontenured major policy making or advisory position; 

    (18) domestic employment in a private household, local 
 college club, or local chapter of a college fraternity or 
 sorority performed for a person, only if the wages paid in any 
 calendar quarter in either the current or preceding calendar 
 year to all individuals in domestic employment totaled less than 
 $1,000. 

    "Domestic employment" includes all service in the operation 
 and maintenance of a private household, for a local college 
 club, or local chapter of a college fraternity or sorority as 
 distinguished from service as an employee in the pursuit of an 
 employer's trade or business; 

    (19) employment of an individual by a son, daughter, or 
 spouse, and employment of a child under the age of 18 by the 
 child's father or mother; 

    (20) employment of an inmate of a custodial or penal 
 institution; 

    (21) employment for a school, college, or university by a 
 student who is enrolled and is regularly attending classes at 
 the school, college, or university; 

    (22) employment of an individual who is enrolled as a 
 student in a full-time program at a nonprofit or public 
 educational institution that maintains a regular faculty and 
 curriculum and has a regularly organized body of students in 
 attendance at the place where its educational activities are 
 carried on, taken for credit at the institution, that combines 
 academic instruction with work experience, if the employment is 
 an integral part of the program, and the institution has so 
 certified to the employer, except that this clause shall not 
 apply to employment in a program established for or on behalf of 
 an employer or group of employers; 

    (23) employment of university, college, or professional 
 school students in an internship or other training program with 
 the city of St. Paul or the city of Minneapolis pursuant to Laws 
 1990, chapter 570, article 6, section 3; 

    (24) employment for a hospital by a patient of the 
 hospital.  "Hospital" means an institution that has been 
 licensed by the department of health as a hospital; 

    (25) employment as a student nurse for a hospital or a 
 nurses' training school by an individual who is enrolled and is 
 regularly attending classes in an accredited nurses' training 
 school; 

    (26) employment as an intern for a hospital by an 
 individual who has completed a four-year course in an accredited 
 medical school; 

    (27) employment as an insurance salesperson, by other than 
 a corporate officer, if all the compensation for the employment 
 is solely by way of commission.  The word "insurance" shall 
 include an annuity and an optional annuity; 

    (28) employment as an officer of a township mutual 
 insurance company or farmer's mutual insurance company operating 
 pursuant to chapter 67A; 

    (29) employment as a real estate salesperson, by other than 
 a corporate officer, if all the compensation for the employment 
 is solely by way of commission; 

    (30) employment as a direct seller as defined in United 
 States Code, title 26, section 3508; 

    (31) employment of an individual under the age of 18 in the 
 delivery or distribution of newspapers or shopping news, not 
 including delivery or distribution to any point for subsequent 
 delivery or distribution; 

    (32) casual employment performed for an individual, other 
 than domestic employment under clause (18), that does not 
 promote or advance that employer's trade or business; 

    (33) employment in "agricultural employment" unless 
 considered "covered agricultural employment" under subdivision 
 11; or 

    (34) if employment during one-half or more of any pay 
 period was covered employment, all the employment for the pay 
 period shall be considered covered employment; but if during 
 more than one-half of any pay period the employment was 
 noncovered employment, then all of the employment for the pay 
 period shall be considered noncovered employment.  "Pay period" 
 means a period of not more than a calendar month for which a 
 payment or compensation is ordinarily made to the employee by 
 the employer. 

    Subd. 21.    Person.  "Person" means an individual, 
 trust or estate, a partnership or a corporation. 

    Subd. 21a.    Reemployment assistance training.  (a) An 
 applicant is in "reemployment assistance training" when: 

    (1) reasonable and suitable employment for the applicant 
 does not exist in the labor market area and it is necessary that 
 the applicant receive training in order to obtain suitable 
 employment; 

    (2) the curriculum, facilities, staff, and other essentials 
 are adequate to achieve the training objective; 

    (3) the training is vocational in nature or short term 
 academic training vocationally directed to an occupation or 
 skill for which there are reasonable employment opportunities 
 available to the applicant; 

    (4) the training course is considered full time by the 
 training provider; and 

    (5) the applicant is making satisfactory progress in the 
 training. 

    (b) Full-time training provided through the dislocated 
 worker program, the Trade Act of 1974, as amended, or the North 
 American Free Trade Agreement shall be considered "reemployment 
 assistance training," if that training course is in accordance 
 with the requirements of that program. 

    (c) An applicant will be considered in reemployment 
 assistance training only if the training course has actually 
 started or is scheduled to start within 30 calendar days. 

    Subd. 22.    State.  "State" includes, in addition to 
 the states of the United States, the Commonwealth of Puerto 
 Rico, the District of Columbia, and the Virgin Islands. 

    Subd. 23.    State's average annual and average weekly 
 wage.  (a) On or before June 30 of each year, the commissioner 
 shall calculate the state's average annual wage and the state's 
 average weekly wage in the following manner: 

    (1) The sum of the total monthly covered employment 
 reported by all employers for the prior calendar year shall be 
 divided by 12 to calculate the average monthly covered 
 employment. 

    (2) The sum of the total wages paid for all covered 
 employment reported by all employers for the prior calendar year 
 shall be divided by the average monthly covered employment to 
 calculate the state's average annual wage. 

    (3) The state's average annual wage shall be divided by 52 
 to calculate the state's average weekly wage. 

    (b) For purposes of calculating the amount of taxable 
 wages, the state's average annual wage shall apply to the 
 calendar year following the calculation. 

    (c) For purposes of calculating the state's maximum weekly 
 unemployment benefit amount payable on any benefit account, the 
 state's average weekly wage shall apply to the 12-month period 
 beginning August 1 of the calendar year of the calculation. 

    Subd. 23a.    Suitable employment.  (a) Suitable 
 employment means employment in the applicant's labor market area 
 that is reasonably related to the applicant's qualifications.  
 In determining whether any employment is suitable for an 
 applicant, the degree of risk involved to the health and safety, 
 physical fitness, prior training, experience, length of 
 unemployment, prospects for securing employment in the 
 applicant's customary occupation, and the distance of the 
 employment from the applicant's residence shall be considered.  

    (b) In determining what is suitable employment, primary 
 consideration shall be given to the temporary or permanent 
 nature of the applicant's separation from employment and whether 
 the applicant has favorable prospects of finding employment in 
 the applicant's usual or customary occupation at the applicant's 
 past wage level within a reasonable period of time. 

    If prospects are unfavorable, employment at lower skill or 
 wage levels is suitable if the applicant is reasonably suited 
 for the employment because of education, training, work 
 experience, or ability.  

    The total compensation must be considered, including the 
 wage rate, hours of employment, method of payment, overtime 
 practices, bonuses, incentive payments, and fringe benefits. 

    (c) When potential employment is at a rate of pay lower 
 than the applicant's former rate, consideration must be given to 
 the length of the applicant's unemployment and the proportion of 
 difference in the rates.  Employment that may not be suitable 
 because of lower wages during the early weeks of the applicant's 
 unemployment may become suitable as the duration of unemployment 
 lengthens. 

    (d) For an applicant seasonally unemployed, suitable 
 employment includes temporary work in a lower skilled occupation 
 that pays average gross weekly wages equal to or more than 150 
 percent of the applicant's weekly unemployment benefit amount.  

    (e) If a majority of the applicant's wage credits were 
 earned from part-time employment, part-time employment in a 
 position with comparable skills and comparable hours that pays 
 average gross weekly wages equal to or more than 150 percent of 
 the applicant's weekly unemployment benefit amount shall be 
 considered suitable employment. 

    (f) To determine suitability of employment in terms of 
 shifts, the arrangement of hours in addition to the total number 
 of hours is to be considered.  Employment on a second, third, 
 rotating, or split shift is suitable employment if it is 
 customary in the occupation in the labor market area. 

    (g) Employment shall not be considered suitable if: 

    (1) the position offered is vacant because of a labor 
 dispute; 

    (2) the wages, hours, or other conditions of employment are 
 substantially less favorable than those prevailing for similar 
 employment in the labor market area; or 

    (3) as a condition of becoming employed, the applicant 
 would be required to join a company union or to resign from or 
 refrain from joining any bona fide labor organization. 

    Subd. 24.    Taxable wages.  (a) "Taxable wages" means 
 those wages paid to an employee in covered employment each 
 calendar year up to an amount equal to 60 percent of the state's 
 average annual wage, rounded to the nearest $1,000. 

    (b) Taxable wages includes the amount of wages paid for 
 covered employment by the employer's predecessor when there has 
 been an experience rating record transfer under section 268.051, 
 subdivision 4. 

    Subd. 25.    Taxes.  "Taxes" means the money payments 
 required by sections 268.03 to 268.23 to be paid into the fund 
 by an employer on account of paying wages to employees in 
 covered employment. 

    Subd. 26.    Unemployed.  An applicant shall be 
 considered "unemployed":  (1) in any week that the applicant 
 performs no service in employment, covered employment, 
 noncovered employment, self-employment, or volunteer work, and 
 with respect to which the applicant has no earnings; or (2) in 
 any week of less than 32 hours of service in employment, covered 
 employment, noncovered employment, self-employment, or volunteer 
 work if the earnings with respect to that week are less than the 
 applicant's weekly unemployment benefit amount.  

    Subd. 27.    Wage credits.  "Wage credits" mean the 
 amount of wages paid within an applicant's base period for 
 covered employment. 

    Subd. 28.    Wage detail report.  "Wage detail report" 
 means the report of wages paid and hours worked by each employee 
 in covered employment on a calendar quarter basis.  An auxiliary 
 report broken down by business locations, when required by the 
 commissioner, shall contain the number of employees in covered 
 employment for each month, and the quarterly total wages for 
 each location.  The auxiliary report may be made part of the 
 wage detail report, the tax report, or filed separately, as 
 required by the commissioner. 

    Subd. 29.    Wages.  "Wages" means all compensation for 
 services, including commissions; bonuses; severance payments; 
 vacation and holiday pay; back pay as of the date of payment; 
 tips and gratuities paid to an employee by a customer of an 
 employer and accounted for by the employee to the employer; 
 sickness and accident disability payments, except as otherwise 
 provided in this subdivision; and the cash value of all 
 compensation in any medium other than cash, except: 

    (1) the amount of any payment made to, or on behalf of, an 
 employee under a plan established by an employer that makes 
 provision for employees generally or for a class or classes of 
 employees, including any amount paid by an employer for 
 insurance or annuities, or into a plan, to provide for a 
 payment, on account of (i) retirement or (ii) medical and 
 hospitalization expenses in connection with sickness or accident 
 disability, or (iii) death; 

    (2) the payment by an employer of the tax imposed upon an 
 employee under United States Code, title 26, section 3101 of the 
 Federal Insurance Contribution Act, with respect to compensation 
 paid to an employee for domestic service in a private household 
 of the employer or for agricultural employment; 

    (3) any payment made to, or on behalf of, an employee or 
 beneficiary (i) from or to a trust described in United States 
 Code, title 26, section 401(a) of the federal Internal Revenue 
 Code, that is exempt from tax under section 501(a) at the time 
 of the payment unless the payment is made to an employee of the 
 trust as compensation for services as an employee and not as a 
 beneficiary of the trust, or (ii) under or to an annuity plan 
 that, at the time of the payment, is a plan described in section 
 403(a); 

    (4) sickness or accident disability payments made by the 
 employer after the expiration of six calendar months following 
 the last calendar month that the individual worked for the 
 employer; 

    (5) disability payments made under the provisions of any 
 workers' compensation law; 

    (6) sickness or accident disability payments made by a 
 third party payer such as an insurance company; 

    (7) payments made into a fund, or for the purchase of 
 insurance or an annuity, to provide for sickness or accident 
 disability payments to employees pursuant to a plan or system 
 established by the employer that provides for the employer's 
 employees generally or for a class or classes of employees; or 

    (8) nothing in this subdivision shall exclude from the term 
 "wages" any payment made under any type of salary reduction 
 agreement, including payments made under a cash or deferred 
 arrangement and cafeteria plan, as defined in United States 
 Code, title 26, sections 401(k) and 125 of the federal Internal 
 Revenue Code, to the extent that the employee has the option to 
 receive the payment in cash. 

    Subd. 30.    Wages paid.  (a) "Wages paid" means the 
 amount of wages that have been actually paid or that have been 
 credited to or set apart so that payment and disposition is 
 under the control of the employee.  Wage payments delayed beyond 
 the regularly scheduled pay date are considered "wages paid" on 
 the missed pay date.  Back pay shall be considered "wages paid" 
 on the date of actual payment.  Any wages earned but not paid 
 with no scheduled date of payment shall be considered "wages 
 paid" on the last day of employment. 

    (b) Wages paid shall not include wages earned but not paid 
 except as provided for in this subdivision. 

    Subd. 31.    Week.  "Week" means calendar week, ending 
 at midnight Saturday. 

    Subd. 32.    Weekly unemployment benefit amount.  
 "Weekly unemployment benefit amount" means the amount of 
 unemployment benefits computed under section 268.07, subdivision 
 2, paragraph (b). 

    HIST: 1998 c 265 s 4; 1999 c 107 s 2-15,66; 2000 c 343 s 4 

  268.04 Repealed, 1998 c 265 s 46 

  268.041 Renumbered 268.043 

     268.042 Employers coverage. 

    Subdivision 1.    Employer for part of year.  Except as 
 provided in subdivision 3, any organization or person that is or 
 becomes an employer subject to sections 268.03 to 268.23 within 
 any calendar year shall be considered to be an employer during 
 the entire calendar year.  

    Subd. 2. Repealed, 1998 c 265 s 46 

    Subd. 3.    Election agreements; termination.  (a) Any 
 employer that has employment performed for it that does not 
 constitute covered employment, may file with the commissioner a 
 written election that all such employment, in one or more 
 distinct establishments or places of business, shall be 
 considered covered employment for not less than two calendar 
 years.  Upon the written approval of the commissioner, the 
 employment shall constitute covered employment from and after 
 the date stated in the approval.  The employment shall cease to 
 be considered covered employment as of the first day of January 
 of any calendar year only if at least 30 calendar days prior to 
 the first day of January the employer has filed with the 
 commissioner a written notice to that effect.  

    (b) The commissioner must terminate any election agreement 
 under this subdivision upon 30 calendar days' notice, if the 
 employer fails to pay all taxes due or payments in lieu of taxes 
 due the fund. 

    Subd. 4.    Authorization.  The commissioner is 
 authorized to enter into reciprocal arrangements with other 
 states and the federal government, or both, whereby employment 
 by an employee or employees for a single employer that is 
 customarily performed in more than one state shall be considered 
 performed entirely within any one of the states: 

    (1) where any part of the employee's employment is 
 performed, or 

    (2) where the employee has a residence, or 

    (3) where the employer maintains a place of business; 
 provided, there is in effect, as to the employment, an election, 
 approved by the state, pursuant to which all the employment by 
 the employee or employees for the employer is considered to be 
 performed entirely within that state. 

    HIST: Ex1936 c 2 s 9,11; 1937 c 306 s 6,8; 1939 c 443 s 9; 
 1941 c 554 s 8,10; 1943 c 650 s 8; 1945 c 376 s 8,10; 1947 c 432 
 s 8-10; 1947 c 600 s 2; 1949 c 605 s 10; 1953 c 97 s 13,14; 1965 
 c 45 s 41,45; 1969 c 9 s 64; 1969 c 854 s 9,10; 1971 c 942 s 13; 
 1979 c 181 s 16; 1983 c 372 s 35,36; 1986 c 444; 1989 c 209 art 
 2 s 1; 1996 c 417 s 31; 1997 c 66 s 61,79; 1998 c 265 s 
 5,6,33-35,45; 1999 c 107 s 16 

     268.043 Determinations of coverage. 

    (a) The commissioner, upon the commissioner's own motion or 
 upon application of an organization or person, shall determine 
 if that organization or person is an employer or whether 
 services performed for it constitute employment and covered 
 employment, or whether the compensation for services constitutes 
 wages, and shall notify the organization or person of the 
 determination.  The determination shall be final unless the 
 organization or person, within 30 calendar days after sending of 
 the determination by mail or electronic transmission, files an 
 appeal.  Proceedings on the appeal shall be conducted in 
 accordance with section 268.105. 

    (b) The commissioner may at any time upon the 
 commissioner's own motion correct any error of the department 
 resulting in an erroneous determination under this section.  A 
 corrected determination shall be final unless, within 30 
 calendar days after sending of the corrected determination to 
 the organization or person by mail or electronic transmission, 
 an appeal is filed.  Proceedings on the appeal shall be 
 conducted in accordance with section 268.105. 

    (c) No organization or person shall be initially determined 
 an employer, or that services performed for it were in 
 employment or covered employment, for periods more than four 
 years prior to the year in which the determination is made, 
 unless the commissioner finds that there was fraudulent action 
 to avoid liability under this chapter. 

    HIST: 1995 c 54 s 2; 1996 c 417 s 4; 1997 c 66 s 79; 1998 c 
 265 s 7 

     268.044 Wage reporting. 

    Subdivision 1.    Wage detail report.  (a) Each employer 
 that has employees in covered employment shall provide the 
 commissioner with a quarterly wage detail report.  The report 
 shall include for each employee in covered employment, the 
 employee's name, social security number, the total wages paid to 
 the employee, and total number of paid hours worked.  For 
 employees exempt from the definition of employee in section 
 177.23, subdivision 7, clause (6), the employer shall report 40 
 hours worked for each week any duties were performed by a 
 full-time employee and shall report a reasonable estimate of the 
 hours worked for each week duties were performed by a part-time 
 employee.  The report is due and must be filed on or before the 
 last day of the month following the end of the calendar quarter. 

    (b) The employer may report the wages paid to the nearest 
 whole dollar amount. 

    (c) An employer need not include the name of the employee 
 or other required information on the wage detail report if 
 disclosure is specifically exempted by federal law. 

    Subd. 2.    Failure to file report.  Any employer who 
 fails to file the wage detail report shall pay to the 
 department, for each month the report is delinquent, a penalty 
 of one-half of one percent of total wages paid that quarter.  
 The penalty shall not be assessed if the wage detail report is 
 properly made and filed within 30 calendar days after a demand 
 for the report is mailed to the employer's address of record.  
 In no case shall the amount of the penalty, if assessed, be less 
 than $25.  Penalties due under this subdivision may be waived 
 where good cause for late filing is found by the commissioner.  

    Subd. 3.    Missing or erroneous information.  Any 
 employer who files the wage detail report, but knowingly fails 
 to include any of the required information or knowingly enters 
 erroneous information, shall be subject to a penalty of $25 for 
 each employee for whom the information is missing or erroneous.  

    Subd. 4.    Penalties.  The penalties provided for in 
 subdivisions 2 and 3 are in addition to interest and other 
 penalties imposed by this chapter and shall be collected in the 
 same manner as delinquent taxes and shall be credited to the 
 contingent account. 

    HIST: 1Sp1982 c 1 s 42; 1986 c 444; 1987 c 362 s 24; 1987 c 
 370 art 2 s 16; 1987 c 385 s 26; 1997 c 66 s 79,80; 1997 c 74 s 
 1; 1Sp1997 c 5 s 7; 1998 c 265 s 8 

*   NOTE:  Subdivision 1 was also amended by Laws 1997, chapter 
*66, section 64, to read as follows: 

*   "Subdivision 1.    Wage detail report.  (a) Each 
*employer subject to this chapter shall provide the commissioner 
*with a quarterly report known as the wage detail report, that 
*shall include, for each employee covered by this chapter, the 
*employee's name, social security number, and the total wages 
*paid to the employee.  The report is due and must be filed on or 
*before the last day of the month following the end of the 
*calendar quarter. 

*   (b) An employer need not include the name of the employee 
*or other required information on the wage detail report if 
*disclosure is specifically exempted by federal law."

     268.045 Employer tax or reimbursable accounts. 

    (a) The commissioner shall maintain a tax account for each 
 taxpaying employer and a reimbursable account for each employer 
 that is liable for payments in lieu of taxes if that employer 
 has employees in covered employment in the current or the prior 
 calendar year, except as provided in this section, and shall 
 charge the account for any unemployment benefits determined 
 chargeable to the employer under section 268.047 and shall 
 credit the tax account with all the taxes paid, or if the 
 employer is liable for payments in lieu of taxes, shall credit 
 the reimbursable account with the payments made. 

    (b) Two or more related corporations concurrently employing 
 the same employees and compensating those employees through a 
 common paymaster that is one of the corporations may apply to 
 the commissioner to establish a common paymaster tax account 
 that shall be the tax account of the common paymaster 
 corporation.  If approved, the separate tax accounts shall be 
 maintained, but the employees compensated through the common 
 paymaster shall be reported as employees of the common paymaster 
 corporation.  The corporations using the common paymaster tax 
 account shall be jointly and severally liable for any unpaid 
 taxes, penalties, and interest owing from the common paymaster 
 tax account.  

    (c) Two or more employers having 50 percent or more common 
 ownership and compensating employees through a single payer that 
 is one of the employers may apply to the commissioner for a 
 merging of the experience rating records of the employers into a 
 single joint tax account. 

    If approved, the joint tax account shall be effective on 
 that date assigned by the commissioner and shall remain in 
 effect for not less than two calendar years, and continuing 
 unless written notice terminating the joint tax account is filed 
 with the commissioner.  The termination shall be effective on 
 January 1 next following the filing of the written notice of 
 termination. 

    The employers in the joint tax account shall be jointly and 
 severally liable for any unpaid taxes, penalties, and interest 
 owing from the joint tax account. 

    (d) Two or more employers that are liable for payments in 
 lieu of taxes may apply to the commissioner for the 
 establishment of a group reimbursable account for the purpose of 
 sharing the cost of unemployment benefits charged based upon 
 wage credits from all employers in the group.  The application 
 shall identify and authorize a group representative to act as 
 the group's agent for the purposes of the reimbursable account.  
 If approved, the commissioner shall establish a group 
 reimbursable account for the employers effective as of the 
 beginning of the calendar year that the application is 
 received.  The reimbursable account shall remain in effect for 
 not less than two calendar years and thereafter until terminated 
 at the discretion of the commissioner or upon application by the 
 group at least 30 calendar days prior to the end of the two year 
 period or 30 calendar days prior to January 1 of any following 
 calendar year.  Each employer in the group shall be jointly and 
 severally liable for payments in lieu of taxes for all 
 unemployment benefits paid based upon wage credits from all 
 employers in the group during the period the group reimbursable 
 account was in effect.  

    HIST: Ex1936 c 2 s 4; 1937 c 306 s 2; 1939 c 443 s 3; 1941 c 
 554 s 3; 1943 c 650 s 2; 1945 c 376 s 3; 1947 c 32 s 1-8; 1947 c 
 432 s 3-5,11; 1947 c 600 s 7; 1949 c 526 s 1; 1949 c 605 s 
 3-6,17,18; 1951 c 442 s 2; 1953 c 97 s 5,6,8; 1953 c 288 s 1; 
 1955 c 380 s 2-4,6; 1957 c 25 s 1; 1957 c 873 s 2; 1959 c 702 s 
 2-4; 1965 c 45 s 40; 1965 c 741 s 6-11; 1967 c 573 s 3; 1967 c 
 617 s 1; 1967 c 856 s 1; 1969 c 3 s 1; 1969 c 567 s 3; 1969 c 
 854 s 6; 1971 c 860 s 1; 1971 c 942 s 3-6; 1973 c 254 s 3; 1973 
 c 599 s 2-4; 1975 c 336 s 6-10; 1977 c 4 s 4,5; 1977 c 297 s 
 6-11; 1977 c 430 s 25 subd 1; 1977 c 455 s 82; 1978 c 674 s 60; 
 1979 c 181 s 4-8; 1980 c 508 s 2-7; 1Sp1982 c 1 s 5-12; 1983 c 
 216 art 1 s 87; 1983 c 247 s 112; 1983 c 372 s 9-15; 1985 c 248 
 s 70; 1Sp1985 c 14 art 9 s 75; 1986 c 444; 1986 c 451 s 1; 1987 
 c 242 s 1; 1987 c 362 s 9-12; 1987 c 385 s 10-18; 1989 c 65 s 
 3-5; 1989 c 209 art 2 s 1; 1992 c 484 s 4-7; 1994 c 483 s 1; 
 1994 c 488 s 8; 1995 c 54 s 3-7; 1996 c 417 s 5-7,31; 1997 c 66 
 s 19,26,79; 1998 c 265 s 9; 1999 c 107 s 17; 2000 c 343 s 4 

     268.047 Unemployment benefits charged to employer. 

    Subdivision 1.    General rule.  Unemployment benefits 
 paid to an applicant, including extended, additional, and shared 
 work benefits, shall be charged to the tax or reimbursable 
 account of the applicant's base period employer as and when paid 
 except as provided in subdivisions 2 and 3.  The amount of 
 unemployment benefits charged to each base period employer's tax 
 or reimbursable account shall be the same percentage of the 
 total amount of unemployment benefits paid as the percentage of 
 wage credits from the employer is of the total amount of wage 
 credits from all the applicant's base period employers. 

    In making computations under this subdivision, the amount 
 of wage credits, if not a whole dollar, shall be computed to the 
 nearest whole dollar. 

    Subd. 2.    Exceptions to charges for all employers.  
 Unemployment benefits paid shall not be charged to the tax 
 account of a taxpaying base period employer or to the 
 reimbursable account of a base period employer that is liable 
 for payments in lieu of taxes when: 

    (1) the applicant was discharged from the employment 
 because of aggravated employment misconduct as determined under 
 section 268.095.  This exception shall apply only to 
 unemployment benefits paid for periods after the applicant's 
 discharge from employment; 

    (2) an applicant's discharge from that employment occurred 
 because a law required removal of the applicant from the 
 position the applicant held; 

    (3) the employer provided regularly scheduled part-time 
 employment to the applicant during the applicant's base period 
 and continues to provide the applicant with regularly scheduled 
 part-time employment during the benefit year of at least 90 
 percent of the part-time employment provided in the base period, 
 and is an involved employer because of the applicant's loss of 
 other employment.  This exception shall terminate effective the 
 first week that the employer fails to meet the benefit year 
 employment requirements.  This exception shall apply to 
 educational institutions without consideration of the period 
 between academic years or terms; 

    (4) the employer is a fire department or firefighting 
 corporation or operator of a life-support transportation 
 service, and continues to provide employment for the applicant 
 as a volunteer firefighter or a volunteer ambulance service 
 personnel during the benefit year on the same basis that 
 employment was provided in the base period.  This exception 
 shall terminate effective the first week that the employer fails 
 to meet the benefit year employment requirements; 

    (5) the applicant's unemployment from this employer was a 
 direct result of the condemnation of property by a governmental 
 agency, a fire, flood, or act of nature, where 25 percent or 
 more of the employees employed at the affected location, 
 including the applicant, became unemployed as a result.  This 
 exception shall not apply where the unemployment was a direct 
 result of the intentional act of the employer or a person acting 
 on behalf of the employer; 

    (6) the unemployment benefits were paid by another state as 
 a result of the transferring of wage credits under a combined 
 wage arrangement provided for in section 268.131; 

    (7) the applicant stopped working because of a labor 
 dispute at the applicant's primary place of employment if the 
 employer was not a party to the labor dispute; or 

    (8) the unemployment benefits were determined overpaid 
 unemployment benefits under section 268.18. 

    Subd. 3.    Exceptions to charges for taxpaying employers. 
  Unemployment benefits paid shall not be charged to the tax 
 account of a taxpaying base period employer when: 

    (1) the applicant's wage credits from that employer are 
 less than $500; 

    (2) the applicant quit the employment, unless it was 
 determined under section 268.095, to have been because of a good 
 reason caused by the employer or because the employer notified 
 the applicant of discharge within 30 calendar days.  This 
 exception shall apply only to unemployment benefits paid for 
 periods after the applicant's quitting the employment; or 

    (3) the employer discharged the applicant from employment 
 because of employment misconduct as determined under section 
 268.095.  This exception shall apply only to unemployment 
 benefits paid for periods after the applicant's discharge from 
 employment. 

    Subd. 4.    Federal reimbursed benefits not charged.  
 Regardless of subdivision 1, no employer's account shall be 
 charged for unemployment benefits for which the fund is 
 reimbursed by the federal government. 

    Subd. 5.    Notice of unemployment benefits charged.  
 (a) The commissioner shall notify each employer quarterly by 
 mail or electronic transmission of the unemployment benefits 
 that have been charged to the employer's account.  Unless a 
 protest is filed in a manner prescribed by the commissioner 
 within 30 calendar days from the date of sending of the notice, 
 the charges set forth in the notice shall be final and shall not 
 be subject to collateral attack by way of review of a tax rate 
 notice, application for a credit adjustment or refund, or 
 otherwise. 

    (b) Upon receipt of a protest, the commissioner shall 
 review the charges on the notice and determine whether there has 
 been an error in the charging of the employer's account.  The 
 commissioner shall either affirm or make a redetermination of 
 the charges, and a notice of affirmation or redetermination 
 shall be sent to the employer by mail or electronic transmission.

    (c) The affirmation or redetermination shall be final 
 unless the employer files an appeal within 30 calendar days 
 after the date the affirmation or redetermination was sent.  
 Proceedings on the appeal shall be conducted in accordance with 
 section 268.105. 

    (d) An employer may not collaterally attack, by way of a 
 protest to a notice of unemployment benefits charged, any prior 
 determination or decision holding that unemployment benefits 
 shall be charged to the employer's account, that has become 
 final. 

    (e) The commissioner may at any time upon the 
 commissioner's own motion correct a clerical error that resulted 
 in charges to an employer's account. 

    HIST: 1997 c 66 s 10,16,79; 1998 c 265 s 10-12; 1999 c 107 s 
 18-21,66; 2000 c 343 s 4 

  268.048 Expired, 1997 c 80 s 3 

*   NOTE:  This section was also amended by Laws 1999, chapter 
*107, section 22, to read as follows: 

*   "268.048   Benefits not charged in welfare-to-work.  

*   (a) The commissioner shall, prior to computing a tax rate, 
*remove benefit charges from the tax account of a taxpaying 
*employer if the claimant to whom those benefits were paid was: 

*   (1) a primary wage earner who was a recipient of cash 
*benefits under a Minnesota welfare program in the calendar 
*quarter or immediately preceding calendar quarter that wages 
*were first paid by that employer; 

*   (2) paid wages by that employer in no more than two 
*calendar quarters; and 

*   (3) paid wages by that employer of less than $3,000. 

*   (b) Paragraph (a), clauses (2) and (3), shall apply to any 
*calendar quarter and is not limited to quarters in the 
*claimant's base period.  

*   If the commissioner finds that an employer discharged the 
*claimant, or engaged in the employment practice of discharging 
*workers, in order to meet the requirements of paragraph (a), 
*clauses (2) and (3), this section shall not apply.  In addition, 
*the employer's action shall constitute employer misconduct and 
*the penalties under section 268.184 shall be assessed."

  268.05 Renumbered 268.194 

     268.051 Employers taxes. 

    Subdivision 1.    Payments.  (a) Taxes shall accrue and 
 become payable by each employer for each calendar year that the 
 employer paid wages to employees in covered employment, except 
 for:  

    (1) nonprofit organizations that elect to make payments in 
 lieu of taxes as provided in section 268.053; and 

    (2) the state of Minnesota and political subdivisions, 
 unless they elect to pay taxes as provided in section 268.052.  

 Each employer shall pay taxes quarterly, at the employer's 
 assigned tax rate, on the taxable wages paid to each employee.  
 The taxes shall be paid to the fund on or before the last day of 
 the month following the end of the calendar quarter. 

    (b) The tax may be paid in an amount to the nearest whole 
 dollar. 

    (c) When the tax for any calendar quarter is less than $1, 
 the tax shall be disregarded. 

    Subd. 1a.    Tax reports.  (a) Every employer, except 
 those making payments in lieu of taxes, shall submit a tax 
 report on a form, or in a manner, prescribed by the commissioner 
 on or before the last day of the month following the end of the 
 calendar quarter, unless the employer meets the requirements for 
 submitting tax reports annually under section 268.0511.  An 
 employer that fails to submit a tax report when due, or submits 
 an incorrect tax report, shall be subject to section 268.057, 
 subdivision 1. 

    (b) Each tax report shall include the total wages paid and 
 the taxable wages paid that quarter, the amount of tax due, and 
 any other information required by the commissioner.  

    (c) A tax report must be submitted for each calendar 
 quarter even though no wages were paid or no tax is due.  

    Subd. 2.    Computation of tax rates.  (a) For each 
 calendar year the commissioner shall compute the tax rate of 
 each taxpaying employer that qualifies for an experience rating 
 by adding the base tax rate to the employer's experience rating. 

    (b) The base tax rate shall be six-tenths of one percent if 
 the amount in the fund is less than $200,000,000 on June 30 of 
 the prior calendar year; or five-tenths of one percent if the 
 fund is more than $200,000,000 but less than $225,000,000; or 
 four-tenths of one percent if the fund is more than $225,000,000 
 but less than $250,000,000; or three-tenths of one percent if 
 the fund is more than $250,000,000 but less than $275,000,000; 
 or two-tenths of one percent if the fund is $275,000,000 but 
 less than $300,000,000; or one-tenth of one percent if the fund 
 is $300,000,000 or more. 

    (c) For the purposes of this subdivision the fund shall not 
 include any money borrowed from the federal unemployment trust 
 fund pursuant to section 268.194, subdivision 6. 

    Subd. 3.    Computation of a taxpaying employer's 
 experience rating.  (a) For each calendar year, the 
 commissioner shall compute an experience rating for each 
 taxpaying employer who has been subject to this chapter for at 
 least the 12 calendar months prior to July 1 of the prior 
 calendar year.  The experience rating shall be the ratio 
 obtained by dividing 125 percent of the total unemployment 
 benefits charged to the employer's tax account during the period 
 the employer has been subject to this chapter, but not more than 
 the 60 calendar months ending on June 30 of the prior calendar 
 year, by the employer's total taxable payroll for the same 
 period. 

    (b) For purposes of paragraph (a), only that taxable 
 payroll upon which taxes have been paid on or before September 
 30 of the prior calendar year may be used in computing an 
 employer's experience rating. 

    (c) The experience rating shall be computed to the nearest 
 one-tenth of a percent, to a maximum of 8.9 percent.  

    Subd. 4.    Experience rating record transfer.  (a) When 
 an employer acquires the organization, trade or business or 
 substantially all the assets of another employer, and there is 
 25 percent or more common ownership, directly or indirectly, 
 between the predecessor and successor, the experience rating 
 record of the predecessor employer shall be transferred as of 
 the date of acquisition to the successor employer for the 
 purpose of computing a tax rate. 

    (b) When an employer acquires a distinct severable portion 
 of the organization, trade, business, or assets that is less 
 than substantially all of the employing enterprises of another 
 employer, and there is 25 percent or more common ownership, 
 directly or indirectly, between the predecessor and successor, 
 the successor employer shall acquire the experience rating 
 record attributable to the portion it acquired, and the 
 predecessor employer shall retain the experience rating record 
 attributable to the portion that it has retained, if (1) the 
 successor makes a written request to apply for the transfer of 
 the experience rating record attributable to the severable 
 portion acquired from the predecessor within 180 calendar days 
 from the date of acquisition, and (2) files an application 
 within the time and in the manner prescribed by the commissioner 
 that furnishes sufficient information to substantiate the 
 severable portion and to assign the appropriate total and 
 taxable wages and unemployment benefit charges to the successor 
 for experience rating purposes.  

    (c) The term "common ownership" for purposes of this 
 subdivision includes ownership by a spouse, parent, child, 
 brother, sister, aunt, uncle, niece, nephew, or first cousin, by 
 birth or by marriage. 

    (d) If the successor employer under paragraphs (a) and (b) 
 had an experience rating record at the time of the acquisition, 
 the transferred record of the predecessor shall be combined with 
 the successor's record for purposes of computing a tax rate. 

    (e) If there has been a transfer of an experience rating 
 record under paragraph (a) or (b), employment with a predecessor 
 employer shall not be considered to have been terminated if 
 similar employment is offered by the successor employer and 
 accepted by the employee. 

    (f) The commissioner, upon the commissioner's own motion or 
 upon application of an employer shall determine if an employer 
 is a successor within the meaning of this subdivision and shall 
 send the determination to the employer by mail or electronic 
 transmission.  The determination shall be final unless an appeal 
 is filed by the employer within 30 calendar days after the 
 sending of the determination.  Proceedings on the appeal shall 
 be conducted in accordance with section 268.105. 

    (g) The commissioner may, as the result of any 
 determination or decision regarding succession or nonsuccession, 
 recompute the tax rate of all employers affected by the 
 determination or decision for any year, including the year of 
 the acquisition and subsequent years, that is affected by the 
 transfer or nontransfer of part or all of the experience rating 
 record.  This paragraph does not apply to rates that have become 
 final before the filing of a written request to apply for the 
 transfer of a severable portion of the experience rating record 
 under paragraph (b). 

    (h) The experience rating record for purposes of this 
 subdivision shall consist of those factors that make up an 
 experience rating, without the 12-month minimum required under 
 subdivision 3. 

    (i) If the commissioner finds that a transaction was done, 
 in whole or in part, to avoid an experience rating record or the 
 transfer of an experience rating record, the commissioner may 
 transfer all or part of the experience rating record regardless 
 of the requirements or limitations of paragraph (a).  This shall 
 include the transferring of employees from the payroll of an 
 employer with a higher experience rating record to the payroll 
 of an employer with a lower experience rating record. 

    (j) Regardless of paragraph (a), if there is an acquisition 
 or merger of a publicly held corporation by or with another 
 publicly held corporation the experience rating records of the 
 corporations shall be combined as of the date of acquisition or 
 merger for the purpose of computing a tax rate. 

    Subd. 5.    Tax rate for new employers.  (a) Each 
 taxpaying employer that does not qualify for an experience 
 rating under subdivision 3, paragraph (a), except employers in a 
 high experience rating industry, shall be assigned a tax rate 
 the higher of (1) one percent, or (2) the state's average cost 
 rate.  For purposes of this paragraph, the state's average cost 
 rate shall be computed annually by dividing the total amount of 
 unemployment benefits paid all applicants during the 60 calendar 
 months prior to July 1 of each year by the total taxable wages 
 of all taxpaying employers during the same period.  This rate 
 for new employers shall be applicable for the calendar year 
 following the computation date.  

    (b) Each taxpaying employer in a high experience rating 
 industry that does not qualify for an experience rating under 
 subdivision 3, paragraph (a), shall be assigned a tax rate of 
 8.0 percent, plus the applicable base tax rate.  

    An employer is considered to be in a high experience rating 
 industry if: 

    (1) the employer is engaged in residential, commercial, or 
 industrial construction, including general contractors; 

    (2) the employer is engaged in sand, gravel, or limestone 
 mining; 

    (3) the employer is engaged in the manufacturing of 
 concrete, concrete products, or asphalt; or 

    (4) the employer is engaged in road building, repair, or 
 resurfacing, including bridge and tunnels and residential and 
 commercial driveways and parking lots.  

    Subd. 6.    Notice of tax rate.  (a) The commissioner 
 shall notify each employer by mail or electronic transmission of 
 the employer's tax rate as determined for any calendar year.  
 The notice shall contain the tax rate and the factors used in 
 determining the employer's experience rating.  Unless a protest 
 of the rate is made, the assigned rate shall be final except for 
 fraud and shall be the rate at which taxes shall be paid.  The 
 tax rate shall not be subject to collateral attack by way of 
 claim for a credit adjustment or refund, or otherwise.  

    (b) If the legislature, subsequent to the sending of the 
 tax rate, changes any of the factors used to determine the rate, 
 the earlier notice shall be void.  A new tax rate based on the 
 new factors shall be computed and sent to the employer.  

    (c) A review of an employer's tax rate may be obtained by 
 the employer filing, in a manner prescribed by the commissioner, 
 a protest within 30 calendar days from the date the tax rate 
 notice was sent to the employer.  Upon receipt of the protest, 
 the commissioner shall review the tax rate to determine whether 
 or not there has been any clerical error or error in 
 computation.  The commissioner shall either affirm or make a 
 redetermination of the rate and a notice of the affirmation or 
 redetermination shall be sent to the employer by mail or 
 electronic transmission.  The affirmation or redetermination 
 shall be final unless the employer files an appeal within 30 
 calendar days after the date the affirmation or redetermination 
 was sent.  Proceedings on the appeal shall be conducted in 
 accordance with section 268.105.  

    (d) The commissioner may at any time upon the 
 commissioner's own motion correct any error in the computation 
 or the assignment of an employer's tax rate.  

    Subd. 7.    Tax rate buydown.  (a) Any employer who has 
 been assigned a tax rate based upon an experience rating may, 
 upon the voluntary payment of an amount equivalent to any 
 portion or all of the unemployment benefits charged to the 
 employer's account, plus a surcharge of 25 percent, obtain a 
 cancellation of unemployment benefits charged to the account 
 equal to the payment made, less the surcharge.  Upon the 
 payment, the commissioner shall compute a new experience rating 
 for the employer, and determine a new tax rate.  

    (b) Voluntary payments may be made only during the 30 
 calendar day period immediately following the date of sending of 
 the notice of tax rate.  This period may be extended, upon a 
 showing of good cause, but in no event shall a voluntary payment 
 be allowed after 120 calendar days from the beginning of the 
 calendar year for which the tax rate is effective. 

    (c) Voluntary payments made within the time required will 
 not be refunded unless a request is made in writing within 30 
 calendar days after sending of the notice of the new tax rate. 

    Subd. 8.    Solvency assessment.  (a) If the fund 
 balance is less than $150,000,000 on June 30 of any year, a 
 solvency assessment on taxpaying employers will be in effect for 
 the following calendar year.  The taxpaying employer shall pay 
 quarterly a solvency assessment of ten percent of the taxes due. 

    (b) The solvency assessment shall be placed into a special 
 account from which the commissioner shall pay any interest 
 accruing on any loan from the federal unemployment trust fund 
 provided for under section 268.194, subdivision 6.  If the 
 commissioner determines that the balance in this special account 
 is more than is necessary to pay the interest, the commissioner 
 shall pay to the fund the amount in excess of that necessary to 
 pay the interest. 

    HIST: Ex1936 c 2 s 4; 1937 c 306 s 2; 1939 c 443 s 3; 1941 c 
 554 s 3; 1943 c 650 s 2; 1945 c 376 s 3; 1947 c 32 s 1-8; 1947 c 
 432 s 3-5,11; 1947 c 600 s 7; 1949 c 526 s 1; 1949 c 605 s 
 3-6,17,18; 1951 c 442 s 2; 1953 c 97 s 5,6,8; 1953 c 288 s 1; 
 1955 c 380 s 2-4,6; 1957 c 25 s 1; 1957 c 873 s 2; 1959 c 702 s 
 2-4; 1965 c 45 s 40; 1965 c 741 s 6-11; 1967 c 573 s 3; 1967 c 
 617 s 1; 1967 c 856 s 1; 1969 c 3 s 1; 1969 c 567 s 3; 1969 c 
 854 s 6; 1971 c 860 s 1; 1971 c 942 s 3-6; 1973 c 254 s 3; 1973 
 c 599 s 2-4; 1975 c 336 s 6-10; 1977 c 4 s 4,5; 1977 c 297 s 
 6-11; 1977 c 430 s 25 subd 1; 1977 c 455 s 82; 1978 c 674 s 60; 
 1979 c 181 s 4-8; 1980 c 508 s 2-7; 1Sp1982 c 1 s 5-12; 1983 c 
 216 art 1 s 87; 1983 c 247 s 112; 1983 c 372 s 9-15; 1985 c 248 
 s 70; 1Sp1985 c 14 art 9 s 75; 1986 c 444; 1986 c 451 s 1; 1987 
 c 242 s 1; 1987 c 362 s 9-12; 1987 c 385 s 10-18; 1989 c 65 s 
 3-5; 1989 c 209 art 2 s 1; 1992 c 484 s 4-7; 1994 c 483 s 1; 
 1994 c 488 s 8; 1995 c 54 s 3-7; 1996 c 417 s 5-7,31; 1997 c 66 
 s 11-15,17,18,20,21,79; 1998 c 265 s 13; 1999 c 107 s 23-28,66; 
 2000 c 343 s 4 

     268.0511 Annual payment of small liabilities. 

    (a) An employer may file tax reports and pay taxes and 
 assessments for any calendar year on an annual basis if the 
 employer: 

    (1) has an experience rating of zero for that calendar 
 year; 

    (2) had total taxable wages paid in the 12-month period 
 ending the prior June 30 of less than five times the state's 
 taxable wage base; and 

    (3) has no outstanding tax or assessment liability, 
 including penalties and interest. 

    (b) Tax reports and taxes and assessments due under this 
 section for any calendar year shall be paid on or before the 
 following January 31. 

    HIST: 1997 c 66 s 80; 1997 c 80 s 2 

     268.052 Payment to fund by state and political 
  subdivisions. 

    Subdivision 1.    Payments.  In lieu of taxes payable on 
 a quarterly basis, the state of Minnesota or its political 
 subdivisions shall pay into the fund the amount of unemployment 
 benefits charged to its reimbursable account under section 
 268.047.  Payments in the amount of unemployment benefits 
 charged to the reimbursable account during a calendar quarter 
 shall be made on or before the last day of the month following 
 the month that the notice of unemployment benefits charged is 
 sent pursuant to section 268.047, subdivision 5.  Past due 
 payments in lieu of taxes shall be subject to the same interest 
 charges and collection procedures that apply to past due taxes. 

    Subd. 2.    Election by state or political subdivision to 
 be a taxpaying employer.  (a) The state or political 
 subdivision may elect to be a taxpaying employer for any 
 calendar year if a notice of election is filed within 30 
 calendar days following January 1 of that calendar year.  Upon 
 election, the state or political subdivision shall be assigned 
 the new employer tax rate under section 268.051, subdivision 5, 
 for the calendar year of the election and until it qualifies for 
 an experience rating under section 268.051, subdivision 3. 

    (b) An election shall be for a minimum period of three 
 calendar years following the effective date of the election and 
 continue unless a notice terminating the election is filed not 
 later than 30 calendar days before the beginning of the calendar 
 year.  The termination shall be effective at the beginning of 
 the next calendar year.  A termination of election shall be 
 allowed only if the state or political subdivision has a zero 
 experience rating and has no unemployment benefit charges to its 
 tax account that have not yet been used in computing an 
 experience rating under section 268.051, subdivision 3.  

    (c) The method of payments to the fund under subdivisions 3 
 and 4 shall apply to all taxes paid by or due from the state or 
 political subdivision that elects to be taxpaying employers 
 under this subdivision. 

    (d) The commissioner may allow a notice of election or a 
 notice terminating election to be filed by mail or electronic 
 transmission.  

    Subd. 3.    Method of payment by state.  To discharge 
 its liability, the state and its wholly owned instrumentalities 
 shall pay the fund as follows: 

    (1) Every self-sustaining department, institution and 
 wholly owned instrumentality shall pay the fund in accordance 
 with subdivision 1.  For the purposes of this clause a 
 "self-sustaining department, institution or wholly owned 
 instrumentality" is one where the dedicated income and revenue 
 substantially offsets its cost of operation. 

    (2) Every partially self-sustaining department, institution 
 and wholly owned instrumentality shall pay the fund that same 
 proportion of the amount that has been charged to its employer 
 account as the proportion of the total of its income and revenue 
 is to its annual cost of operation. 

    (3) Every department, institution or wholly owned 
 instrumentality that is not self-sustaining shall pay the fund 
 to the extent funds are available from appropriated funds. 

    (4) The departments, institutions and wholly owned 
 instrumentalities, including the University of Minnesota, that 
 have money available shall pay the fund in accordance with 
 subdivision 1.  If an applicant was paid during the base period 
 from a special account provided by law, the payment to the fund 
 shall be made from the special account with the approval of the 
 department of administration and the amounts are hereby 
 appropriated. 

    (5) For those departments, institutions and wholly owned 
 instrumentalities that cannot pay the fund, the commissioner 
 shall certify on November 1 of each calendar year to the 
 commissioner of finance the unpaid balances.  Upon receipt of 
 the certification, the commissioner of finance shall include the 
 unpaid balances in the biennial budget submitted to the 
 legislature. 

    Subd. 4.    Method of payment by political subdivision.  
 A political subdivision or instrumentality thereof is authorized 
 and directed to pay its liabilities by money collected from 
 taxes or other revenues.  Every political subdivision authorized 
 to levy taxes may include in its tax levy the amount necessary 
 to pay its liabilities.  If the taxes authorized to be levied 
 cause the total amount of taxes levied to exceed any limitation 
 upon the power of a political subdivision to levy taxes, the 
 political subdivision may levy taxes in excess of the 
 limitations in the amounts necessary to meet its liability.  The 
 expenditures authorized shall not be included in computing the 
 cost of government as defined in any home rule charter.  The 
 governing body of a municipality, for the purpose of meeting its 
 liabilities, in the event of a deficit, may issue its 
 obligations payable in not more than two years, in an amount 
 that may cause its indebtedness to exceed any statutory or 
 charter limitations, without an election, and may levy taxes in 
 the manner provided in section 475.61. 

    HIST: Ex1936 c 2 s 4; 1937 c 306 s 2; 1939 c 443 s 3; 1941 c 
 554 s 3; 1943 c 650 s 2; 1945 c 376 s 3; 1947 c 32 s 1-8; 1947 c 
 432 s 3-5,11; 1947 c 600 s 7; 1949 c 526 s 1; 1949 c 605 s 
 3-6,17,18; 1951 c 442 s 2; 1953 c 97 s 5,6,8; 1953 c 288 s 1; 
 1955 c 380 s 2-4,6; 1957 c 25 s 1; 1957 c 873 s 2; 1959 c 702 s 
 2-4; 1965 c 45 s 40; 1965 c 741 s 6-11; 1967 c 573 s 3; 1967 c 
 617 s 1; 1967 c 856 s 1; 1969 c 3 s 1; 1969 c 567 s 3; 1969 c 
 854 s 6; 1971 c 860 s 1; 1971 c 942 s 3-6; 1973 c 254 s 3; 1973 
 c 599 s 2-4; 1975 c 336 s 6-10; 1977 c 4 s 4,5; 1977 c 297 s 
 6-11; 1977 c 430 s 25 subd 1; 1977 c 455 s 82; 1978 c 674 s 60; 
 1979 c 181 s 4-8; 1980 c 508 s 2-7; 1Sp1982 c 1 s 5-12; 1983 c 
 216 art 1 s 87; 1983 c 247 s 112; 1983 c 372 s 9-15; 1985 c 248 
 s 70; 1Sp1985 c 14 art 9 s 75; 1986 c 444; 1986 c 451 s 1; 1987 
 c 242 s 1; 1987 c 362 s 9-12; 1987 c 385 s 10-18; 1989 c 65 s 
 3-5; 1989 c 209 art 2 s 1; 1992 c 484 s 4-7; 1994 c 483 s 1; 
 1994 c 488 s 8; 1995 c 54 s 3-7; 1996 c 417 s 5-7,31; 1997 c 66 
 s 22-24,27,79,80; 1999 c 107 s 29,66; 2000 c 343 s 4 

     268.053 Payment to fund by nonprofit organizations. 

    Subdivision 1.    Election.  (a) Any nonprofit 
 organization that has employees in covered employment shall pay 
 taxes on a quarterly basis pursuant to section 268.051 unless it 
 elects to make payments in lieu of taxes to the fund the amount 
 of unemployment benefits charged to its employer account under 
 section 268.047. 

    The organization may elect to make payments in lieu of 
 taxes for a period of not less than two calendar years beginning 
 with the date that the organization was determined to be an 
 employer with covered employment by filing a notice of election 
 not later than 30 calendar days after the date of the 
 determination. 

    (b) Any nonprofit organization that makes an election will 
 continue to be liable for payments in lieu of taxes until it 
 files a notice terminating its election not later than 30 
 calendar days before the beginning of the calendar year the 
 termination is to be effective.  

    (c) A nonprofit organization that has been making payments 
 in lieu of taxes that files a notice of termination of election 
 shall be assigned the new employer tax rate under section 
 268.051, subdivision 5, for the calendar year of the termination 
 of election and until it qualifies for an experience rating 
 under section 268.051, subdivision 3. 

    (d) Any nonprofit organization that has been paying taxes 
 may elect to make payments in lieu of taxes by filing no less 
 than 30 calendar days before January 1 of any calendar year a 
 notice of election.  Upon election, the commissioner shall 
 establish a reimbursable account for the nonprofit 
 organization.  An election shall be allowed only if the 
 nonprofit organization has, during the experience rating period 
 under section 268.051, subdivision 3, paid taxes or made 
 voluntary payments under section 268.051, subdivision 7, equal 
 to or more than 125 percent of the unemployment benefit charges 
 during the experience rating period.  In addition, any 
 unemployment benefit charges to its tax account that come after 
 the experience rating period shall be transferred to the new 
 reimbursable account of the nonprofit organization.  If the 
 amount of taxes and voluntary payments paid during the 
 experience rating period exceeds 125 percent of the amount of 
 unemployment benefit charges during the experience rating 
 period, that amount in excess shall be applied against any 
 unemployment benefit charges that come after the experience 
 rating period.  The election shall not be terminable by the 
 organization for that and the next calendar year. 

    (e) The commissioner may for good cause extend the period 
 that a notice of election, or a notice of termination, must be 
 filed and may permit an election to be retroactive. 

    (f) The commissioner may allow a notice of election or 
 notice terminating election to be filed by mail or electronic 
 transmission. 

    Subd. 2.    Determination and appeal.  The commissioner 
 shall notify each nonprofit organization by mail or electronic 
 transmission of any determination of its status as an employer 
 with covered employment and of the effective date of any 
 election or termination of election.  The determinations shall 
 be final unless an appeal is filed within 30 calendar days after 
 sending of the determination.  Proceedings on the appeal shall 
 be conducted in accordance with section 268.105. 

    Subd. 3.    Payments.  (a) Payments in lieu of taxes, in 
 the amount of unemployment benefits charged to the reimbursable 
 account, during a calendar quarter, shall be made on or before 
 the last day of the month following the month that the notice of 
 unemployment benefits charged is sent pursuant to section 
 268.047, subdivision 5.  

    (b) Past due payments in lieu of taxes shall be subject to 
 the same interest charges and collection procedures that apply 
 to past due taxes. 

    (c) If any nonprofit organization is delinquent in making 
 payments in lieu of taxes, the commissioner may terminate the 
 organization's election to make payments in lieu of taxes as of 
 the beginning of the next calendar year, and the termination 
 shall be effective for that and the following calendar year.  A 
 nonprofit organization that has its election terminated under 
 this paragraph shall be assigned the new employer tax rate under 
 section 268.051, subdivision 5, until the organization qualifies 
 for an experience rating under section 268.051, subdivision 3. 

    Subd. 4.    Application.  For purposes of this section, 
 a nonprofit organization is an organization, or group of 
 organizations, described in United States Code, title 26, 
 section 501(c)(3) of the Internal Revenue Code that is exempt 
 from income tax under section 501(a). 

    Subd. 5.    Compromise.  The compromise authority set 
 out in section 268.067 applies to this section. 

    HIST: Ex1936 c 2 s 4; 1937 c 306 s 2; 1939 c 443 s 3; 1941 c 
 554 s 3; 1943 c 650 s 2; 1945 c 376 s 3; 1947 c 32 s 1-8; 1947 c 
 432 s 3-5,11; 1947 c 600 s 7; 1949 c 526 s 1; 1949 c 605 s 
 3-6,17,18; 1951 c 442 s 2; 1953 c 97 s 5,6,8; 1953 c 288 s 1; 
 1955 c 380 s 2-4,6; 1957 c 25 s 1; 1957 c 873 s 2; 1959 c 702 s 
 2-4; 1965 c 45 s 40; 1965 c 741 s 6-11; 1967 c 573 s 3; 1967 c 
 617 s 1; 1967 c 856 s 1; 1969 c 3 s 1; 1969 c 567 s 3; 1969 c 
 854 s 6; 1971 c 860 s 1; 1971 c 942 s 3-6; 1973 c 254 s 3; 1973 
 c 599 s 2-4; 1975 c 336 s 6-10; 1977 c 4 s 4,5; 1977 c 297 s 
 6-11; 1977 c 430 s 25 subd 1; 1977 c 455 s 82; 1978 c 674 s 60; 
 1979 c 181 s 4-8; 1980 c 508 s 2-7; 1Sp1982 c 1 s 5-12; 1983 c 
 216 art 1 s 87; 1983 c 247 s 112; 1983 c 372 s 9-15; 1985 c 248 
 s 70; 1Sp1985 c 14 art 9 s 75; 1986 c 444; 1986 c 451 s 1; 1987 
 c 242 s 1; 1987 c 362 s 9-12; 1987 c 385 s 10-18; 1989 c 65 s 
 3-5; 1989 c 209 art 2 s 1; 1992 c 484 s 4-7; 1994 c 483 s 1; 
 1994 c 488 s 8; 1995 c 54 s 3-7; 1996 c 417 s 5-7,31; 1997 c 66 
 s 25,79,80; 1999 c 107 s 30; 2000 c 343 s 2-4 

  268.054 Repealed, 1998 c 265 s 46 

     268.057 Collection of taxes. 

    Subdivision 1.    Reports; delinquencies; penalties.  (a)
 Any employer who knowingly fails to submit to the commissioner 
 any tax report at the time the report is required under section 
 268.051, subdivision 1a, or 268.0511 shall pay to the department 
 a penalty of up to $25 or an amount of 1-1/2 percent of taxes 
 accrued for each month from and after the due date until the tax 
 report is properly submitted, whichever is greater.  

    (b) If any employer required to submit tax reports fails to 
 do so, or submits, willfully or otherwise, an incorrect or false 
 tax report, the employer shall, on the demand of the 
 commissioner sent by mail or electronic transmission, submit the 
 tax report, or corrected report, within ten days and at the same 
 time pay the tax due.  If the employer fails within that time to 
 submit the tax report or corrected report and pay any tax due, 
 the commissioner shall make an estimated tax report from the 
 commissioner's own knowledge and from information the 
 commissioner may obtain and assess a tax on that basis.  That 
 assessed tax, plus any penalties and interest, shall be paid 
 within ten days after notice of the amount due has been sent by 
 mail or electronic transmission.  Any assessed tax because of 
 the failure of the employer to submit a tax report or corrected 
 tax report shall be prima facie correct and valid, and the 
 employer shall have the burden of establishing its incorrectness 
 or invalidity in any subsequent action or proceeding.  Whenever 
 the delinquent employer files a tax report or corrected tax 
 report, the commissioner may, on finding it substantially 
 correct, accept that report. 

    (c) If the commissioner finds that any part of any 
 employer's tax deficiency is due to fraud with intent to avoid 
 payment of taxes to the fund, 50 percent of the total amount of 
 the deficiency or $500, whichever is greater, shall be assessed 
 as a penalty against the employer and collected in addition to 
 the deficiency. 

    (d) The penalties provided for in paragraphs (a) and (c) 
 are in addition to interest and any other penalties and shall be 
 paid to the department and credited to the contingent account. 

    (e) An employer or officer or agent of an employer is 
 guilty of a gross misdemeanor, unless the tax or other payment 
 involved exceeds $500, in which case the person is guilty of a 
 felony, if the individual: 

    (1) in order to avoid becoming or remaining a subject 
 employer or to avoid or reduce any tax or other payment required 
 under this chapter: 

    (i) makes a false statement or representation knowing it to 
 be false; or 

    (ii) knowingly fails to disclose a material fact; or 

    (2) willfully fails or refuses to pay any taxes or other 
 payment at the time required. 

    Subd. 2.    Tax or payment in lieu of tax presumed valid. 
  The tax and payment in lieu of tax, as assessed by the 
 commissioner, including any penalties, shall be presumed to be 
 valid and correctly determined and assessed, and the burden 
 shall be upon the employer to show its incorrectness or 
 invalidity.  A statement by the commissioner of the amount of 
 the tax, payment in lieu of tax, interest and penalties as 
 determined or assessed by the commissioner, shall be admissible 
 in evidence in any court or administrative proceeding and shall 
 be prima facie evidence of the facts in the statement. 

    Subd. 3.    Confession of judgment.  (a) Any tax report 
 or other form that is required to be filed with the commissioner 
 concerning taxes or payments in lieu of taxes due, shall contain 
 a written declaration that it is made under the penalties for 
 willfully making a false report and shall contain a confession 
 of judgment for the amount of the tax or payments in lieu of 
 taxes shown due thereon to the extent not timely paid together 
 with any interest and penalty due under this chapter. 

    (b) The commissioner may, within six years after the report 
 or other form is filed, regardless of section 541.09, enter 
 judgment on any confession of judgment after 20 calendar days' 
 notice served upon the employer by mail.  The judgment shall be 
 entered by the court administrator of any county upon the filing 
 of a photocopy of the confession of judgment along with a 
 statement of the commissioner that the tax or payment in lieu of 
 tax has not been paid. 

    Subd. 4.    Costs.  Any person that fails to pay any 
 taxes, payment in lieu of taxes, or unemployment benefit 
 overpayment, including interest and penalties, when due is 
 liable for any filing fees, recording fees, sheriff fees, costs 
 incurred by referral to any public or private collection agency, 
 or litigation costs incurred in the collection of the amounts 
 due.  

    If any check or money order, in payment of any amount due, 
 is not honored when presented for payment, a fee of $25 shall be 
 assessed.  

    Costs collected shall be credited to the administration 
 account. 

    Subd. 5.    Interest on past due taxes.  If taxes or 
 payments in lieu of taxes to the fund are not paid on the date 
 due the unpaid balance shall bear interest at the rate of one 
 and one-half percent per month or any part thereof.  Taxes or 
 payments in lieu of taxes received by mail postmarked on a day 
 following the date due shall be considered to have been paid on 
 the due date if there is substantial evidence that the payment 
 was actually deposited in the United States mail properly 
 addressed to the department with postage prepaid thereon on or 
 before the due date.  Interest collected shall be credited to 
 the contingent account.  Interest may be waived by rules adopted 
 by the commissioner. 

    Subd. 6.    Interest on judgments.  Regardless of 
 section 549.09, if judgment is entered upon any past due tax or 
 payment in lieu of taxes, the unpaid judgment shall bear 
 interest at the rate specified in subdivision 5 until the date 
 of payment.  

    Subd. 7.    Credit adjustments, refunds.  (a) If an 
 employer makes an application for a credit adjustment of any 
 amount paid as taxes or interest thereon within four years of 
 the year that the payment was made, and the commissioner 
 determines that the payment or any portion was erroneous, the 
 commissioner shall make an adjustment and issue a credit without 
 interest.  If a credit cannot be used, the commissioner shall 
 refund, without interest, the amount erroneously paid.  The 
 commissioner, on the commissioner's own motion, may make a 
 credit adjustment or refund under this subdivision. 

    (b) If a credit adjustment or refund is denied in whole or 
 in part, a notice of denial shall be sent to the employer by 
 mail or electronic transmission.  Within 30 calendar days after 
 sending of the notice of denial, the employer may appeal.  
 Proceedings on the appeal shall be conducted in accordance with 
 section 268.105. 

    Subd. 8. Repealed, 1999 c 107 s 67 

    Subd. 9. Repealed, 1999 c 107 s 67 

    Subd. 10.    Priorities under legal dissolutions or 
 distributions.  In the event of any distribution of an 
 employer's assets pursuant to an order of any court, including 
 any receivership, assignment for benefit of creditors, 
 adjudicated insolvency, or similar proceeding, taxes then or 
 thereafter due shall be paid in full prior to all other claims 
 except claims for wages of not more than $1,000 per former 
 employee, earned within six months of the commencement of the 
 proceedings.  In the event of an employer's adjudication in 
 bankruptcy under federal law, taxes then or thereafter due shall 
 be entitled to the priority provided in that law for taxes due 
 any state. 

    HIST: Ex1936 c 2 s 14; 1941 c 554 s 13; 1943 c 650 s 9; 1945 c 
 376 s 13; 1949 c 605 s 12,13; 1951 c 55 s 1; 1953 c 97 s 17; 
 1969 c 9 s 65; 1969 c 567 s 3; 1969 c 854 s 13; 1973 c 254 s 3; 
 1973 c 720 s 73 subds 2,3; 1975 c 108 s 1; 1975 c 302 s 3,4; 
 1975 c 336 s 22,23; 1977 c 430 s 25 subd 1; 1978 c 618 s 2; 1978 
 c 674 s 60; 1980 c 508 s 11-13; 3Sp1981 c 2 art 1 s 33; 1Sp1982 
 c 1 s 34,35; 1983 c 372 s 39; 1985 c 248 s 70; 1Sp1985 c 14 art 
 9 s 75; 1986 c 444; 1987 c 362 s 26; 1987 c 385 s 28-30; 1989 c 
 65 s 12; 1989 c 209 art 2 s 1; 1993 c 67 s 11; 1994 c 483 s 1; 
 1995 c 54 s 13-15; 1996 c 417 s 24,31; 1997 c 66 s 66-69,79,80; 
 1998 c 265 s 14-17,44; 1999 c 107 s 31,32,66; 2000 c 343 s 4 

     268.058 Lien, levy, setoff, and civil action. 

    Subdivision 1.    Lien.  (a) Any taxes, unemployment 
 benefit overpayments, or payments in lieu of taxes due including 
 interest, penalties, and costs shall become a lien upon all the 
 property, within this state, both real and personal, of the 
 person liable, from the date of assessment.  The term "date of 
 assessment" means the date the obligation was due. 

    (b) The lien is not enforceable against any purchaser, 
 mortgagee, pledgee, holder of a Uniform Commercial Code security 
 interest, mechanic's lien, or judgment lien creditor, until a 
 notice of lien has been filed with the county recorder of the 
 county where the property is situated, or in the case of 
 personal property belonging to a nonresident person in the 
 office of the secretary of state.  When the notice of lien is 
 filed with the county recorder, the fee for filing and indexing 
 shall be as provided in sections 272.483 and 272.484.  

    (c) Notices of liens, lien renewals, and lien releases, in 
 a form prescribed by the commissioner, may be filed with the 
 county recorder or the secretary of state by mail, personal 
 delivery, or by electronic transmission into the computerized 
 filing system of the secretary of state under section 336.9-411. 
 The secretary of state shall, on any notice filed with that 
 office, transmit the notice electronically to the appropriate 
 county recorder.  The filing officer, whether the county 
 recorder or the secretary of state, shall endorse and index a 
 printout of the notice as if the notice had been mailed or 
 delivered.  

    (d) County recorders and the secretary of state shall enter 
 information on lien notices, renewals, and releases into the 
 central database of the secretary of state.  For notices filed 
 electronically with the county recorders, the date and time of 
 receipt of the notice and county recorder's file number, and for 
 notices filed electronically with the secretary of state, the 
 secretary of state's recording information, must be entered into 
 the central database before the close of the working day 
 following the day of the original data entry by the commissioner.

    (e) The lien imposed on personal property, even though 
 properly filed, is not enforceable against a purchaser of 
 tangible personal property purchased at retail or personal 
 property listed as exempt in sections 550.37, 550.38, and 550.39.

    (f) A notice of lien filed has priority over any security 
 interest arising under chapter 336, article 9, that is perfected 
 prior in time to the lien imposed by this subdivision, but only 
 if:  

    (1) the perfected security interest secures property not in 
 existence at the time the notice of lien is filed; and 

    (2) the property comes into existence after the 45th 
 calendar day following the day the notice of lien is filed, or 
 after the secured party has actual notice or knowledge of the 
 lien filing, whichever is earlier. 

    (g) The lien shall be enforceable from the time the lien 
 arises and for ten years from the date of filing the notice of 
 lien.  A notice of lien may be renewed before expiration for an 
 additional ten years.  

    (h) The lien shall be enforceable by levy under subdivision 
 2 or by judgment lien foreclosure under chapter 550.  

    (i) The lien may be imposed upon property defined as 
 homestead property in chapter 510 but may be enforced only upon 
 the sale, transfer, or conveyance of the homestead property. 

    (j) The commissioner may sell and assign to a third party 
 the commissioner's right of redemption in specific real property 
 for liens filed under this subdivision.  The assignee shall be 
 limited to the same rights of redemption as the commissioner, 
 except that in a bankruptcy proceeding, the assignee does not 
 obtain the commissioner's priority.  Any proceeds from the sale 
 of the right of redemption shall be credited to the contingent 
 account.  Any sale shall be by written agreement signed by an 
 attorney who is a classified employee of the department 
 designated by the commissioner for that purpose. 

    Subd. 2.    Levy.  (a) If any tax, payment in lieu of 
 taxes, or unemployment benefit overpayment, including interest, 
 penalties, and costs, is not paid when due, the amount may be 
 collected by the commissioner by direct levy upon all property 
 and rights of property of the person liable for the amount due 
 except that exempt from execution under section 550.37.  The 
 term "levy" includes the power of distraint and seizure by any 
 means.  

    (b) In addition to a direct levy, the commissioner may 
 issue a warrant to the sheriff of any county who shall proceed 
 within 60 calendar days to levy upon the property or rights to 
 property of the delinquent person within the county, except that 
 exempt under section 550.37.  The sheriff shall sell that 
 property necessary to satisfy the total amount due, together 
 with the commissioner's and sheriff's costs.  The sales shall be 
 governed by the law applicable to sales of like property on 
 execution of a judgment.  

    (c) Notice and demand for payment of the total amount due 
 shall be mailed to the delinquent person at least ten calendar 
 days prior to action being taken under paragraphs (a) and (b). 

    (d) If the commissioner has reason to believe that 
 collection of the amount due is in jeopardy, notice and demand 
 for immediate payment may be made.  If the total amount due is 
 not paid, the commissioner may proceed to collect by direct levy 
 or issue a warrant without regard to the ten calendar day period.

    (e) In executing the levy, the commissioner shall have all 
 of the powers provided in chapter 550 or any other law that 
 provides for execution against property in this state.  The sale 
 of property levied upon and the time and manner of redemption 
 shall be as provided in chapter 550.  The seal of the court 
 shall not be required.  The levy may be made whether or not the 
 commissioner has commenced a legal action for collection. 

    (f) Where any assessment has been made by the commissioner, 
 the property seized for collection of the total amount due shall 
 not be sold until any determination of liability has become 
 final.  No sale shall be made unless a portion of the amount due 
 remains unpaid for a period of more than 30 calendar days after 
 the determination of liability becomes final.  Seized property 
 may be sold at any time if:  

    (1) the delinquent person consents in writing to the sale; 
 or 

    (2) the commissioner determines that the property is 
 perishable or may become greatly reduced in price or value by 
 keeping, or that the property cannot be kept without great 
 expense.  

    (g) Where a levy has been made to collect the amount due 
 and the property seized is properly included in a formal 
 proceeding commenced under sections 524.3-401 to 524.3-505 and 
 maintained under full supervision of the court, the property 
 shall not be sold until the probate proceedings are completed or 
 until the court orders.  

    (h) The property seized shall be returned if the owner: 

    (1) gives a surety bond equal to the appraised value of the 
 owner's interest in the property, as determined by the 
 commissioner, or 

    (2) deposits with the commissioner security in a form and 
 amount the commissioner considers necessary to insure payment of 
 the liability. 

    (i) If a levy or sale would irreparably injure rights in 
 property that the court determines superior to rights of the 
 state, the court may grant an injunction to prohibit the 
 enforcement of the levy or to prohibit the sale. 

    (j) Any person who fails or refuses to surrender without 
 reasonable cause any property or rights to property subject to 
 levy shall be personally liable in an amount equal to the value 
 of the property or rights not so surrendered, but not exceeding 
 the amount due.  

    (k) If the commissioner has seized the property of any 
 individual, that individual may, upon giving 48 hours notice to 
 the commissioner and to the court, bring a claim for equitable 
 relief before the district court for the release of the property 
 upon terms and conditions the court considers equitable. 

    (l) Any person in control or possession of property or 
 rights to property upon which a levy has been made who 
 surrenders the property or rights to property, or who pays the 
 amount due shall be discharged from any obligation or liability 
 to the person liable for the amount due with respect to the 
 property or rights to property.  

    (m) The notice of any levy may be served personally or by 
 mail. 

    (n) The commissioner may release the levy upon all or part 
 of the property or rights to property levied upon if the 
 commissioner determines that the release will facilitate the 
 collection of the liability, but the release shall not prevent 
 any subsequent levy.  If the commissioner determines that 
 property has been wrongfully levied upon, the commissioner shall 
 return:  

    (1) the specific property levied upon, at any time; or 

    (2) an amount of money equal to the amount of money levied 
 upon, at any time before the expiration of nine months from the 
 date of levy. 

    (o) Regardless of section 52.12, a levy upon a person's 
 funds on deposit in a financial institution located in this 
 state, shall have priority over any unexercised right of setoff 
 of the financial institution to apply the levied funds toward 
 the balance of an outstanding loan or loans owed by the person 
 to the financial institution.  A claim by the financial 
 institution that it exercised its right to setoff prior to the 
 levy must be substantiated by evidence of the date of the 
 setoff, and verified by an affidavit from a corporate officer of 
 the financial institution.  For purposes of determining the 
 priority of any levy under this subdivision, the levy shall be 
 treated as if it were an execution under chapter 550.  

    Subd. 3.    Right of setoff.  (a) Upon certification by 
 the commissioner to the commissioner of finance, or to any state 
 agency that disburses its own funds, that a person has a 
 liability under this chapter, including interest, penalties, and 
 costs, and that the state has purchased personal services, 
 supplies, contract services, or property from that person, the 
 commissioner of finance or the state agency shall set off and 
 pay to the commissioner an amount sufficient to satisfy the 
 unpaid liability from funds appropriated for payment of the 
 obligation of the state otherwise due the person.  No amount 
 shall be set off from any funds exempt under section 550.37 or 
 funds due an individual who receives assistance under chapter 
 256. 

    (b) All funds, whether general or dedicated, shall be 
 subject to setoff.  

    Regardless of any law to the contrary, the commissioner 
 shall have first priority to setoff from any funds otherwise due 
 from the department to a delinquent person. 

    Subd. 4.    Collection by civil action.  (a) Any 
 delinquent taxes, payment in lieu of taxes, or unemployment 
 benefit overpayment, including interest, penalties, or costs, 
 may be collected by civil action in the name of the state of 
 Minnesota.  Civil actions brought under this subdivision shall 
 be heard as provided under section 16D.14.  In any action, 
 judgment shall be entered in default for the relief demanded in 
 the complaint without proof, together with costs and 
 disbursements, upon the filing of an affidavit of default. 

    (b) Any person that is not a resident of this state and any 
 resident person removed from this state, shall be considered to 
 appoint the secretary of state as its agent for the acceptance 
 of process in any civil action.  The commissioner shall file 
 process with the secretary of state, together with a payment of 
 a fee of $15 and that service shall be considered sufficient 
 service and shall have the same force and validity as if served 
 personally within this state.  Notice of the service of process, 
 together with a copy of the process, shall be sent by certified 
 mail to the person's last known address.  An affidavit of 
 compliance with this subdivision, and a copy of the notice of 
 service shall be appended to the original of the process and 
 filed in the court.  

    (c) No court filing fees, docketing fees, or release of 
 judgment fees may be assessed against the state for actions 
 pursuant to this subdivision. 

    Subd. 5.    Injunction forbidden.  No injunction or 
 other legal action to prevent the assessment or collection of 
 any tax, payment in lieu of taxes, or unemployment benefit 
 overpayment, including interest, penalties, and costs shall be 
 allowed.  

    HIST: 1Sp1982 c 1 s 36; 1983 c 372 s 40-44; 1985 c 281 s 1; 
 1Sp1985 c 14 art 9 s 75; 1986 c 444; 1Sp1986 c 3 art 1 s 82; 
 1987 c 385 s 31-34; 1989 c 209 art 2 s 1; 1991 c 291 art 18 s 1; 
 1992 c 484 s 14; 1993 c 67 s 12; 1993 c 137 s 8; 1994 c 483 s 1; 
 1994 c 488 s 7; 1995 c 54 s 16,17; 1996 c 417 s 25,31; 1997 c 66 
 s 67,79,80; 1998 c 265 s 44; 1999 c 107 s 33,66; 2000 c 343 s 4 

     268.059 Garnishment for delinquent taxes and 
  unemployment benefit overpayments. 

    (a) The commissioner may give notice to any employer that 
 an employee owes delinquent taxes, payments in lieu of taxes, or 
 overpaid unemployment benefits, including penalties, interest, 
 and costs, and that the obligation to the department should be 
 withheld from the employee's wages.  The commissioner may 
 proceed only if the tax, payment in lieu of taxes, or 
 unemployment benefit overpayment is uncontested or if the time 
 for any appeal has expired.  The commissioner shall not proceed 
 until 30 calendar days after mailing to the debtor employee, at 
 the debtor's last known address, a written notice of intent to 
 garnish wages and exemption notice.  That notice shall list: 

    (1) the amount of taxes, payments in lieu of taxes, 
 overpaid unemployment benefits, interest, penalties, or costs 
 due from the debtor; 

    (2) demand for immediate payment; and 

    (3) the intention to serve a garnishment notice on the 
 debtor's employer. 

    The notice shall expire 180 calendar days after it has been 
 mailed to the debtor provided that the notice may be renewed by 
 mailing a new notice that is in accordance with this section.  
 The renewed notice shall have the effect of reinstating the 
 priority of the original notice.  The exemption notice shall be 
 in substantially the same form as in section 571.72.  The notice 
 shall inform the debtor of the right to claim exemptions 
 contained in section 550.37, subdivision 14.  If no written 
 claim of exemption is received by the commissioner within 30 
 calendar days after mailing of the notice, the commissioner may 
 proceed with the garnishment.  The notice to the debtor's 
 employer may be served by mail and shall be in substantially the 
 same form as in section 571.75.  Upon receipt of the garnishment 
 notice, the employer shall withhold from the earnings due or to 
 become due to the employee, the amount shown on the notice plus 
 accrued interest, subject to section 571.922.  The employer 
 shall continue to withhold each pay period the amount shown on 
 the notice plus accrued interest until the garnishment notice is 
 released by the commissioner.  Upon receipt of notice by the 
 employer, the claim of the commissioner shall have priority over 
 any subsequent garnishments or wage assignments.  The 
 commissioner may arrange between the employer and employee for 
 withholding a portion of the total amount due the employee each 
 pay period, until the total amount shown on the notice plus 
 accrued interest has been withheld. 

    The "earnings due" any employee is as defined in section 
 571.921.  The maximum garnishment allowed for any one pay period 
 shall be decreased by any amounts payable pursuant to any other 
 garnishment action served prior to the garnishment notice, and 
 any amounts covered by any irrevocable and previously effective 
 assignment of wages; the employer shall give notice to the 
 commissioner of the amounts and the facts relating to the 
 assignment within ten days after the service of the garnishment 
 notice on the form provided by the commissioner. 

    (b) If the employee ceases to be employed by the employer 
 before the full amount set forth on the garnishment notice plus 
 accrued interest has been withheld, the employer shall 
 immediately notify the commissioner in writing of the 
 termination date of the employee and the total amount withheld.  
 No employer may discharge or discipline any employee because the 
 commissioner has proceeded under this section.  If an employer 
 discharges an employee in violation of this section, the 
 employee shall have the same remedy as provided in section 
 571.927, subdivision 2. 

    (c) Within ten calendar days after the expiration of the 
 pay period, the employer shall remit to the commissioner, on a 
 form and in the manner prescribed by the commissioner, the 
 amount withheld during each pay period. 

    (d) Paragraphs (a) to (c) shall apply if the employer is 
 the state of Minnesota or any political subdivision. 

    (e) The commissioner shall refund to the employee any 
 excess amounts withheld from the employee. 

    (f) An employer that fails or refuses to comply with this 
 section shall be liable as provided in section 268.058, 
 subdivision 2, paragraph (j). 

    HIST: 1996 c 417 s 28; 1997 c 66 s 70,79; 1998 c 265 s 18; 
 2000 c 343 s 4; 2000 c 499 s 1 

    268.06 Subdivision 1. Renumbered 268.051, subd 1 

    Subd. 2. Repealed, 1997 c 66 s 81 

    Subd. 3.  Repealed, 1969 c 854 s 14 

    Subd. 3a. Renumbered 268.051, subd 5 

    Subd. 4. Repealed, 1997 c 66 s 81 

    Subd. 5. Repealed, 1997 c 66 s 81 

    Subd. 6. Renumbered 268.051, subd 3 

    Subd. 7.  Repealed, 1949 c 605 s 15 

    Subd. 8. Renumbered 268.051, subd 2 

    Subd. 8a. Renumbered 268.051, subd 8 

    Subd. 9.  Repealed, 1949 c 605 s 15 

    Subd. 10.  Repealed, 1949 c 605 s 15 

    Subd. 11.  Repealed, 1953 c 97 s 7 

    Subd. 12. Repealed, 1953 c 97 s 7 

    Subd. 13. Repealed, 1953 c 97 s 7 

    Subd. 14.  Repealed, 1953 c 97 s 7 

    Subd. 15.  Repealed, 1953 c 97 s 7 

    Subd. 16.  Repealed, 1953 c 97 s 7 

    Subd. 17.  Repealed, 1949 c 605 s 15 

    Subd. 18. Renumbered 268.047, subd 5 

    Subd. 19. Renumbered 268.051, subd 6 

    Subd. 20. Renumbered 268.051, subd 6, paragraphs (c) and 
 (d) 

    Subd. 21. Renumbered 268.045 

    Subd. 22. Renumbered 268.051, subd 4 

    Subd. 23. Repealed, 1955 c 380 s 5 

    Subd. 24. Renumbered 268.051, subd 7 

    Subd. 25. Renumbered 268.052, subd 1 

    Subd. 26. Renumbered 268.052, subd 3 

    Subd. 27. Renumbered 268.052, subd 4 

    Subd. 28. Renumbered 268.053 

    Subd. 29. Renumbered 268.045, paragraph (d) 

    Subd. 30. Repealed, 1997 c 66 s 81 

    Subd. 31. Renumbered 268.052, subd 2 

    Subd. 32. Repealed, 1983 c 372 s 48 

    Subd. 32. Repealed, 1983 c 372 s 48 

    Subd. 33. Repealed, 1997 c 66 s 81 

    Subd. 34. Renumbered 268.054 

  268.061 Repealed, 1988 c 689 art 2 s 269 

  268.062 Renumbered 268.068 

     268.0625 Revocations of business licenses. 

    Subdivision 1.    Notice of debt to licensing authority. 
  The state of Minnesota or a political subdivision 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 licensee 
 owes delinquent taxes, payments in lieu of taxes, or 
 unemployment benefit overpayments, including interest, 
 penalties, and costs, of $500 or more.  A licensing authority 
 that has received such a notice may issue, transfer, renew, or 
 not revoke the license only if the licensing authority has 
 received a copy of the debt clearance certificate issued by the 
 commissioner. 

    Subd. 2.    Debt clearance certificate.  The 
 commissioner may issue a debt clearance certificate only if:  

    (1) the licensee has fully paid any delinquent taxes, 
 payments in lieu of taxes, or unemployment benefit overpayments, 
 including interest, penalties, and costs; or 

    (2) the licensee has entered into an agreement to pay the 
 total amount due and is current with all the terms of that 
 agreement. 

    Subd. 3.    Definition.  For the purposes of this 
 section, "licensee" means:  

    (1) 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 

    (2) 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 taxes, payments in 
 lieu of taxes, or unemployment benefit overpayments, either for 
 the entity that the license is at issue or for another entity 
 that the liability was incurred, or personally as a licensee.  
 "Licensee" includes both the transferor and the transferee of 
 the license and any holder of a license. 

    Subd. 4.    Notice and right to hearing.  At least 30 
 calendar days before the commissioner notifies a licensing 
 authority, a notice of action under this section shall be mailed 
 to the licensee.  If the licensee disputes the action, the 
 licensee must appeal within 30 calendar days after the mailing 
 of the notice to the licensee's last known address.  The only 
 issue on any appeal is whether the commissioner has complied 
 with the requirements of this section.  Proceedings on the 
 appeal shall be conducted in accordance with section 268.105. 

    Subd. 5.    Licensing authority; duties.  Upon request, 
 the licensing authority shall provide the commissioner with a 
 list of all licensees, including the name, address, business 
 name and address, social security number, and business 
 identification number.  The commissioner may request a list of 
 the licensees no more than once each calendar year.  Regardless 
 of section 268.19, the commissioner may release information 
 necessary to accomplish this section. 

    HIST: 1987 c 385 s 37; 1994 c 488 s 8; 1995 c 54 s 20; 1996 c 
 417 s 26,27; 1997 c 66 s 79,80; 1999 c 107 s 34; 2000 c 343 s 4 

     268.063 Personal liability. 

    (a) Any officer, director, or employee of a corporation or 
 any manager, governor, member, or employee of a limited 
 liability company 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 paying the amounts due 
 under this chapter, and 

    (2) willfully fails to file the tax reports or pay the 
 amounts due, shall be personally liable for taxes or payments in 
 lieu of taxes, including interest, penalties, and costs in the 
 event the employer does not pay. 

    For purposes of this section, "willfulness" means that the 
 facts demonstrate that the responsible party used or allowed the 
 use of corporate or company assets to pay other creditors 
 knowing that the amounts due under this chapter were unpaid.  An 
 evil motive or intent to defraud is not necessary.  

    (b) Any partner of a limited liability partnership, or 
 professional limited liability partnership, shall be jointly and 
 severally liable for taxes or payments in lieu of taxes, 
 including interest, penalties, and costs in the event the 
 employer does not pay.  

    (c) Any personal representative of the estate of a decedent 
 or fiduciary who voluntarily distributes the assets without 
 reserving a sufficient amount to pay the taxes, payments in lieu 
 of taxes, interest, and penalties due shall be personally liable 
 for the deficiency. 

    (d) The personal liability of any individual shall survive 
 dissolution, reorganization, receivership, or assignment for the 
 benefit of creditors.  For the purposes of this section, all 
 wages paid by the employer shall be considered earned from the 
 individual determined to be personally liable. 

    (e) The commissioner shall make an initial determination as 
 to personal liability.  The determination shall be final unless 
 the individual found to be personally liable within 30 calendar 
 days after mailing of notice of determination to the 
 individual's last known address files a protest.  Upon receipt 
 of the protest, the commissioner shall reexamine the personal 
 liability determination and either affirm or redetermine the 
 assessment of personal liability and a notice of the affirmation 
 or redetermination shall be mailed to the individual's last 
 known address.  The affirmation or redetermination shall become 
 final unless an appeal is filed within 30 calendar days after 
 the date of mailing.  Proceedings on the appeal shall be 
 conducted in accordance with section 268.105.  

    HIST: 1Sp1982 c 1 s 36; 1983 c 372 s 40-44; 1985 c 281 s 1; 
 1Sp1985 c 14 art 9 s 75; 1986 c 444; 1Sp1986 c 3 art 1 s 82; 
 1987 c 385 s 31-34; 1989 c 209 art 2 s 1; 1991 c 291 art 18 s 1; 
 1992 c 484 s 14; 1993 c 67 s 12; 1993 c 137 s 8; 1994 c 483 s 1; 
 1994 c 488 s 7; 1995 c 54 s 16,17; 1996 c 417 s 25,31; 1997 c 66 
 s 79; 1998 c 265 s 19 

     268.064 Liability for debts upon acquisition. 

    Subdivision 1.    Acquisition of organization, trade, 
 business, or assets.  Any person who acquires all or part of 
 the organization, trade, business or assets from an employer, is 
 jointly and severally liable, in an amount not to exceed the 
 reasonable value of that part of the organization, trade, 
 business or assets acquired, for the taxes due and unpaid by the 
 employer.  The amount of liability shall, in addition, be a lien 
 against the property or assets acquired and shall be prior to 
 all other unrecorded liens.  This section does not apply to 
 sales in the normal course of the employer's business. 

    Subd. 2.    Reasonable value.  The commissioner, upon 
 the commissioner's own motion or upon application of the 
 acquiring person, shall determine the reasonable value of the 
 organization, trade, business or assets acquired based on 
 available information.  The determination shall be final unless 
 the acquiring person, within 30 calendar days after being sent 
 the determination by mail or electronic transmission, files an 
 appeal.  Proceedings on the appeal shall be conducted in 
 accordance with section 268.105. 

    Subd. 3.    Statement of amount due.  Prior to the date 
 of acquisition, the commissioner shall furnish the acquiring 
 person with a statement of the taxes due and unpaid upon the 
 written request of the potential acquiring person and the 
 written release of the obligor.  No release is required after 
 the date of acquisition. 

    Subd. 4. Repealed by amendment, 1999 c 107 s 35 

    HIST: 1987 c 385 s 35; 1989 c 65 s 13; 1995 c 54 s 18; 1997 c 
 66 s 79,80; 1998 c 265 s 20,44; 1999 c 107 s 35 

     268.065 Liability of amounts due from subcontractors and 
  employee leasing firms. 

    Subdivision 1.    Subcontractors.  A contractor who 
 contracts with any subcontractor shall guarantee the payment of 
 all the taxes, interest, penalties, and collection costs that 
 are due or become due from the subcontractor with respect to 
 taxable wages paid on the contract by: 

    (1) withholding sufficient money on the contract; or 

    (2) requiring the subcontractor to provide a sufficient 
 bond guaranteeing the payment of all taxes, interest, penalties, 
 and collection costs that may become due.  

    The contractor may make a written request for verification 
 that the subcontractor has paid the taxes due 60 calendar days 
 after the due date for filing the tax report that includes the 
 final wages paid for employment performed under the contract.  
 If the subcontractor has paid the taxes for the period covered 
 by the contract, the commissioner may release the contractor 
 from its liability. 

    The words "contractor" and "subcontractor" include 
 individuals, partnerships, firms, or corporations, or other 
 association of persons engaged in the construction industry. 

    Subd. 2.    Employee leasing firms.  A person whose work 
 force consists of 50 percent or more of workers provided by 
 employee leasing firms, is jointly and severally liable for the 
 unpaid taxes, penalties, interest, and collection costs that are 
 due on the wages paid on the contract with the employee leasing 
 firm.  "Employee leasing firm" means an employer that provides 
 its employees to other persons without severing its 
 employer-employee relationship with the worker for the services 
 performed for the lessee. 

    Subd. 3.    Determination of liability.  The 
 commissioner shall make a determination as to the liability 
 under this section.  The determination shall be final unless the 
 contractor or person found to be liable files an appeal within 
 30 calendar days after being sent the determination by mail or 
 electronic transmission.  Proceedings on the appeal shall be 
 conducted in accordance with section 268.105. 

    HIST: 1987 c 385 s 36; 1989 c 65 s 14; 1995 c 54 s 19; 1997 C 
 66 S 79,80; 1998 c 265 s 44; 1999 c 107 s 36 

     268.066 Cancellation of delinquent taxes. 

    (a) The commissioner shall cancel as uncollectible any 
 taxes, payments in lieu of taxes, penalties, or the interest or 
 costs thereon, which remain unpaid six years after the amounts 
 have been first determined due and payable, except where the 
 delinquent amounts are secured by a notice of lien, a judgment, 
 are in the process of garnishment, or are under a payment plan. 

    (b) The commissioner may cancel at any time as 
 uncollectible any taxes, payments in lieu of taxes, penalties, 
 or the interest or costs thereon, that the commissioner 
 determines are uncollectible due to death or bankruptcy. 

    HIST: 1987 c 385 s 39; 1996 c 305 art 1 s 58; 1997 c 66 s 79; 
 1998 c 265 s 21 

     268.067 Compromise. 

    (a) The commissioner may compromise in whole or in part any 
 action, determination, or decision that affects only an employer 
 and not an applicant, and that has occurred during the prior 24 
 months. 

    (b) The commissioner may at any time compromise delinquent 
 employer taxes, payments in lieu of taxes, interest, penalties, 
 and costs. 

    (c) Any compromise shall be by written order signed by an 
 attorney who is a classified employee of the department 
 designated by the commissioner for that purpose. 

    (d) Any compromise order must set out all the terms and the 
 reason for the order and must be in the best interest of the 
 state of Minnesota. 

    HIST: Ex1936 c 2 s 14; 1941 c 554 s 13; 1943 c 650 s 9; 1945 c 
 376 s 13; 1949 c 605 s 12,13; 1951 c 55 s 1; 1953 c 97 s 17; 
 1969 c 9 s 65; 1969 c 567 s 3; 1969 c 854 s 13; 1973 c 254 s 3; 
 1973 c 720 s 73 subds 2,3; 1975 c 108 s 1; 1975 c 302 s 3,4; 
 1975 c 336 s 22,23; 1977 c 430 s 25 subd 1; 1978 c 618 s 2; 1978 
 c 674 s 60; 1980 c 508 s 11-13; 3Sp1981 c 2 art 1 s 33; 1Sp1982 
 c 1 s 34,35; 1983 c 372 s 39; 1985 c 248 s 70; 1Sp1985 c 14 art 
 9 s 75; 1986 c 444; 1987 c 362 s 26; 1987 c 385 s 28-30; 1989 c 
 65 s 12; 1989 c 209 art 2 s 1; 1993 c 67 s 11; 1994 c 483 s 1; 
 1995 c 54 s 13-15; 1996 c 417 s 24,31; 1997 c 66 s 79; 1998 c 
 265 s 22; 1999 c 107 s 37,66 

     268.0675 No election of remedy. 

    Use of any remedy under this chapter for the collection of 
 any delinquent taxes, payments in lieu of taxes, or unemployment 
 benefit overpayment, including penalties, interest, and costs, 
 shall not constitute an election of remedy to the exclusion of 
 any other available remedy. 

    HIST: 1999 c 107 s 38; 2000 c 343 s 4 

     268.068 Notice to workers. 

    Each employer shall post and maintain printed statements of 
 an individual's right to apply for unemployment benefits in 
 places readily accessible to workers in the employer's service.  
 The printed statements shall be supplied by the commissioner at 
 no cost to an employer. 

    HIST: 1996 c 417 s 8; 1997 c 66 s 79; 1999 c 107 s 39; 2000 c 
 343 s 4 

     268.069 Payment of unemployment benefits. 

    Subdivision 1.    Requirements.  The commissioner shall 
 pay unemployment benefits from the fund to an applicant who has 
 met each of the following requirements: 

    (1) the applicant has filed an application for unemployment 
 benefits and established a benefit account in accordance with 
 section 268.07; 

    (2) the applicant is not subject to a disqualification from 
 unemployment benefits under section 268.095; 

    (3) the applicant has met all of the ongoing weekly 
 eligibility requirements under sections 268.085 and 268.086; 

    (4) the applicant does not have an outstanding overpayment 
 of unemployment benefits, including any penalties or interest, 
 under section 268.18; and 

    (5) the applicant is not subject to a denial of 
 unemployment benefits under section 268.182. 

    Subd. 2.    Unemployment benefits paid from state funds. 
  Unemployment benefits are paid from state funds and shall not 
 be considered paid from any special insurance plan, nor as paid 
 by an employer.  An application for unemployment benefits shall 
 not be considered a claim against an employer but shall be 
 considered a request for unemployment benefits from the fund.  
 The commissioner has the responsibility for the proper payment 
 of unemployment benefits regardless of the level of interest or 
 participation by an applicant or an employer in any 
 determination or appeal.  An applicant's entitlement to 
 unemployment benefits shall be determined based upon that 
 information available without regard to any common law burden of 
 proof, and any agreement between an applicant and an employer 
 shall not be binding on the commissioner in determining an 
 applicant's entitlement.  There shall be no presumption of 
 entitlement or nonentitlement to unemployment benefits. 

    Subd. 3.    Common law.  There shall be no equitable or 
 common law denial or allowance of unemployment benefits.  

    HIST: 1997 c 66 s 28; 1998 c 265 s 45; 1999 c 107 s 40,66; 
 2000 c 343 s 4 

     268.07 Benefit account. 

    Subdivision 1.    Application for unemployment benefits; 
 determination of benefit account.  (a) An application for 
 unemployment benefits may be filed in person, by mail, by 
 telephone, or by electronic transmission as the commissioner 
 shall require.  The applicant must provide all requested 
 information in the manner required.  If the applicant fails to 
 provide all requested information, the communication shall not 
 be considered an application for unemployment benefits. 

    (b) The commissioner shall examine each application for 
 unemployment benefits to determine the base period, the benefit 
 year, the weekly unemployment benefit amount available, if any, 
 and the maximum amount of unemployment benefits available, if 
 any.  The determination shall be known as the determination of 
 benefit account.  A determination of benefit account shall be 
 sent to the applicant and all base period employers, by mail or 
 electronic transmission. 

    (c) If a base period employer did not provide wage 
 information for the applicant as provided for in section 
 268.044, the commissioner shall accept an applicant 
 certification as to wage credits, based upon the applicant's 
 records, and issue a determination of benefit account. 

    (d) The commissioner may, at any time within 24 months from 
 the establishment of a benefit account, reconsider any 
 determination of benefit account and make a redetermination if 
 the commissioner finds that the determination was incorrect for 
 any reason.  A redetermination shall be promptly sent to the 
 applicant and all base period employers, by mail or electronic 
 transmission. 

    If a redetermination of benefit account reduces the weekly 
 unemployment benefit amount or maximum amount of unemployment 
 benefits available, any unemployment benefits that have been 
 paid greater than the applicant was redetermined entitled is 
 considered an overpayment of unemployment benefits under section 
 268.18, subdivision 1. 

    Subd. 2.    Benefit account requirements and weekly 
 unemployment benefit amount and maximum amount of unemployment 
 benefits.  (a) To establish a benefit account, an applicant 
 must have: 

    (1) high quarter wage credits of at least $1,000; and 

    (2) wage credits, in other than the high quarter, of at 
 least $250.  

    (b) If an applicant has established a benefit account, the 
 weekly unemployment benefit amount available during the benefit 
 year shall be the higher of: 

    (1) 50 percent of the applicant's average weekly wage 
 during the base period, to a maximum of 66-2/3 percent of the 
 state's average weekly wage; or 

    (2) 50 percent of the applicant's average weekly wage 
 during the high quarter, to a maximum of the higher of $331 or 
 50 percent of the state's average weekly wage. 

    The applicant's average weekly wage under clause (1) shall 
 be computed by dividing the total wage credits by 52.  The 
 applicant's average weekly wage under clause (2) shall be 
 computed by dividing the high quarter wage credits by 13.  

    (c) The state's maximum weekly unemployment benefit amount 
 and the applicant's weekly unemployment benefit amount and 
 maximum amount of unemployment benefits shall be rounded down to 
 the next lowest whole dollar.  

    (d) The maximum amount of unemployment benefits available 
 on any benefit account shall be 33-1/3 percent of the 
 applicant's total wage credits to a maximum of 26 times the 
 applicant's weekly unemployment benefit amount.  

    Subd. 2a. Repealed by amendment, 1996 c 417 s 9 

    Subd. 3.    Second benefit account requirements.  To 
 establish a second benefit account following the expiration of a 
 benefit year on a prior benefit account, an applicant must have 
 sufficient wage credits to establish a benefit account under 
 subdivision 2 and must have performed services in covered 
 employment after the effective date of the prior benefit 
 account.  The wages paid for that employment must equal not less 
 than eight times the weekly unemployment benefit amount of the 
 prior benefit account.  A benefit account established 
 sufficiently in advance of anticipated loss of employment to 
 make the limitations of this subdivision ineffective shall not 
 be allowed.  The purpose of this subdivision is to prevent an 
 applicant from establishing more than one benefit account as a 
 result of one loss of employment. 

    Subd. 3a.    Right of appeal.  (a) A determination or 
 redetermination of a benefit account shall be final unless an 
 applicant or base period employer within 30 calendar days after 
 the sending of the determination or redetermination files an 
 appeal.  Every determination or redetermination of a benefit 
 account shall contain a prominent statement indicating in clear 
 language the consequences of not appealing.  Proceedings on the 
 appeal shall be conducted in accordance with section 268.105. 

    (b) Any applicant or base period employer may appeal from a 
 determination or redetermination of a benefit account on the 
 issue of whether services performed constitute employment and 
 covered employment.  Proceedings on the appeal shall be 
 conducted in accordance with section 268.105. 

    Subd. 3b.    Limitations.  (a) A benefit account shall 
 be established effective the Sunday of the calendar week that 
 the application for unemployment benefits was filed.  If an 
 individual attempted to file an application for unemployment 
 benefits, but was prevented from filing an application by the 
 department, the benefit account shall be effective the Sunday of 
 the calendar week the individual first attempted to file an 
 application. 

    (b) A benefit account, once established, may later be 
 withdrawn only if: 

    (1) a new application for unemployment benefits is filed 
 and a new benefit account is established at the time of the 
 withdrawal; and 

    (2) the applicant has not served a waiting week under 
 section 268.085, subdivision 1, clause (3).  

    A determination or amended determination pursuant to 
 section 268.101, that was issued before the withdrawal of the 
 benefit account, shall remain in effect and shall not be voided 
 by the withdrawal of the benefit account.  A determination of 
 disqualification requiring subsequent earnings to satisfy the 
 disqualification under section 268.095, subdivision 10, shall 
 apply to the weekly unemployment benefit amount on the new 
 benefit account. 

    (c) An application for unemployment benefits shall not be 
 allowed prior to the Sunday following the expiration of the 
 benefit year on a prior benefit account.  Except as allowed 
 under paragraph (b), a applicant may establish only one benefit 
 account each 52 calendar weeks. 

    (d) All unemployment benefits shall be available from the 
 fund only for weeks occurring during the applicant's benefit 
 year. 

    Subd. 4.  MS 1949 Repealed, 1951 c 442 s 3 

    Subd. 4.  MS 1980 Repealed, 1Sp1982 c 1 s 43 

    Subd. 5.  Repealed, 1975 c 336 s 25 

    Subd. 6.  Repealed, 1947 c 32 s 9 

    HIST: (4337-25) Ex1936 c 2 s 5; 1937 c 306 s 3; 1939 c 443 s 
 4; 1941 c 554 s 4; 1943 c 650 s 3; 1945 c 376 s 4; 1947 c 432 s 
 6; 1949 c 605 s 7,8; 1951 c 442 s 3; 1953 c 587 s 1; 1955 c 816 
 s 1; 1957 c 780 s 1; 1965 c 741 s 12,13; 1967 c 573 s 4; 1969 c 
 854 s 7; 1971 c 408 s 1; 1971 c 942 s 7,8; Ex1971 c 10 s 1; 1973 
 c 599 s 5; 1975 c 104 s 1; 1975 c 336 s 11; 1977 c 4 s 6; 1977 c 
 297 s 12; 1979 c 284 s 1; 1Sp1982 c 1 s 13-15; 1983 c 372 s 
 17,18; 1985 c 248 s 70; 1986 c 444; 1987 c 242 s 2; 1987 c 362 s 
 13-15; 1987 c 385 s 19; 1989 c 65 s 6,7; 1989 c 209 art 2 s 1; 
 1990 c 516 s 3; 1992 c 484 s 8; 1996 c 417 s 9,31; 1997 c 66 s 
 29-32,79; 1998 c 265 s 23; 1998 c 408 s 3; 1999 c 107 s 41,66; 
 2000 c 343 s 4 

  268.071 Renumbered 268.115 

  268.072 Renumbered 268.155 

    268.073 Subdivision 1. Renumbered 268.125, subd 1 

    Subd. 2. Renumbered 268.125, subd 2 

    Subd. 3. Renumbered 268.125, subd 3 

    Subd. 4. Renumbered 268.125, subd 4 

    Subd. 5. Renumbered 268.125, subd 5 

    Subd. 6. Repealed, 1994 c 503 s 7 

    Subd. 7. Repealed, 1997 c 66 s 81 

  268.074 Renumbered 268.135 

  268.075 Renumbered 268.145 

    268.08 Subdivision 1.  Renumbered 268.085 subd 1 

    Subd. 1a.  Renumbered 268.087 

    Subd. 2.  Renumbered 268.085 subd 2 

    Subd. 2a.  Renumbered 268.085 subd 13 

    Subd. 3.  Renumbered 268.085 subd 3 

    Subd. 3a.  Renumbered 268.085 subd 5 

    Subd. 3b.  Renumbered 268.085 subd 6 

    Subd. 4.  Renumbered 268.085 subd 4 

    Subd. 5.  Repealed, 1977 c 297 s 22 

    Subd. 5a. Repealed, 1998 c 265 s 46 

    Subd. 6.  Renumbered 268.085 subd 7 

    Subd. 7.  Renumbered 268.085 subd 11 

    Subd. 8.  Renumbered 268.085 subd 12 

    Subd. 9.  Renumbered 268.085 subd 8 

    Subd. 10.  Renumbered 268.085 subd 10 

    Subd. 11.  Renumbered 268.085 subd 9 

  268.081 Repealed, 1993 c 4 s 34 

     268.085 Eligibility requirements. 

    Subdivision 1.    Eligibility conditions.  An applicant 
 shall be eligible to receive unemployment benefits for any week 
 if: 

    (1) the applicant has an active benefit account and has 
 filed a continued request for unemployment benefits for that 
 week pursuant to section 268.086; 

    (2) the applicant was able to work and was available for 
 employment, and was actively seeking suitable employment.  The 
 applicant's weekly unemployment benefit amount shall be reduced 
 one-fifth for each day the applicant is unable to work or is 
 unavailable for employment. 

    This clause shall not apply to an applicant who is in 
 reemployment assistance training. 

    The requirement that the applicant be available for 
 employment and actively seeking suitable employment shall not 
 apply each day the applicant is on jury duty; 

    (3) the applicant has served a waiting period of one week 
 that the applicant is otherwise entitled to some amount of 
 unemployment benefits.  This clause shall not apply if the 
 applicant would have been entitled to federal disaster 
 unemployment assistance because of a disaster in Minnesota, but 
 for the applicant's establishment of a benefit account under 
 section 268.07; and 

    (4) the applicant has been participating in reemployment 
 assistance services, such as job search and resume writing 
 classes, if the applicant has been determined in need of 
 reemployment assistance services by the commissioner, unless 
 there is good cause for the applicant's failure to participate. 

    Subd. 2.    Not eligible.  An applicant shall not be 
 eligible to receive unemployment benefits for any week: 

    (1) that occurs before the effective date of a benefit 
 account; 

    (2) that occurs in a period when the applicant is a student 
 in attendance at, or on vacation from a secondary school 
 including the period between academic years or terms; 

    (3) that the applicant is incarcerated or performing court 
 ordered community service.  The applicant's weekly unemployment 
 benefit amount shall be reduced by one-fifth for each day the 
 applicant is incarcerated or performing court ordered community 
 service; 

    (4) that the applicant is on a voluntary leave of absence, 
 including a requested period of paid or unpaid vacation.  A 
 leave of absence is voluntary when work, that the applicant can 
 perform, is available with the applicant's employer, but the 
 applicant chooses not to work.  An applicant who is not working 
 as a result of a vacation period assigned by an employer under:  
 (i) a uniform vacation shutdown, (ii) a collective bargaining 
 agreement, or (iii) an established employer policy, shall not be 
 ineligible under this clause; 

    (5) that the applicant is performing services 32 hours or 
 more, in employment, covered employment, noncovered employment, 
 or self-employment regardless of the amount of any earnings; or 

    (6) with respect to which the applicant is receiving, has 
 received, or has filed an application for unemployment benefits 
 under any federal law or the law of any other state.  If the 
 appropriate agency finally determines that the applicant is not 
 entitled to the unemployment benefits, this clause shall not 
 apply. 

    Subd. 3.    Deductible payments.  (a) An applicant shall 
 not be eligible to receive unemployment benefits for any week 
 with respect to which the applicant is receiving, has received, 
 or has filed for payment in an amount equal to or in excess of 
 the applicant's weekly unemployment benefit amount in the form 
 of: 

    (1) a severance payment.  This clause shall apply to the 
 first four weeks of payment and to one-half of the total number 
 of any additional weeks of payment.  This clause shall be 
 applied to the period immediately following the last day of 
 employment.  The number of weeks of payment shall be determined 
 as follows: 

    (i) if the payments are made periodically, the total of the 
 payments to be received shall be divided by the applicant's last 
 level of regular weekly pay from the employer; or 

    (ii) if the payment is made in a lump sum, that sum shall 
 be divided by the applicant's last level of regular weekly pay 
 from the employer; 

    (2) vacation pay, paid directly by an employer for vacation 
 periods assigned by the employer under:  (i) a collective 
 bargaining agreement, (ii) established employer policy, or (iii) 
 uniform vacation shutdown; 

    (3) compensation for loss of wages under the workers' 
 compensation law of this state or any other state or under a 
 similar law of the United States, or compensation for loss of 
 wages under any other insurance or fund paid in whole or in part 
 by an employer; 

    (4) pension, retirement, or annuity payments from any plan 
 contributed to by a base period employer including the United 
 States government, except social security benefits which are 
 provided for in subdivision 4.  The base period employer 
 contributed to the plan if the contribution is excluded from the 
 definition of wages under section 268.035, subdivision 29, 
 clause (1), or United States Code, title 26, section 3121, 
 clause (2), of the Federal Insurance Contribution Act. 

    If the applicant receives a lump sum pension payment, that 
 sum shall be divided by the applicant's last level of regular 
 weekly pay to determine the number of weeks of payment.  The 
 number of weeks of payment shall be applied to the period 
 immediately following the last day of employment.  An applicant 
 shall not be considered to have received the lump sum payment if 
 the applicant immediately deposits that payment in a qualified 
 pension plan or account; or 

    (5) holiday pay or sick pay, paid directly by an employer. 

    (b) If the deductible payment is less than the applicant's 
 weekly unemployment benefit amount, unemployment benefits shall 
 be reduced by the amount of the payment.  If the computation of 
 reduced unemployment benefits is not a whole dollar, it shall be 
 rounded down to the next lowest dollar. 

    (c) If the appropriate agency finally determines that the 
 applicant is not entitled to payments, this subdivision shall 
 not apply.  

    Subd. 4.    Social security benefits.  (a) Any applicant 
 aged 62 or over shall be required to state when filing an 
 application for unemployment benefits and when filing continued 
 requests for unemployment benefits whether the applicant is 
 receiving, has filed for, or intends to file for, primary social 
 security old age or disability benefits for any week during the 
 benefit year. 

    (b) There shall be deducted from an applicant's weekly 
 unemployment benefit amount 50 percent of the weekly equivalent 
 of the primary social security old age or disability benefit the 
 applicant has received, has filed for, or intends to file for, 
 with respect to that week. 

    (c) Notwithstanding paragraph (b), an applicant shall be 
 ineligible for unemployment benefits for any week with respect 
 to which the applicant is receiving, has received, or has filed 
 for primary social security disability benefits. 

 This paragraph shall not apply if the Social Security 
 Administration approved the collecting of primary social 
 security disability benefits each month the applicant was 
 employed during the base period.  

    (d) Information from the Social Security Administration 
 shall be considered conclusive, absent specific evidence showing 
 that the information was erroneous. 

    (e) Any applicant who receives primary social security old 
 age or disability benefits for periods that the applicant has 
 been paid unemployment benefits shall be considered overpaid 
 those unemployment benefits under section 268.18, subdivision 1. 

    Subd. 5.    Deductible earnings.  (a) If the applicant 
 has earnings with respect to any week, from employment, covered 
 employment, noncovered employment, self-employment, or volunteer 
 work, equal to or in excess of the applicant's weekly 
 unemployment benefit amount, the applicant shall be ineligible 
 for unemployment benefits for that week. 

    (b) If the applicant has earnings, with respect to any 
 week, that is less than the applicant's weekly unemployment 
 benefit amount, from employment, covered employment, noncovered 
 employment, self-employment, or volunteer work, that amount over 
 the following shall be deducted from the weekly unemployment 
 benefit amount: 

    (1) 25 percent of earnings or $50, whichever is higher; and 

    (2) $200 for earnings from service in the National Guard or 
 a United States military reserve unit. 

    The resulting unemployment benefit, if not a whole dollar, 
 shall be rounded to the next lower dollar. 

    (c) No deduction shall be made from an applicant's weekly 
 unemployment benefit amount for earnings from service as a 
 volunteer firefighter or volunteer ambulance service personnel.  
 No deduction shall be made for jury duty pay.  

    (d) The applicant may report deductible earnings on 
 continued requests for unemployment benefits at the nearest 
 whole dollar amount. 

    (e) Earnings shall not include any money considered a 
 deductible payment under subdivision 3, but shall include all 
 other money considered wages and any other money considered 
 earned income under state and federal law for income tax 
 purposes. 

    Subd. 6.    Receipt of back pay.  (a) Back pay received 
 by an applicant with respect to any week occurring in the 104 
 weeks prior to the payment of the back pay shall be deducted 
 from unemployment benefits paid for that week. 

    If an arbitration award, administrative or judicial 
 decision, or negotiated settlement that provides for back pay 
 does not specify the period with respect to which it is paid, 
 the back pay shall be applied to the period immediately 
 following the last day of employment. 

    (b) If the back pay is reduced by the amount of 
 unemployment benefits that have been paid, the amount of back 
 pay withheld shall be: 

    (1) paid by the employer to the fund within 30 calendar 
 days and subject to the same collection procedures that apply to 
 past due taxes; 

    (2) applied to unemployment benefit overpayments resulting 
 from the payment of the back pay; and 

    (3) credited to the maximum amount of unemployment benefits 
 available to the applicant in a benefit year that includes the 
 weeks for which back pay was deducted. 

    (c) Charges to the employer's tax or reimbursable account 
 under section 268.047 for unemployment benefits paid the 
 applicant shall be removed from the employer's account in the 
 calendar quarter the fund receives payment.  

    (d) Payments to the fund under this subdivision shall be 
 considered as made by the applicant.  

    Subd. 7.    School employees.  (a) No wage credits in 
 any amount from any employment with any educational institution 
 or institutions earned in any capacity may be used for 
 unemployment benefit purposes for any week during the period 
 between two successive academic years or terms if: 

    (1) the applicant had employment for any educational 
 institution or institutions in the prior academic year or term; 
 and 

    (2) there is a reasonable assurance that the applicant will 
 have employment for any educational institution or institutions 
 in the following academic year or term, that is not 
 substantially less favorable than the employment of the prior 
 academic year or term.  

    (b) Paragraph (a) shall not apply to an applicant who, at 
 the end of the prior academic year or term, had an agreement for 
 a definite period of employment between academic years or terms 
 in other than an instructional, research, or principal 
 administrative capacity and the educational institution or 
 institutions failed to provide that employment.  

    (c) If unemployment benefits are denied to any applicant 
 under paragraph (a) who was employed in the prior academic year 
 or term in other than an instructional, research, or principal 
 administrative capacity and who was not offered an opportunity 
 to perform the employment in the following academic year or 
 term, the applicant shall be entitled to retroactive 
 unemployment benefits for each week during the period between 
 academic years or terms that the applicant filed a timely 
 continued request for unemployment benefits, but unemployment 
 benefits were denied solely because of paragraph (a).  

    (d) An educational assistant shall not be considered to be 
 in an instructional, research, or principal administrative 
 capacity. 

    (e) Paragraph (a) shall apply to any vacation period or 
 holiday recess if the applicant was employed immediately before 
 the vacation period or holiday recess, and there is a reasonable 
 assurance that the applicant will be employed immediately 
 following the vacation period or holiday recess.  

    (f) This subdivision shall apply to employment with an 
 educational service agency if the applicant performed the 
 services at an educational institution or institutions.  
 "Educational service agency" means a governmental agency or 
 entity established and operated exclusively for the purpose of 
 providing services to one or more educational institutions.  
 This subdivision shall also apply to employment with Minnesota 
 or a political subdivision, or a nonprofit organization, if the 
 services are provided to or on behalf of an educational 
 institution or institutions. 

    (g) Paragraphs (a) and (e) shall apply beginning the Sunday 
 of the week that there is a reasonable assurance of employment. 

    (h) Employment with multiple education institutions shall 
 be aggregated for purposes of application of this subdivision. 

    (i) If all of the applicant's employment with any 
 educational institution or institutions during the prior 
 academic year or term consisted of on-call employment, and the 
 applicant has a reasonable assurance of any on-call employment 
 with any educational institution or institutions for the 
 following academic year or term, it shall not be considered 
 substantially less favorable employment. 

    (j) Paragraph (a) shall also apply to the period between 
 two regular but not successive terms. 

    (k) A "reasonable assurance" may be written, oral, implied, 
 or established by custom or practice. 

    (l) An "educational institution" is an educational entity 
 operated by Minnesota or a political subdivision or an 
 instrumentality thereof, or an educational organization 
 described in United States Code, title 26, section 501(c)(3) of 
 the federal Internal Revenue Code, and exempt from income tax 
 under section 501(a).  

    Subd. 8.    Services for school contractors.  Wage 
 credits from an employer are subject to subdivision 7, if:  

    (1) the employment was provided pursuant to a contract 
 between the employer and an elementary or secondary school; and 

    (2) the contract was for services that the elementary or 
 secondary school could have had performed by its employees.  

    Subd. 9.    Business owners.  Wage credits from an 
 employer may not be used for unemployment benefit purposes by 
 any applicant who:  

    (1) individually, jointly, or in combination with the 
 applicant's spouse, parent, or child owns or controls directly 
 or indirectly 25 percent or more interest in the employer, or is 
 the spouse, parent, or minor child of any individual who owns or 
 controls directly or indirectly 25 percent or more interest in 
 the employer; and 

    (2) is not permanently separated from employment. 

    This subdivision is effective when the applicant has been 
 paid four times the applicant's weekly unemployment benefit 
 amount in the current benefit year. 

    Subd. 10.    Recreational or tourist industry employment. 
  (a) If an applicant has wage credits from recreational or 
 tourist industry employment, unemployment benefits shall be 
 available only if the applicant can establish a benefit account 
 under section 268.07, subdivision 2, excluding the wage credits 
 from recreational or tourist industry employment.  This 
 subdivision applies only to employment that is available with 
 the employer for 15 consecutive weeks or less each calendar year.

    (b) Wage credits from recreational or tourist industry 
 employment may not be used for unemployment benefit purposes 
 during weeks outside the normal employment season. 

    Subd. 11.    Athletes and coaches.  Unemployment 
 benefits shall not be paid to an applicant on the basis of any 
 wage credits from employment that consists of coaching or 
 participating in sports or athletic events or training or 
 preparing to participate for any week during the period between 
 two successive sport seasons, or similar periods, if: 

    (1) the applicant was so employed in the prior season or 
 similar period, and 

    (2) there is a reasonable assurance that the applicant will 
 be so employed in the following season or similar period. 

    Subd. 12.    Aliens.  (a) An alien shall be ineligible 
 for unemployment benefits for any week the alien is not 
 authorized to work in the United States under federal law.  
 Information from the Immigration and Naturalization Service 
 shall be considered conclusive, absent specific evidence that 
 the information was erroneous. 

    (b) Unemployment benefits shall not be paid on the basis of 
 wage credits earned by an alien unless the alien (1) was 
 lawfully admitted for permanent residence at the time of the 
 employment, (2) was lawfully present for the purposes of the 
 employment, or (3) was permanently residing in the United States 
 under color of law at the time of the employment. 

    (c) Any information required of applicants applying for 
 unemployment benefits to determine eligibility because of their 
 alien status shall be required from all applicants. 

    Subd. 13.    Suspension from employment.  (a) An 
 applicant who has been suspended from employment without pay for 
 30 calendar days or less, as a result of employment misconduct 
 as defined under section 268.095, subdivision 6, shall be 
 ineligible for unemployment benefits beginning the Sunday of the 
 week that the applicant was suspended and continuing for the 
 duration of the suspension. 

    (b) A suspension from employment without pay for more than 
 30 calendar days shall be considered a discharge from employment 
 under section 268.095, subdivision 5. 

    (c) A suspension from employment with pay, regardless of 
 duration, shall not be considered a separation from employment 
 and the applicant shall be ineligible for unemployment benefits 
 for the duration of the suspension with pay. 

    Subd. 14.    Able to work defined.  "Able to work" means 
 an applicant has the physical and mental ability to perform the 
 usual duties of the applicant's customary occupation or the 
 usual duties of other suitable employment. 

    Subd. 15.    Available for employment defined.  (a) 
 "Available for employment" means an applicant is ready and 
 willing to accept employment in the labor market area.  The 
 attachment to the work force must be genuine.  There must be no 
 restrictions, either self-imposed or created by circumstances, 
 temporary or permanent, that prevent accepting employment. 

    (b) To be considered "available for employment," a student 
 must be willing to quit school to accept employment that would 
 conflict with school attendance. 

    (c) An applicant who is absent from the labor market area 
 for personal reasons, other than to search for work, is not 
 "available for employment." 

    (d) An applicant who has restrictions on the hours of the 
 day or days of the week that the applicant can or will work, 
 that are not normal for the applicant's usual occupation or 
 other employment, is not "available for employment."  An 
 applicant whose usual occupation is normally performed during 
 the daytime must be available for daytime work even though the 
 applicant customarily worked the night shift. 

    (e) An applicant must have transportation throughout the 
 labor market area to be considered "available for employment." 

    Subd. 16.    Actively seeking suitable employment defined. 
  (a) "Actively seeking suitable employment" means those 
 reasonable, diligent efforts an individual in similar 
 circumstances would make if genuinely interested in obtaining 
 suitable employment under the existing conditions in the labor 
 market area.  Limiting the search to positions that are not 
 available or are above the applicant's training, experience, and 
 qualifications is not "actively seeking suitable employment." 

    (b) To be considered "actively seeking suitable employment" 
 an applicant shall, when reasonable, contact those employers 
 from whom the applicant was laid off due to lack of work and 
 request suitable employment. 

    (c) If reasonable prospects of suitable employment in the 
 applicant's usual or customary occupation do not exist, the 
 applicant must actively seek other suitable employment to be 
 considered "actively seeking suitable employment."  This applies 
 to an applicant who is seasonally unemployed.  

    (d) An applicant who is seeking employment only through a 
 union is not actively seeking suitable employment unless the 
 applicant is in an occupation where it is required by union rule 
 that all the hiring in that locality is done through the union.  
 The applicant must be a union member in good standing, 
 registered with the union for employment, and in compliance with 
 other union rules to be considered "actively seeking suitable 
 employment." 

    HIST: (4337-26) Ex1936 c 2 s 6; 1937 c 43 s 2; 1937 c 306 s 4; 
 1939 c 443 s 5; 1941 c 554 s 5; 1943 c 650 s 4; 1945 c 376 s 5; 
 1949 c 605 s 9; 1953 c 97 s 9; 1953 c 699 s 10; 1965 c 741 s 
 14-16; 1969 c 6 s 34; 1971 c 942 s 9,10; 1973 c 599 s 6-8; 1975 
 c 104 s 2; 1975 c 336 s 13-15; 1975 c 359 s 23; 1976 c 163 s 59; 
 1976 c 271 s 78; 1977 c 4 s 7; 1977 c 297 s 15-18; 1978 c 612 s 
 1; 1979 c 24 s 1; 1979 c 181 s 9,10,19; 1980 c 508 s 8; 1Sp1982 
 c 1 s 23-25; 1983 c 290 s 168; 1983 c 372 s 20-24; 1985 c 248 s 
 44; 1986 c 444; 1987 c 362 s 18; 1987 c 384 art 1 s 55; 1987 c 
 385 s 20-22; 1989 c 209 art 2 s 1; 1989 c 282 art 2 s 169; 1990 
 c 516 s 4; 1991 c 265 art 11 s 22; 1992 c 484 s 10; 1993 c 67 s 
 3,4; 1994 c 488 s 2,3,8; 1995 c 54 s 8,9; 1995 c 231 art 1 s 32; 
 1996 c 417 s 18,31; 1997 c 66 s 36-42; 1998 c 265 s 24,45; 1999 
 c 107 s 42,66; 2000 c 343 s 4; 2000 c 488 art 2 s 17; 

     268.086 Continued request for unemployment benefits on 
  an active benefit account. 

    Subdivision 1.    Active benefit account.  (a) A benefit 
 account shall be considered active only when an applicant files 
 continued requests for unemployment benefits in the manner and 
 within the time periods prescribed.  A benefit account shall be 
 considered inactive if an applicant stops filing a continued 
 request or fails to file a continued request within the time 
 period required.  The benefit account shall be considered 
 inactive as of the Sunday following the last week or biweekly 
 period for which a continued request has been timely filed. 

    (b) A benefit account that is inactive shall be reactivated 
 the Sunday of the week that the applicant makes a contact with 
 the department to do so, in the manner prescribed by the 
 commissioner for reactivating that applicant's benefit account.  

    Subd. 2.    Continued request for unemployment benefits 
 defined.  A continued request for unemployment benefits is a 
 certification by an applicant, done on a weekly or biweekly 
 basis as prescribed by the commissioner, on the applicant's 
 eligibility for unemployment benefits under section 268.085 for 
 a specific week or two-week period.  A continued request shall 
 include information on possible issues of disqualification in 
 accordance with section 268.101, subdivision 1, paragraph (c). 

    Subd. 3.    Methods for filing continued requests for 
 unemployment benefits.  (a) The commissioner shall designate 
 to each applicant one of the following methods for filing a 
 continued request: 

    (1) by telephone under subdivision 4; 

    (2) by electronic transmission under subdivision 5; 

    (3) by mail under subdivision 6; or 

    (4) by in-person interview under subdivision 7. 

    (b) The method designated by the commissioner shall be the 
 only method allowed for filing a continued request by that 
 applicant.  An applicant may ask that one of the other allowed 
 methods be designated and the commissioner shall consider 
 inconvenience to the applicant as well as administrative 
 capacity in determining whether to allow an applicant to change 
 the designated method for filing a continued request for 
 unemployment benefits. 

    Subd. 4.    Continued request for unemployment benefits by 
 telephone.  (a) A continued request by telephone shall be made 
 to a telephone number required by the commissioner for that 
 applicant.  In order to constitute a continued request, all 
 information asked for, including information authenticating that 
 the caller is the applicant, must be provided.  If all of the 
 information asked for is not provided, the communication shall 
 not constitute a continued request for unemployment benefits. 

    The telephone communication must be made on the date 
 required for the applicant for filing a continued request for 
 unemployment benefits by telephone. 

    (b) If the telephone continued request for unemployment 
 benefits is not filed on the date required, a continued request 
 by telephone shall be accepted if the applicant files the 
 continued request by telephone within 14 days following the week 
 in which the date required occurred.  If the continued request 
 by telephone is not filed within 14 days following the week in 
 which the date required occurred, the telephone continued 
 request shall not be accepted and the applicant shall be 
 ineligible for unemployment benefits for the period covered by 
 the continued request and the benefit account shall be 
 considered inactive, unless the applicant shows good cause for 
 failing to file the continued request by telephone within the 
 time period requested. 

    Subd. 5.    Continued request for unemployment benefits by 
 electronic transmission.  (a) A continued request for 
 unemployment benefits by electronic transmission shall be filed 
 to that electronic mail address or Internet address prescribed 
 by the commissioner for that applicant.  In order to constitute 
 a continued request, all information asked for, including 
 information authenticating that the applicant is sending the 
 transmission, must be provided in the format required.  If all 
 of the information asked for is not provided, the communication 
 shall not constitute a continued request for unemployment 
 benefits. 

    The electronic transmission communication must be filed on 
 the date required for the applicant for filing a continued 
 request by electronic transmission. 

    (b) If the electronic transmission continued request is not 
 filed on the date required, a continued request by electronic 
 transmission shall be accepted if the applicant files the 
 continued request by electronic transmission within 14 days 
 following the week in which the date required occurred.  If the 
 continued request by electronic transmission is not filed within 
 14 days following the week in which the date required occurred, 
 the electronic continued request shall not be accepted and the 
 applicant shall be ineligible for unemployment benefits for the 
 period covered by the continued request and the benefit account 
 shall be considered inactive, unless the applicant shows good 
 cause for failing to file the continued request by electronic 
 transmission within the time period required. 

    Subd. 6.    Continued request for unemployment benefits by 
 mail.  (a) A continued request for unemployment benefits by 
 mail shall be on a form prescribed by the commissioner.  The 
 form, in order to constitute a continued request, must be 
 totally completed and signed by the applicant.  

    The form must be filed on the date required for the 
 applicant for filing a continued request by mail, in an envelope 
 with postage prepaid thereon, and sent to the address required 
 by the commissioner for that applicant.  

    (b) If the mail continued request for unemployment benefits 
 is not filed on the date required, a continued request shall be 
 accepted if the form is filed by mail within 14 days following 
 the week in which the date required occurred.  If the form is 
 not filed within 14 days following the week in which the date 
 required occurred, the form shall not be accepted and the 
 applicant shall be ineligible for unemployment benefits for the 
 period covered by the continued request for unemployment 
 benefits and the benefit account shall be considered inactive, 
 unless the applicant shows good cause for failing to file the 
 form by mail within the time period required. 

    (c) If the applicant has been designated to file a 
 continued request for unemployment benefits by mail, an 
 applicant may submit the form by facsimile transmission on the 
 day otherwise required for mailing, or within 14 days following 
 the week in which the date required occurred.  A form submitted 
 by facsimile transmission shall be sent only to the telephone 
 number assigned for that purpose. 

    (d) An applicant who has been designated to file a 
 continued request by mail may personally deliver a continued 
 request form only to the location to which the form was 
 otherwise required to be mailed. 

    Subd. 7.    In-person continued request for unemployment 
 benefits.  The commissioner may require any applicant who has 
 been designated to make a continued request for unemployment 
 benefits by mail, by telephone, by electronic transmission, or 
 by mail to appear for a personal interview at a place, time, and 
 date designated, during which a written continued request for 
 unemployment benefits form shall be completed and submitted by 
 the applicant.  

    An applicant shall be ineligible for unemployment benefits 
 for the week or biweekly period covered by a continued request 
 and the benefit account shall be considered inactive if the 
 applicant fails, without good cause, to comply with the 
 requirement that the applicant appear for a personal interview 
 and at that time complete and submit a written continued request 
 form. 

    Subd. 8.    Good cause.  A continued request for 
 unemployment benefits that is not filed within the time periods 
 required by this section shall be accepted only for those weeks 
 that the applicant has "good cause" for not filing within the 
 time periods required. 

    Subd. 9.    Good cause defined.  "Good cause" for 
 purposes of this section is a compelling substantial reason that 
 would have prevented a reasonable person acting with due 
 diligence from filing a continued request for unemployment 
 benefits within the time periods required. 

    "Good cause" shall not include forgetfulness, loss of the 
 continued request form, having returned to work, or inability to 
 file a continued request for unemployment benefits by the method 
 designated if the applicant was aware of the inability and did 
 not make diligent effort to have the method of filing a 
 continued request changed by the commissioner.  "Good cause" 
 shall not include having previously made an attempt to file a 
 continued request for unemployment benefits but where the 
 communication was not considered a continued request because the 
 applicant failed to submit all required information. 

    HIST: 1999 c 107 s 43,66; 2000 c 343 s 4 

     268.087 Unemployment benefits due deceased persons. 

    If unemployment benefits are due and payable at the time of 
 an applicant's death, those benefits may, upon application, be 
 paid to the personal representative of the estate of the 
 deceased.  In the event that no personal representative is 
 appointed, the unemployment benefits may, upon application be 
 paid in the following order:  (1) the surviving spouse, (2) the 
 surviving child or children, or (3) the surviving parent or 
 parents. 

    An individual seeking payment shall complete an application 
 prescribed by the commissioner and the payment of unemployment 
 benefits shall discharge the obligations to the applicant and no 
 other individual shall claim or assert any right to those 
 unemployment benefits. 

    HIST: (4337-26) Ex1936 c 2 s 6; 1937 c 43 s 2; 1937 c 306 s 4; 
 1939 c 443 s 5; 1941 c 554 s 5; 1943 c 650 s 4; 1945 c 376 s 5; 
 1949 c 605 s 9; 1953 c 97 s 9; 1953 c 699 s 10; 1965 c 741 s 
 14-16; 1969 c 6 s 34; 1971 c 942 s 9,10; 1973 c 599 s 6-8; 1975 
 c 104 s 2; 1975 c 336 s 13-15; 1975 c 359 s 23; 1976 c 163 s 59; 
 1976 c 271 s 78; 1977 c 4 s 7; 1977 c 297 s 15-18; 1978 c 612 s 
 1; 1979 c 24 s 1; 1979 c 181 s 9,10,19; 1980 c 508 s 8; 1Sp1982 
 c 1 s 23-25; 1983 c 290 s 168; 1983 c 372 s 20-24; 1985 c 248 s 
 44; 1986 c 444; 1987 c 362 s 18; 1987 c 384 art 1 s 55; 1987 c 
 385 s 20-22; 1989 c 209 art 2 s 1; 1989 c 282 art 2 s 169; 1990 
 c 516 s 4; 1991 c 265 art 11 s 22; 1992 c 484 s 10; 1993 c 67 s 
 3,4; 1994 c 488 s 2,3,8; 1995 c 54 s 8,9; 1995 c 231 art 1 s 32; 
 1996 c 417 s 18,31; 1997 c 66 s 36-42; 1998 c 265 s 24,45; 1999 
 c 107 s 66; 2000 c 343 s 4 

    268.09 Subdivision 1. Repealed, 1997 c 66 s 81 

    Subd. 1a.  Renumbered 268.095 subd 1 

    Subd. 2. Repealed, 1997 c 66 s 81 

    Subd. 2a.  Renumbered 268.095 subd 2 

    Subd. 3. Renumbered subd 18 

    Subd. 4. Repealed, 1997 c 66 s 81 

    Subd. 5. Repealed, 1997 c 66 s 81 

    Subd. 6. Repealed, 1997 c 66 s 81 

    Subd. 7. Repealed, 1997 c 66 s 81 

    Subd. 8. Repealed, 1997 c 66 s 81 

    Subd. 9.  Renumbered 268.095 subd 3 

    Subd. 10.  Renumbered 268.095 subd 4 

    Subd. 11.  Renumbered 268.095 subd 5 

    Subd. 12.  Renumbered 268.095 subd 6 

    Subd. 13.  Renumbered 268.095 subd 7 

    Subd. 14.  Renumbered 268.095 subd 8 

    Subd. 15.  Renumbered 268.095 subd 9 

    Subd. 16.  Renumbered 268.095 subd 10 

    Subd. 17.  Renumbered 268.095 subd 11 

    Subd. 18.  Renumbered 268.095 subd 12 

     268.095 Disqualification provisions. 

    Subdivision 1.    Quit.  An applicant who quit 
 employment shall be disqualified from all unemployment benefits 
 except when: 

    (1) the applicant quit the employment because of a good 
 reason caused by the employer; 

    (2) the applicant quit the employment to accept other 
 covered employment that provided substantially better terms and 
 conditions of employment, but the applicant did not work long 
 enough at the other employment to have sufficient subsequent 
 earnings to satisfy the disqualification that would otherwise be 
 imposed; 

    (3) the applicant quit the employment within 30 calendar 
 days of beginning the employment because the employment was 
 unsuitable for the applicant; 

    (4) the employment was unsuitable for the applicant and the 
 applicant quit to enter reemployment assistance training; 

    (5) the employment was part time and the applicant had 
 full-time employment in the base period, that the applicant 
 separated from because of nondisqualifying reasons, sufficient 
 to meet the minimum requirements to establish a benefit account 
 under section 268.07; 

    (6) the applicant quit because the employer notified the 
 applicant that the applicant was going to be laid off due to 
 lack of work within 30 calendar days.  An applicant who quit 
 employment within 30 calendar days of a notified date of layoff 
 due to lack of work shall be disqualified from unemployment 
 benefits through the end of the week that includes the scheduled 
 date of layoff; or 

    (7) the applicant quit the employment because the 
 applicant's serious illness or injury made it medically 
 necessary that the applicant quit, provided that the applicant 
 made reasonable efforts to remain in that employment in spite of 
 the serious illness or injury. 

    Reasonable efforts to remain in that employment are those a 
 reasonable individual would make if interested in remaining with 
 the employer and require that the applicant inform the employer 
 of the serious illness or injury and request accommodation.  

    If the applicant's serious illness is chemical dependency, 
 the applicant has not made reasonable efforts to remain in that 
 employment if the applicant has previously been diagnosed as 
 chemically dependent, or has previously had treatment for 
 chemical dependency, and has failed to make consistent efforts 
 to control the chemical dependency. 

    Subd. 2.    Quit defined.  (a) A quit from employment 
 occurs when the decision to end the employment was, at the time 
 the employment ended, the employee's.  

    (b) An employee who has been notified that the employee 
 will be discharged in the future, who chooses to end the 
 employment while employment in any capacity is still available, 
 shall be considered to have quit the employment. 

    (c) An employee who seeks to withdraw a previously 
 submitted notice of quitting shall be considered to have quit 
 the employment if the employer does not agree that the notice 
 may be withdrawn. 

    Subd. 3.    Good reason caused by the employer defined.  
 (a) A good reason caused by the employer for quitting is a 
 reason:  

    (1) that is directly related to the employment and for 
 which the employer is responsible; and 

    (2) that is significant and would compel an average, 
 reasonable worker to quit and become unemployed rather than 
 remaining in the employment. 

    (b) If an applicant was subjected to adverse working 
 conditions by the employer, the applicant must complain to the 
 employer and give the employer a reasonable opportunity to 
 correct the adverse working conditions before that may be 
 considered a good reason caused by the employer for quitting. 

    (c) A substantial adverse change in the wages, hours, or 
 other terms of employment by the employer shall be considered a 
 good reason caused by the employer for quitting unless the 
 change occurred because of the applicant's employment misconduct.

    (d) Notification of discharge in the future, including a 
 layoff due to lack of work, shall not be considered a good 
 reason caused by the employer for quitting. 

    (e) An applicant has a good reason caused by the employer 
 for quitting if it results from sexual harassment of which the 
 employer was aware, or should have been aware, and the employer 
 failed to take timely and appropriate action.  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 applicant's submission to the conduct or 
 communication is made a term or condition of the employment; 

    (2) the applicant's submission to or rejection of the 
 conduct or communication is the basis for decisions affecting 
 employment; or 

    (3) the conduct or communication has the purpose or effect 
 of substantially interfering with an applicant's work 
 performance or creating an intimidating, hostile, or offensive 
 working environment. 

    (f) The definition of a good reason caused by the employer 
 for quitting employment provided by this subdivision shall be 
 exclusive.  

    Subd. 4.    Discharge.  An applicant who was discharged 
 from employment by an employer shall not be disqualified from 
 any unemployment benefits except when: 

    (1) the applicant was discharged because of employment 
 misconduct; or 

    (2) the applicant was discharged because of aggravated 
 employment misconduct.  

    Subd. 4a.    Aggravated employment misconduct defined.  
 For the purpose of this section, "aggravated employment 
 misconduct" means: 

    (1) the commission of any act, on the job or off the job, 
 that would amount to a gross misdemeanor or felony if the act 
 interfered with or adversely affected the employment; or 

    (2) for an employee of a facility as defined in section 
 626.5572, aggravated employment misconduct includes an act of 
 patient or resident abuse, financial exploitation, or recurring 
 or serious neglect, as defined in section 626.5572 and 
 applicable rules. 

    If an applicant is convicted of a gross misdemeanor or 
 felony for the same act for which the applicant was discharged, 
 it is aggravated employment misconduct. 

    Subd. 5.    Discharge defined.  (a) A discharge from 
 employment occurs when any words or actions by an employer would 
 lead a reasonable employee to believe that the employer will no 
 longer allow the employee to work for the employer in any 
 capacity.  A layoff due to lack of work shall be considered a 
 discharge.  A suspension from employment without pay of more 
 than 30 calendar days shall be considered a discharge. 

    (b) An employee who gives notice of intention to quit the 
 employment and is not allowed by the employer to work the entire 
 notice period shall be considered discharged from the employment 
 as of the date the employer will no longer allow the employee to 
 work.  If the discharge occurs within 30 calendar days prior to 
 the intended date of quitting, then, as of the intended date of 
 quitting, the separation from employment shall be considered a 
 quit from employment subject to subdivision 1. 

    Subd. 6.    Employment misconduct defined.  (a) 
 Employment misconduct means: 

    (1) any intentional conduct, on the job or off the job, 
 that disregards the standards of behavior that an employer has 
 the right to expect of the employee or disregards the employee's 
 duties and obligations to the employer; or 

    (2) negligent or indifferent conduct, on the job or off the 
 job, that demonstrates a substantial lack of concern for the 
 employment. 

    (b) Inefficiency, inadvertence, simple unsatisfactory 
 conduct, poor performance because of inability or incapacity, or 
 absence because of illness or injury with proper notice to the 
 employer, are not employment misconduct. 

    (c) Any conduct in violation of paragraph (a), clause (1) 
 or (2), that was a result of the applicant's chemical dependency 
 is employment misconduct if the applicant has previously been 
 diagnosed chemically dependent or had treatment for chemical 
 dependency, and has failed to make consistent efforts to control 
 the chemical dependency. 

    (d) A driving offense in violation of sections 169A.20, 
 169A.31, or 169A.50 to 169A.53 that interferes with or adversely 
 affects the employment is employment misconduct. 

    (e) The definition of employment misconduct provided by 
 this subdivision shall be exclusive.  

    Subd. 7.    Act or omissions after separation.  Except 
 as provided for under subdivision 8, an applicant shall not be 
 disqualified from unemployment benefits under this section for 
 any acts or omissions occurring after the applicant's separation 
 from employment with the employer.  A layoff due to lack of work 
 is considered a separation from employment.  

    Subd. 8.    Offers of employment.  (a) An applicant 
 shall be disqualified from all unemployment benefits if the 
 applicant, without good cause: 

    (1) failed to apply for available, suitable employment of 
 which the applicant was advised by the commissioner or an 
 employer; 

    (2) failed to accept suitable employment when offered; or 

    (3) avoided an offer of suitable employment. 

    (b) "Good cause" is a reason that would cause a reasonable 
 individual who wants suitable employment to fail to apply for, 
 accept, or avoid suitable employment.  Good cause includes: 

    (1) the applicant is employed in other suitable employment; 

    (2) the applicant is in reemployment assistance training; 

    (3) the applicant formerly worked for the employer and the 
 loss of employment occurred prior to the commencement of a labor 
 dispute, was permanent or for an indefinite period, and the 
 applicant failed to apply for or accept the employment because a 
 labor dispute was in progress at the establishment; or 

    (4) the applicant formerly worked for the employer and quit 
 that employment because of a good reason caused by the employer. 

    Subd. 9. Renumbered 268.035, subd. 23a 

    Subd. 10.    Disqualification duration.  (a) A 
 disqualification from the payment of all unemployment benefits 
 under subdivisions 1, 4, and 8 shall be for the duration of the 
 applicant's unemployment and until the end of the calendar week 
 that the applicant had total earnings in subsequent covered 
 employment of eight times the applicant's weekly unemployment 
 benefit amount. 

    (b) Any disqualification imposed under subdivisions 1 and 4 
 shall begin on the Sunday of the week that the applicant became 
 separated from employment.  Any disqualification imposed under 
 subdivision 8 shall begin on the Sunday of the week the 
 applicant failed to apply for, accept, or avoided employment. 

    (c) In addition to paragraph (a), if the applicant was 
 discharged from employment because of aggravated employment 
 misconduct, wage credits from that employment shall be canceled. 

    Subd. 11.    Application.  This section shall apply to: 

    (1) all covered employment, full time or part time, 
 temporary or of limited duration, permanent or of indefinite 
 duration, that occurred during the base period, the period 
 between the end of the base period and the effective date of the 
 benefit account, or the benefit year, except as provided for in 
 subdivision 1, clause (5); or 

    (2) all covered employment occurring in this state, and 
 employment covered under an unemployment insurance program, (i) 
 of any other state or (ii) established by an act of Congress. 

    Subd. 12.    Labor dispute.  (a) An applicant who has 
 stopped working because of a labor dispute at the establishment 
 where the applicant is employed shall be disqualified from 
 unemployment benefits:  

    (1) until the end of the calendar week that the labor 
 dispute was in active progress if the applicant is participating 
 in or directly interested in the labor dispute; or 

    (2) until the end of the calendar week that the labor 
 dispute began if the applicant is not participating in or 
 directly interested in the labor dispute.  

    Participation includes any failure or refusal by an 
 applicant, voluntarily or involuntarily, to accept and perform 
 available and customary work at the establishment.  

    (b) An applicant who has stopped working because of a 
 jurisdictional controversy between two or more labor 
 organizations at the establishment where the applicant is 
 employed shall be disqualified for unemployment benefits until 
 the end of the calendar week that the jurisdictional controversy 
 was in progress. 

    (c) An applicant shall not be disqualified from 
 unemployment benefits under this subdivision if: 

    (1) the applicant stops working because of an employer's 
 intentional failure to observe the terms of the safety and 
 health section of a union contract or failure to comply with an 
 official citation for a violation of federal or state laws 
 involving occupational safety and health; 

    (2) the applicant stops working because of a lockout; or 

    (3) the applicant is discharged prior to the beginning of a 
 labor dispute.  

    (d) A quit from employment by the applicant during the time 
 that the labor dispute is in active progress at the 
 establishment shall not terminate the applicant's participation 
 in or direct interest in the labor dispute for purposes of this 
 subdivision. 

    (e) For the purpose of this subdivision, the term "labor 
 dispute" shall have the same definition as provided in section 
 179.01, subdivision 7. 

    HIST: (4337-27) Ex1936 c 2 s 7; 1937 c 401 s 1; 1939 c 443 s 
 6; 1941 c 554 s 6; 1943 c 650 s 5; 1945 c 376 s 6; 1947 c 432 s 
 7; 1965 c 741 s 17; 1967 c 342 s 1; 1967 c 573 s 5; 1969 c 42 s 
 1; 1971 c 942 s 11; 1973 c 23 s 1; 1973 c 599 s 9; 1974 c 477 s 
 1; 1975 c 336 s 16; 1977 c 4 s 8; 1977 c 242 s 1; 1977 c 297 s 
 19; 1978 c 618 s 1; 1979 c 181 s 11-13; 1980 c 508 s 9; 1982 c 
 619 s 1; 1Sp1982 c 1 s 26-28; 1983 c 372 s 26,27; 1986 c 444; 
 1987 c 362 s 19,20; 1987 c 385 s 23,24; 1989 c 65 s 8; 1989 c 
 209 art 2 s 1; 1992 c 484 s 11,12; 1993 c 67 s 5-7; 1994 c 488 s 
 4,8; 1995 c 229 art 3 s 15; 1996 c 417 s 19,20,31; 1997 c 66 s 
 43-54,79; 1998 c 265 s 25-29,44,45; 1999 c 107 s 44,66; 2000 c 
 343 s 4; 2000 c 478 art 2 s 7 

  268.10 Repealed, 1996 c 417 s 32 

     268.101 Determinations on disqualification and 
  eligibility. 

    Subdivision 1.    Notification.  (a) In an application 
 for unemployment benefits, each applicant shall report the names 
 of all employers and the reasons for no longer working for all 
 employers during the applicant's last 30 days of employment.  If 
 the reason reported for no longer working for any of those 
 employers is other than a layoff due to lack of work, that shall 
 raise an issue of disqualification that the department shall 
 determine.  An applicant's failure to report the name of an 
 employer, or giving an incorrect reason for no longer working 
 for an employer, shall be considered a violation of section 
 268.182, paragraph (b).  

    In an application, the applicant shall provide all 
 information necessary to determine the applicant's eligibility 
 for unemployment benefits under section 268.085.  

    (b) Upon establishment of a benefit account, the 
 commissioner shall notify, by mail or electronic transmission, 
 all employers the applicant was employed by during the 
 applicant's last 30 days of employment prior to making an 
 application and all base period employers and determined 
 successors to those employers under section 268.051, subdivision 
 4.  An employer shall have ten calendar days after the sending 
 of the notice to raise, in a manner prescribed by the 
 commissioner, any issue of disqualification or any issue of 
 eligibility.  An employer shall be informed of the effect that 
 failure to raise an issue may have on the employer charges under 
 section 268.047.  An issue raised more than ten calendar days 
 after sending of the notice shall be considered untimely. 

    (c) Each applicant shall report any employment, loss of 
 employment, and offers of employment received, during those 
 weeks the applicant filed continued requests for unemployment 
 benefits pursuant to section 268.086.  Each applicant who stops 
 filing continued requests during the benefit year and later 
 begins filing continued requests during that same benefit year 
 shall report the name of any employer the applicant worked for 
 during the period between the filing of continued requests, up 
 to a period of the last 30 days of employment, and the reason 
 the applicant stopped working for the employer.  The applicant 
 shall report any offers of employment during the period between 
 the filing of continued requests for unemployment benefits.  
 Those employers from which the applicant has reported a loss of 
 employment or an offer of employment pursuant to this paragraph 
 shall be notified by mail or electronic transmission.  An 
 employer shall have ten calendar days after the sending of the 
 notice to raise, in a manner prescribed by the commissioner, any 
 issue of disqualification or any issue of eligibility.  An 
 employer shall be informed of the effect that failure to raise 
 an issue may have on the employer charges under section 
 268.047.  An issue raised more than ten calendar days after 
 sending of the notice shall be considered untimely. 

    (d) The purpose for requiring the applicant to report the 
 name of all employers and the reason for no longer working for 
 all employers during the applicant's "last 30 days of employment"
 under paragraphs (a) and (c) is for the commissioner to obtain 
 information from an applicant raising all issues that may have 
 the potential of disqualifying the applicant from unemployment 
 benefits under section 268.095.  If the reason given by the 
 applicant for no longer working for an employer is other than a 
 layoff due to lack of work, the applicant shall be required to 
 state all the facts about the cause for no longer working for 
 the employer, if known. 

    Subd. 2.    Disqualification determination.  (a) The 
 commissioner shall determine any issue of disqualification 
 timely raised by an employer, and mail to the applicant and that 
 employer at the last known address a determination of 
 disqualification or a determination of nondisqualification, as 
 is appropriate.  The determination shall state the effect on 
 employer charges under section 268.047. 

    (b) The commissioner shall determine any issue of 
 disqualification raised by information required from an 
 applicant under subdivision 1, paragraph (a) or (c), and mail to 
 the applicant and employer at the last known address a 
 determination of disqualification or a determination of 
 nondisqualification, as is appropriate.  The determination shall 
 state the effect on employer charges under section 268.047.  A 
 determination shall be made pursuant to this paragraph only on 
 those issues involving the applicant's last 30 days of 
 employment and shall be made even if a notified employer has not 
 raised the issue of disqualification. 

    (c) The commissioner shall determine any untimely issue of 
 disqualification raised by an employer and mail to the applicant 
 and that employer at the last known address a determination of 
 disqualification or a determination of nondisqualification as is 
 appropriate.  The determination shall state the effect on 
 employer charges under section 268.047.  If the employer did not 
 employ the applicant during the applicant's last 30 days of 
 employment prior to the applicant's application for unemployment 
 benefits, but only employed the applicant for periods prior to 
 that, any exception to employer charges under section 268.047, 
 subdivisions 2 and 3, shall begin the Sunday two weeks following 
 the week that the untimely issue was raised. 

    (d) If any time within 24 months from the establishment of 
 a benefit account the commissioner finds that an applicant 
 failed to report any employment, loss of employment, or offers 
 of employment that were required to be provided by the applicant 
 under this section, the commissioner shall determine any issue 
 of disqualification on that loss of employment or offer of 
 employment and mail to the applicant and involved employer at 
 the last known address a determination of disqualification or a 
 determination of nondisqualification, as is appropriate.  The 
 determination shall state the effect on employer charges under 
 section 268.047. 

    This paragraph shall not prevent the imposition of any 
 penalty under section 268.18, subdivision 2, or 268.182. 

    (e) An issue of disqualification shall be determined based 
 upon that information required of an applicant, any information 
 that may be obtained from an applicant or employer, and 
 information from any other source, without regard to any common 
 law burden of proof.  

    (f) A determination of disqualification or a determination 
 of nondisqualification shall be final unless an appeal is filed 
 by the applicant or notified employer within 30 calendar days 
 after mailing.  The determination shall contain a prominent 
 statement indicating the consequences of not appealing.  
 Proceedings on the appeal shall be conducted in accordance with 
 section 268.105. 

    (g) An issue of disqualification for purposes of this 
 section shall include any reason for no longer working for an 
 employer other than a layoff due to lack of work, any question 
 of a disqualification from unemployment benefits under section 
 268.095, any question of an exception to disqualification under 
 section 268.095, any question of unemployment benefit charge to 
 an employer under section 268.047, and any question of an 
 otherwise imposed disqualification that an applicant has 
 satisfied under section 268.095, subdivision 10.  

    (h) Regardless of the requirements of this subdivision, the 
 commissioner is not required to mail to an applicant a 
 determination where the applicant has satisfied any otherwise 
 potential disqualification under section 268.095, subdivision 10.

    Subd. 3.    Eligibility determination.  (a) The 
 commissioner shall determine any issue of eligibility raised by 
 an employer, whether timely or untimely, and mail to the 
 applicant and that employer at the last known address a 
 determination of eligibility or a determination of 
 ineligibility, as is appropriate. 

    (b) The commissioner shall determine any issue of 
 eligibility raised by information obtained from an applicant and 
 mail to the applicant at the last known address a determination 
 of eligibility or a determination of ineligibility, as is 
 appropriate.  A determination shall be made pursuant to this 
 paragraph even if a notified employer has not raised the issue 
 of eligibility.  

    (c) If any time within 24 months from the establishment of 
 a benefit account the commissioner finds the applicant failed to 
 provide, on an application for unemployment benefits or on a 
 continued request for unemployment benefits, requested 
 information on an issue of eligibility, the commissioner shall 
 determine the issue of eligibility and mail to the applicant at 
 the last known address a determination of eligibility or a 
 determination of ineligibility, as is appropriate. 

    This paragraph shall not prevent the imposition of a 
 penalty under section 268.18, subdivision 2, or 268.182.  

    (d) A determination of eligibility or determination of 
 ineligibility shall be final unless an appeal is filed by the 
 applicant or notified employer within 30 calendar days after 
 mailing.  The determination shall contain a prominent statement 
 indicating the consequences of not appealing.  Proceedings on 
 the appeal shall be conducted in accordance with section 268.105.

    (e) An issue of eligibility for purposes of this section 
 shall include any question regarding the denial or allowing of 
 unemployment benefits under sections 268.085, 268.086, 268.115, 
 268.125, 268.135, and 268.155. 

    (f) Only if an employer raised the issue of eligibility 
 shall the employer be:  (1) mailed the determination of 
 eligibility or a determination of ineligibility, or (2) 
 considered an involved employer for purposes of an appeal under 
 section 268.105.  

    Subd. 3a.    Direct hearing.  Regardless of any 
 provision of sections 268.03 to 268.23, the commissioner or an 
 unemployment law judge may refer any issue of disqualification, 
 any issue of eligibility, or any other issue under sections 
 268.035 to 268.23, directly for hearing in accordance with 
 section 268.105, subdivision 1.  The status of the issue shall 
 be the same as if a determination had been made and an appeal 
 filed. 

    Subd. 4.    Amended determination.  Unless an appeal has 
 been filed, the commissioner, on the commissioner's own motion, 
 may reconsider a determination of disqualification or 
 nondisqualification or a determination of eligibility or 
 ineligibility that has not become final and issue an amended 
 determination.  Any amended determination shall be mailed to the 
 applicant and any involved employer at the last known address.  
 Any amended determination shall be final unless an appeal is 
 filed by the applicant or notified employer within 30 calendar 
 days after mailing.  Proceedings on the appeal shall be 
 conducted in accordance with section 268.105. 

    Subd. 5.    Unemployment benefit payment.  If a 
 determination or amended determination allows unemployment 
 benefits to an applicant, the unemployment benefits shall be 
 paid regardless of any appeal period or any appeal having been 
 filed. 

    Subd. 6.    Overpayment.  A determination or amended 
 determination that holds an applicant disqualified or ineligible 
 for unemployment benefits for periods an applicant has been paid 
 benefits is considered an overpayment of those unemployment 
 benefits under section 268.18, subdivision 1. 

    Subd. 7.    Employer information; absolute privilege.  
 (a) Regardless of any provision of law to the contrary, an 
 employer may provide the commissioner with information on an 
 applicant so that the commissioner can determine an applicant's 
 entitlement to unemployment benefits under sections 268.03 to 
 268.23. 

    (b) Information obtained pursuant to sections 268.03 to 
 268.23, in order to determine an applicant's entitlement to 
 unemployment benefits, shall be absolutely privileged and shall 
 not be made the subject matter or the basis for any civil 
 proceeding, administrative, or judicial.  

    HIST: 1996 c 417 s 21; 1997 c 66 s 55-58,79; 1998 c 265 s 30; 
 1999 c 107 s 45,66; 2000 c 343 s 4 

     268.103 Appeals by telephone; electronic transmission. 

    Subdivision 1.    In commissioner's discretion.  (a) 
 Unless the statutory provision providing for an appeal requires 
 that the appeal be in writing, the commissioner shall have the 
 discretion to allow an appeal to be made by telephone or by 
 electronic transmission.  If the commissioner allows an appeal 
 to be made by telephone or by electronic transmission, that 
 shall be clearly set out on the determination or decision 
 subject to appeal. 

    (b) The commissioner may restrict the conditions under 
 which an appeal by telephone or electronic transmission may be 
 made.  Any restrictions as to days, hours, telephone number, 
 electronic transmission address, or other conditions, shall be 
 clearly set out on the determination or decision subject to 
 appeal. 

    (c) All information requested by the commissioner when an 
 appeal is made by telephone or by electronic transmission must 
 be supplied or the communication will not constitute an appeal. 

    Subd. 2.    Appeal in writing.  An appeal may be made in 
 writing even if an appeal by telephone or by electronic 
 transmission is allowed. 

    Subd. 3.    Exclusive means of appeal.  A written 
 appeal, or if allowed an appeal by telephone or electronic 
 transmission, shall be the only manner of appeal. 

    Subd. 4.    Protests by telephone and electronic 
 transmission.  This section shall apply to the filing of 
 protests to those determinations and notices that require a 
 protest and affirmation procedure prior to an appeal. 

    HIST: 1997 c 66 s 59; 1999 c 107 s 46 

     268.105 Hearings; appeals. 

    Subdivision 1.    Hearing.  (a) Upon appeal the 
 department shall set a time and place for a de novo evidentiary 
 hearing and mail notice to any involved applicant and any 
 involved employer not less than ten calendar days prior to the 
 date of the hearing. 

    (b) The evidentiary hearing shall be conducted by an 
 unemployment law judge without regard to any common law burden 
 of proof as an evidence gathering inquiry and not an adversarial 
 proceeding.  The commissioner shall adopt rules on evidentiary 
 hearings.  The rules need not conform to common law or statutory 
 rules of evidence and other technical rules of procedure.  A 
 report of any employee of the department, except a 
 determination, made in the regular course of the employee's 
 duties, shall be competent evidence of the facts contained in it.

    (c) After the conclusion of the hearing, upon the evidence 
 obtained, the unemployment law judge shall make written findings 
 of fact and decision and mail those to all involved parties.  
 The unemployment law judge's decision is the final department 
 decision unless a further appeal is filed pursuant to 
 subdivision 2. 

    (d) The commissioner shall designate classified employees 
 of the department as unemployment law judges to conduct 
 evidentiary hearings on appeals.  The commissioner or authorized 
 representative may personally hear or transfer to another 
 unemployment law judge any proceedings pending before an 
 unemployment law judge.  Any proceedings removed to the 
 commissioner or authorized representative shall be heard in 
 accordance with this subdivision. 

    Subd. 2.    Commissioner review.  (a) Within 30 calendar 
 days after mailing of the unemployment law judge's decision, any 
 involved applicant or involved employer may appeal and obtain a 
 de novo review by the commissioner or an authorized 
 representative.  The commissioner within the same period of time 
 may on the commissioner's own motion order a de novo review.  

    (b) The authorized representative of the commissioner shall 
 be an attorney who is a classified employee of the department.  
 The authority to act on behalf of the commissioner under this 
 section shall be by specific written delegation filed with the 
 secretary of state. 

    (c) Upon de novo review, the commissioner shall, on the 
 basis of that evidence submitted at the hearing under 
 subdivision 1, make findings of fact and decision, or remand the 
 matter back to an unemployment law judge for the taking of 
 additional evidence and the making of new findings and decision 
 based on all the evidence.  The commissioner shall, independent 
 of the findings of fact and decision of the unemployment law 
 judge, examine the evidence and make those findings of fact as 
 the evidence, in the judgment of the commissioner require, and 
 make that decision as the facts found by the commissioner 
 require.  

    (d) The commissioner may conduct a de novo review without 
 argument by any involved party, or the commissioner may allow 
 written argument.  The commissioner shall not, except for 
 purposes of deciding whether to remand a matter to an 
 unemployment law judge for a further evidentiary hearing, 
 consider any evidence that was not submitted at the hearing 
 before the unemployment law judge.  

    (e) The commissioner shall mail to any involved party the 
 commissioner's findings of fact and decision.  The decision of 
 the commissioner is the final department decision.  Unless 
 judicial review is sought under subdivision 7, the decision of 
 the commissioner shall become final 30 calendar days after 
 mailing. 

    Subd. 3.    Withdrawal of appeal.  (a) Any appeal that 
 is pending a decision before an unemployment law judge or the 
 commissioner may be withdrawn by the appealing person, or an 
 authorized representative of that person, upon filing of a 
 notice of withdrawal. 

    (b) The appeal shall, by written order, be dismissed if a 
 notice of withdrawal is filed, unless the commissioner, by 
 written order, directs that further adjudication is required for 
 a proper result. 

    (c) A notice of withdrawal may be filed by mail, by 
 telephone, or if the commissioner allows, by electronic 
 transmission. 

    Subd. 3a.    Decisions.  (a) If an unemployment law 
 judge's decision or the commissioner's decision allows 
 unemployment benefits to an applicant, the unemployment benefits 
 shall be paid regardless of any appeal period or any appeal 
 having been filed. 

    (b) If an unemployment law judge's decision modifies or 
 reverses a determination allowing unemployment benefits to an 
 applicant, any benefits paid pursuant to the determination is 
 considered an overpayment of those unemployment benefits under 
 section 268.18, subdivision 1. 

    (c) If a commissioner's decision modifies or reverses an 
 unemployment law judge's decision allowing unemployment benefits 
 to an applicant, any unemployment benefits paid pursuant to the 
 unemployment law judge's decision is considered an overpayment 
 of those unemployment benefits under section 268.18, subdivision 
 1. 

    (d) If the commissioner affirms an unemployment law judge's 
 decision on an issue of disqualification that allows 
 unemployment benefits to an applicant, the commissioner's 
 decision, if finally reversed by the Minnesota Court of Appeals 
 or the Supreme Court of Minnesota, shall not result in a 
 disqualification of the applicant from unemployment benefits 
 under section 268.095.  

    (e) If the commissioner, pursuant to subdivision 2, remands 
 a matter to an unemployment law judge for the taking of 
 additional evidence, the prior unemployment law judge's decision 
 shall continue to be enforced until new findings of fact and 
 decision are made by an unemployment law judge. 

    Subd. 4.    Testimonial powers.  The unemployment law 
 judge, the commissioner, or authorized representative, may 
 administer oaths and affirmations, take depositions, and issue 
 subpoenas to compel the attendance of witnesses and the 
 production of documents and other personal property considered 
 necessary as evidence in connection with the subject matter of 
 an evidentiary hearing.  The subpoenas shall be enforceable 
 through the district court in the district that the subpoena is 
 issued.  Witnesses subpoenaed, other than an involved applicant 
 or involved employer or officers and employees of an involved 
 employer, shall be paid by the commissioner the same witness 
 fees as in a civil action in district court.  

    Subd. 5.    Use of information.  (a) All testimony at 
 any evidentiary hearing conducted pursuant to subdivision 1 
 shall be recorded.  A copy of any recorded testimony and 
 exhibits received into evidence at the hearing shall, upon 
 request, or upon directive of the commissioner, be furnished to 
 a party at no cost during the time period for filing an appeal 
 to the commissioner or while such an appeal is pending.  If 
 requested, the commissioner shall make available a device for 
 listening to the recording if an appeal is pending before the 
 commissioner under subdivision 2. 

    (b) Regardless of any provision of law to the contrary, if 
 recorded testimony and exhibits received into evidence at the 
 evidentiary hearing are not requested during the time period for 
 filing an appeal to the commissioner, or while such an appeal is 
 pending, that testimony and other evidence shall later be made 
 available to an involved party only pursuant to a court order.  
 A subpoena shall not be considered a court order. 

    (c) Testimony obtained under subdivision 1, may not be used 
 or considered for any purpose, including impeachment, in any 
 civil, administrative, or contractual proceeding, except by a 
 local, state, or federal human rights agency with enforcement 
 powers, unless the proceeding is initiated by the department. 

    (d) No findings of fact or decision issued by an 
 unemployment law judge or the commissioner may be held 
 conclusive or binding or used as evidence in any separate or 
 subsequent action in any other forum, except proceedings 
 provided for under this chapter, regardless of whether the 
 action involves the same or related parties or involves the same 
 facts. 

    Subd. 6.    Representation; fees.  (a) In any proceeding 
 under subdivision 1 or 2, an applicant or involved employer may 
 be represented by any agent.  

    (b) Except for services provided by an attorney-at-law, an 
 applicant shall not be charged fees, costs, or disbursements of 
 any kind in a proceeding before an unemployment law judge, the 
 commissioner, the Minnesota court of appeals, or supreme court 
 of Minnesota. 

    Subd. 7.    Judicial review.  (a) The Minnesota court of 
 appeals shall, by writ of certiorari to the commissioner, review 
 the decision of the commissioner provided a petition for the 
 writ is filed with the court and a copy is served upon the 
 commissioner and any other involved party within 30 calendar 
 days of the mailing of the commissioner's decision.  

    (b) Any employer petitioning for a writ of certiorari shall 
 pay to the court the required filing fee and upon the service of 
 the writ shall furnish a cost bond to the commissioner in 
 accordance with the rules of civil appellate procedure.  If the 
 employer requests a written transcript of the testimony received 
 at the evidentiary hearing conducted pursuant to subdivision 1, 
 the employer shall pay to the commissioner the cost of preparing 
 the transcript. 

    (c) Upon issuance by the Minnesota court of appeals of a 
 writ of certiorari as a result of an applicant's petition, the 
 commissioner shall furnish to the applicant at no cost a written 
 transcript of the testimony received at the evidentiary hearing 
 conducted pursuant to subdivision 1, and, if requested, a copy 
 of all exhibits entered into evidence.  No filing fee or cost 
 bond shall be required of an applicant petitioning the Minnesota 
 court of appeals for a writ of certiorari.  

    (d) The commissioner shall be considered the primary 
 responding party to any judicial action involving the 
 commissioner's decision and the case title shall be, "In Re the 
 matter of:  (named petitioner) and the commissioner of economic 
 security."  The commissioner may be represented by an attorney 
 who is a classified employee of the department designated by the 
 commissioner for that purpose. 

    HIST: 1995 c 54 s 11; 1996 c 417 s 22,31; 1997 c 66 s 60; 1998 
 c 265 s 31,44; 1999 c 107 s 47,66; 2000 c 343 s 4 

  268.11 Renumbered 268.042 

  268.115 Extended unemployment benefits. 

    Subdivision 1.    Definitions.  The terms used in this 
 section shall have the following meaning:  

    (1) "Extended unemployment benefit period" means a period 
 that lasts for a minimum of 13 weeks and that:  

    (i) Begins with the third week after there is a state "on" 
 indicator; and 

    (ii) Ends with the third week after there is a state "off" 
 indicator. 

    No extended unemployment benefit period may begin before 
 the 14th week following the end of a prior extended unemployment 
 benefit period. 

    (2) There is a "state 'on' indicator" for a week if:  

    (i) for that week and the prior 12 weeks, the rate of 
 insured unemployment: 

    (a) equaled or exceeded 120 percent of the average of the 
 rates for the corresponding 13-week period ending in each of the 
 prior two calendar years, and was five percent or more; or 

    (b) equaled or exceeded six percent; or 

    (ii) The United States Secretary of Labor determines that 
 the average rate of seasonally adjusted total unemployment in 
 Minnesota for the most recent three months for which data is 
 published equals or exceeds 6.5 percent and this rate equals or 
 exceeds 110 percent of the rate of the corresponding three-month 
 period in either of the prior two calendar years.  

    (3) There is a "state 'off' indicator" for a week if: 

    (i) under clause (2)(i), for that week and the prior 12 
 weeks, the requirements for a "state 'on' indicator" are not 
 satisfied; or 

    (ii) under clause (2)(ii) the requirements for a "state 
 'on' indicator" are not satisfied. 

    (4) "Rate of insured unemployment," means the percentage 
 derived by dividing the average weekly number of applicants 
 filing continued requests for regular unemployment benefits in 
 the most recent 13-week period by the average monthly covered 
 employment for the first four of the last six completed calendar 
 quarters before the end of that 13-week period. 

    (5) "Regular unemployment benefits" means unemployment 
 benefits available to an applicant other than extended 
 unemployment benefits and additional unemployment benefits.  

    (6) "Eligibility period" for an applicant means the period 
 consisting of the weeks remaining in the applicant's benefit 
 year within the extended unemployment benefit period and, if the 
 benefit year ends within the extended unemployment benefit 
 period, any weeks in the extended unemployment benefit period. 

    (7) "Exhaustee" means an applicant who, in the eligibility 
 period: 

    (a) the benefit year having not expired has received the 
 maximum amount of regular unemployment benefits that were 
 available under section 268.07; 

    (b) the benefit year having expired, has insufficient wage 
 credits to establish a new benefit account; and 

    (c) has no right to any type of unemployment benefits under 
 the law of any other state or under federal laws and is not 
 receiving unemployment benefits under the law of Canada. 

    Subd. 2. Repealed by amendment, 1999 c 107 s 48 

    Subd. 3.    Requirements for extended unemployment 
 benefits.  If an extended unemployment benefit period is in 
 effect, an applicant shall be paid extended unemployment 
 benefits from the fund for any week in the applicant's 
 eligibility period if the applicant:  

    (1) is an "exhaustee"; 

    (2) has satisfied the same requirements as those for 
 regular unemployment benefits under section 268.069; 

    (3) has wage credits of not less than 40 times the weekly 
 unemployment benefit amount; and 

    (4) is not subject to a denial of extended unemployment 
 benefits under subdivision 9.  

    Subd. 4.    Weekly extended unemployment benefit amount. 
  The weekly extended unemployment benefit amount shall be the 
 same as the weekly unemployment benefit amount of regular 
 unemployment benefits. 

    Subd. 5.    Maximum amount of extended unemployment 
 benefits.  The maximum amount of extended unemployment 
 benefits available to an applicant shall be 50 percent of the 
 maximum amount of regular unemployment benefits available in the 
 benefit year.  If the total rate of unemployment computed under 
 subdivision 1, clause (2)(ii), equaled or exceeded eight 
 percent, the maximum amount of extended unemployment benefits 
 available shall be 80 percent of the maximum amount of regular 
 unemployment benefits available in the benefit year.  

    Subd. 6.    Public announcement.  Whenever an extended 
 unemployment benefit period is to begin as a result of a state 
 "on" indicator, or an extended unemployment benefit period is to 
 end as a result of a state "off" indicator the commissioner 
 shall make an appropriate public announcement. 

    Subd. 7.    Federal law.  This section is enacted to 
 conform to the requirements of United States Code, title 26, 
 section 3304, the Federal-State Extended Unemployment 
 Compensation Act of 1970 as amended and the applicable federal 
 regulations. 

    Subd. 8.    Interstate applicants.  An applicant 
 residing in a state other than Minnesota shall be eligible for 
 only the first two weeks of extended unemployment benefits if 
 the applicant's benefit account was established pursuant to the 
 interstate benefit payment plan and no extended unemployment 
 benefit period is in effect for the week in that state.  

    Subd. 9.    Denial provisions.  (a) An applicant shall 
 be denied extended unemployment benefits for any week in the 
 applicant's eligibility period if during that week the applicant 
 failed to accept any offer of suitable employment, failed to 
 apply for any suitable employment that the applicant was 
 referred to by the commissioner, or failed to actively seek 
 suitable employment. 

    The denial shall continue until the applicant has been 
 employed in covered employment in each of four subsequent weeks, 
 whether or not consecutive, and had earnings from that covered 
 employment of not less than four times the applicant's weekly 
 unemployment benefit amount. 

    (b) For the purpose of this subdivision "suitable 
 employment" means any employment that is within the applicant's 
 capabilities and that has a gross average weekly wage that 
 exceeds the applicant's weekly unemployment benefit amount.  The 
 employment must pay wages not less than the higher of the 
 federal minimum wage without regard to any exemption, or the 
 applicable state minimum wage.  

    (c) No applicant shall be denied extended unemployment 
 benefits for failure to accept an offer of or apply for any 
 suitable employment if:  

    (1) the position was not offered to the applicant in 
 writing; 

    (2) the position was not listed with the job service; or 

    (3) the applicant furnishes satisfactory evidence that 
 prospects for obtaining employment in the applicant's customary 
 occupation within a reasonably short period are good.  If the 
 evidence is satisfactory, the determination of whether any 
 employment is suitable shall be made in accordance with the 
 definition of suitable employment in section 268.035, 
 subdivision 23a.  

    (d) For the purpose of this subdivision an applicant is 
 "actively seeking suitable employment" only if the applicant has 
 engaged in a systematic and sustained effort to obtain 
 employment, and the applicant furnishes tangible evidence of 
 that effort.  

    Subd. 10.    Job service referral.  The job service 
 shall refer any applicant who is filing continued requests for 
 extended unemployment benefits to any employment that is 
 suitable under subdivision 9. 

    HIST: 1971 c 61 s 1; 1974 c 355 s 58; 1975 c 1 s 1; 1975 c 336 
 s 12; 1977 c 297 s 13,14; 1Sp1982 c 1 s 16-21; 1983 c 372 s 19; 
 1985 c 248 s 70; 1986 c 444; 1987 c 362 s 16; 1992 c 484 s 9; 
 1993 c 13 art 1 s 33; 1997 c 66 s 33-35,79,80; 1998 c 265 s 
 44,45; 1999 c 107 s 48,66; 2000 c 343 s 4 

    268.12 Subdivision 1. Repealed, 1Sp1985 c 14 art 9 s 
 78 subd 1 

    Subd. 1a. Repealed, 1Sp1985 c 14 art 9 s 78 subd 1 

    Subd. 2. Repealed, 1997 c 66 s 81 

    Subd. 3. Repealed, 1983 c 268 s 2 

    Subd. 4. Repealed, 1997 c 66 s 81 

    Subd. 5. Repealed, 1997 c 66 s 81 

    Subd. 6. Repealed, 1989 c 343 s 7 

    Subd. 7. Repealed, 1997 c 66 s 81 

    Subd. 8. Renumbered 268.186 

    Subd. 9. Repealed, 1995 c 54 s 29 

    Subd. 9a. Renumbered 268.188 

    Subd. 10. Repealed, 1995 c 54 s 29 

    Subd. 11. Repealed, 1997 c 66 s 81 

    Subd. 12. Renumbered 268.19 

    Subd. 13. Repealed, 1995 c 54 s 29 

    Subd. 14.  Repealed, 1949 c 605 s 15 

  268.121 Renumbered 268.044 

     268.125 Additional unemployment benefits. 

    Subdivision 1.    Additional unemployment benefits; when 
 available.  Additional unemployment benefits are available if: 

    (1) at a facility that had 100 or more employees, the 
 employer reduced operations, resulting within a one-month period 
 in the layoff of 50 percent or more of the facility's work 
 force, including reductions caused as a result of a major 
 natural disaster declared by the president; 

    (2) the employer has no expressed plan to resume operations 
 that would lead to the reemployment of those employees in the 
 immediate future; and 

    (3) the seasonally adjusted unemployment rate in the county 
 that the facility is located was ten percent or more during the 
 month of the reduction or any of the three months before or 
 after the month of the reduction. 

    Subd. 2.    Payment of unemployment benefits.  
 Additional unemployment benefits are payable from the fund.  

    Subd. 3.    Eligibility conditions.  An applicant is 
 eligible to receive additional unemployment benefits for any 
 week during the applicant's benefit year if:  

    (1) the applicant was laid off from employment as a result 
 of a reduction under subdivision 1 or was laid off due to lack 
 of work from that employer during the three-month period before, 
 or the three-month period after, the month of the reduction 
 under subdivision 1; 

    (2) the applicant meets the eligibility requirements under 
 section 268.085; 

    (3) the applicant is not subject to a disqualification 
 under section 268.095; for the purpose of this subdivision, the 
 disqualifying conditions in section 268.095, and the 
 requalifying requirements, apply to the receipt of additional 
 unemployment benefits; 

    (4) the applicant has exhausted regular unemployment 
 benefits under section 268.07, is not entitled to receive 
 extended unemployment benefits under section 268.115, and is not 
 entitled to receive unemployment benefits under any other state 
 or federal law for that week; 

    (5) a majority of the applicant's wage credits were from 
 the employer that had a reduction in operations under 
 subdivision 1. 

    Subd. 4.    Weekly unemployment benefit amount.  An 
 applicant's weekly additional unemployment benefit amount shall 
 be the same as the applicant's weekly unemployment benefit 
 amount during the current benefit year under section 268.07. 

    Subd. 5.    Maximum amount of unemployment benefits.  
 The maximum amount of additional unemployment benefits available 
 in the applicant's benefit year shall be one-half of the 
 applicant's maximum amount of regular unemployment benefits 
 available under section 268.07, subdivision 2.  Extended 
 unemployment benefits paid and unemployment benefits paid under 
 any federal law other than regular unemployment benefits shall 
 be deducted from the maximum amount of additional unemployment 
 benefits available. 

    HIST: 1987 c 362 s 17; 1994 c 488 s 8; 1994 c 503 s 1-3; 1996 
 c 417 s 13-15; 1997 c 66 s 79; 2Sp1997 c 2 s 18,19; 1998 c 265 s 
 32; 1999 c 107 s 49-51,66; 2000 c 343 s 4 

    268.13 Subdivision 1.  (a) Renumbered 268.042 subd 4 

    (b) Renumbered 268.131 subd 1 paragraph (a) 

    (c) Renumbered 268.131 subd 1 paragraph (b) 

    Subd. 2.  Renumbered 268.194 subd 3a 

    Subd. 3. Repealed, 1998 c 265 s 46 

    Subd. 4.  Renumbered 268.131 subd 2 

    Subd. 5. Repealed, 1998 c 265 s 46 

     268.131 Reciprocal unemployment benefit arrangements. 

    Subdivision 1.  (a) The commissioner shall participate in 
 reciprocal arrangements with other states and the federal 
 government, or both, for the payment of unemployment benefits on 
 the basis of combining an applicant's wages and employment 
 covered under this law with wages and employment covered under 
 the unemployment insurance programs of other states or the 
 federal government that include provisions for applying the base 
 period of a single state law to an account involving the 
 combining of an applicant's wages and employment and avoiding 
 the duplicate use of wages by reason of such combining.  No 
 reciprocal arrangement shall be entered into unless it contains 
 provisions for reimbursements to the fund, by the other state or 
 the federal government, for unemployment benefits paid from the 
 fund to applicants based upon wages and employment covered under 
 the laws of the other state or the federal government. 

    (b) On any reciprocal arrangement, the wages paid an 
 applicant from employment covered under an unemployment 
 insurance program of another state or of the federal government, 
 shall be considered wages from covered employment for the 
 purpose of determining the applicant's rights to unemployment 
 benefits under sections 268.03 to 268.23. 

    Subd. 2.    Cooperation with foreign governments.  The 
 commissioner is authorized to enter into or cooperate in 
 arrangements whereby facilities and services provided under 
 sections 268.03 to 268.23 and facilities and services provided 
 under the unemployment insurance program of any foreign 
 government, may be used for the taking of applications for 
 unemployment benefits and continued claims and the payment of 
 unemployment benefits under this law or under a similar law of a 
 foreign government.  

    HIST: (4337-31) Ex1936 c 2 s 11; 1937 c 306 s 8; 1939 c 443 s 
 9; 1941 c 554 s 10; 1943 c 650 s 8; 1945 c 376 s 10; 1947 c 432 
 s 8-10; 1965 c 45 s 45; 1969 c 9 s 64; 1971 c 942 s 13; 1979 c 
 181 s 16; 1986 c 444; 1989 c 209 art 2 s 1; 1996 c 417 s 31; 
 1997 c 66 s 79; 1998 c 265 s 33-35,45; 1999 c 107 s 66; 2000 c 
 343 s 4 

     268.135 Shared work plan. 

    Subdivision 1.    Definitions.  For purposes of this 
 section: 

    (1) "Affected employee" means an employee who was 
 continuously employed as a member of the affected group, for at 
 least six months, on a full-time basis, prior to submission of 
 the shared work plan. 

    (2) "Affected group" means five or more employees 
 designated by the employer to participate in a shared work plan. 

    (3) "Shared work plan" or "plan" means an employer's 
 written plan under which a group of employees whose normal 
 weekly hours of work are reduced, in order to prevent employees 
 from being laid off due to lack of work. 

    (4) "Normal weekly hours of work" means the number of hours 
 in a week that the employee normally would work for the shared 
 work employer or 40 hours, whichever is less. 

    Subd. 2.    Participation.  (a) An employer wishing to 
 participate in the shared work benefit program shall submit a 
 written shared work plan to the commissioner for approval.  The 
 commissioner may approve a shared work plan only if it: 

    (1) specifies the employees in the affected group; 

    (2) applies to only one affected group; 

    (3) includes a certified statement by the employer that 
 each employee specified in the affected group is an affected 
 employee; 

    (4) includes a certified statement by the employer that for 
 the duration of the plan the reduction in normal weekly hours of 
 work of the employees in the affected group is instead of 
 layoffs that otherwise would result in at least as large a 
 reduction in the total normal weekly hours of work; 

    (5) specifies an expiration date that is no more than one 
 year from the date the employer submits the plan for approval; 

    (6) specifies that fringe benefits, such as health and 
 retirement, available to the employees in the affected group are 
 not reduced beyond the percentage of reduction in hours of work; 
 and 

    (7) is approved in writing by the collective bargaining 
 agent for each collective bargaining agreement that covers any 
 employee in the affected group. 

    (b) The commissioner shall set the beginning and ending 
 dates of an approved shared work plan. 

    (c) The commissioner shall mail to the employer a written 
 determination approving or disapproving the plan within 15 
 calendar days of its receipt.  Determinations are final. 

    (d) Disapproval of a plan may be reconsidered at the 
 discretion of the commissioner.  Approval of a shared work plan 
 may be revoked if the approval was based, in whole or in part, 
 upon information that was false or misleading. 

    Subd. 3.    Eligibility.  (a) Regardless of any other 
 provision, an applicant is eligible to receive shared work 
 benefits with respect to any week if: 

    (1) during the week the applicant is employed as a member 
 of an affected group in a plan that was approved prior to the 
 week and is in effect for the week; and 

    (2) during the week the normal weekly hours of work were 
 reduced, in accordance with the plan, at least 20 percent but 
 not more than 40 percent, with a corresponding reduction in 
 wages. 

    (b) Shared work benefits shall not be paid to an applicant 
 beyond one benefit year. 

    (c) The total amount of regular unemployment benefits and 
 shared work benefits paid to an applicant in a benefit year 
 shall not exceed the maximum amount of regular unemployment 
 benefits available. 

    (d) An otherwise eligible applicant shall not be denied 
 shared work benefits because of the application of any provision 
 relating to availability for employment, active search for 
 employment, or refusal to apply for or accept suitable 
 employment from other than the applicant's shared work employer. 

    Subd. 4.    Weekly benefit amount.  (a) An applicant who 
 is eligible for shared work benefits shall be paid an amount 
 equal to the regular weekly unemployment benefit amount 
 multiplied by the nearest full percentage of reduction of the 
 applicant's regular weekly hours of work as set in the plan.  
 The benefit payment, if not a whole dollar shall be rounded to 
 the next lower dollar. 

    (b) The deductible earnings provisions of section 268.085, 
 subdivision 5, shall not apply to earnings from the shared work 
 employer of an applicant eligible for shared work benefits 
 unless the resulting amount would be less than the regular 
 weekly unemployment benefit amount the applicant would otherwise 
 be eligible for without regard to shared work benefits. 

    (c) An applicant shall not be eligible for shared work 
 benefits for any week that employment is performed for the 
 shared work employer in excess of the reduced hours set forth in 
 the plan. 

    HIST: 1994 c 503 s 4; 1996 c 417 s 16; 1997 c 66 s 79,80; 1998 
 c 265 s 45; 1999 c 107 s 52,66; 2000 c 343 s 4 

    268.14 Subdivision 1. Renumbered 268.198, subd 1 

    Subd. 2. Renumbered 268.198, subd 2 

    Subd. 3. Repealed, 1997 c 66 s 81 

    Subd. 4. Repealed, 1997 c 66 s 81 

    Subd. 5. Renumbered 268.198, subd 3 

    Subd. 6. Expired 

     268.145 Income tax withholding. 

    Subdivision 1.    Notification.  (a) Upon filing an 
 application for unemployment benefits, the applicant shall be 
 informed that: 

    (1) unemployment benefits are subject to federal and state 
 income tax; 

    (2) there are requirements for filing estimated tax 
 payments; 

    (3) the applicant may elect to have federal income tax 
 withheld from unemployment benefits; 

    (4) if the applicant elects to have federal income tax 
 withheld, the applicant may, in addition, elect to have 
 Minnesota state income tax withheld; and 

    (5) at any time during the benefit year the applicant may 
 change a prior election. 

    (b) If an applicant elects to have federal income tax 
 withheld, the commissioner shall deduct 15 percent for federal 
 income tax, rounded to the nearest whole dollar.  If an 
 applicant also elects to have Minnesota state income tax 
 withheld, the commissioner shall make an additional five percent 
 deduction for state income tax.  Any amounts deducted or offset 
 pursuant to sections 268.155, 268.156, 268.18, and 268.184 have 
 priority over any amounts deducted under this section.  Federal 
 income tax withholding has priority over state income tax 
 withholding. 

    (c) An election to have income tax withheld shall not be 
 retroactive and shall only apply to unemployment benefits paid 
 after the election. 

    Subd. 2.    Transfer of funds.  The amount of any 
 unemployment benefits deducted under this section shall remain 
 in the fund until transferred to the federal Internal Revenue 
 Service, or the department of revenue, as an income tax payment 
 on behalf of the applicant. 

    Subd. 3.    Correction of errors.  Any error that 
 resulted in underwithholding or overwithholding 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 income tax from unemployment benefits. 

    Subd. 5.    Effect of payments.  Any amount deducted 
 under this section shall be considered as unemployment benefits 
 paid to the applicant. 

    HIST: 1996 c 417 s 17; 1997 c 66 s 79; 1998 c 254 art 1 s 73; 
 1999 c 107 s 53,66; 2000 c 343 s 4 

    268.15 Subdivision 1. Renumbered 268.196, subd 1 

    Subd. 2. Renumbered 268.196, subd 2 

    Subd. 3. Renumbered 268.196, subd 3 

    Subd. 4. Repealed, 2Sp1981 c 1 s 8 

     268.155 Child support deducted from unemployment 
  benefits. 

    Subdivision 1.    Definitions.  As used in this section: 

    (1) "Child support obligations" means obligations that are 
 being enforced by a child support agency pursuant to a plan 
 described in United States Code, title 42, section 454, of the 
 Social Security Act that has been approved by the secretary of 
 health and human services under part D of title IV of the Social 
 Security Act.  This shall not include any type of spousal 
 maintenance or foster care payments; and 

    (2) "Child support agency" means the public agency 
 responsible for child support enforcement.  

    Subd. 2.    Notice upon application.  In an application 
 for unemployment benefits, the applicant shall disclose if child 
 support obligations are owed and, if so, in what state and 
 county.  If child support obligations are owed, the commissioner 
 shall, if the applicant establishes a benefit account, notify 
 the child support agency. 

    Subd. 3.    Withholding of unemployment benefits.  The 
 commissioner shall deduct and withhold from any unemployment 
 benefits payable to an applicant who owes child support 
 obligations: 

    (1) the amount required pursuant to a proper order of a 
 court or administrative agency; or 

    (2) if clause (1) is not applicable, the amount determined 
 pursuant to an agreement under United States Code, title 42, 
 section 454 (20) (B) (i), of the Social Security Act; or 

    (3) if clause (1) or (2) is not applicable, the amount 
 specified by the applicant. 

    Subd. 4.    Payment.  Any amount deducted and withheld 
 shall be paid to the child support agency, but shall for all 
 purposes be treated as if it were paid to the applicant as 
 unemployment benefits and paid by the applicant to the child 
 support agency in satisfaction of the applicant's child support 
 obligations. 

    Subd. 5.    Payment of costs.  The child support agency 
 shall pay the costs incurred by the commissioner in the 
 implementation and administration of this section and sections 
 518.551 and 518.6111. 

    Subd. 6. Renumbered subdivision 5 

    HIST: 1Sp1982 c 1 s 22; 1986 c 444; 1987 c 384 art 2 s 67; 
 1994 c 488 s 8; 1996 c 417 s 10-12; 1997 c 66 s 79,80; 1997 c 
 203 art 6 s 92; 1999 c 107 s 54,66; 2000 c 343 s 4 

    268.16 Subdivision 1. Renumbered 268.057 subd 5 

    Subd. 1a. Renumbered 268.057 subd 6 

    Subd. 2. Renumbered 268.057 subd 1 

    Subd. 3. Repealed, 1Sp1982 c 1 s 43 

    Subd. 3a. Renumbered 268.057 subd 4 

    Subd. 4. Renumbered 268.067 

    Subd. 5. Renumbered 268.057 subd 10 

    Subd. 6. Renumbered 268.057 subd 7 

    Subd. 7. Renumbered 268.057 subd 8 

    Subd. 8. Repealed, 1997 c 66 s 81 

    Subd. 9. Renumbered 268.057 subd 9 

    268.161 Subdivision 1. Renumbered 268.058, subd 1 

    Subd. 1a. Renumbered 268.058, subd 2 

    Subd. 2. Renumbered 268.058 subd 6 

    Subd. 3. Repealed, 1997 c 66 s 81 

    Subd. 4. Renumbered 268.058, subd 5 

    Subd. 5. Renumbered 268.058, subd 4 

    Subd. 6. Renumbered 268.057, subd 2 

    Subd. 7. Renumbered 268.057, subd 3 

    Subd. 8. Renumbered 268.058, subd 3 

    Subd. 9. Renumbered 268.063 

  268.162 Renumbered 268.064 

  268.163 Renumbered 268.065 

  268.164 Renumbered 268.0625 

  268.165 Repealed, 1997 c 66 s 81 

  268.166 Renumbered 268.066 

  268.167 Renumbered 268.059 

  268.17 Renumbered 268.192 

     268.18 Unemployment benefit overpayments. 

    Subdivision 1.    Overpayment due to error.  (a) Any 
 applicant who (1) by reason of the applicant's own mistake, or 
 (2) because of an error by any employee of the department, or (3)
 because of a determination, redetermination, or amended 
 determination issued pursuant to section 268.07 or 268.101, or 
 (4) because of an appeal decision under section 268.105, has 
 received any unemployment benefits that the applicant was not 
 entitled to, shall promptly repay the unemployment benefits to 
 the fund.  If the applicant fails to repay the unemployment 
 benefits, the commissioner shall, as soon as the erroneous 
 payment is discovered, determine the amount due and notify the 
 applicant in writing to repay the unemployment benefits. 

    (b) Unless the applicant files an appeal within 30 calendar 
 days after the mailing of the determination of overpayment to 
 the applicant's last known address, the determination shall 
 become final.  Proceedings on the appeal shall be conducted in 
 accordance with section 268.105.  An applicant may not 
 collaterally attack, by way of an appeal to an overpayment 
 determination, any prior determination issued pursuant to 
 section 268.07 or 268.101, or decision issued pursuant to 
 section 268.105, that has become final. 

    (c) If the applicant fails to repay the unemployment 
 benefits, the commissioner may offset from any future 
 unemployment benefits otherwise payable the amount of the 
 overpayment.  Except when the overpayment resulted because the 
 applicant failed to report deductible earnings or deductible 
 payments, no single offset shall exceed 50 percent of the amount 
 of the payment from which the offset is made.  The overpayment 
 may also be collected by the same methods as delinquent taxes.  
 A determination of overpayment shall state the methods of 
 collection the commissioner may use to recover the overpayment.  

    (d) If an applicant has been overpaid unemployment benefits 
 under the law of another state because of an error and that 
 state certifies that the applicant is liable under its law to 
 repay the unemployment benefits and requests the commissioner to 
 recover the overpayment, the commissioner may offset from future 
 unemployment benefits otherwise payable the amount of 
 overpayment, except that no single offset shall exceed 50 
 percent of the amount of the payment from which the offset is 
 made.  

    (e) Unemployment benefits paid for weeks more than three 
 years prior to the discovery of error are not overpaid 
 unemployment benefits. 

    Subd. 2.    Overpayment due to fraud.  (a) Any applicant 
 who receives unemployment benefits by intentionally 
 misrepresenting, misstating, or failing to disclose any material 
 fact has committed fraud.  After the discovery of facts 
 indicating fraud, the commissioner shall make a written 
 determination that the applicant obtained unemployment benefits 
 by fraud and that the applicant must promptly repay the 
 unemployment benefits to the fund.  In addition, the 
 commissioner shall assess a penalty equal to 25 percent of the 
 amount fraudulently obtained.  If the applicant had a prior 
 overpayment due to fraud, the commissioner shall, on the present 
 overpayment, assess a penalty equal to 50 percent of the amount 
 fraudulently obtained. 

    (b) Unless the applicant files an appeal within 30 calendar 
 days after the mailing of the determination of overpayment by 
 fraud to the applicant's last known address, the determination 
 shall become final.  Proceedings on the appeal shall be 
 conducted in accordance with section 268.105.  

    (c) If the applicant fails to repay the unemployment 
 benefits, penalty, and interest assessed, the commissioner shall 
 offset from future unemployment benefits otherwise payable the 
 amount of overpayment.  The total due may also be collected by 
 the same methods as delinquent taxes.  A determination of 
 overpayment by fraud shall state the methods of collection the 
 commissioner may use to recover the overpayment.  Money received 
 in repayment of fraudulently obtained unemployment benefits, 
 penalties, and interest shall first be applied to the 
 unemployment benefits overpaid, then to the penalty amount due, 
 then to any interest due.  Payments made toward penalty and 
 interest shall be credited to the contingent account. 

    (d) If an applicant has been overpaid unemployment benefits 
 under the law of another state because of fraud and that state 
 certifies that the applicant is liable to repay the unemployment 
 benefits and requests the commissioner to recover the 
 overpayment, the commissioner may offset from future 
 unemployment benefits otherwise payable the amount of 
 overpayment.  

    (e) A determination of overpayment by fraud may be made at 
 any time.  

    Subd. 2a.  Renumbered subd 3a 

    Subd. 2b.    Interest.  (a) Beginning January 1, 2002, 
 on any unemployment benefits fraudulently obtained, and any 
 penalty amounts assessed under subdivision 2, the commissioner 
 shall assess interest at the rate of 1-1/2 percent per month on 
 any amount that remains unpaid 30 calendar days after the date 
 of the determination of overpayment by fraud.  A determination 
 of overpayment by fraud shall state that interest shall be 
 assessed. 

    (b) If this subdivision became effective after the date of 
 the determination, or the determination did not state that 
 interest shall be assessed, interest shall be assessed beginning 
 30 calendar days after written notification to the applicant. 

    Subd. 3. Renumbered 268.182 

    Subd. 3a.    Offset of federal unemployment benefits.  
 The commissioner is authorized to enter into reciprocal 
 agreements with the United States Secretary of Labor, whereby, 
 overpayments of benefits as determined under federal law, may be 
 recovered by offset from unemployment benefits otherwise payable 
 and unemployment benefit overpayments under subdivisions 1 and 2 
 may be recovered by offset from benefits otherwise payable under 
 a federal program. 

    Subd. 4.    Cancellation of overpayments.  (a) If 
 unemployment benefits paid because of an error are not repaid or 
 offset from subsequent unemployment benefits as provided for in 
 subdivision 1 within six years after the date of the 
 determination of overpayment, the commissioner shall cancel the 
 overpayment balance, and no administrative or legal proceedings 
 shall be used to enforce collection of those amounts. 

    (b) If unemployment benefits paid as a result of fraud 
 including penalties and interest are not repaid or offset from 
 subsequent unemployment benefits as provided for in subdivision 
 2 within ten years after the date of the determination of 
 overpayment by fraud, the commissioner shall cancel the 
 overpayment balance and any penalties and interest due, and no 
 administrative or legal proceeding shall be used to enforce 
 collection of those amounts. 

    (c) The commissioner may cancel at any time any 
 overpayment, including penalties and interest, that the 
 commissioner determines is uncollectible due to death or 
 bankruptcy. 

    Subd. 4a.    Court fees.  (a) If the commissioner is 
 required to pay any court fees in an attempt to enforce 
 collection of overpaid unemployment benefits, penalties, or 
 interest, the commissioner may add the amount of the court fees 
 to the total amount due. 

    (b) If an applicant who has been determined overpaid 
 unemployment benefits because of fraud seeks to have any portion 
 of the debt discharged under the federal bankruptcy code, and 
 the commissioner files an objection in bankruptcy court to the 
 discharge, the commissioner may add the commissioner's cost of 
 any court fees to the debt if the bankruptcy court does not 
 discharge the debt. 

    Subd. 5. Repealed, 1997 c 66 s 81 

    Subd. 5.    Remedies.  (a) Any method undertaken to 
 recover an overpayment of unemployment benefits, including any 
 penalties and interest, shall not be considered an election of a 
 method of recovery.  

    (b) Intervention or lack thereof, in whole or in part, in a 
 workers' compensation matter under section 176.361 shall not be 
 considered an election of a remedy and shall not prevent the 
 commissioner from determining any unemployment benefits overpaid 
 under subdivision 1 or 2 or taking action under section 268.182. 

    Subd. 6. Renumbered 268.184 

    Subd. 6.    Collection of overpayments.  (a) The 
 commissioner may not compromise the amount that has been 
 determined overpaid under this section including penalties and 
 interest.  

    (b) The commissioner shall have discretion regarding the 
 use of any method of recovery of any overpayment under 
 subdivision 1.  Regardless of any law to the contrary, the 
 commissioner shall not be required to refer any amount 
 determined overpaid under subdivision 1 to a public or private 
 collection agency, including agencies of this state.  

    (c) Amounts determined overpaid under subdivision 1 shall 
 not be considered a "debt" to the state of Minnesota for 
 purposes of any reporting requirements to the commissioner of 
 finance. 

    (d) A pending appeal under section 268.105 shall not toll 
 the assessment of interest, penalties, or collection of an 
 overpayment under this section. 

    HIST: (4337-36) Ex1936 c 2 s 16; 1941 c 554 s 15; 1951 c 442 s 
 11; 1953 c 97 s 18; 1969 c 567 s 3; 1973 c 254 s 3; 1975 c 336 s 
 24; 1977 c 4 s 10; 1977 c 430 s 25 subd 1; 1979 c 181 s 17,18; 
 1Sp1982 c 1 s 37-40; 1983 c 216 art 1 s 42,87; 1983 c 372 s 
 45,46; 1985 c 248 s 70; 1Sp1985 c 14 art 9 s 75; 1986 c 444; 
 1987 c 385 s 40-45; 1988 c 712 s 3; 1989 c 209 art 2 s 1; 1990 c 
 566 s 8; 1992 c 484 s 15; 1994 c 483 s 1; 1995 c 54 s 21-24; 
 1996 c 417 s 29,31; 1997 c 66 s 71-73,79; 1998 c 265 s 36,45; 
 1999 c 107 s 55,66; 2000 c 343 s 4 

     268.182 False representations; concealment of facts; 
  penalty. 

    (a) Whoever obtains, or attempts to obtain, or aids or 
 abets any individual to obtain by means of an intentional false 
 statement or representation, by intentional concealment of a 
 material fact, or by impersonation or other fraudulent means, 
 unemployment benefits that the individual is not entitled or 
 unemployment benefits greater than the individual is entitled 
 under this chapter, or under the law of any state or of the 
 federal government, either personally or for any other 
 individual, is guilty of theft and shall be sentenced pursuant 
 to section 609.52.  

    (b) Any individual who intentionally makes a false 
 statement or representation, who intentionally fails to disclose 
 a material fact, or who makes a false statement or 
 representation without a good faith belief as to the correctness 
 of the statement or representation, in order to obtain or in an 
 attempt to obtain unemployment benefits may be assessed an 
 administrative penalty of denial of unemployment benefits for 
 one to 52 weeks that the individual would otherwise be entitled 
 to unemployment benefits.  A denial shall not apply to any week 
 more than two years after the week that the penalty was 
 determined.  A written determination of denial shall be mailed 
 to the individual's last known address.  Unless an appeal is 
 filed within 30 calendar days of mailing, the determination 
 shall be final.  Proceeding on the appeal shall be conducted in 
 accordance with section 268.105.  

    (c)    Renumbered 268.184, paragraph (e)  

    HIST: Ex1936 c 2 s 16; 1941 c 554 s 15; 1951 c 442 s 11; 1953 
 c 97 s 18; 1969 c 567 s 3; 1973 c 254 s 3; 1975 c 336 s 24; 1977 
 c 4 s 10; 1977 c 430 s 25 subd 1; 1979 c 181 s 17,18; 1Sp1982 c 
 1 s 37-40; 1983 c 216 art 1 s 42,87; 1983 c 372 s 45,46; 1985 c 
 248 s 70; 1Sp1985 c 14 art 9 s 75; 1986 c 444; 1987 c 385 s 
 40-45; 1988 c 712 s 3; 1989 c 209 art 2 s 1; 1990 c 566 s 8; 
 1992 c 484 s 15; 1994 c 483 s 1; 1995 c 54 s 21-24; 1996 c 417 s 
 29,31; 1997 c 66 s 74,79; 1998 c 265 s 37; 1999 c 107 s 56,66; 
 2000 c 343 s 4 

     268.184 Employer misconduct; penalty. 

    (a) If the commissioner finds that any employer or any 
 employee, officer, or agent of any employer, is in collusion 
 with any applicant for the purpose of assisting the applicant to 
 receive unemployment benefits illegally, the employer shall be 
 penalized $500 or the amount of unemployment benefits determined 
 to be overpaid, whichever is greater. 

    (b) If the commissioner finds that any employer or any 
 employee, officer, or agent of an employer has made (1) a false 
 statement or representation knowing it to be false, or (2) has 
 made a false statement or representation without a good faith 
 belief as to correctness of the statement or representation, or 
 (3) who knowingly fails to disclose a material fact, to prevent 
 or reduce the payment of unemployment benefits to any applicant 
 or to reduce or prevent a charge of unemployment benefits to its 
 account, the employer shall be penalized $500. 

    (c) Penalties under this section shall be in addition to 
 any other penalties and subject to the same collection 
 procedures that apply to past due taxes.  Penalties shall be 
 paid to the department within 30 calendar days of assessment and 
 credited to the contingent account. 

    (d) The assessment of the penalty shall be final unless the 
 employer files an appeal within 30 calendar days after the 
 sending of notice of the penalty to the employer by mail or 
 electronic transmission.  Proceedings on the appeal shall be 
 conducted in accordance with section 268.105. 

    (e) Any employer or any officer or agent of an employer or 
 any other individual who makes a false statement or 
 representation knowing it to be false, or who knowingly fails to 
 disclose a material fact, to prevent or reduce the payment of 
 unemployment benefits to any applicant, is guilty of a gross 
 misdemeanor unless the unemployment benefit underpayment exceeds 
 $500, in that case the individual is guilty of a felony.  

    HIST: Ex1936 c 2 s 16; 1941 c 554 s 15; 1951 c 442 s 11; 1953 
 c 97 s 18; 1969 c 567 s 3; 1973 c 254 s 3; 1975 c 336 s 24; 1977 
 c 4 s 10; 1977 c 430 s 25 subd 1; 1979 c 181 s 17,18; 1Sp1982 c 
 1 s 37-40; 1983 c 216 art 1 s 42,87; 1983 c 372 s 45,46; 1985 c 
 248 s 70; 1Sp1985 c 14 art 9 s 75; 1986 c 444; 1987 c 385 s 
 40-45; 1988 c 712 s 3; 1989 c 209 art 2 s 1; 1990 c 566 s 8; 
 1992 c 484 s 15; 1994 c 483 s 1; 1995 c 54 s 21-24; 1996 c 417 s 
 29,31; 1997 c 66 s 76,79; 1998 c 265 s 38; 1999 c 107 s 56,66; 
 2000 c 343 s 4 

     268.186 Records. 

    (a) Each employer shall keep true and accurate records for 
 the periods of time and containing the information the 
 commissioner may require.  For the purpose of administering this 
 chapter, the commissioner has the power to examine, or cause to 
 be supplied or copied, any books, correspondence, papers, 
 records, or memoranda that are relevant, whether the books, 
 correspondence, papers, records, or memoranda are the property 
 of or in the possession of the employer or any other person at 
 any reasonable time and as often as may be necessary. 

    (b) The commissioner may make summaries, compilations, 
 photographs, duplications, or reproductions of any records, or 
 reports that the commissioner considers advisable for the 
 preservation of the information contained therein.  Any 
 summaries, compilations, photographs, duplications, or 
 reproductions shall be admissible in any proceeding under this 
 chapter.  Regardless of any restrictions contained in section 
 16B.50, the commissioner may duplicate records, reports, 
 summaries, compilations, instructions, determinations, or any 
 other written or recorded matter pertaining to the 
 administration of this chapter. 

    (c) Regardless of any law to the contrary, the commissioner 
 may provide for the destruction of any records, reports, or 
 reproductions thereof, or other papers, that are more than two 
 years old, and that are no longer necessary for determining 
 employer liability or an applicant's unemployment benefit rights 
 or for the administration of this chapter, including any 
 required audit.  The commissioner may provide for the 
 destruction or disposition of any record, report, or other paper 
 that has been photographed, duplicated, or reproduced. 

    HIST: Ex1936 c 2 s 10; 1937 c 306 s 7; 1939 c 441 s 42; 1939 c 
 443 s 8,10; 1941 c 554 s 9; 1943 c 650 s 7; 1945 c 376 s 9; 1947 
 c 600 s 3-6; 1949 c 605 s 15; 1949 c 739 s 8; 1951 c 442 s 6-10; 
 1951 c 713 s 29; 1953 c 97 s 15; 1953 c 603 s 1; 1953 c 612 s 1; 
 1955 c 847 s 22; 1957 c 883 s 7; 1965 c 45 s 42-44; 1965 c 741 s 
 18; 1967 c 770 s 1; 1969 c 9 s 63; 1969 c 310 s 2; 1969 c 567 s 
 1,3; 1969 c 854 s 11,12; 1969 c 1129 art 8 s 7; 1971 c 942 s 12; 
 1973 c 254 s 1,3; 1973 c 492 s 14; 1974 c 241 s 1; 1975 c 315 s 
 19; 1975 c 336 s 20,21; 1977 c 172 s 2; 1977 c 237 s 1; 1977 c 
 297 s 20; 1977 c 305 s 31; 1977 c 430 s 25 subd 1; 1978 c 674 s 
 60; 1979 c 181 s 15; 1980 c 615 s 37; 1981 c 311 s 39; 1982 c 
 424 s 130; 1982 c 545 s 23,24; 1Sp1982 c 1 s 31,32; 1983 c 216 
 art 1 s 87; 1983 c 247 s 114; 1983 c 260 s 58; 1983 c 312 art 8 
 s 2; 1983 c 372 s 37,38; 1984 c 544 s 89; 1985 c 248 s 70; 
 1Sp1985 c 14 art 9 s 75; 1986 c 444; 1987 c 165 s 1; 1987 c 312 
 art 1 s 26 subd 2; 1987 c 362 s 23; 1987 c 385 s 25; 1989 c 65 s 
 11; 1989 c 209 art 2 s 1; 1990 c 516 s 6,7; 1991 c 202 s 16; 
 1993 c 67 s 10; 1994 c 483 s 1; 1994 c 488 s 8; 1995 c 54 s 12; 
 1996 c 417 s 23,31; 1996 c 440 art 1 s 47; 1997 c 66 s 62,79; 
 1998 c 265 s 44; 1999 c 107 s 57,66; 2000 c 343 s 4 

     268.188 Subpoenas; oaths. 

    (a) The commissioner shall have power to administer oaths 
 and affirmations, take depositions, certify to official acts, 
 and issue subpoenas to compel the attendance of individuals and 
 the production of documents and other personal property 
 necessary in connection with the administration of sections 
 268.03 to 268.23. 

    (b) Individuals subpoenaed, other than applicants or 
 officers and employees of an employer that is the subject of the 
 inquiry, shall be allowed fees the same as witness fees in civil 
 actions in district court.  The fees need not be paid in advance.

    (c) The subpoena shall be enforceable through the district 
 court in the district that the subpoena is issued. 

    HIST: Ex1936 c 2 s 10; 1937 c 306 s 7; 1939 c 441 s 42; 1939 c 
 443 s 8,10; 1941 c 554 s 9; 1943 c 650 s 7; 1945 c 376 s 9; 1947 
 c 600 s 3-6; 1949 c 605 s 15; 1949 c 739 s 8; 1951 c 442 s 6-10; 
 1951 c 713 s 29; 1953 c 97 s 15; 1953 c 603 s 1; 1953 c 612 s 1; 
 1955 c 847 s 22; 1957 c 883 s 7; 1965 c 45 s 42-44; 1965 c 741 s 
 18; 1967 c 770 s 1; 1969 c 9 s 63; 1969 c 310 s 2; 1969 c 567 s 
 1,3; 1969 c 854 s 11,12; 1969 c 1129 art 8 s 7; 1971 c 942 s 12; 
 1973 c 254 s 1,3; 1973 c 492 s 14; 1974 c 241 s 1; 1975 c 315 s 
 19; 1975 c 336 s 20,21; 1977 c 172 s 2; 1977 c 237 s 1; 1977 c 
 297 s 20; 1977 c 305 s 31; 1977 c 430 s 25 subd 1; 1978 c 674 s 
 60; 1979 c 181 s 15; 1980 c 615 s 37; 1981 c 311 s 39; 1982 c 
 424 s 130; 1982 c 545 s 23,24; 1Sp1982 c 1 s 31,32; 1983 c 216 
 art 1 s 87; 1983 c 247 s 114; 1983 c 260 s 58; 1983 c 312 art 8 
 s 2; 1983 c 372 s 37,38; 1984 c 544 s 89; 1985 c 248 s 70; 
 1Sp1985 c 14 art 9 s 75; 1986 c 444; 1987 c 165 s 1; 1987 c 312 
 art 1 s 26 subd 2; 1987 c 362 s 23; 1987 c 385 s 25; 1989 c 65 s 
 11; 1989 c 209 art 2 s 1; 1990 c 516 s 6,7; 1991 c 202 s 16; 
 1993 c 67 s 10; 1994 c 483 s 1; 1994 c 488 s 8; 1995 c 54 s 12; 
 1996 c 417 s 23,31; 1996 c 440 art 1 s 47; 1997 c 66 s 63,79; 
 1998 c 265 s 44; 1999 c 107 s 58,66 

     268.19 Data privacy. 

    (a) Except as otherwise provided by this section, data 
 gathered from any employer or individual pursuant to the 
 administration of sections 268.03 to 268.23 are private data on 
 individuals or nonpublic data not on individuals as defined in 
 section 13.02, subdivisions 9 and 12, and may not be disclosed 
 except pursuant to a court order or section 13.05.  These data 
 may be disseminated to and used by the following agencies 
 without the consent of the subject of the data:  

    (1) state and federal agencies specifically authorized 
 access to the data by state or federal law; 

    (2) any agency of Minnesota or any other state; or any 
 federal agency charged with the administration of an employment 
 security law or the maintenance of a system of public employment 
 offices; 

    (3) human rights agencies within Minnesota that have 
 enforcement powers; 

    (4) the department of revenue must have access to 
 department private data on individuals and nonpublic data not on 
 individuals only to the extent necessary for enforcement of 
 Minnesota tax laws; 

    (5) public and private agencies responsible for 
 administering publicly financed assistance programs for the 
 purpose of monitoring the eligibility of the program's 
 recipients; 

    (6) the department of labor and industry on an 
 interchangeable basis with the department subject to the 
 following limitations and regardless of any law to the contrary: 

    (i) the department must have access to private data on 
 individuals and nonpublic data not on individuals for uses 
 consistent with the administration of its duties under sections 
 268.03 to 268.23; and 

    (ii) the department of labor and industry must have access 
 to private data on individuals and nonpublic data not on 
 individuals for uses consistent with the administration of its 
 duties under Minnesota law; 

    (7) the department of trade and economic development may 
 have access to private data on individual employers and 
 nonpublic data not on individual employers for its internal use 
 only; when received by the department of trade and economic 
 development, the data remain private data on individuals or 
 nonpublic data; 

    (8) local and state welfare agencies for monitoring the 
 eligibility of the data subject for assistance programs, or for 
 any employment or training program administered by those 
 agencies, whether alone, in combination with another welfare 
 agency, or in conjunction with the department or to monitor and 
 evaluate the statewide Minnesota family investment program by 
 providing data on recipients and former recipients of food 
 stamps, cash assistance under chapter 256, 256D, 256J, or 256K, 
 child care assistance under chapter 119B, or medical programs 
 under chapter 256B, 256D, or 256L; 

    (9) local, state, and federal law enforcement agencies for 
 the sole purpose of ascertaining the last known address and 
 employment location of the data subject, provided the data 
 subject is the subject of a criminal investigation; 

    (10) the federal Immigration and Naturalization Service 
 shall have access to data on specific individuals and specific 
 employers provided the specific individual or specific employer 
 is the subject of an investigation by that agency; and 

    (11) the department of health may have access to private 
 data on individuals and nonpublic data not on individuals solely 
 for the purposes of epidemiologic investigations.  

    (b) Data on individuals and employers that are collected, 
 maintained, or used by the department in an investigation 
 pursuant to section 268.182 are confidential as to data on 
 individuals and protected nonpublic data not on individuals as 
 defined in section 13.02, subdivisions 3 and 13, and must not be 
 disclosed except pursuant to statute or court order or to a 
 party named in a criminal proceeding, administrative or 
 judicial, for preparation of a defense.  

    (c) Tape recordings and transcripts of recordings of 
 proceedings conducted in accordance with section 268.105 and 
 exhibits received into evidence at those proceedings are private 
 data on individuals and nonpublic data not on individuals and 
 must be disclosed only pursuant to the administration of section 
 268.105, or pursuant to a court order.  

    (d) The department may disseminate an employer's name, 
 address, industry code, occupations employed, and the number of 
 employees by ranges of not less than 100 for the purpose of 
 assisting individuals using the Minnesota workforce center 
 system in obtaining employment. 

    (e) The general aptitude test battery and the nonverbal 
 aptitude test battery as administered by the department are 
 private data on individuals or nonpublic data.  

    (f) Data gathered by the department pursuant to the 
 administration of sections 268.03 to 268.23 must not be made the 
 subject or the basis for any suit in any civil proceedings, 
 administrative or judicial, unless the action is initiated by 
 the department. 

    HIST: Ex1936 c 2 s 10; 1937 c 306 s 7; 1939 c 441 s 42; 1939 c 
 443 s 8,10; 1941 c 554 s 9; 1943 c 650 s 7; 1945 c 376 s 9; 1947 
 c 600 s 3-6; 1949 c 605 s 15; 1949 c 739 s 8; 1951 c 442 s 6-10; 
 1951 c 713 s 29; 1953 c 97 s 15; 1953 c 603 s 1; 1953 c 612 s 1; 
 1955 c 847 s 22; 1957 c 883 s 7; 1965 c 45 s 42-44; 1965 c 741 s 
 18; 1967 c 770 s 1; 1969 c 9 s 63; 1969 c 310 s 2; 1969 c 567 s 
 1,3; 1969 c 854 s 11,12; 1969 c 1129 art 8 s 7; 1971 c 942 s 12; 
 1973 c 254 s 1,3; 1973 c 492 s 14; 1974 c 241 s 1; 1975 c 315 s 
 19; 1975 c 336 s 20,21; 1977 c 172 s 2; 1977 c 237 s 1; 1977 c 
 297 s 20; 1977 c 305 s 31; 1977 c 430 s 25 subd 1; 1978 c 674 s 
 60; 1979 c 181 s 15; 1980 c 615 s 37; 1981 c 311 s 39; 1982 c 
 424 s 130; 1982 c 545 s 23,24; 1Sp1982 c 1 s 31,32; 1983 c 216 
 art 1 s 87; 1983 c 247 s 114; 1983 c 260 s 58; 1983 c 312 art 8 
 s 2; 1983 c 372 s 37,38; 1984 c 544 s 89; 1985 c 248 s 70; 
 1Sp1985 c 14 art 9 s 75; 1986 c 444; 1987 c 165 s 1; 1987 c 312 
 art 1 s 26 subd 2; 1987 c 362 s 23; 1987 c 385 s 25; 1989 c 65 s 
 11; 1989 c 209 art 2 s 1; 1990 c 516 s 6,7; 1991 c 202 s 16; 
 1993 c 67 s 10; 1994 c 483 s 1; 1994 c 488 s 8; 1995 c 54 s 12; 
 1996 c 417 s 23,31; 1996 c 440 art 1 s 47; 1997 c 66 s 79; 1998 
 c 273 s 13; 1998 c 371 s 11; 1999 c 107 s 66; 2000 c 468 s 25 

     268.192 Protection of rights. 

    Subdivision 1.    Waiver of rights void.  Any agreement 
 by an individual to waive, release, or commute rights to 
 unemployment benefits or any other rights under sections 268.03 
 to 268.23 shall be void.  Any agreement by an employee to pay 
 all or any portion of an employer's taxes, shall be void.  No 
 employer shall directly or indirectly make or require or accept 
 any deduction from wages to pay the employer's taxes, require or 
 accept any waiver of any right or in any manner obstruct or 
 impede an application or continued claim for unemployment 
 benefits.  Any employer or officer or agent of any employer who 
 violates any portion of this subdivision shall, for each 
 offense, be guilty of a misdemeanor.  

    Subd. 2.    No assignment of unemployment benefits; 
 exemptions.  Any assignment, pledge, or encumbrance of 
 unemployment benefits shall be void.  Unemployment benefits 
 shall be exempt from levy, execution, attachment, or any other 
 remedy provided for the collection of debt.  Any waiver of this 
 subdivision shall be void. 

    HIST: Ex1936 c 2 s 15; 1941 c 554 s 14; 1986 c 444; 1989 c 209 
 art 2 s 1; 1996 c 417 s 31; 1997 c 66 s 79; 1998 c 265 s 39; 
 1999 c 107 s 59; 2000 c 343 s 4 

     268.194 Unemployment insurance program trust fund. 

    Subdivision 1.    Establishment.  There is hereby 
 established as a special state fund, separate and apart from all 
 other public money or funds of this state, an unemployment 
 insurance program trust fund, that shall be administered by the 
 commissioner exclusively for the payment of unemployment 
 benefits.  This fund shall consist of: 

    (1) all taxes collected; 

    (2) interest earned upon any money in the fund; 

    (3) payments in lieu of taxes paid by nonprofit 
 organizations and the state and political subdivisions; 

    (4) voluntary payments under section 268.051, subdivision 
 7; 

    (5) any money received as a loan from the federal 
 unemployment trust fund in accordance with United States Code, 
 title 42, section 1321, of the Social Security Act; 

    (6) any other money received pursuant to a reciprocal 
 unemployment benefit arrangement with the federal government or 
 any other state; 

    (7) all money recovered on overpaid unemployment benefits; 

    (8) all money recovered on losses sustained by the fund; 

    (9) all money received from the contingent account under 
 section 268.196, subdivision 3; 

    (10) all money credited to the account of Minnesota in the 
 federal unemployment trust fund pursuant to United States Code, 
 title 42, section 1103, of the Social Security Act, also known 
 as the Reed Act; and 

    (11) all money received for the fund from any other source. 

    Subd. 2.    Commissioner of finance to be custodian; 
 separate accounts.  (a) The commissioner of finance shall be 
 the treasurer and custodian of the fund, administer the fund in 
 accordance with the directions of the commissioner, and issue 
 warrants upon it.  The commissioner of finance shall maintain 
 within the fund three separate accounts: 

    (1) a clearing account; 

    (2) an unemployment trust fund account; and 

    (3) an unemployment benefit payment account.  

    All money payable to the fund, upon receipt by the 
 commissioner, shall be forwarded to the commissioner of finance 
 who shall immediately deposit the money in the clearing 
 account.  All money in the clearing account, after clearance, 
 shall be deposited to the credit of Minnesota's account in the 
 federal unemployment trust fund.  Tax refunds payable pursuant 
 to section 268.057 may be paid from the clearing account or the 
 unemployment benefit payment account.  

    (b) The unemployment benefit payment account shall consist 
 of all money requisitioned from Minnesota's account in the 
 federal unemployment trust fund for the payment of unemployment 
 benefits.  Money in the clearing and unemployment benefit 
 payment accounts may be deposited by the commissioner of 
 finance, under the direction of the commissioner, in any 
 depository bank that general funds of Minnesota may be 
 deposited, but no public deposit insurance charge or premium 
 shall be paid out of the fund.  Money in the clearing and 
 unemployment benefit payment accounts shall be maintained in 
 separate accounts on the books of the depository bank.  This 
 money shall be secured by the depository bank to the same extent 
 and in the same manner as required by the general depository law 
 of Minnesota.  

    Subd. 3.    Exclusive use.  (a) Money requisitioned from 
 Minnesota's account in the federal unemployment trust fund shall 
 be used exclusively for the payment of unemployment benefits and 
 for tax refunds pursuant to section 268.057, except that money 
 credited to Minnesota's account pursuant to United States Code, 
 title 42, section 1103 of the Social Security Act, also known as 
 the Reed Act, may be used for the payment of expenses of 
 administration.  The commissioner shall from time to time 
 requisition from the federal unemployment trust fund the amounts 
 necessary for the payment of unemployment benefits and tax 
 refunds for a reasonable future period.  Upon receipt the 
 commissioner of finance shall deposit the money in the 
 unemployment benefit payment account and issue warrants for the 
 payment of unemployment benefits solely from the unemployment 
 benefit payment account. 

    (b) Expenditures of money in the unemployment benefit 
 payment account and tax refunds from the clearing account shall 
 not be subject to any provisions of law requiring specific 
 appropriations or other formal release by state officers.  

    (c) All warrants issued for the payment of unemployment 
 benefits and tax refunds shall bear the signature of the 
 commissioner of finance and the counter signature of the 
 commissioner. 

    Subd. 3a. Renumbered subdivision 4 

    Subd. 4.    Reimbursements.  The commissioner is 
 authorized to make to other state or federal agencies and to 
 receive from other state or federal agencies, reimbursements 
 from or to the fund, in accordance with reciprocal arrangements 
 entered into pursuant to section 268.131. 

    Money received pursuant to a reciprocal agreement shall be 
 placed directly in the unemployment benefit payment account of 
 the fund.  

    Subd. 5.    Reed Act money.  (a) Money credited to the 
 account of Minnesota in the federal unemployment trust fund 
 pursuant to United States Code, title 42, section 1103, of the 
 Social Security Act, also known as the Reed Act, may be 
 requisitioned and used for (1) the payment of unemployment 
 benefits, or (2) expenses incurred for the administration of 
 sections 268.03 to 268.23 pursuant to a specific appropriation 
 by the legislature.  Any money used for the payment of 
 unemployment benefits may be restored for appropriation and use 
 for administrative expenses upon request of the governor to the 
 United States Secretary of Labor.  

    (b) Reed Act money may be used for expenses in the 
 administration of sections 268.03 to 268.23 provided that the 
 expenses are incurred and the money is requisitioned after the 
 enactment of an appropriation law that: 

    (1) specifies the amounts and the purposes for which the 
 money is appropriated; 

    (2) limits the period within which the money may be 
 obligated to a period ending not more than two years after the 
 date of the enactment of the appropriation law; and 

    (3) limits the amount that may be obligated to an amount 
 that does not exceed the amount by which the aggregate of the 
 amounts transferred to the account of Minnesota pursuant to the 
 Reed Act exceeds the aggregate of the amounts used pursuant to 
 this subdivision and charged against the amounts transferred to 
 the account of Minnesota.  For the purposes of this subdivision, 
 amounts used for administration shall be chargeable against the 
 transferred amounts at the time of the obligation. 

    (c) Reed Act money requisitioned for the payment of 
 expenses of administration shall remain a part of the 
 unemployment insurance program trust fund.  The commissioner 
 shall account for the use of this money in accordance with the 
 standards established by the United States Secretary of Labor.  
 If any money is not spent for the purpose for which it was 
 appropriated, or, if it remains unspent at the end of the period 
 specified by the law appropriating the money, it shall be 
 returned for credit to Minnesota's account in the federal 
 unemployment trust fund.  

    Subd. 6.    Borrowing federal funds.  (a) The governor 
 is hereby authorized, if necessary, to borrow funds from the 
 federal unemployment trust fund in accordance with United States 
 Code, title 42, section 1321 of the Social Security Act in order 
 to pay unemployment benefits. 

    (b) Any amount transferred to the fund under the terms of 
 any loan shall be repayable as provided in United States Code, 
 title 42, sections 1101(d)(1), 1103(b)(2), and 1322 of the 
 Social Security Act. 

    (c) Interest payable on any loan shall be paid in 
 accordance with section 268.051, subdivision 8, paragraph (b). 

    HIST: Ex1936 c 2 s 3,11; 1937 c 306 s 8; 1937 c 452 s 1; 1939 
 c 443 s 2,9; 1941 c 554 s 2,10; 1943 c 650 s 8; 1945 c 376 s 
 2,10; 1947 c 432 s 8-10; 1949 c 605 s 2; 1953 c 97 s 3,4; 1957 c 
 883 s 2-5; 1961 c 517 s 1; 1965 c 45 s 45; 1969 c 9 s 64; 1969 c 
 310 s 1; 1969 c 567 s 3; 1971 c 942 s 13; 1975 c 302 s 1; 1979 c 
 181 s 16; 1Sp1982 c 1 s 4; 1983 c 216 art 1 s 87; 1983 c 372 s 
 8; 1985 c 248 s 70; 1Sp1985 c 13 s 300; 1986 c 444; 1989 c 209 
 art 2 s 1; 1994 c 488 s 8; 1996 c 417 s 31; 1997 c 66 s 79,80; 
 1998 c 265 s 33-35,40-42,45; 1999 c 107 s 60,66; 2000 c 343 s 4 

     268.196 Economic security administration account. 

    Subdivision 1.    Administration account.  (a) There is 
 hereby created in the state treasury a special account to be 
 known as the economic security administration account.  All 
 money that is deposited or paid into this account shall be 
 continuously available to the commissioner for expenditure to 
 administer sections 268.03 to 268.23, and shall not lapse at any 
 time.  The administration account shall consist of: 

    (1) all money received from the federal government to 
 administer sections 268.03 to 268.23; 

    (2) any money received as compensation for services or 
 facilities supplied to the federal government or any other 
 state; 

    (3) any amounts received for losses sustained by this 
 account or by reason of damage to equipment or supplies; and 

    (4) any proceeds from the sale or disposition of any 
 equipment or supplies that may no longer be necessary for the 
 proper administration of those sections.  

    (b) All money in this account shall be deposited, 
 administered, and disbursed in the same manner and under the 
 same conditions and requirements as are provided by law for the 
 other special accounts in the state treasury.  The commissioner 
 of finance, as treasurer and custodian of this account, shall be 
 liable for the faithful performance of duties in connection with 
 this account. 

    (c) All money in this account shall be spent solely for the 
 purposes and in the amounts found necessary by the United States 
 Secretary of Labor for the proper and efficient administration 
 of sections 268.03 to 268.23.  

    Subd. 2.    State to replace money wrongfully used.  If 
 any money received under United States Code, title 42, section 
 501 of the Social Security Act or the Wagner-Peyser Act, is 
 found by the United States Secretary of Labor to have been spent 
 for purposes other than, or in amounts in excess of, those 
 necessary for the proper administration of sections 268.03 to 
 268.23, the commissioner may replace the money from the 
 contingent account.  If the money is not replaced from the 
 contingent account, it is the policy of this state that the 
 money be replaced by money appropriated for that purpose from 
 the general funds of this state.  If not replaced from the 
 contingent account, the commissioner shall, at the earliest 
 opportunity, submit to the legislature a request for the 
 appropriation of that amount.  

    Subd. 3.    Contingent account.  (a) There is hereby 
 created in the state treasury a special account, to be known as 
 the economic security contingent account, that shall not lapse 
 nor revert to any other fund.  This account shall consist of all 
 money appropriated therefor by the legislature, all money in the 
 form of interest and penalties collected pursuant to sections 
 268.057, 268.18, and 268.184, all money received in the form of 
 voluntary contributions to this account, and any interest earned 
 on the account.  All money in this account shall be supplemental 
 to all federal money available to the commissioner.  Money in 
 this account is hereby appropriated to the commissioner and 
 shall be available to the commissioner for those expenditures 
 the commissioner considers necessary in connection with the 
 administration of sections 268.03 to 268.23.  

    (b) Whenever the commissioner spends money from the contingent 
 account for the administration of sections 268.03 to 268.23 for 
 which money will later be made available by the federal 
 government, the contingent account shall, when money is 
 available, be reimbursed from the administration account.  The 
 commissioner shall certify to the commissioner of finance the 
 amount of the reimbursement and the commissioner of finance 
 shall transfer that amount from the administration account to 
 the contingent account.  

    (c) All money in this account shall be deposited, 
 administered, and disbursed in the same manner and under the 
 same conditions and requirements as is provided by law for the 
 other special accounts in the state treasury.  On June 30 of 
 each year, all amounts in excess of $300,000 in this account 
 shall be paid over to the unemployment insurance program trust 
 fund. 

    HIST: Ex1936 c 2 s 13; 1941 c 554 s 12; 1945 c 376 s 12; 1953 
 c 97 s 16; 1957 c 883 s 8-10; 1963 c 721 s 1; 1965 c 45 s 46; 
 1969 c 399 s 1; 1969 c 567 s 3; 1973 c 254 s 3; 1973 c 492 s 14; 
 1973 c 720 s 73 subd 1; 1974 c 497 s 1; 1975 c 302 s 2; 1Sp1982 
 c 1 s 33; 1983 c 216 art 1 s 87; 1986 c 444; 1987 c 362 s 25; 
 1987 c 385 s 27; 1989 c 209 art 2 s 1; 1994 c 488 s 8; 1996 c 
 417 s 31; 1997 c 7 art 1 s 106; 1997 c 66 s 79,80; 1998 c 265 s 
 43; 1999 c 107 s 61,66; 2000 c 343 s 4 

     268.198 Job service offices. 

    Subdivision 1.    Establishment.  The commissioner shall 
 establish and maintain free public job service offices, in that 
 number and in those places as may be necessary for the purpose 
 of providing reemployment assistance services to applicants, as 
 well as performing the functions under the Wagner-Peyser Act, 
 United States Code, title 29, section 49. 

    Subd. 2.    Financing.  All money received by this state 
 under the Wagner-Peyser Act shall be paid into the economic 
 security administration account and expended solely for the 
 maintenance of state public job service offices.  For the 
 purpose of establishing and maintaining free public job service 
 offices and promoting the use of their facilities, the 
 commissioner is authorized to enter into agreements with any 
 public agency whose purposes are reasonably related to the 
 purposes of the job service. 

    Subd. 3.    Veterans representatives.  There shall be 
 assigned to the staff of the job service one or more employees 
 of the department who shall perform the duties of a veterans 
 employment representative.  The position of veterans employment 
 representative shall be filled by veterans as defined in section 
 197.447. 

    HIST: Ex1936 c 2 s 12; 1937 c 306 s 9; 1939 c 443 s 11; 1941 c 
 554 s 11; 1945 c 376 s 11; 1949 c 605 s 11; 1969 c 567 s 3; 1973 
 c 254 s 3; 1977 c 151 s 1; 1977 c 430 s 25 subd 1; 1980 c 350 s 
 1; 1983 c 216 art 1 s 87; 1Sp1985 c 14 art 9 s 75; 1989 c 209 
 art 2 s 1; 1994 c 483 s 1; 1996 c 417 s 31; 1997 c 66 s 65,79; 
 1998 c 265 s 44; 1999 c 107 s 62,66 

     268.20 Representation in court.  

    In any civil action to enforce the provisions of sections 
 268.03 to 268.23, the commissioner shall be represented by the 
 attorney general.  

    HIST: (4337-37) Ex1936 c 2 s 17; 1941 c 554 s 16; 1989 c 209 
 art 2 s 1; 1996 c 417 s 31 

     268.21 Nonliability of state. 

    (a) Unemployment benefits shall be payable only to the 
 extent provided in this chapter and to the extent that money is 
 available in the fund and neither the state nor the commissioner 
 shall be liable for any amount in excess of the money available 
 in the fund.  

    (b) No person shall make any demand, bring any suit, or 
 other proceeding to recover from the state or the commissioner 
 any sum alleged to be due on a benefit account after the 
 expiration of two years from the effective date of the benefit 
 account. 

    HIST: (4337-38) Ex1936 c 2 s 18; 1941 c 554 s 17; 1989 c 209 
 art 2 s 1; 1994 c 488 s 8; 1996 c 417 s 31; 1997 c 66 s 77; 1998 
 c 265 s 44; 1999 c 107 s 63; 2000 c 343 s 4 

     268.22 Saving clause.  

    The legislature reserves the right to amend or repeal all 
 or any part of sections 268.03 to 268.23 at any time; and there 
 shall be no vested private right of any kind against such 
 amendment or repeal.  All the rights, privileges, or immunities 
 conferred thereby, or by acts done pursuant thereto, shall exist 
 subject to the power of the legislature to amend or repeal these 
 sections at any time.  

    HIST: (4337-39) Ex1936 c 2 s 19; 1941 c 554 s 18; 1991 c 199 
 art 2 s 1; 1996 c 417 s 31 

     268.23 Severable. 

    In the event that the United States Department of Labor 
 determines that any provision of sections 268.03 to 268.23, or 
 any other provision of Minnesota Statutes relating to the 
 unemployment insurance program, is not in conformity with the 
 requirements of federal law, the provision shall have no force 
 or effect; but if only a portion of the provision, or the 
 application to any person or circumstances, is held not in 
 conformity, the remainder of the provision and the application 
 of the provision to other persons or circumstances shall not be 
 affected. 

    HIST: (4337-40) Ex1936 c 2 s 20; 1941 c 554 s 19; 1949 c 605 s 
 14; 1965 c 45 s 47; 1991 c 199 art 2 s 1; 1996 c 417 s 30,31; 
 1999 c 107 s 64,66; 2000 c 343 s 4 

  268.231 Repealed, 1996 c 417 s 32 

  268.24 Repealed, 1987 c 385 s 50 

  268.25 Repealed, 1998 c 265 s 46 

     268.29 Juvenile justice program. 

    The governor shall designate the department of economic 
 security as the sole agency responsible for supervising the 
 preparation and administration of the state plan for juvenile 
 justice required by the Juvenile Justice and Delinquency 
 Prevention Act of 1974, as amended. 

    The governor shall designate the juvenile justice advisory 
 committee as the supervisory board for the department of 
 economic security with respect to preparation and administration 
 of the state plan and award of grants.  

    The governor shall appoint members to the juvenile justice 
 advisory committee in accordance with the membership 
 requirements of the Juvenile Justice and Delinquency Prevention 
 Act of 1974, as amended. 

    HIST: 1987 c 312 art 1 s 22; 1994 c 483 s 1 

*   NOTE:  See section 15.059, subdivision 5a, for expiration 
*of juvenile justice advisory committee.

     268.30 Grants-in-aid to youth intervention programs. 

    Subdivision 1.    Grants.  The commissioner may make 
 grants to nonprofit agencies administering youth intervention 
 programs in communities where the programs are or may be 
 established. 

    "Youth intervention program" means a nonresidential 
 community-based program providing advocacy, education, 
 counseling, and referral services to youth and their families 
 experiencing personal, familial, school, legal, or chemical 
 problems with the goal of resolving the present problems and 
 preventing the occurrence of the problems in the future. 

    Subd. 2.    Applications.  Applications for a 
 grant-in-aid shall be made by the administering agency to the 
 commissioner.  The grant-in-aid is contingent upon the agency 
 having obtained from the community in which the youth 
 intervention program is established local matching money two 
 times the amount of the grant that is sought. 

    The commissioner shall provide the application form, 
 procedures for making application form, criteria for review of 
 the application, and kinds of contributions in addition to cash 
 that qualify as local matching money.  No grant to any agency 
 may exceed $50,000. 

    HIST: 1987 c 312 art 1 s 23; 1996 c 408 art 2 s 2; 1999 c 107 
 s 65 

  268.31 Repealed, 1994 c 632 art 4 s 84 

  268.315 Repealed, 1994 c 632 art 4 s 84 

  268.32 Repealed, 1994 c 632 art 4 s 84 

  268.33 Repealed, 1994 c 632 art 4 s 84 

  268.34 Repealed, 1994 c 632 art 4 s 84 

  268.35 Repealed, 1994 c 632 art 4 s 84 

  268.36 Repealed, 1994 c 632 art 4 s 84 

     268.361 Definitions. 

    Subdivision 1.    Terms.  For the purposes of sections 
 268.361 to 268.366, the following terms have the meanings given 
 them. 

    Subd. 2.    Advisory committee.  "Advisory committee" 
 means the committee established in section 268.363.  

    Subd. 3.    Commissioner.  "Commissioner" means the 
 commissioner of economic security. 

    Subd. 4.    Eligible organization.  "Eligible 
 organization" means a public agency or a nonprofit organization 
 that can demonstrate an ability to implement a program for 
 education and training services provided to targeted youth.  
 Eligible organizations may include local jurisdictions, public 
 school districts, private nonsectarian schools, post-secondary 
 educational institutes, alternative schools, community groups, 
 and labor organizations. 

    Subd. 4a.    Program.  "Program" means the services and 
 activities performed or contracted for by an eligible 
 organization for which a grant has been received or for which a 
 grant application has been submitted to the commissioner. 

    Subd. 5.    Homeless individual.  "Homeless individual" 
 or "homeless person" means: 

    (1) an individual who lacks a fixed, regular, and adequate 
 nighttime residence; and 

    (2) an individual who has a primary nighttime residence 
 that is: 

    (i) a supervised publicly or privately operated shelter or 
 dwelling designed to provide temporary living accommodations; 

    (ii) an institution that provides a temporary residence for 
 individuals intended to be institutionalized; or 

    (iii) a public or private place not designed for, or 
 ordinarily used as, a regular sleeping accommodation for humans. 

    The term "homeless individual" does not include any 
 individual imprisoned or otherwise detained under federal or 
 state law. 

    Subd. 6.    Targeted youth.  "Targeted youth" means 
 at-risk persons who are at least 16 years of age but not older 
 than 24 years of age, are eligible for the high school 
 graduation incentive program under section 124D.68, subdivision 
 2, or are economically disadvantaged as defined in United States 
 Code, title 29, section 1503, and are part of one of the 
 following groups: 

    (1) persons who are not attending any school and have not 
 received a secondary school diploma or its equivalent; or 

    (2) persons currently enrolled in a traditional or 
 alternative school setting or a GED program and who, in the 
 opinion of an official of the school, are in danger of dropping 
 out of the school. 

    Subd. 7.    Very low income.  "Very low income" means 
 incomes that are at or less than 50 percent of the area median 
 income, adjusted for family size, as estimated by the department 
 of housing and urban development. 

    HIST: 1988 c 686 art 3 s 1; 1989 c 328 art 7 s 1,2; 1991 c 345 
 art 2 s 47; 1993 c 369 s 80,81; 1994 c 483 s 1; 1997 c 7 art 1 s 
 107; 1998 c 397 art 11 s 3 

     268.362 Grants. 

    Subdivision 1.    Generally.  (a) The commissioner shall 
 make grants to eligible organizations for programs to provide 
 education and training services to targeted youth.  The purpose 
 of these programs is to provide specialized training and work 
 experience for targeted youth who have not been served 
 effectively by the current educational system.  The programs are 
 to include a work experience component with work projects that 
 result in the rehabilitation, improvement, or construction of 
 (1) residential units for the homeless, or (2) education, social 
 service, or health facilities which are owned by a public agency 
 or a private nonprofit organization.  

    (b) Eligible facilities must principally provide services 
 to homeless or very low income individuals and families, and 
 include the following: 

    (1) Head Start or day care centers; 

    (2) homeless, battered women, or other shelters; 

    (3) transitional housing; 

    (4) youth or senior citizen centers; and 

    (5) community health centers. 

    Two or more eligible organizations may jointly apply for a 
 grant.  The commissioner shall administer the grant program. 

    Subd. 2.    Grant applications; awards.  Interested 
 eligible organizations must apply to the commissioner for the 
 grants.  The advisory committee must review the applications and 
 provide to the commissioner a list of recommended eligible 
 organizations that the advisory committee determines meet the 
 requirements for receiving a grant.  The total grant award for 
 any program may not exceed $150,000 per year.  In awarding 
 grants, the advisory committee and the commissioner must give 
 priority to: 

    (1) continuing and expanding effective programs by 
 providing grant money to organizations that are operating or 
 have operated a successful program that meets the program 
 purposes under section 268.364; and 

    (2) distributing programs throughout the state through 
 start-up grants for programs in areas that are not served by an 
 existing program. 

    To receive a grant under this section, the eligible 
 organization must match the grant money with at least an equal 
 amount of nonstate money.  The commissioner must verify that the 
 eligible organization has matched the grant money.  Nothing in 
 this subdivision shall prevent an eligible organization from 
 applying for and receiving grants for more than one program.  A 
 grant received by an eligible organization from the federal 
 Youthbuild Project under United States Code, title 42, section 
 5091, is nonstate money and may be used to meet the state match 
 requirement.  State grant money awarded under this section may 
 be used by grantee organizations for match requirements of a 
 federal Youthbuild Project. 

    HIST: 1988 c 686 art 3 s 2; 1989 c 328 art 7 s 3; 1992 c 376 
 art 5 s 1; 1993 c 369 s 82; 2000 c 488 art 2 s 18 

     268.3625 Administrative costs. 

    The commissioner may use up to five percent of the biennial 
 appropriation for Youthbuild from the general fund to pay costs 
 incurred by the department in administering Youthbuild during 
 the biennium. 

    HIST: 1997 c 200 art 1 s 65 

     268.363 Advisory committee. 

    A 13-member advisory committee is established as provided 
 under section 15.059 to assist the commissioner in selecting 
 eligible organizations to receive program grants and evaluating 
 the final reports of each organization.  Notwithstanding section 
 15.059, the advisory committee shall not expire before June 30, 
 1995.  Members of the committee may be reimbursed for expenses 
 but may not receive any other compensation for service on the 
 committee.  The advisory committee consists of representatives 
 of the commissioners of children, families, and learning, human 
 services, and economic security; a representative of the 
 chancellor of the Minnesota state colleges and universities; a 
 representative of the commissioner of the housing finance 
 agency; the director of the office of jobs policy; and seven 
 public members appointed by the governor.  Each of the following 
 groups must be represented by a public member experienced in 
 working with targeted youth:  labor organizations, local 
 educators, community groups, consumers, local housing 
 developers, youth between the ages of 16 and 24 who have a 
 period of homelessness, and other homeless persons.  At least 
 three of the public members must be from outside of the 
 metropolitan area as defined in section 473.121, subdivision 2.  
 The commissioner may provide staff to the advisory committee to 
 assist it in carrying out its purpose. 

    HIST: 1988 c 686 art 3 s 3; 1990 c 375 s 3; 1993 c 132 s 5; 
 1993 c 369 s 83; 1994 c 483 s 1; 1Sp1995 c 3 art 16 s 13; 1996 c 
 339 s 6; 1996 c 395 s 18 

     268.364 Program purpose and design. 

    Subdivision 1.    Program purpose.  The grants awarded 
 under section 268.362 are for a youth employment and training 
 program directed at targeted youth who are likely to be at risk 
 of not completing their high school education.  Each program 
 must include education, work experience, job skills, and 
 leadership training and peer support components.  Each 
 participant must be offered counseling and other services to 
 identify and overcome problems that might interfere with 
 successfully completing the program. 

    Subd. 2.    Education component.  A program must contain 
 an education component that requires program participants to 
 complete their secondary education in a traditional public or 
 private secondary school, a suitable alternative school setting, 
 or a GED program.  Program participants must be working toward 
 the completion of their secondary education or literacy 
 advancement. 

    Subd. 3.    Work experience component.  A work 
 experience component must be included in each program.  The work 
 experience component must provide vocational skills training in 
 an industry where there is a viable expectation of job 
 opportunities.  A training subsidy, living allowance, or 
 stipend, not to exceed an amount equal to 100 percent of the 
 poverty line for a family of two as defined in United States 
 Code, title 42, section 673, paragraph (2), may be provided to 
 program participants.  The wage or stipend must be provided to 
 participants who are recipients of public assistance in a manner 
 or amount which will not reduce public assistance benefits.  The 
 work experience component must be designed so that work projects 
 result in (1) the expansion or improvement of residential units 
 for homeless persons and very low income families, or (2) 
 rehabilitation, improvement, or construction of eligible 
 education, social service, or health facilities that principally 
 serve homeless or very low income individuals and families.  Any 
 work project must include direct supervision by individuals 
 skilled in each specific vocation.  Program participants may 
 earn credits toward the completion of their secondary education 
 from their participation in the work experience component. 

    Subd. 4.    Job readiness skills component.  A job 
 readiness skills component must comprise at least 20 percent of 
 each program.  The component must provide program participants 
 with job search skills, placement assistance, and other job 
 readiness skills to ensure that participants will have an 
 understanding of the building trades, unions, self-employment, 
 and other employment opportunities and be able to compete in the 
 employment market. 

    Subd. 5. Repealed by amendment, 1989 c 328 art 7 s 4 

    Subd. 6.    Leadership training and peer support 
 component.  Each program must provide participants with 
 meaningful opportunities to develop leadership skills such as 
 decision making, problem solving, and negotiating.  The program 
 must encourage participants to develop strong peer group ties 
 that support their mutual pursuit of skills and values. 

    HIST: 1988 c 686 art 3 s 4; 1989 c 328 art 7 s 4; 1992 c 376 
 art 5 s 2; 1993 c 369 s 84-86 

     268.365 Housing for homeless. 

    Subdivision 1. Repealed, 1993 c 369 s 146 

    Subd. 2.    Priority for housing.  Any residential or 
 transitional housing units that become available through a work 
 project that is part of the program described in section 268.364 
 must be allocated in the following order: 

    (1) homeless targeted youth who have participated in 
 constructing, rehabilitating, or improving the unit; 

    (2) homeless families with at least one dependent; 

    (3) other homeless individuals; 

    (4) other very low income families and individuals; and 

    (5) families or individuals that receive public assistance 
 and that do not qualify in any other priority group. 

    Subd. 3.    Acquisition of housing units.  The eligible 
 organization receiving a grant under section 268.362 shall 
 acquire property or buildings for the construction or 
 rehabilitation of residential units at the lowest possible 
 cost.  Possible sources of property and funding include the 
 federal Department of Housing and Urban Development, Farmers 
 Home Administration, Minnesota housing finance agency, and the 
 local housing authority. 

    Subd. 4.    Management of residential units.  The 
 program must address how to manage these residential units, 
 including the source of financing for the maintenance costs of 
 the buildings.  Any management plan must include the 
 participation of the residents and local established 
 neighborhood groups. 

    HIST: 1988 c 686 art 3 s 5; 1989 c 328 art 7 s 5; 1992 c 376 
 art 5 s 3; 1993 c 369 s 87 

     268.366 Requirements of organizations receiving grants. 

    An organization that is awarded a grant shall prepare and 
 submit an annual report to the commissioner by September 1 of 
 each year.  The report must include a discussion of the 
 following: 

    (1) the process used for encouraging the participation of 
 the targeted youth in the geographic area surrounding the 
 organization receiving the grant; 

    (2) the support services and social services that targeted 
 youth received under the program.  Services may include client 
 needs assessment, preemployment skills such as basic job skills 
 and behavior, and intermediate needs such as education and 
 chemical dependency treatment; 

    (3) the type and degree of work experience that program 
 participants received, including real work experience in both 
 vocational and nonvocational settings; 

    (4) the amount of training subsidy or stipend that each 
 participant received while participating in the work experience 
 component.  The subsidy or stipend must reflect prevailing wage 
 and benefits standards appropriate for preapprenticeship 
 training unless a participant's receipt of public assistance is 
 affected.  The subsidy or stipend should be structured to 
 include incentives for progress toward increasing job skills and 
 completing secondary education; 

    (5) the means of providing the necessary job readiness 
 skills to program participants who have completed the work 
 experience and educational components of the program so they 
 have the ability to compete in the job market.  These job search 
 skills may include skills assessment, job search and selection, 
 application preparation and assistance in preparing for job 
 interviews; 

    (6) the methods used to assist in placing program 
 participants in suitable employment.  The methods should include 
 means of involving state government, businesses, labor 
 organizations, community groups, and local jurisdictions in 
 assisting in the placement; 

    (7) the process used for evaluating the program, including 
 the necessary data elements collected from program participants 
 after they have completed the program for monitoring the success 
 of the program; 

    (8) the method used to maximize parental involvement in the 
 program; 

    (9) the existing public and private programs that were 
 utilized by the program to avoid duplication of services; 

    (10) the regional characteristics that affected the 
 operation of the program in the specific region where the 
 organization is located; 

    (11) the means of addressing the special needs of priority 
 groups of targeted youth, including: 

    (i) persons who are responsible for at least one dependent; 

    (ii) persons who are pregnant; 

    (iii) persons who are or have been subject to any stage of 
 the criminal justice system and who may benefit from receiving 
 employment and training services in overcoming barriers to 
 employment resulting from a record of arrest or conviction; 

    (iv) persons receiving income maintenance services and 
 social services, including chemical dependency treatment, 
 vocational rehabilitation services, and protection services; 

    (v) persons who reside on a farm who personally derive or 
 whose family derives a substantial portion of their income from 
 farming, lack nonfarm work skills, or have limited access to 
 vocational education or work experience opportunities; 

    (vi) homeless youth; and 

    (vii) minors who that are not financially dependent on a 
 parent or a guardian; 

    (12) costs for each of the components of the program; and 

    (13) the identification of the funding sources other than 
 state appropriations that were used to support the program. 

    HIST: 1988 c 686 art 3 s 6; 1989 c 328 art 7 s 6 

     268.3661 Youthbuild tech. 

    Subdivision 1.    Generally.  A pilot program is 
 established within the department to make grants to eligible 
 organizations for programs which are available to students who 
 have completed at least four months in a program funded under 
 section 268.362.  Programs funded under this section must 
 provide participants with the knowledge and skills necessary to 
 obtain entry-level jobs in the computer industry, including core 
 computer classes and job-specific education. 

    Subd. 2.    Grants.  The provisions of section 268.361; 
 268.362, subdivision 2; 268.3625; and 268.366 shall apply to 
 grants under this section. 

    HIST: 1999 c 223 art 2 s 37 

  268.367 Repealed, 1996 c 339 s 10 

  268.37 Repealed, 1998 c 273 s 15 

  268.371 Repealed, 1998 c 273 s 15 

    268.38 Subdivision 1. Repealed, 1998 c 273 s 15 

    Subd. 2. Repealed, 1998 c 273 s 15 

    Subd. 3. Repealed, 1998 c 273 s 15 

    Subd. 4. Repealed, 1998 c 273 s 15 

    Subd. 5. Repealed, 1998 c 273 s 15 

    Subd. 6. Repealed, 1998 c 273 s 15 

    Subd. 7. Repealed, 1998 c 273 s 15 

    Subd. 8. Repealed, 1998 c 273 s 15 

    Subd. 9. Repealed, 1998 c 273 s 15 

    Subd. 10.  Deleted, 1995 c 233 art 2 s 56 

    Subd. 11. Repealed, 1996 c 339 s 10 

    Subd. 12. Repealed, 1998 c 273 s 15 

    Subd. 13.  Renumbered 119A.43 subd 11 

  268.39 Repealed, 1997 c 200 art 4 s 23 

  268.40 Expired 

  268.41 Expired 

  268.42 Expired 

  268.43 Expired 

  268.52 Renumbered 119A.374 

    268.53 Subdivision 1.  Renumbered 119A.375 subd 1 

    Subd. 1a.  Renumbered 119A.375 subd 2 

    Subd. 2.  Renumbered 119A.375 subd 3 

    Subd. 3.  Renumbered 119A.375 subd 4 

    Subd. 4.  Renumbered 119A.375 subd 5 

    Subd. 5.  Renumbered 119A.375 subd 6 

    Subd. 6.  Renumbered 119A.375 subd 7 

    Subd. 7.  Renumbered 119A.375 subd 8 

  268.54 Renumbered 119A.376 

  268.55 Repealed, 1998 c 273 s 15 

     268.551 Definitions. 

    Subdivision 1.    Terms.  For the purposes of this 
 section and section 268.552, the terms defined in this section 
 have the meanings given them. 

    Subd. 2.    Commissioner.  "Commissioner" means the 
 commissioner of economic security. 

    Subd. 3.    Eligible applicant.  "Eligible applicant" 
 means a person who: 

    (1) has been a resident of this state for at least one 
 month; 

    (2) is unemployed; 

    (3) is not receiving and is not eligible to receive 
 unemployment benefits; and 

    (4) is a targeted young person as defined in Laws 1990, 
 chapter 562, article 4, section 12, between the ages of 14 and 
 21, who, because of a lack of personal resources and skills, 
 needs assistance in setting and realizing education goals and in 
 becoming a contributing member of the community. 

    Subd. 4.    Employer.  "Employer" means a private or 
 public employer. 

    HIST: 1991 c 345 art 1 s 81; 1994 c 483 s 1; 1994 c 488 s 8; 
 1999 c 107 s 66; 2000 c 343 s 4 

     268.552 Wage subsidy program. 

    Subdivision 1.    Creation.  A grant program is 
 established to provide adolescents with opportunities for 
 gaining a high school diploma, exploring occupations, evaluating 
 vocational options, receiving career and life skills counseling, 
 developing and pursuing personal goals, and participating in 
 community-based projects and summer youth employment. 

    Subd. 2.    Amount and duration of subsidy.  The maximum 
 subsidy is $4 per hour for wages and $1 per hour for fringe 
 benefits.  The subsidy for an eligible applicant may be paid for 
 a maximum of 1,040 hours over a period of 26 weeks.  Employers 
 are encouraged to use money from other sources to provide 
 increased wages to applicants they employ. 

    Subd. 3.    Contracts to administer.  The commissioner 
 may contract with local service units or certified local service 
 providers to deliver the wage subsidies.  The contract must 
 require that no more than five percent of the contract amount be 
 expended for administration. 

    Subd. 4.    Area allocation of subsidies.  Wage subsidy 
 money must be allocated to local service units based on the 
 number of eligible applicants in that area compared to the state 
 total of eligible applicants.  Money may be reallocated if it 
 otherwise would not be used. 

    Subd. 5.    Allocation to applicants.  Priority for 
 subsidies shall be in the following order: 

    (1) applicants living in households with no other income 
 source; 

    (2) applicants whose incomes and resources are less than 
 the standard for eligibility for general assistance; and 

    (3) applicants who are eligible for the Minnesota family 
 investment program. 

    Subd. 6.    Outreach.  A local service unit shall 
 publicize the availability of wage subsidies within its area. 

    Subd. 7.    Reports.  Each entity delivering wage 
 subsidies shall report to the commissioner on a quarterly basis: 

    (1) the number of persons placed in private sector jobs, in 
 temporary public sector jobs, or in other services; 

    (2) the outcome for each participant placed; 

    (3) the number and type of employers employing persons 
 under the program; 

    (4) the amount of money spent in each local service unit 
 for wages for each type of employment and each type of other 
 expense; 

    (5) the age, educational experience, family status, gender, 
 priority group status, race, and work experience of each person 
 in the program; 

    (6) the amount of wages received by persons while in the 
 program and 60 days after completing the program; 

    (7) for each classification of persons described in clause 
 (5), the outcome of the wage subsidy placement, including length 
 of time employed; nature of employment, whether private sector, 
 temporary public sector, or other service; and the hourly wages; 
 and 

    (8) any other information requested by the commissioner.  
 Each report must include cumulative information, as well as 
 information for each quarter. 

    Data collected on individuals under this subdivision are 
 private data on individuals as defined in section 13.02, 
 subdivision 12, except that summary data may be provided under 
 section 13.05, subdivision 7. 

    Subd. 8.    Part-time employment.  Subsidies under this 
 section may be paid for part-time jobs. 

    Subd. 9.    Layoffs; work reductions.  An employer may 
 not lay off, terminate, or reduce the working hours of an 
 employee for the purpose of hiring an individual with funds 
 provided by this section.  An employer may not hire an 
 individual with funds available under this section if any other 
 person is on layoff from the same or a substantially equivalent 
 job.  

    Subd. 10.    Rules.  The commissioner may adopt rules to 
 implement this section. 

    HIST: 1991 c 345 art 1 s 82; 1997 c 85 art 4 s 27; 1999 c 159 
 s 120 

     268.56 Minnesota youth program; definitions. 

    Subdivision 1.    Scope.  For the purposes of this 
 section and section 268.561, the terms defined in this section 
 have the meanings given them. 

    Subd. 2.    Commissioner.  "Commissioner" means the 
 commissioner of economic security. 

    Subd. 3.    Eligible applicant.  "Eligible applicant" 
 means an individual who is between the ages of 14 and 21 and 
 economically disadvantaged. 

    An at-risk youth who is classified as a family of one is 
 deemed economically disadvantaged.  For purposes of eligibility 
 determination the following individuals are considered at risk: 

    (1) a pregnant or parenting youth; 

    (2) a youth with limited English proficiency; 

    (3) a potential or actual school dropout; 

    (4) a youth in an offender or diversion program; 

    (5) a public assistance recipient or a recipient of group 
 home services; 

    (6) a youth with disabilities including learning 
 disabilities; 

    (7) a chemically dependent youth or child of drug or 
 alcohol abusers; 

    (8) a homeless or runaway youth; 

    (9) a youth with basic skills deficiency; 

    (10) a youth with an educational attainment of one or more 
 levels below grade level appropriate to age; or 

    (11) a foster child. 

    Subd. 4.    Employer.  "Employer" means a private or 
 public employer. 

    HIST: 1994 c 483 s 1; 1994 c 632 art 4 s 66 

     268.561 Minnesota youth program. 

    Subdivision 1.    Purpose.  The Minnesota youth program 
 is established to: 

    (1) improve the employability of eligible applicants 
 through exposure to public or private sector work; 

    (2) enhance the basic educational skills of eligible 
 applicants; 

    (3) encourage the completion of high school or equivalency; 

    (4) assist eligible applicants to enter employment, 
 school-to-work transition programs, the military, or 
 post-secondary education or training; 

    (5) enhance the citizenship skills of eligible applicants 
 through community service and service-learning; and 

    (6) provide educational, career, and life skills counseling.

    Subd. 2.    Wage rate.  The rate of pay for Minnesota 
 youth program positions with public, private nonprofit, and 
 private for-profit employers is the minimum wage.  Employers may 
 use their own funds to increase the participants' hourly wage 
 rates.  Youths designated as supervisors may be paid at a higher 
 level to be determined by the local contractor. 

    Subd. 3.    Employment contracts.  The commissioner may 
 enter into arrangements with existing public and private 
 nonprofit organizations and agencies with experience in 
 administering youth employment programs for the purpose of 
 providing employment opportunities for eligible applicants in 
 furtherance of this section and section 268.56.  The department 
 of economic security shall retain ultimate responsibility for 
 the administration of this employment program. 

    Subd. 4.    Contract administration.  Preference shall 
 be given to local contractors with experience in administering 
 youth employment and training programs and those who have 
 demonstrated efforts to coordinate state and federal youth 
 programs locally. 

    Subd. 5.    Allocation formula.  Seventy percent of 
 Minnesota youth program funds must be allocated based on the 
 county's share of economically disadvantaged youth.  The 
 remaining 30 percent must be allocated based on the county's 
 share of population ages 14 to 21. 

    Subd. 6.    Allowable cost categories.  Of the total 
 allocation, up to 15 percent may be used for administrative 
 purposes and the remainder may be used for a combination of 
 training and participant support activities. 

    Subd. 7.    Reports.  Each contractor shall report to 
 the commissioner on a quarterly basis in a format to be 
 determined by the commissioner. 

    Data collected on individuals under this subdivision are 
 private data on individuals as defined in section 13.02, 
 subdivision 12, except that summary data may be provided under 
 section 13.05, subdivision 7. 

    Subd. 8.    Part-time employment.  Wages and subsidies 
 under this section may be paid for part-time employment. 

    Subd. 9.    Layoffs; worker reductions.  An employer may 
 not lay off, terminate, or reduce the working hours of an 
 employee for the purpose of hiring an individual with funds 
 provided by this section.  An employer may not hire an 
 individual with funds available under this section if any other 
 individual is laid off from the same or a substantially 
 equivalent job. 

    Subd. 10.    Rules.  The commissioner may adopt rules to 
 implement this section. 

    HIST: 1994 c 483 s 1; 1994 c 632 art 4 s 67; 1Sp1995 c 3 art 4 
 s 30 

     268.60 Purpose. 

    It is the purpose of sections 268.60 to 268.64 to provide 
 financial assistance for comprehensive job training and related 
 services for economically disadvantaged, unemployed, and 
 underemployed individuals through opportunities 
 industrialization centers.  

    HIST: 1983 c 312 art 6 s 1 

     268.61 Definitions. 

    Subdivision 1.    Scope.  When used in sections 268.60 
 to 268.64 the terms in this section have the meanings given them.

    Subd. 2.    Commissioner.  "Commissioner" means the 
 commissioner of economic security.  

    Subd. 3.    Council.  "Council" means the Minnesota 
 state council of the opportunities industrialization centers of 
 America.  

    Subd. 4.    Economically disadvantaged.  "Economically 
 disadvantaged" means an individual who meets the criteria for an 
 economically disadvantaged person established by rule by the 
 commissioner.  

    Subd. 5.    Underemployed.  "Underemployed" means an 
 individual:  

    (a) Working part time but seeking full-time work; or 

    (b) Working full time but receiving wages below the greater 
 of:  

    (1) the poverty level determined in accordance with 
 criteria established by the department of economic security; or 

    (2) 70 percent of the lower living standard income level as 
 determined by the United States Bureau of Labor Statistics.  

    Subd. 6.    Unemployed.  "Unemployed" means an 
 individual who is without a job, and who wants and is available 
 for work.  

    HIST: 1983 c 312 art 6 s 2; 1Sp1985 c 14 art 9 s 75; 1994 c 
 483 s 1 

     268.62 Distribution and use of state money. 

    The commissioner shall distribute the money appropriated 
 for:  

    (a) comprehensive job training and related services or job 
 opportunities programs for economically disadvantaged, 
 unemployed, and underemployed individuals, including persons of 
 limited English speaking ability, through opportunities 
 industrialization centers; and 

    (b) the establishment and operation in Minnesota of these 
 centers.  

    Comprehensive job training and related services include: 
 recruitment, counseling, remediation, motivational prejob 
 training, vocational training, job development, job placement, 
 and other appropriate services enabling individuals to secure 
 and retain employment at their maximum capacity.  

    HIST: 1983 c 312 art 6 s 3 

     268.63 Criteria for distribution of money. 

    The commissioner, with the advice of the council, shall 
 establish criteria for the distribution of state money for the 
 purpose of section 268.62.  The criteria shall include 
 requirements that:  

    (a) the program receiving state assistance:  

    (1) involve residents in the area to be served by the 
 program in the planning and operation of the program; and 

    (2) involve the business community in the area to be served 
 by the program in its development and operation; 

    (b) the distribution of assistance among areas within the 
 state be equitable, with priority being given to areas with high 
 unemployment or underemployment; 

    (c) financial assistance under sections 268.60 to 268.64 to 
 any program may not exceed 25 percent of the cost of the program 
 including costs of administration; and 

    (d) a program receiving financial assistance has adequate 
 internal administrative controls, accounting procedures, 
 personnel standards, evaluation procedures, availability of 
 in-service training and technical assistance programs, and other 
 policies necessary to promote the effective use of state money.  

    The commissioner may make a distribution in excess of the 
 limit prescribed in clause (c) if the commissioner determines 
 that the excess distribution is necessary to further the 
 objectives of sections 268.60 and 268.62.  

    HIST: 1983 c 312 art 6 s 4 

     268.64 Money distribution. 

    The commissioner may make a distribution of money directly 
 to a program, or make a distribution subject to conditions that 
 ensure use consistent with the distribution and utilization of 
 money under federal legislation regarding job training and 
 related services. 

    HIST: 1983 c 312 art 6 s 5 

     268.65 Approved training. 

    Subdivision 1.    Creation.  The commissioner of 
 economic security shall establish a training program for 
 structurally unemployed workers under which individuals may be 
 enrolled in an on-the-job training program, and an additional 
 1,000 individuals may be enrolled in classroom training, in 
 accordance with this section.  Nothing in this section limits or 
 adversely affects the approved training provisions applicable to 
 an individual under section 268.085, subdivision 1, clause (3).  
 An individual approved under this section is eligible for 
 tuition aid under the provisions of chapter 136A.  

    Subd. 2.    Approval of training.  An individual's 
 enrollment in a training course must be approved for the 
 purposes of this subdivision if the commissioner finds that: 

    (1) the individual is not unemployed due to the seasonal 
 nature of the work or a temporary work shortage; 

    (2) the individual's separation or notice of layoff from 
 most recent employment was caused by job obsolescence, plant 
 shutdown, regional decline in the individual's customary 
 occupation, or industry slowdown, and the individual is unlikely 
 to return to work for that employer or in that occupation within 
 12 months following separation from employment; 

    (3) reasonable and suitable work opportunities for which 
 the individual is fitted by training, experience, and physical 
 capabilities do not exist within the local labor market; 

    (4) the training course is designed to provide preparation 
 for available employment within the local labor market or in an 
 area to which the individual is willing to relocate; 

    (5) the training is conducted by an agency, educational 
 institution, or employing unit that is approved by the 
 commissioner of children, families, and learning or the board of 
 trustees of the Minnesota state colleges and universities or 
 higher education services office to conduct training programs; 
 except that an agency, educational institution, or employing 
 unit that is not subject to regulation and approval by one of 
 the agencies in this clause may be approved by the commissioner 
 if it is determined that the institution's curriculum, 
 facilities, staff, and other essentials are adequate to achieve 
 the training objective; and 

    (6) the training consists of a full course load, as defined 
 by the training provider, necessary to achieve the approved 
 training objective, and the individual is making satisfactory 
 progress in the course.  The department may require the training 
 provider to periodically certify to the individual's attendance 
 and progress. 

    Subd. 3.    On-the-job training.  An individual who 
 meets the criteria in subdivision 2 is eligible for 
 participation in a full-time on-the-job training program if: 

    (1) the on-the-job training position is in an occupation 
 for which the commissioner has determined a demand exists or 
 will exist; in making this determination, the commissioner shall 
 consider labor market information as contained in state and 
 national occupational outlook publications, as well as other 
 generally accepted authoritative sources with verifiable 
 validity; 

    (2) the employer pays an hourly wage during training of at 
 least the state minimum wage; 

    (3) the employer guarantees to provide at least 12 
 consecutive months of employment to the trainee after the 
 completion of training at the prevailing area labor market wage 
 for a trained individual in that occupation; 

    (4) the employer will not terminate the trainee during the 
 period of training or guaranteed employment except for 
 misconduct or demonstrated substandard performance; and 

    (5) the employer will not terminate, lay off, or reduce the 
 hours of any employee for the purpose of hiring an individual 
 with money available, and will not hire an individual if another 
 person is on layoff from the same or a substantially equivalent 
 job. 

    Subd. 4.    Training allowance.  During participation in 
 an approved on-the-job training program, the trainee shall 
 maintain satisfactory progress and attendance.  During the 
 period of training specified in the agreement between the 
 commissioner and the employer, individuals participating in an 
 approved on-the-job training program must be paid a training 
 allowance for each week claimed during the benefit year, until 
 benefits are exhausted, equal to the weekly benefit amount 
 calculated under section 268.07, subdivision 2, less the part of 
 the earnings, including holiday pay, in excess of $100.  The 
 training allowance is computed by rounding down to the nearest 
 dollar amount.  Notwithstanding any other provision, an 
 individual participating in on-the-job training on a full-time 
 basis is not employed for purposes of benefit eligibility. 

    Subd. 5.    Employer penalty.  An employer who enters 
 into an on-the-job training agreement with the commissioner and 
 who terminates the trainee in a manner other than provided in 
 this subdivision shall repay 70 percent of the amount of 
 unemployment benefits paid to the individual while in the 
 training program with that employer if the termination occurs 
 during the training period.  If the termination occurs during 
 the 12-month period of guaranteed employment, the employer 
 receives a proportional reduction in the amount it must repay.  
 Penalties assessed under this subdivision are in addition to any 
 other penalties provided for by this chapter and are subject to 
 the same collection procedures that apply to past due 
 contributions under this chapter.  Penalties under this 
 subdivision shall be paid to the commissioner and credited to 
 the job search and relocation fund.  When it is determined to be 
 in the best interest of the state, the commissioner may waive 
 all or part of the employer penalty.  The commissioner shall use 
 any money collected under this paragraph for job search and 
 relocation expenses of structurally unemployed workers 
 participating in the training program. 

    HIST: 1Sp1985 c 14 art 9 s 46; 1987 c 385 s 46; 1994 c 483 s 
 1; 1995 c 212 art 3 s 59; 1Sp1995 c 3 art 16 s 13; 1996 c 339 s 
 7; 1996 c 395 s 18; 1997 c 66 s 80; 1998 c 265 s 45; 1999 c 107 
 s 66; 2000 c 343 s 4

     268.66 First source agreements. 

    Subdivision 1.    List of vacancies.  A business or 
 private enterprise receiving grants or loans from the state in 
 amounts over $200,000 a year shall as part of the grant or loan 
 agree to list any vacant or new positions with the job services 
 of the commissioner of economic security or the local service 
 units. 

    Subd. 2.    Grant and loan agreements.  The commissioner 
 of trade and economic development shall incorporate the 
 provisions of this section into grant and loan agreements and 
 assist the commissioner of economic security and the local 
 service units to promote private sector listings with job 
 services and to evaluate their effect on employers and 
 individuals who are referred. 

    HIST: 1Sp1985 c 14 art 9 s 47; 1987 c 312 art 1 s 26 subd 2; 
 1994 c 483 s 1 

     268.665 Workforce development council. 

    Subdivision 1.    Creation.  The governor's workforce 
 development council is created under the authority of the Job 
 Training Partnership Act, United States Code, title 29, section 
 1501, et seq.  Local workforce development councils are 
 authorized under the Job Training Partnership Act, United States 
 Code, title 29, section 1501 and the one stop career center 
 system. 

    Subd. 2.    Membership.  The governor's workforce 
 development council is composed of 33 members appointed by the 
 governor.  The members may be removed pursuant to section 
 15.059.  In selecting the representatives of the council, the 
 governor shall ensure that 50 percent of the members come from 
 nominations provided by local workforce councils.  Local 
 education representatives shall come from nominations provided 
 by local education to employment partnerships.  The 33 members 
 shall represent the following sectors:  

    (a) State agencies:  the following individuals shall serve 
 on the council:  

    (1) commissioner of the Minnesota department of economic 
 security; 

    (2) commissioner of the Minnesota department of children, 
 families, and learning; 

    (3) commissioner of the Minnesota department of human 
 services; and 

    (4) commissioner of the Minnesota department of trade and 
 economic development. 

    (b) Business and industry:  six individuals shall represent 
 the business and industry sectors of Minnesota. 

    (c) Organized labor:  six individuals shall represent labor 
 organizations of Minnesota. 

    (d) Community-based organizations:  four individuals shall 
 represent community-based organizations of Minnesota.  
 Community-based organizations are defined by the Job Training 
 Partnership Act as private nonprofit organizations that are 
 representative of communities or significant segments of 
 communities and that provide job training services, agencies 
 serving youth, agencies serving individuals with disabilities, 
 agencies serving displaced homemakers, union-related 
 organizations, and employer-related nonprofit organizations and 
 organizations serving nonreservation Indians and tribal 
 governments. 

    (e) Education:  six individuals shall represent the 
 education sector of Minnesota as follows:  

    (1) one individual shall represent local public secondary 
 education; 

    (2) one individual shall have expertise in design and 
 implementation of school-based service-learning; 

    (3) one individual shall represent post-secondary 
 education; 

    (4) one individual shall represent secondary/post-secondary 
 vocational institutions; 

    (5) the chancellor of the board of trustees of the 
 Minnesota state colleges and universities; and 

    (6) one individual shall have expertise in agricultural 
 education. 

    (f) Other:  two individuals shall represent other 
 constituencies including: 

    (1) units of local government; and 

    (2) applicable state or local programs. 

    The speaker and the minority leader of the house of 
 representatives shall each appoint a representative to serve as 
 an ex officio member of the council.  The majority and minority 
 leaders of the senate shall each appoint a senator to serve as 
 an ex officio member of the council.  After January 1, 1997, the 
 Minnesota director of the corporation for national service shall 
 also serve as an ex officio member.  

    (g) Appointment:  each member shall be appointed for a term 
 of three years from the first day of January or July immediately 
 following their appointment.  Elected officials shall forfeit 
 their appointment if they cease to serve in elected office.  

    (h) Members of the council are compensated as provided in 
 section 15.059, subdivision 3. 

    Subd. 3.    Purpose; duties.  The governor's workforce 
 development council shall replace the governor's job training 
 council and assume all of its requirements, duties, and 
 responsibilities, under the Job Training Partnership Act, United 
 States Code, title 29, section 1501, et seq.  Additionally, the 
 workforce development council shall assume the following duties 
 and responsibilities:  

    (a) Coordinate the development, implementation, and 
 evaluation of the statewide education and employment transitions 
 system under section 124D.46.  Beginning January 1, 1997, the 
 council shall also coordinate the development, implementation, 
 and evaluation of the Minnesota youth services programs under 
 sections 124D.39 to 124D.44, and the National and Community 
 Services Act of 1993, United States Code, title 42, section 
 12501, et seq.  

    (b) Review the provision of services and the use of funds 
 and resources under applicable federal human resource programs 
 and advise the governor on methods of coordinating the provision 
 of services and the use of funds and resources consistent with 
 the laws and regulations governing the programs.  For purposes 
 of this section, applicable federal and state human resource 
 programs mean the: 

    (1) Job Training Partnership Act, United States Code, title 
 29, section 1501, et seq.; 

    (2) Carl D. Perkins Vocational and Applied Technology 
 Education Act, United States Code, title 20, section 2301, et 
 seq.; 

    (3) National and Community Service Act of 1993, United 
 States Code, title 42, section 12501, et seq.; 

    (4) Adult Education Act, United States Code, title 20, 
 section 1201, et seq.; 

    (5) Wagner-Peyser Act, United States Code, title 29, 
 section 49; 

    (6) Social Security Act, title IV, part F, (JOBS), United 
 States Code, title 42, section 681, et seq.; 

    (7) Food Stamp Act of 1977, United States Code, title 7, 
 section 6(d)(4), Food Stamp Employment and Training Program, 
 United States Code, title 7, section 2015(d)(4); 

    (8) programs defined in section 268.0111, subdivisions 4 
 and 5; and 

    (9) School to Work Opportunity Act of 1994, Public Law 
 Number 103-239.  

    Additional federal and state programs and resources can be 
 included within the scope of the council's duties if recommended 
 by the governor after consultation with the council. 

    (c) Review federal, state, and local education, 
 post-secondary, job skills training, and youth employment 
 programs, and make recommendations to the governor and the 
 legislature for establishing an integrated seamless system for 
 providing education, service-learning, and work skills 
 development services to learners and workers of all ages. 

    (d) Advise the governor on the development and 
 implementation of statewide and local performance standards and 
 measures relating to applicable federal human resource programs 
 and the coordination of performance standards and measures among 
 programs.  

    (e) Develop program guidelines and recommend grant approval 
 procedures to the department of children, families, and learning 
 for grants to local education and employment transition 
 partnerships, including implementation grants under section 
 124D.46, grants for youth apprenticeship programs under section 
 124D.47, and youth employer grants; and 

    (1) coordinate implementation of the education and 
 employment transitions system under section 124D.46; 

    (2) promote education and employment transitions programs 
 and knowledge and skills of entrepreneurship among employers, 
 workers, youth, and educators, and encourage employers to 
 provide meaningful work-based learning opportunities; 

    (3) evaluate and identify exemplary education and 
 employment transitions programs and provide technical assistance 
 to local partnerships to replicate the programs throughout the 
 state; 

    (4) establish a performance-based quality assurance system 
 for consistent statewide evaluation of the performance of the 
 education and employment transitions system at both the state 
 and local level; 

    (5) conduct an annual review of each local education and 
 employment transitions partnership to ensure it adequately meets 
 the quality assurance standards established as part of the state 
 quality assurance system; 

    (6) develop the methods to assess local partnership 
 effectiveness; 

    (7) annually publish a report on the findings of the 
 evaluations of each local education transitions partnership; 

    (8) promote knowledge and skills of entrepreneurship among 
 students in kindergarten through grade 12 by sharing information 
 about the ways new business development contributes to a strong 
 economy. 

    (f) Advise the governor on methods to evaluate applicable 
 federal human resource programs.  

    (g) Sponsor appropriate studies to identify human 
 investment needs in Minnesota and recommend to the governor 
 goals and methods for meeting those needs.  

    (h) Recommend to the governor goals and methods for the 
 development and coordination of a human resource system in 
 Minnesota.  

    (i) Examine federal and state laws, rules, and regulations 
 to assess whether they present barriers to achieving the 
 development of a coordinated human resource system. 

    (j) Recommend to the governor and to the federal government 
 changes in state or federal laws, rules, or regulations 
 concerning employment and training programs that present 
 barriers to achieving the development of a coordinated human 
 resource system. 

    (k) Recommend to the governor and to the federal government 
 waivers of laws and regulations to promote coordinated service 
 delivery. 

    (l) Sponsor appropriate studies and prepare and recommend 
 to the governor a strategic plan which details methods for 
 meeting Minnesota's human investment needs and for developing 
 and coordinating a state human resource system.  

    Subd. 4.    Subcommittees.  The governor's workforce 
 development council shall appoint an advisory subcommittee the 
 majority of whose members shall represent business and industry 
 to advise the council on the establishment of the statewide 
 education and employment transitions system.  The chair of the 
 workforce development council may establish subcommittees in 
 order to carry out the duties and responsibilities of the 
 council.  

    Subd. 5.    Staffing.  The department of economic 
 security must provide staff support to the Minnesota workforce 
 development council.  The department of economic security and 
 the department of children, families, and learning shall jointly 
 staff the education and employment transitions subcommittee and 
 its activity with the full council.  The support includes 
 professional, technical, and clerical staff necessary to perform 
 the duties assigned to the workforce development council.  The 
 council may ask for assistance from other units of state 
 government as it requires in order to fulfill its duties and 
 responsibilities.  

    Subd. 6.    Expiration.  The council expires immediately 
 if it is no longer required by federal law as a condition of 
 receiving federal funding, or if there is no federal funding for 
 the human resource programs within the scope of the council's 
 duties. 

    HIST: 1995 c 131 s 1; 1Sp1995 c 3 art 16 s 13; 1996 c 395 s 
 18; 1Sp1997 c 4 art 3 s 19; 1998 c 397 art 11 s 3; 1998 c 398 
 art 3 s 9,10 

     268.666 Workforce service areas. 

    Subdivision 1.    Designation of workforce service areas. 
  For the purpose of administering federal, state, and local 
 employment and training services, the commissioner shall 
 designate the geographic boundaries for workforce service areas 
 in Minnesota. 

    The commissioner shall approve a request to be a workforce 
 service area from: 

    (1) a home rule charter or statutory city with a population 
 of 200,000 or more or a county with a population of 200,000 or 
 more; or 

    (2) a consortium of contiguous home rule charter or 
 statutory cities or counties with an aggregate population of 
 200,000 or more that serves a substantial part of one or more 
 labor markets. 

    The commissioner may approve a request to be a workforce 
 service area from a home rule charter or statutory city or a 
 county or a consortium of contiguous home rule charter or 
 statutory cities or counties, without regard to population, that 
 serves a substantial portion of a labor market area. 

    The commissioner shall make a final designation of 
 workforce service areas within the state after consulting with 
 local elected officials and the governor's workforce development 
 council.  Existing service delivery areas designated under the 
 federal Job Training Partnership Act shall be initially 
 designated as workforce service areas providing that no other 
 petitions are submitted by local elected officials. 

    The commissioner may redesignate workforce service areas no 
 more frequently than every two years.  These redesignations must 
 be made not later than four months before the beginning of a 
 program year. 

    Subd. 2.    Creation of local workforce councils.  A 
 local workforce council must be established in each workforce 
 service area, designated according to subdivision 1. 

    Subd. 3.    Membership on local workforce councils.  In 
 workforce service areas representing only one home rule charter 
 or statutory city or a county, the chief elected official must 
 appoint members to the council.  In workforce service areas 
 representing two or more home rule charter or statutory cities 
 or counties, the chief elected officials of the home rule 
 charter or statutory cities or counties must appoint members to 
 the council, in accordance with an agreement entered into by 
 such units of general local government. 

    A council shall include as members: 

    (1) representatives of the private sector, who must 
 constitute a majority of the membership of the council and who 
 are owners of business concerns, chief executives or chief 
 operating officers of nongovernmental employers, or other 
 private sector executives who have substantial management or 
 policy responsibility; 

    (2) at least two representatives of organized labor; 

    (3) representatives of the area workforce and 
 community-based organizations, who shall constitute not less 
 than 15 percent of the membership of the council; and 

    (4) representatives of each of the following: 

    (i) educational agencies that are representative of all 
 educational agencies within the workforce service area; 

    (ii) vocational rehabilitation agencies; 

    (iii) public assistance agencies; 

    (iv) economic development agencies; and 

    (v) public employment service agencies. 

    The chair of each local workforce council shall be selected 
 from among the members of the council who are representatives of 
 the private sector.  

    Private sector representatives on the local workforce 
 council shall be selected from among individuals nominated by 
 general purpose business organizations, such as local chambers 
 of commerce, in the workforce service area. 

    Education representatives on the local workforce council 
 shall be selected from among individuals nominated by secondary 
 and post-secondary educational institutions within the workforce 
 service area. 

    Organized labor representatives on the local workforce 
 council shall be selected from individuals recommended by 
 recognized state and local labor federations, organizations, or 
 councils.  If the state or local labor federations, 
 organizations, or councils fail to nominate a sufficient number 
 of individuals to meet the labor representation requirements, 
 individual workers may be included on the local workforce 
 council to complete the labor representation. 

    The commissioner must certify a local workforce council if 
 the commissioner determines that its composition and 
 appointments are consistent with this subdivision. 

    Subd. 4.    Purpose; duties of local workforce council.  
 The local workforce council is responsible for providing policy 
 guidance for, and exercising oversight with respect to, 
 activities conducted by local workforce centers in partnership 
 with the local unit or units of general local government within 
 the workforce service area and with the commissioner.  

    A local workforce center is a location where federal, 
 state, and local employment and training services are provided 
 to job seekers and employers. 

    A local workforce council, in accordance with an agreement 
 or agreements with the appropriate chief elected official or 
 officials and the commissioner, shall: 

    (1) determine procedures for the development of the local 
 workforce service area plan.  The procedures may provide for the 
 preparation of all or any part of the plan: 

    (i) by the council; 

    (ii) by any unit of general local or state government in 
 the workforce service area, or by an agency of that unit; or 

    (iii) by any other methods or institutions as may be 
 provided in the agreement; 

    (2) select the recipients for local grants and an 
 administrator of the local workforce service area plan.  These 
 may be the same entity or separate entities and must be chosen 
 from among the following: 

    (i) the council; 

    (ii) a unit of general local or state government in its 
 workforce service area, or an agency of that unit; 

    (iii) a nonprofit organization or corporation; or 

    (iv) any other agreed upon entity; 

    (3) jointly plan for local collaborative activities 
 including the transition of public assistance recipients to 
 employment in the public or private sectors; 

    (4) provide on-site review and oversight of program 
 performance; 

    (5) establish local priorities for service and target 
 populations; 

    (6) ensure nonduplication of services and a unified service 
 delivery system within the workforce service area; and 

    (7) nominate individuals to the governor to consider for 
 membership on the governor's workforce development council. 

    Subd. 5.    Interpreter.  Workforce centers in areas 
 that have a significant number of residents for whom English is 
 not the primary language must attempt to provide outreach 
 services to those residents. 

    HIST: 1997 c 118 s 1; 1999 c 223 art 2 s 38 

  268.671 Repealed, 1Sp1985 c 14 art 9 s 78 subd 1 

     268.6715 1997 Minnesota employment and economic 
  development program. 

    The 1997 Minnesota employment and economic development 
 program is established to assist businesses and communities to 
 create jobs that provide the wages, benefits, and on-the-job 
 training opportunities necessary to help low-wage workers and 
 people transitioning from public assistance to get and retain 
 jobs, and to help their families to move out of poverty.  
 Employment obtained under this program is not excluded from the 
 definition of "employment" by section 268.04, subdivision 12, 
 clause (10), paragraph (d). 

    HIST: 1997 c 200 art 3 s 1 

     268.672 Definitions. 

    Subdivision 1.    Terms.  For the purposes of sections 
 268.672 to 268.682, the following terms have the meanings given 
 them.  

    Subd. 2. Repealed, 1Sp1985 c 14 art 9 s 78 subd 2 

    Subd. 3.    Eligible business.  "Eligible business" 
 means a for-profit business.  

    Subd. 4. Repealed, 1997 c 200 art 3 s 19 

    Subd. 5.    Eligible government agency.  "Eligible 
 government agency" means a county, municipality, school 
 district, or other local governmental subdivision, a state 
 agency, or a federal agency office in Minnesota.  

    Subd. 6.    Eligible job applicant.  "Eligible job 
 applicant" means a person who:  

    (1) has attempted to secure a nonsubsidized job by 
 completing comprehensive job readiness and is:  a Minnesota 
 family investment program recipient who is making good faith 
 efforts to comply with a job search support plan as defined 
 under section 256J.52, subdivision 3, or an employment plan as 
 defined under section 256J.52, subdivision 5, but has failed to 
 find suitable employment; or 

    (2) is a member of a household supported only by: 

    (i) a low-income worker; or 

    (ii) a person who is underemployed as that term is defined 
 in section 268.61, subdivision 5; or 

    (3) is a member of a family that is eligible for, but not 
 receiving public assistance. 

    Subd. 7.    Eligible nonprofit agency.  "Eligible 
 nonprofit agency" means an organization exempt from taxation 
 under the Internal Revenue Code of 1954, section 501(c)(3), as 
 amended through December 31, 1982.  

    Subd. 8. Repealed, 1Sp1985 c 14 art 9 s 78 subd 2 

    Subd. 9.    Household.  "Household" means a group of 
 persons living at the same residence consisting of, at a 
 maximum, spouses and the minor children of each.  

    Subd. 10. Repealed, 1Sp1985 c 14 art 9 s 78 subd 2 

    Subd. 11. Repealed, 1Sp1985 c 14 art 9 s 78 subd 2 

    Subd. 12. Repealed, 1990 c 568 art 4 s 85 

    Subd. 13.    Comprehensive job readiness.  
 "Comprehensive job readiness" means a job search program 
 administered by a county, its designee, or workforce service 
 area that teaches self-esteem, marketable work habits, 
 job-seeking skills, and life-management skills, and may include 
 job retention services. 

    Subd. 14.    Eligible program participant.  "Eligible 
 program participant" means an eligible job applicant who is 
 participating in comprehensive job readiness, subsidized 
 employment, or job retention services.  An individual who has 
 been dismissed for cause or quit subsidized employment without 
 good cause is not eligible for subsidized employment under the 
 program. 

    Subd. 15.    Employer.  "Employer" means a private or 
 public employer that: 

    (1) agrees to create a job that is long term and full time, 
 except a private nonprofit or public employer may provide a 
 temporary job; 

    (2) pays a wage of at least $2 per hour higher than the 
 minimum wage; and 

    (3) agrees to retain a participant at the same wage and 
 benefit level of the wage subsidy period after satisfactory 
 completion of the subsidy period. 

    Subd. 16.    Full time.  "Full time" means 40 hours of 
 work per week or any other schedule considered full time by the 
 employer.  In the case of a temporary assistance to needy 
 families recipient, "full time" means 40 hours comprised of the 
 number of hours of work needed to meet the recipient's work 
 requirement plus the number of hours spent in a training or 
 education program.  The employer is required to pay and is 
 eligible to receive the subsidy only for hours worked by the 
 participant for the employer.  

    Subd. 17.    Job retention services.  "Job retention 
 services" means assistance that would not otherwise be provided 
 to an eligible job applicant with child care, transportation, 
 job coaching, employer-employee mediation, and other forms of 
 support services to help an applicant to transition to 
 employment and retain a job. 

    Subd. 18.    Low-income worker.  "Low-income worker" 
 means a worker who earns no more than $1 per hour more than the 
 minimum wage. 

    Subd. 19.    Minimum wage.  "Minimum wage" means the 
 greater of (1) the federal minimum wage in effect on or after 
 September 1, 1997, and (2) the state minimum wage under section 
 177.24. 

    Subd. 20.    Program.  "Program" means the 1997 
 Minnesota employment and economic development program. 

    Subd. 21.    Workforce service area.  "Workforce service 
 area" means a service delivery area designated by the governor 
 under the Job Training Partnership Act, United States Code, 
 title 29, section 1501, et seq. 

    HIST: 1983 c 312 art 7 s 2; 1984 c 654 art 5 s 43; 1Sp1985 c 9 
 art 2 s 78,79,105; 1Sp1985 c 14 art 9 s 48,49; 1987 c 384 art 2 
 s 1; 1991 c 199 art 2 s 1; 1994 c 488 s 8; 1997 c 200 art 3 s 
 2-11; 1999 c 159 s 121 

     268.673 Emergency jobs program; commissioner's duties. 

    Subdivision 1. Repealed, 1Sp1985 c 14 art 9 s 78 subd 2 

    Subd. 2. Repealed, 1Sp1985 c 14 art 9 s 78 subd 2 

    Subd. 3.    Department of economic security.  The 
 commissioner shall supervise wage subsidies, comprehensive job 
 readiness, and job retention services and shall provide 
 technical assistance to counties in their delivery.  

    Subd. 4.    Enforcement.  (a) The commissioner shall 
 ensure compliance with sections 268.672 to 268.682.  

    (b) The commissioner may:  

    (1) make public or private investigations within or without 
 this state necessary to determine whether any person has 
 violated or is about to violate sections 268.672 to 268.682, a 
 contract entered into under them, or any rule or order adopted 
 under them, or to aid in the enforcement of sections 268.672 to 
 268.682 or in rules and forms adopted under them; 

    (2) require or permit any person to file a written 
 statement under oath or otherwise, as the commissioner 
 determines, as to all the facts and circumstances concerning the 
 matter being investigated; and 

    (3) hold hearings, upon reasonable notice, on any matter 
 arising out of the administration of sections 268.672 to 268.682.

    (c) The attorney general shall assign one or more assistant 
 attorneys general to the commissioner and shall conduct all 
 proceedings involving the violation of sections 268.672 to 
 268.682 and all other enforcement proceedings.  

    (d) Whenever it appears to the commissioner that any person 
 has violated a provision of sections 268.672 to 268.682, a 
 contract entered into under them, or a rule or order adopted 
 under them:  

    (1)  The commissioner may issue and cause to be served upon 
 the person an order requiring the person to cease and desist 
 from the violation.  The order must be calculated to give 
 reasonable notice of the right of the person to request a 
 hearing on it and must state the reasons for the entry of the 
 order.  A hearing must be held not later than seven days after a 
 request for the hearing is received by the commissioner, after 
 which and within 20 days of the date of the hearing the 
 commissioner shall issue a further order vacating the cease and 
 desist order or making it permanent as the facts require.  If no 
 hearing is requested within 30 days of service of the order, the 
 order becomes final and remains in effect until it is modified 
 or vacated by the commissioner.  If the person to whom a cease 
 and desist order is issued fails to appear at the hearing after 
 being duly notified, the person shall be deemed in default, and 
 the proceeding may be determined upon consideration of the cease 
 and desist order, the allegations of which may be deemed to be 
 true; 

    (2)  The commissioner may bring an action in the district 
 court of the appropriate county to enjoin the violation and to 
 enforce compliance with the provisions of sections 268.672 to 
 268.682, a contract entered into under them, or any rule or 
 order adopted under them, and the commissioner may refer the 
 matter to the attorney general.  Upon a proper showing, a 
 permanent or temporary injunction, restraining order, or writ of 
 mandamus shall be granted.  The court may not require the 
 commissioner to post a bond.  

    Any injunction proceeding under the provisions of sections 
 268.672 to 268.682 may be brought on for hearing and disposition 
 upon an order to show cause returnable upon not more than eight 
 days' notice to the defendant.  The case has precedence over 
 other cases upon the court calendar and may not be continued 
 without the consent of the state, except upon good cause shown 
 to the court, and then only for a reasonable length of time 
 necessary in the opinion of the court to protect the rights of 
 the defendant.  

    Subd. 4a.    Contracts with counties.  The commissioner 
 shall contract directly with counties, their designees, or 
 workforce service areas to deliver wage subsidies, comprehensive 
 job readiness, and job retention services if (1) each county 
 served by the designee or workforce service area agrees to the 
 contract and knows the amount of wage subsidy money, 
 comprehensive job readiness money, and job retention services 
 money allocated to the county under section 268.6751, and (2) 
 the designee or workforce service area agrees to meet regularly 
 with each county being served.  The contracts must require that 
 no more than ten percent of the contract amount be expended for 
 administration. 

    Counties and workforce service areas are encouraged to 
 designate community-based providers of comprehensive job 
 readiness and job retention services. 

    Subd. 5.    Report.  Each county delivering wage 
 subsidies, comprehensive job readiness, and job retention 
 services shall report to the commissioner on a quarterly basis: 

    (1) the number of persons placed in private sector jobs, in 
 temporary public sector jobs, or in other services; 

    (2) the outcome for each participant placed; 

    (3) the number and type of employers employing persons 
 under the program; 

    (4) the amount of money spent in each county for wages, 
 comprehensive job readiness, and job retention services for each 
 type of employment and each type of other expense; 

    (5) the age, educational experience, family status, gender, 
 priority group status, race, and work experience of each person 
 in the program; 

    (6) the amount of wages received by persons while in the 
 program and 60 days after completing the program; and 

    (7) for each classification of persons described in clause 
 (5), the outcome of the wage subsidy placement, the 
 comprehensive job readiness, and the job retention services, 
 including length of time employed; nature of employment, whether 
 private sector, temporary public sector, or other service; and 
 the hourly wages. 

    Data collected on individuals under this subdivision are 
 private data on individuals as defined in section 13.02, 
 subdivision 12, except that summary data may be provided under 
 section 13.05, subdivision 7. 

    Subd. 6. Repealed, 1997 c 200 art 3 s 19 

    HIST: 1983 c 312 art 7 s 3; 1984 c 654 art 5 s 44; 1Sp1985 c 9 
 art 2 s 80,103,105; 1Sp1985 c 14 art 9 s 50-53; 1986 c 444; 1987 
 c 403 art 2 s 134,135; 1990 c 568 art 4 s 62,63; 1994 c 483 s 1; 
 1997 c 200 art 3 s 12-14 

  268.674 Repealed, 1Sp1985 c 14 art 9 s 78 subd 2 

  268.675 Repealed, 1Sp1985 c 14 art 9 s 78 subd 2 

     268.6751 Allocation of wage subsidy money. 

    Subdivision 1.    Allocation.  Wage subsidy money, 
 comprehensive job readiness money, and job retention services 
 money must be allocated to counties in proportion to the number 
 of persons living at or below the federal poverty threshold in 
 each county.  By December 31 of each fiscal year, counties, 
 designees, and workforce service areas receiving wage subsidy 
 money, comprehensive job readiness money, and job retention 
 services money shall report to the commissioner on the use of 
 allocated funds.  The commissioner shall reallocate uncommitted 
 funds for each fiscal year according to the formula in this 
 subdivision. 

    Subd. 2.    Emergency wage subsidies.  (a) The 
 commissioner shall monitor local and statewide unemployment 
 rates.  Upon determining that an economic emergency exists in 
 one or more local service units, the commissioner may implement 
 an emergency wage subsidy program and recommend to the governor 
 to pursue ways to increase the wage subsidy money available to 
 local service units in the affected area or areas from sources 
 other than the appropriation allocated under subdivision 1.  

    (b) When the unemployment rate for the state of Minnesota 
 equals or exceeds nine percent, the commissioner shall implement 
 a statewide emergency wage subsidy program and shall recommend 
 to the governor to pursue ways to increase money available for 
 wage subsidies. 

    HIST: 1Sp1985 c 14 art 9 s 54; 1987 c 403 art 2 s 136; 1990 c 
 568 art 4 s 64; 1997 c 200 art 3 s 15 

*   NOTE:  Subdivision 1 was also amended by Laws 1997, chapter 
*85, article 4, section 28, to read as follows: 

*   "Subdivision 1.    Wage subsidies.  Wage subsidy money 
*must be allocated to local service units in the following manner:

*   (a) The commissioner shall allocate 87.5 percent of the 
*funds available for allocation to local service units for wage 
*subsidy programs as follows:  the proportion of the wage subsidy 
*money available to each local service unit must be based on the 
*number of unemployed persons in the local service unit for the 
*most recent six-month period and the number of aid to families 
*with dependent children and Minnesota family investment 
*program-statewide cases in the local service unit for the most 
*recent six-month period. 

*   (b) Five percent of the money available for wage subsidy 
*programs must be allocated at the discretion of the commissioner.

*   (c) Seven and one-half percent of the money available for 
*wage subsidy programs must be allocated at the discretion of the 
*commissioner to provide jobs for residents of federally 
*recognized Indian reservations.  

*   (d) By December 31 of each fiscal year, providers and local 
*service units receiving wage subsidy money shall report to the 
*commissioner on the use of allocated funds.  The commissioner 
*shall reallocate uncommitted funds for each fiscal year 
*according to the formula in paragraph (a)."

  268.676 Repealed, 1997 c 200 art 3 s 19 

*   NOTE:  Subdivision 1 was also amended by Laws 1997, chapter 
*85, article 4, section 29, to read as follows: 

*   "Subdivision 1.    Among job applicants.  At least 80 
*percent of funds allocated among eligible job applicants 
*statewide must be allocated to: 

*   (1) applicants living in households with no other income 
*source; 

*   (2) applicants whose incomes and resources are less than 
*the standards for eligibility for general assistance; 

*   (3) applicants who are eligible for aid to families with 
*dependent children or Minnesota family investment 
*program-statewide; and 

*   (4) applicants who live in a farm household who demonstrate 
*severe household financial need."

     268.677 Use of funds. 

    Subdivision 1.    Wage subsidy, comprehensive job 
 readiness, and job retention services money.  To the extent 
 allowable under federal and state law, wage subsidy money, 
 comprehensive job readiness money, and job retention services 
 money must be pooled and used in combination with money from 
 other employment and training services or income maintenance and 
 support services.  

    (a) The wage subsidy is $2.50 per hour for wages and up to 
 $1 per hour for reimbursement of employer-paid benefits for 
 health care, child care, or transportation expenses for 
 employers paying an eligible program participant an hourly wage 
 that is $2 to $2.99 per hour higher than the minimum wage. 

    (b) The wage subsidy is $4 per hour for wages and up to $1 
 per hour for reimbursement of employer paid benefits for health 
 care, child care, or transportation expenses for employers 
 paying an eligible program participant an hourly wage that is $3 
 or more per hour higher than the minimum wage. 

    (c) The wage subsidy for an eligible job applicant may be 
 paid for a maximum of 1,040 hours over a period of 26 weeks.  
 Employers are encouraged to use money from other sources to 
 provide increased wages to applicants they employ.  Job 
 retention services may be provided to an eligible program 
 participant over a period of 78 weeks.  

    (d) An employer of more than four full-time employees shall 
 receive wage subsidies for no more than 25 percent of the 
 employer's full-time workforce. 

    Subd. 2. Repealed, 1997 c 200 art 3 s 19 

    Subd. 3. Repealed, 1997 c 200 art 3 s 19 

    HIST: 1983 c 312 art 7 s 7; 1984 c 654 art 5 s 48; 1Sp1985 c 9 
 art 2 s 85,105; 1Sp1985 c 14 art 9 s 56; 1987 c 403 art 2 s 138; 
 1990 c 568 art 4 s 66,67; 1990 c 594 art 3 s 10; 1997 c 200 art 
 3 s 16 

  268.678 Repealed, 1997 c 200 art 3 s 19 

    268.679 Subdivision 1. Repealed, 1Sp1985 c 14 art 9 s 
 78 subd 2 

    Subd. 2. Repealed, 1Sp1985 c 14 art 9 s 78 subd 2 

    Subd. 3. Repealed, 1997 c 200 art 3 s 19 

  268.68 Repealed, 1Sp1985 c 14 art 9 s 78 subd 2 

     268.681 Business employment. 

    Subdivision 1.    Eligible businesses.  A business 
 employer is an eligible employer if it enters into a written 
 contract, signed and subscribed to under oath, with a county or 
 its designee, containing assurances that: 

    (a) funds received by a business shall be used only as 
 permitted under sections 268.672 to 268.682; 

    (b) the business has submitted information to the county, 
 its designee, or workforce service area (1) describing the 
 duties and proposed compensation of each employee proposed to be 
 hired under the program; and (2) demonstrating that, with the 
 funds provided under sections 268.672 to 268.682, the business 
 is likely to succeed and continue to employ persons hired using 
 wage subsidies; 

    (c) the business will use funds exclusively for 
 compensation and benefits of eligible job applicants and will 
 provide employees hired with these funds with benefits and other 
 terms and conditions of employment comparable to those provided 
 to other employees of the business who do comparable work; 

    (d) the funds are necessary to allow the business to begin, 
 expand, or to fill other open positions but not to fill 
 positions which would be filled in the absence of wage 
 subsidies; 

    (e) the business will cooperate with the county and the 
 commissioner in collecting data to assess the result of wage 
 subsidies and the effectiveness of comprehensive job readiness 
 and job retention services; and 

    (f) the business is in compliance with all applicable 
 affirmative action, fair labor, health, safety, and 
 environmental standards.  

    Subd. 1a.    Ineligible businesses.  A business employer 
 is ineligible to participate in the program and is ineligible to 
 receive wage subsidy money if:  

    (1) the business is a temporary employment agency; or 

    (2) the business is a restaurant.  

    For purposes of this subdivision, "temporary employment 
 agency" means a business that hires people to work in temporary 
 positions for employers who are clients of that business.  

    For purposes of this subdivision, "restaurant" includes, 
 but is not limited to, fast food restaurants. 

    Subd. 1b.    Discharge of program participant.  A 
 program participant discharged from employment may challenge the 
 discharge as a violation of subdivision 1. 

    Subd. 2.    Priorities.  (a) In allocating funds among 
 eligible businesses, the county or its designee shall give 
 priority to: 

    (1) businesses that will provide applicants with on-the-job 
 training and marketable job skills; 

    (2) businesses engaged in manufacturing; 

    (3) nonretail businesses that are small businesses as 
 defined in section 645.445; and 

    (4) businesses that export products outside the state. 

    (b) In addition to paragraph (a), a county must give 
 priority to businesses that: 

    (1) have a high potential for growth and long-term job 
 creation; 

    (2) are labor intensive; 

    (3) make high use of local and Minnesota resources; 

    (4) are under ownership of women and minorities; 

    (5) make high use of new technology; 

    (6) produce energy conserving materials or services or are 
 involved in development of renewable sources of energy; and 

    (7) have their primary place of business in Minnesota.  

    Subd. 3.    Payback.  (a) A business receiving wage 
 subsidies shall repay 70 percent of the amount initially 
 received for each eligible job applicant employed, if the 
 employee does not continue in the employment of the business 
 beyond the six-month subsidized period.  If the employee 
 continues in the employment of the business for one year or 
 longer after the six-month subsidized period, the business need 
 not repay any of the funds received for that employee's wages.  
 If the employee continues in the employment of the business for 
 a period of less than one year after the expiration of the 
 six-month subsidized period, the business shall receive a 
 proportional reduction in the amount it must repay. 

    (b) If an employer dismisses an employee for good cause and 
 works in good faith with the local service unit or its 
 contractor to employ and train another person referred by the 
 county, its designee, or workforce service area, the payback 
 formula shall apply as if the original person had continued in 
 employment.  

    (c) If a business receiving funds under the program reduces 
 the hourly wage after the six-month subsidy, the business must 
 repay a portion of the subsidy in direct proportion to the 
 amount that the hourly wage is reduced. 

    (d) A repayment schedule shall be negotiated and agreed to 
 by the county and the business prior to the disbursement of the 
 funds and is subject to renegotiation.  The county shall retain 
 payments received under this subdivision for any administrative 
 costs associated with the collection of the funds under this 
 subdivision and for entering into new wage subsidy agreements.  

    (e) If an employer is more than 60 days late in repaying a 
 subsidy as required in this subdivision, the county may engage a 
 licensed collection agency or refer the matter to the department 
 for collection under chapter 16D. 

    Subd. 4.  Repealed, 1990 c 594 art 3 s 15 

    Subd. 4.    Successorship.  A contract entered into by 
 an owner, employer, or manager under the wage subsidy program is 
 legally binding on any successor owner, employer, or manager. 

    HIST: 1983 c 312 art 7 s 11; 1Sp1985 c 14 art 9 s 63; 1987 c 
 403 art 2 s 141,142; 1990 c 568 art 4 s 69-71; 1990 c 594 art 3 
 s 11; 1997 c 200 art 3 s 17 

     268.6811 Fund combinations. 

    To the extent allowable under federal law, money for job 
 training under Title II-A of the Job Training Partnership Act, 
 United States Code, title 29, section 1501 et seq., and money 
 from other employment and training services or income 
 maintenance and support services, except services administered 
 under chapter 116L, may be pooled and used in combination with 
 money to provide subsidized employment, comprehensive job 
 readiness and job retention services under sections 268.6715 to 
 268.682. 

    HIST: 1997 c 200 art 3 s 18 

     268.682 Worker displacement prohibited. 

    Subdivision 1.    Layoffs; work reductions.  An eligible 
 employer may not terminate, lay off, or reduce the working hours 
 of an employee for the purpose of hiring an individual with 
 funds available under sections 268.672 to 268.682.  

    Subd. 2.    Hiring during layoffs.  An eligible employer 
 may not hire an individual with funds available under sections 
 268.672 to 268.682 if any other person is on layoff from the 
 same or a substantially equivalent job. 

    Subd. 3.    Employer certification.  In order to qualify 
 as an eligible employer, a government or nonprofit agency or 
 business must certify to the eligible local service unit that 
 each job created and funded under sections 268.672 to 268.682:  

    (a) will result in an increase in employment opportunities 
 over those which would otherwise be available; 

    (b) will not result in the displacement of currently 
 employed workers, including partial displacement such as 
 reduction in hours of nonovertime work, wages, or employment 
 benefits; and 

    (c) will not impair existing contracts for service or 
 result in the substitution of wage subsidy funds for other funds 
 in connection with work that would otherwise be performed.  

    HIST: 1983 c 312 art 7 s 12; 1Sp1985 c 14 art 9 s 64 

  268.683 Repealed, 1Sp1985 c 14 art 9 s 78 subd 2 

  268.684 Repealed, 1Sp1985 c 14 art 9 s 78 subd 2 

  268.685 Repealed, 1Sp1985 c 14 art 9 s 78 subd 1 

  268.686 Repealed, 1Sp1985 c 9 art 2 s 104; 1Sp1985 c 14 
  art 9 s 78 subd 2 

  268.80 Repealed, 1983 c 312 art 8 s 18; 1Sp1985 c 14 art 9 
  s 78 subd 1 

  268.81 Repealed, 1983 c 312 art 8 s 18; 1Sp1985 c 14 art 9 
  s 78 subd 1 

  268.82 Repealed, 1983 c 312 art 8 s 18; 1Sp1985 c 14 art 9 
  s 78 subd 1 

  268.83 Repealed, 1983 c 312 art 8 s 18; 1Sp1985 c 14 art 9 
  s 78 subd 1 

  268.84 Repealed, 1Sp1985 c 14 art 9 s 78 subd 1 

     268.85 Service priorities. 

    Subdivision 1.    Groups with severe disadvantages.  To 
 the extent that the state has the authority to establish 
 priority groups to be served through employment and training 
 services, greatest consideration must be given to client groups 
 identified as experiencing the most severe disadvantages to 
 employment.  Individuals volunteering for employment, regardless 
 of whether they are required to register, must also be given 
 preference to avoid the effects of long-term unemployment or 
 dependence on public assistance. 

    Subd. 2.    Order of priority.  (a) The priority for 
 services to be provided is: 

    (1) permanent, unsubsidized, full-time private or nonprofit 
 sector employment and, where possible, in conjunction with 
 targeted jobs tax credits as defined at United States Code, 
 title 26, section 44B, as amended by Public Law Number 98-369, 
 with highest priority to employment with paid medical benefits; 

    (2) permanent, subsidized, full-time private sector 
 employment; 

    (3) permanent, subsidized, full-time nonprofit sector 
 employment; 

    (4) training; 

    (5) relocation, except that relocation is considered only 
 when a client can find affordable housing near the new location; 
 and 

    (6) part-time, subsidized, nonprofit, or public employment 
 with continued employment assistance. 

    (b) Individuals receiving any of the priority services in 
 paragraph (a) must be provided with child care, transportation, 
 or other support services as necessary and in relation to their 
 eligibility and the availability of funds. 

    (c) In delivering employment and training services, local 
 service units shall distribute their available resources in a 
 manner that provides greater incentives to clients in permanent 
 private or nonprofit sector employment than in public sector 
 jobs. 

    HIST: 1Sp1985 c 14 art 9 s 65; 1987 c 403 art 3 s 51 

     268.86 Employment and training programs. 

    Subdivision 1. Repealed, 1987 c 403 art 3 s 98 

    Subd. 2.    Interagency agreements.  By October 1, 1987, 
 the commissioner and the commissioner of human services shall 
 enter into a written contract for the design, delivery, and 
 administration of employment and training services for 
 applicants for or recipients of food stamps, the Minnesota 
 family investment program, and general assistance.  The contract 
 must address: 

    (1) specific roles and responsibilities of each department; 

    (2) assignment and supervision of staff for interagency 
 activities including any necessary interagency employee mobility 
 agreements under the administrative procedures of the department 
 of employee relations; 

    (3) mechanisms for determining the conditions under which 
 individuals participate in services, their rights and 
 responsibilities while participating, and the standards by which 
 the services must be administered; 

    (4) procedures for providing technical assistance to local 
 service units, Indian tribes, and employment and training 
 service providers; 

    (5) access to appropriate staff for ongoing development and 
 interpretation of policy, rules, and program standards; 

    (6) procedures for reimbursing appropriate agencies for 
 administrative expenses; and 

    (7) procedures for accessing available federal funds. 

    Subd. 3. Repealed, 1987 c 403 art 3 s 98 

    Subd. 4. Repealed, 1987 c 403 art 3 s 98 

    Subd. 5. Repealed, 1987 c 403 art 3 s 98 

    Subd. 6.    Coordination.  In developing employment and 
 training services, the commissioner shall identify and 
 incorporate, to the extent possible, money from both federal and 
 state income maintenance, employment and training, and 
 educational programs. 

    Subd. 7. Repealed, 1989 c 282 art 5 s 133 

    Subd. 8.    Grant diversion.  The commissioner shall 
 develop grant diversion processes for recipients of general 
 assistance and work readiness assistance payments and shall 
 supervise the counties in the administration of the employment 
 and training services to meet the needs and circumstances of 
 these recipients.  A grant diversion program that places general 
 assistance and work readiness recipients in public sector 
 employment must operate as a community investment program under 
 section 268.90.  

    Subd. 9. Repealed, 1990 c 568 art 4 s 85 

    Subd. 10.    Inventory, referral, and intake services.  
 The commissioner of economic security, in cooperation with the 
 commissioner of human services, shall develop an inventory, 
 referral, and intake system.  The system must provide for 
 coordinated delivery of employment and training and income 
 maintenance support services, efficient client referral among 
 programs and services, reduction of duplicate data collection, 
 coordinated program intake by local agencies, and effective 
 evaluation of employment and training services.  The system 
 must, at a minimum, include the following: 

    (1) a listing of all available public and private 
 employment and training services, income maintenance and support 
 services, and vocationally directed education and training 
 programs; 

    (2) the capability to assess client needs and match those 
 needs with employment opportunities, education and training 
 programs, and employment and training and income maintenance and 
 support services, and to refer the client to the appropriate 
 employer, educational institution, or service provider; 

    (3) a coordinated intake procedure for employment and 
 training services, and income maintenance and support services; 

    (4) access to a statewide database for client tracking and 
 program evaluation; and 

    (5) internal security measures to protect private data from 
 unauthorized access. 

    In developing the system, the commissioner shall consult 
 with the public post-secondary educational systems, local 
 agencies, employment and training service providers, and client 
 and employer representatives.  The system must be available in 
 each local agency or service provider delivering programs 
 administered by the commissioner of economic security or the 
 commissioner of human services.  Access by intake workers, state 
 agency personnel, clients, and any other system users to 
 information contained in the system must conform with all 
 applicable federal and state data privacy requirements.  

    HIST: 1Sp1985 c 14 art 9 s 66; 1987 c 403 art 3 s 53; 1988 c 
 689 art 2 s 222; 1989 c 282 art 5 s 125; 1990 c 568 art 4 s 
 72,73; 1994 c 483 s 1; 1997 c 85 art 4 s 30; 1999 c 159 s 122 

     268.871 Local delivery. 

    Subdivision 1.    Responsibility and certification.  (a) 
 Unless prohibited by federal law or otherwise determined by 
 state law, a local service unit is responsible for the delivery 
 of employment and training services.  After February 1, 1988, 
 employment and training services must be delivered by certified 
 employment and training service providers.  

    (b) The local service unit's employment and training 
 service provider must meet the certification standards in this 
 subdivision in order to be certified to deliver any of the 
 following employment and training services and programs:  wage 
 subsidies; general assistance grant diversion; food stamp 
 employment and training programs; community work experience 
 programs; MFIP job search; MFIP grant diversion; MFIP on-the-job 
 training; and MFIP case management.  

    (c) The commissioner shall certify a local service unit's 
 service provider to provide these employment and training 
 services and programs if the commissioner determines that the 
 provider has:  

    (1) past experience in direct delivery of the programs 
 specified in paragraph (b); 

    (2) staff capabilities and qualifications, including 
 adequate staff to provide timely and effective services to 
 clients, and proven staff experience in providing specific 
 services such as assessments, career planning, job development, 
 job placement, support services, and knowledge of community 
 services and educational resources; 

    (3) demonstrated effectiveness in providing services to 
 public assistance recipients and other economically 
 disadvantaged clients; and 

    (4) demonstrated administrative capabilities, including 
 adequate fiscal and accounting procedures, financial management 
 systems, participant data systems, and record retention 
 procedures. 

    (d) When the only service provider that meets the criterion 
 in paragraph (c), clause (1), has been decertified, according to 
 subdivision 1a, in that local service unit, the following 
 criteria shall be substituted:  past experience in direct 
 delivery of multiple, coordinated, nonduplicative services, 
 including outreach, assessments, identification of client 
 barriers, employability development plans, and provision or 
 referral to support services. 

    Subd. 1a.    Decertification.  (a) The department, on 
 its own initiative, or at the request of the local service unit, 
 shall begin decertification processes for employment and 
 training service providers who: 

    (1) no longer meet one or more of the certification 
 standards; 

    (2) are delivering services in a manner that does not 
 comply with the Family Support Act of 1988, Public Law Number 
 100-485 or relevant state law after corrective actions have been 
 cited, technical assistance has been provided, and a reasonable 
 period of time for remedial action has been provided; or 

    (3) are not complying with other state and federal laws or 
 policy which are necessary for effective delivery of services. 

    (b) The initiating of decertification processes shall not 
 result in decertification of the service provider unless and 
 until adequate fact-finding and investigation has been performed 
 by the department. 

    Subd. 2.    Contracting responsibility.  A local service 
 unit must contract with certified employment and training 
 service providers that can effectively coordinate federal, 
 state, and local employment and training services; that can 
 maximize use of available federal and other nonstate funds; and 
 that have demonstrated the ability to achieve effective results 
 in serving public assistance clients as well as other unemployed 
 people.  

    Subd. 3.    Enforcement.  The local service units shall 
 provide for the enforcement of employment and training 
 requirements for appropriate recipients of public assistance, 
 and must include provisions for enforcing the requirements in 
 any contracts with providers under subdivisions 1 and 2. 

    Subd. 4.    Location of staff.  (a) In establishing a 
 contract, the county shall agree to colocate, where feasible, 
 income maintenance and social service staff as necessary to 
 accept applications and determine eligibility, monitor ongoing 
 client eligibility, and authorize services and grants available 
 under programs administered by the county or local service unit 
 that are related to employment and training or the client's 
 successful participation in employment and training activities. 

    (b) The commissioner shall colocate, where feasible, 
 sufficient staff to make the services provided through the 
 department of economic security and the programs it administers 
 or supervises available to clients being served by the local 
 service unit or the contract agency. 

    (c) The commissioner has emergency and permanent rulemaking 
 authority to implement this section and shall establish the 
 circumstances under which the requirements for colocation may be 
 waived. 

    Subd. 5. Repealed, 1999 c 159 s 154 

    HIST: 1Sp1985 c 9 art 2 s 103; 1Sp1985 c 14 art 9 s 67; 1987 c 
 403 art 3 s 55-57; 1987 c 403 art 2 s 143; 1989 c 282 art 5 s 
 126; 1990 c 568 art 4 s 74-76; 1993 c 306 s 17; 1994 c 483 s 1; 
 1997 c 85 art 4 s 31; 1999 c 159 s 123 

     268.872 State funding of employment and training 
  programs. 

    Subdivision 1.    Available money.  The commissioner and 
 local service units are not required to provide employment and 
 training services that exceed the levels permitted by available 
 federal, state, and local funds subject to the requirements or 
 limitations of each program. 

    Subd. 2.    Maintenance of effort.  A local service unit 
 shall certify to the commissioner that it has not reduced funds 
 from other federal, state, and county sources which would, in 
 the absence of this section, have been available for employment 
 and training services and child care services and related 
 administrative costs. 

    Subd. 3. Repealed, 1990 c 568 art 4 s 85 

    HIST: 1Sp1985 c 14 art 9 s 68 

     268.88 Local service unit plans. 

    (a) By April 15, 1999, and by April 15 of each second year 
 thereafter, local service units shall prepare and submit to the 
 commissioner a plan that covers the next two state fiscal 
 years.  At least 30 days prior to submission of the plan, the 
 local service unit shall solicit comments from the public on the 
 contents of the proposed plan.  The commissioner shall notify 
 each local service unit within 60 days of receipt of its plan 
 that the plan has been approved or disapproved.  The plan must 
 include: 

    (1) a statement of objectives for the employment and 
 training services the local service unit administers; 

    (2) the establishment of job placement and job retention 
 goals, the establishment of public assistance caseload reduction 
 goals, and the strategies and programs that will be used to 
 achieve these goals; 

    (3) a statement of whether the goals from the preceding 
 year were met and an explanation if the local service unit 
 failed to meet the goals; 

    (4) the amount proposed to be allocated to each employment 
 and training service; 

    (5) the proposed types of employment and training services 
 the local service unit plans to utilize; 

    (6) a description of how the local service unit will use 
 funds provided under chapter 256J to meet the requirements of 
 that chapter.  The description must include what services will 
 be provided, per service expenditures, an estimate of how many 
 employment and training slots the local service unit will 
 provide, how many dollars the local service unit will provide 
 per slot per provider, how many participants per slot, an 
 estimate of the ratio of participants per job counselor, and 
 proposed uses for any residual funds not included in slot 
 allocations to providers; 

    (7) a report on the use of wage subsidies, grant 
 diversions, community investment programs, and other services 
 administered under this chapter; 

    (8) a performance review of the employment and training 
 service providers delivering employment and training services 
 for the local service unit; 

    (9) a copy of any contract between the local service unit 
 and an employment and training service provider including 
 expected outcomes and service levels for public assistance 
 clients; 

    (10) a copy of any other agreements between educational 
 institutions, family support services, and child care providers; 
 and 

    (11) a description of how the local service unit ensures 
 compliance with section 256J.06, requiring community involvement 
 in the administration of MFIP-S. 

    (b) In counties with a city of the first class, the county 
 and the city shall develop and submit a joint plan.  The plan 
 may not be submitted until agreed to by both the city and the 
 county.  The plan must provide for the direct allocation of 
 employment and training money to the city and the county unless 
 waived by either.  If the county and the city cannot concur on a 
 plan, the commissioner shall resolve their dispute.  In counties 
 in which a federally recognized Indian tribe is operating an 
 employment and training program under an agreement with the 
 commissioner of human services, the plan must provide that the 
 county will coordinate its employment and training programs, 
 including developing a system for referrals, sanctions, and the 
 provision of supporting services such as access to child care 
 funds and transportation with programs operated by the Indian 
 tribe.  The plan may not be given final approval by the 
 commissioner until the tribal unit and county have submitted 
 written agreement on these provisions in the plan.  If the 
 county and Indian tribe cannot agree on these provisions, the 
 local service unit shall notify the commissioner of economic 
 security and the commissioners of economic security and human 
 services shall resolve the dispute.  

    (c) The commissioner may withhold the distribution of 
 employment and training money from a local service unit that 
 does not submit a plan to the commissioner by the date set by 
 this section, and shall withhold the distribution of employment 
 and training money from a local service unit whose plan has been 
 disapproved by the commissioner until an acceptable amended plan 
 has been submitted.  

    (d) Beginning April 15, 1992, and by April 15 of each 
 second year thereafter, local service units must prepare and 
 submit to the commissioner an interim year plan update that 
 deals with performance in that state fiscal year and changes 
 anticipated for the second year of the biennium.  The update 
 must include information about employment and training programs 
 addressed in the local service unit's two-year plan and shall be 
 completed in accordance with criteria established by the 
 commissioner. 

    HIST: 1Sp1985 c 14 art 9 s 69; 1987 c 403 art 2 s 144; art 3 s 
 58; 1989 c 282 art 5 s 127; 1990 c 568 art 4 s 77; 1994 c 483 s 
 1; 1998 c 407 art 6 s 110 

     268.881 Indian tribe plans. 

    (a) The commissioner, in consultation with the commissioner 
 of human services, shall review and comment on Indian tribe 
 plans submitted to the commissioner for provision of employment 
 and training services.  Beginning April 15, 1991, and by April 
 15 of each second year thereafter, the Indian tribe shall 
 prepare and submit to the commissioner a plan that covers the 
 next two state fiscal years.  Beginning April 15, 1992, and by 
 April 15 of each second year thereafter, the Indian tribe shall 
 prepare and submit to the commissioner an interim year plan 
 update that deals with performance during the past state fiscal 
 year and that covers changes anticipated for the second year of 
 the biennium.  The commissioner shall notify the Indian tribe of 
 approval or disapproval of the plans and updates for existing 
 programs within 60 days of submission. 

    (b) A plan for a new tribal program must be submitted at 
 least 45 days before the program is to commence.  The 
 commissioner shall approve or disapprove the plan for new 
 programs within 30 days of receipt. 

    (c) The tribal plan and update must contain information 
 that has been established by the commissioner and the 
 commissioner of human services for the tribal employment and 
 training service program. 

    (d) The commissioner may recommend to the commissioner of 
 human services withholding the distribution of employment and 
 training money from a tribe whose plan or update is disapproved 
 by the commissioner or a tribe that does not submit a plan or 
 update by the date established in this section. 

    HIST: 1989 c 282 art 5 s 128; 1990 c 568 art 4 s 78 

     268.89 Jobs Training Partnership Act; administration. 

    Subdivision 1.    Coordination of state and federal 
 programs.  The commissioner shall act as the governor's agent 
 in administering the federal Jobs Training Partnership Act.  To 
 the extent permitted under federal regulation, this program must 
 be administered in conjunction with a comprehensive state 
 employment and training strategy and its resources used in 
 coordination with state programs and to further state objectives.

    Subd. 2.    Biennial plan.  The commissioner shall 
 recommend to the governor the priorities, performance standards, 
 and special projects. 

    Subd. 3.    Other plans.  Strong consideration for 
 income maintenance recipients must be included in the goals, 
 objectives, and criteria of the governor's coordination and 
 special services plan under section 121 of the Jobs Training 
 Partnership Act, United States Code, title 29, section 1531.  
 Local service delivery area plans and job service plans must 
 describe methods of complying with the coordination criteria 
 under the governor's coordination and special services plan as 
 required under United States Code, title 29, sections 49g and 
 1514.  

    HIST: 1Sp1985 c 14 art 9 s 70; 1987 c 403 art 2 s 145 

     268.90 Community investment programs. 

    Subdivision 1.    Purpose; requirements.  Community 
 investment programs provide temporary employment to people who 
 are experiencing prolonged unemployment and economic hardship.  
 Community investment programs consist of one or more projects.  
 Community investment programs must be beneficial to the state 
 and the communities in which they are located and must provide 
 program participants with training and work experience that will 
 enhance their employability.  The projects must include 
 activities that: 

    (1) expand or improve services, including education, 
 health, social services, recreation, and safety; 

    (2) improve or maintain natural resources, including 
 rivers, streams and lakes, forest lands and roads, and soil 
 conservation; 

    (3) make permanent improvements to lands and buildings; or 

    (4) weatherize public buildings and private residential 
 dwellings. 

    Community investment programs may not include job 
 placements that replace work that was part or all of the duties 
 or responsibilities of an authorized public employee position 
 established as of January 1, 1985. 

    Community investment programs that include other sources of 
 money or authorized programs may provide employment for the 
 groups eligible for the included programs under the terms and 
 conditions of those programs.  These programs include the 
 Minnesota conservation corps, Minnesota summer youth program, 
 county emergency jobs program, and the jobs training partnership 
 act. 

    Subd. 2.    Employment conditions.  (a) An eligible 
 nonprofit or public employer may not terminate, lay off, or 
 reduce the regular working hours of an employee for the purpose 
 of hiring an individual with money available under this 
 program.  An eligible employer may not hire an individual with 
 money available through this program if any other person is on 
 layoff from the same or a substantially equivalent job. 

    (b) Community investment program participants are employees 
 of the project employer within the meaning of workers' 
 compensation laws, personal income tax, and the Federal 
 Insurance Contribution Act, but not retirement or civil service 
 laws. 

    (c) Each project and job must comply with all applicable 
 affirmative action, fair labor, health, safety, and 
 environmental standards. 

    (d) Individuals employed under the community investment 
 program must be paid a wage at the same wage rates as work site 
 or employees doing comparable work in that locality, unless 
 otherwise specified in law. 

    (e) All employees are limited to 32 hours or four days a 
 week, so that they can continue to seek full-time private sector 
 employment, unless otherwise specified in law. 

    (f) The commissioner shall establish, by rule, the terms 
 and conditions governing the participation of appropriate public 
 assistance recipients.  The rules must, at a minimum, establish 
 the procedures by which the minimum and maximum number of work 
 hours and maximum allowable travel distances are determined, the 
 amounts and methods by which work expenses will be paid, and the 
 manner in which support services will be provided.  The rules 
 must also provide for periodic reviews of clients continuing 
 employment in community investment programs. 

    (g) Participation in a community investment program by a 
 recipient of Minnesota family investment program assistance or 
 general assistance is voluntary.  

    Subd. 3.    Commissioner of economic security.  The 
 commissioner shall: 

    (1) make rules governing plan content, criteria for 
 approval, and administrative standards; 

    (2) refer community investment program administrators to 
 the appropriate state agency for technical assistance in 
 developing and administering community investment programs; 

    (3) establish the method by which community investment 
 programs will be approved or disapproved through the community 
 investment program plan and the annual update component of the 
 county plan; 

    (4) review and comment on community investment program 
 plans; 

    (5) institute ongoing methods to monitor and evaluate 
 community investment programs; and 

    (6) consult with the commissioner of human services on the 
 approval of county plans for community investment programs 
 relating to the participation of public assistance recipients. 

    Subd. 4.    County boards of commissioners.  The county 
 boards of commissioners shall: 

    (1) be encouraged to establish community investment 
 programs that are administered jointly according to section 
 471.59, or through multicounty human service boards under 
 chapter 402; 

    (2) develop community investment programs in consultation 
 with the exclusive representatives of their employees; 

    (3) plan community investment programs by involving 
 nonprofit organizations and other governmental units, community 
 action agencies, community-based organizations, local union 
 representatives, and representatives of client groups; 

    (4) submit to the commissioner a community investment 
 program plan identifying the program funding source and amount, 
 before the initiation of a community investment program, for 
 approval according to standards established by the commissioner; 

    (5) plan community investment projects that, whenever 
 possible, utilize existing programs that are administered under 
 contract by nonprofit organizations and governmental units, 
 including departments and agencies of cities, counties, towns, 
 school districts, state and federal agencies, park reserve 
 districts, and other special districts; 

    (6) include in their local service unit plans an annual 
 update to their community investment program plans for approval 
 according to standards established by the commissioner; 

    (7) submit reports and meet administrative standards 
 established by the commissioner; 

    (8) monitor the performance of entities under contract to 
 administer individual community investment projects; 

    (9) enter into contracts with other governmental and 
 private bodies to jointly fund or jointly administer approvable 
 projects when agreements expand the resources available, the 
 scope of people employed, or further recognized public purposes; 
 and 

    (10) be encouraged to enter into contracts with businesses 
 or individuals for eligible projects under subdivision 1 and 
 charge a fee for the completion of a project. 

    Subd. 5.    State financial participation.  The 
 statutorily established state rates of financial participation 
 or available state appropriations or grants are not affected by 
 their incorporation into a community investment program. 

    HIST: 1Sp1985 c 14 art 9 s 71; 1990 c 568 art 4 s 79-81; 1994 
 c 483 s 1; 1997 c 7 art 5 s 35; 1997 c 85 art 4 s 32; 1999 c 159 
 s 124 

    268.91 Subdivision 1. Renumbered 256H.01 

    Subd. 2. Renumbered 256H.02 

    Subd. 3. Renumbered 256H.03 

    Subd. 3a. Renumbered 256H.04 

    Subd. 3b. Renumbered 256H.05 

    Subd. 3c. Renumbered 256H.06 

    Subd. 3d. Renumbered 256H.07 

    Subd. 3e. Renumbered 256H.08 

    Subd. 3f. Renumbered 256H.09 

    Subd. 4. Renumbered 256H.10 

    Subd. 5. Renumbered 256H.11 

    Subd. 6. Renumbered 256H.12 

    Subd. 6a. Renumbered 256H.13 

    Subd. 7. Renumbered 256H.14 

    Subd. 8. Renumbered 256H.15 

    Subd. 9. Renumbered 256H.16 

    Subd. 10. Renumbered 256H.17 

    Subd. 11. Renumbered 256H.18 

    Subd. 12. Renumbered 256H.19 

  268.911 Renumbered 256H.20 

  268.912 Renumbered 119A.50 

    268.913 Subdivision 1.  Renumbered 119A.51 subd 1 

    Subd. 2.  Renumbered 119A.51 subd 2 

    Subd. 3.  Renumbered 119A.51 subd 3 

    Subd. 4.  Renumbered 119A.51 subd 4 

    Subd. 5. Repealed, 1997 c 162 art 1 s 19 

    Subd. 6.  Renumbered 119A.51 subd 5 

    268.914 Subdivision 1.  Renumbered 119A.52 

    Subd. 2. Repealed, 1993 c 369 s 146 

  268.915 Renumbered 119A.53 

  268.916 Renumbered 119A.54 

     268.9165 Authority to waive requirements during disaster 
  periods. 

    The commissioner of children, families, and learning may 
 waive requirements under sections 119A.50 to 119A.53, for up to 
 nine months after the disaster, for Head Start grantees in areas 
 where a federal disaster has been declared under United States 
 Code, title 42, section 5121, et seq., or the governor has 
 exercised authority under chapter 12.  The commissioner shall 
 notify the chairs of the senate family and early childhood 
 education budget division, the senate education finance 
 committee, the house family and early childhood education 
 finance division, the house education committee, and the house 
 ways and means committee ten days before the effective date of 
 any waiver granted under this section. 

    HIST: 1Sp1995 c 3 art 16 s 13; 1997 c 203 art 1 s 15; 1Sp1997 
 c 5 s 46; 1998 c 383 s 37; 1999 c 86 art 1 s 62 

  268.917 Repealed, 1998 c 273 s 15 

     268.918 Homeless youth facilities. 

    The commissioner may make grants to state agencies and 
 political subdivisions to construct or rehabilitate facilities 
 to provide services to homeless or at-risk youth.  The 
 facilities must be owned by the state or a political 
 subdivision, but may be leased under section 16A.695 to 
 organizations that operate the programs.  The commissioner shall 
 prescribe the terms and conditions of the leases.  The 
 commissioner shall give priority to grants that involve 
 collaboration among sponsors of programs.  At least 25 percent 
 of the amounts appropriated for these grants must be used in 
 conjunction with the youth employment and training programs 
 operated by the commissioner.  Eligible programs must consult 
 with appropriate labor organizations to deliver education and 
 training. 

    HIST: 1996 c 463 s 44 

  268.92 Repealed, 1998 c 273 s 15 

     268.95 Individual enterprise. 

    Subdivision 1.    Coordination.  The commissioner may 
 coordinate state activities related to self-employment 
 enterprises, including home-based businesses, individual 
 self-employment initiatives, and collective and cooperative 
 efforts involving individual entrepreneurs. 

    Subd. 2.    Marketing.  The commissioner may undertake 
 activities to expand the marketing of goods or services produced 
 by the state's independent entrepreneurs.  

    Subd. 3.    Technical assistance.  The commissioner may 
 provide or arrange for the provision of information, technical 
 assistance, and support as necessary to help individuals 
 determine whether they wish to become self-employed, to obtain 
 needed training, to develop business plans and financing, and to 
 sustain the initiatives. 

    Subd. 4.    Pilot program.  The commissioner shall 
 develop a pilot program, in cooperation with the commissioners 
 of trade and economic development and human services, to enable 
 low-income persons to start or expand self-employment 
 opportunities or home-based businesses that are designed to make 
 the individual entrepreneurs economically independent.  The 
 commissioner of human services shall seek necessary waivers from 
 federal regulations to allow recipients of the Minnesota family 
 investment program assistance to participate and retain 
 eligibility while establishing a business. 

    Subd. 5.    Study.  The commissioner shall study the 
 needs of individual entrepreneurs and beginning businesses and 
 recommend to the governor how state programs and resources can 
 provide further assistance. 

    HIST: 1Sp1985 c 14 art 9 s 73; 1987 c 312 art 1 s 26 subd 2; 
 1997 c 85 art 4 s 34; 1999 c 159 s 125 

     268.96 Displaced homemaker programs. 

    The commissioner of economic security may enter into 
 arrangements with existing private or nonprofit organizations 
 and agencies with experience in dealing with displaced 
 homemakers to provide counseling and training services.  The 
 commissioner shall assist displaced homemakers in applying for 
 appropriate welfare programs and shall take welfare allowances 
 received into account in setting the stipend level.  Income 
 received as a stipend under these programs shall be totally 
 disregarded for purposes of determining eligibility for and the 
 amount of a general assistance grant. 

    HIST: 1973 c 254; 1977 c 428 s 8; 1977 c 430 s 25; 1Sp1985 c 
 14 art 9 s 75; 1994 c 483 s 1 

     268.971 Hospitality host program. 

    Subdivision 1.    Establishment.  A hospitality host 
 older worker tourism program is established in the department of 
 economic security to assist economically disadvantaged older 
 workers to gain employment in the promotion of the tourism 
 industry in Minnesota and to become self-sufficient.  The 
 objectives of the program are to: 

    (1) assist in the diversification of industry in rural 
 areas by stimulating and promoting tourism; 

    (2) create full-time and part-time employment for 
 low-income persons 55 years old or older; 

    (3) raise the income of older persons living in poverty; 
 and 

    (4) promote tourism in selected local areas throughout the 
 state, thereby improving local economies. 

    Subd. 2.    Definitions.  (a)    Scope.  As used in 
 this section, the terms defined in this section have the 
 meanings given them. 

    (b)    Commissioner.  "Commissioner" means the 
 commissioner of the department of economic security. 

    (c)    Older worker.  "Older worker" means an 
 economically disadvantaged person 55 years or older. 

    (d)    Economically disadvantaged.  "Economically 
 disadvantaged" means a person having an income of 125 percent or 
 less of the federal poverty income guidelines.  In determining 
 income, the federal Job Training Partnership Act definition of 
 family and family income will prevail. 

    (e)    Program.  "Program" means the hospitality host 
 older worker program created in subdivision 1. 

    (f)    Coordinating agency.  "Coordinating agency" means 
 the Arrowhead economic opportunity agency. 

    Subd. 3.    Distribution and use of state money.  Money 
 allocated to the coordinating agency by the commissioner must be 
 used for activities consistent with the objectives of the 
 program including, but not limited to:  outreach, selection of 
 eligible participants, program sites, individual work sites, 
 classroom training, on-the-job training opportunities, and 
 program marketing.  Program funds shall be used to provide 
 training-related costs to enrollees during orientation and 
 classroom training segments.  Program funds shall be used to 
 subsidize up to 50 percent of enrollee wages during contracted 
 on-the-job training periods with the employer being responsible 
 for the remainder.  Salaries upon employment shall be at least 
 the state or federal minimum wage, whichever is higher. 

    Subd. 4.    Responsibilities of coordinating agency.  
 The commissioner shall enter into written agreement with the 
 coordinating agency for the design, delivery, and general 
 administration of the program.  The commissioner shall set 
 program goals and objectives and monitor the program. 

    Subd. 5.    Reports.  The coordinating agency shall 
 submit an annual report to the commissioner one year from the 
 effective date of Laws 1989, chapter 282, and annually 
 thereafter.  In addition, the coordinating agency shall submit 
 to the commissioner such other reports as required to document 
 the status and progress of the program.  The annual report must 
 include:  information on the number and types of jobs created; 
 status of program sites; wages paid program participants; types 
 of services provided by programs; the retention of program 
 participants; and other information to assess the progress and 
 status of the program. 

    HIST: 1989 c 282 art 2 s 176; 1994 c 483 s 1 

     268.975 Definitions. 

    Subdivision 1.    Terms.  For the purposes of sections 
 268.975 to 268.98, the following terms have the meanings given 
 them. 

    Subd. 2.    Commissioner.  "Commissioner" means the 
 commissioner of economic security. 

    Subd. 3.    Dislocated worker.  "Dislocated worker" 
 means an individual who is a resident of Minnesota at the time 
 employment ceased or was working in the state at the time 
 employment ceased and: 

    (1) has been terminated or who has received a notice of 
 termination from public or private sector employment, is 
 eligible for or has exhausted entitlement to unemployment 
 benefits, and is unlikely to return to the previous industry or 
 occupation; 

    (2) has been terminated or has received a notice of 
 termination of employment as a result of any plant closing or 
 any substantial layoff at a plant, facility, or enterprise; 

    (3) has been long-term unemployed and has limited 
 opportunities for employment or reemployment in the same or a 
 similar occupation in the area in which the individual resides, 
 including older individuals who may have substantial barriers to 
 employment by reason of age; 

    (4) has been self-employed, including farmers and ranchers, 
 and is unemployed as a result of general economic conditions in 
 the community in which the individual resides or because of 
 natural disasters, subject to rules to be adopted by the 
 commissioner; or 

    (5) has been self-employed as a farmer or rancher and, even 
 though that employment has not ceased, has experienced a 
 significant reduction in income due to inadequate crop or 
 livestock prices, crop failures, or significant loss in crop 
 yields due to pests, disease, adverse weather, or other natural 
 phenomenon.  This clause expires July 31, 2003. 

    Subd. 3a.    Additional dislocated worker.  "Additional 
 dislocated worker" means an individual who was a full-time 
 homemaker for a substantial number of years and derived the 
 substantial share of support from: 

    (1) a spouse and no longer receives such support due to the 
 death, divorce, permanent disability of, or permanent separation 
 from the spouse; or 

    (2) public assistance on account of dependents in the home 
 and no longer receives such support. 

    An additional dislocated worker must have resided in 
 Minnesota at the time the support ceased. 

    Subd. 4.    Eligible organization.  "Eligible 
 organization" means a local government unit, nonprofit 
 organization, community action agency, business organization or 
 association, or labor organization. 

    Subd. 5.    Local government unit.  "Local government 
 unit" means a statutory or home rule charter city, county, or 
 town. 

    Subd. 6.    Plant closing.  "Plant closing" means the 
 announced or actual permanent shutdown of a single site of 
 employment, or one or more facilities or operating units within 
 a single site of employment. 

    Subd. 7.    Prefeasibility study grant.  "Prefeasibility 
 study grant" means the grant awarded under section 268.978. 

    Subd. 8.    Substantial layoff.  "Substantial layoff" 
 means a permanent reduction in the work force, which is not a 
 result of a plant closing, and which results in an employment 
 loss at a single site of employment during any 30-day period for 
 at least 50 employees excluding those employees that work less 
 than 20 hours a week. 

    Subd. 9.    Substate grantee.  "Substate grantee" means 
 the agency or organization designated to administer at the local 
 level federal dislocated worker programs pursuant to the federal 
 Job Training Partnership Act, United States Code, title 29, 
 section 1501, et seq. 

    Subd. 10.    Worker adjustment services.  "Worker 
 adjustment services" means the array of employment and training 
 services designed to assist dislocated workers make the 
 transition to new employment, including basic readjustment 
 assistance, training assistance, and support services. 

    Subd. 11.    Basic readjustment assistance.  "Basic 
 readjustment assistance" means employment transition services 
 that include, but are not limited to:  development of individual 
 readjustment plans for participants; outreach and intake; early 
 readjustment; job or career counseling; testing; orientation; 
 assessment, including evaluation of educational attainment and 
 participant interests and aptitudes; determination of 
 occupational skills; provision of occupational information; job 
 placement assistance; labor market information; job clubs; job 
 search; job development; prelayoff assistance; relocation 
 assistance; and programs conducted in cooperation with employers 
 or labor organizations to provide early intervention in the 
 event of plant closings or substantial layoffs. 

    Subd. 12.    Training assistance.  "Training assistance" 
 means services that will enable a dislocated worker to become 
 reemployed by retraining for a new occupation or industry, 
 enhancing current skills, or relocating to employ existing 
 skills.  Training services include, but are not limited to:  
 classroom training; occupational skill training; on-the-job 
 training; out-of-area job search; relocation; basic and remedial 
 education; literacy and English for training non-English 
 speakers; entrepreneurial training; and other appropriate 
 training activities directly related to appropriate employment 
 opportunities in the local labor market. 

    Subd. 13.    Support services.  "Support services" means 
 assistance provided to dislocated workers to enable their 
 participation in an employment transition and training program.  
 Services include, but are not limited to:  family care 
 assistance, including child care; commuting assistance; housing 
 and rental assistance; counseling assistance, including personal 
 and financial; health care; emergency health assistance; 
 emergency financial assistance; work-related tools and clothing; 
 and other appropriate support services that enable a person to 
 participate in an employment and training program. 

    HIST: 1986 c 444; 1989 c 282 art 2 s 177; 1991 c 292 art 3 s 
 35,36; 1993 c 369 s 91-100; 1994 c 483 s 1; 1994 c 488 s 8; 1999 
 c 107 s 66; 2000 c 343 s 4; 2000 c 481 s 1 

  268.9755 Repealed, 1995 c 131 s 3 

     268.976 Early warning system. 

    Subdivision 1.    Early warning indicators.  The 
 commissioner, in cooperation with the commissioners of revenue 
 and trade and economic development, shall establish and oversee 
 an early warning system to identify industries and businesses 
 likely to experience large losses in employment including a 
 plant closing or a substantial layoff, by collecting and 
 analyzing information which may include, but not be limited to, 
 products and markets experiencing declining growth rates, 
 companies and industries subject to competition from production 
 in low wage counties, changes in ownership, layoff and 
 employment patterns, payments of unemployment contributions, and 
 state tax payments.  The commissioner may request the assistance 
 of businesses, business organizations, and trade associations in 
 identifying businesses, industries, and specific establishments 
 that are likely to experience large losses in employment.  The 
 commissioner may request information and other assistance from 
 other state agencies for the purposes of this subdivision. 

    Subd. 2.    Notice.  (a) The commissioner shall 
 encourage those business establishments considering a decision 
 to effect a plant closing, substantial layoff, or relocation of 
 operations located in this state to give notice of that decision 
 as early as possible to the commissioner, the employees of the 
 affected establishment, any employee organization representing 
 the employees, and the local government unit in which the 
 affected establishment is located.  This notice shall be in 
 addition to any notice required under the Worker Adjustment and 
 Retraining Notification Act, United States Code, title 29, 
 section 2101. 

    (b) Notwithstanding section 268.975, subdivision 6, for 
 purposes of this section, "plant closing" means the announced or 
 actual permanent or temporary shutdown of a single site of 
 employment, or one or more facilities or operating units within 
 a single site of employment, if the shutdown results in an 
 employment loss at the single site of employment during any 
 30-day period for 50 or more employees excluding employees who 
 work less than 20 hours per week.  

    Subd. 3.    Employer responsibility.  An employer 
 providing notice of a plant closing, substantial layoff, or 
 relocation of operations under the Worker Adjustment and 
 Retraining Notification Act, United States Code, title 29, 
 section 2101, or under subdivision 2 must report to the 
 commissioner the names, addresses, and occupations of the 
 employees who will be or have been terminated. 

    HIST: 1989 c 282 art 2 s 178; 1993 c 369 s 102; 1994 c 488 s 
 8; 1999 c 107 s 66; 2000 c 343 s 4 

  268.977 Repealed, 1993 c 369 s 146 

     268.9771 Rapid and expeditious response. 

    Subdivision 1.    Responsibility.  The commissioner 
 shall respond quickly and effectively to announced or actual 
 plant closings and substantial layoffs.  Affected workers and 
 employers, as well as appropriate business organizations or 
 associations, labor organizations, substate grantees, state and 
 local government units, and community organizations shall be 
 assisted by the commissioner through either rapid response 
 activities or expeditious response activities as described in 
 this section to respond effectively to a plant closing or mass 
 layoff. 

    Subd. 2.    Coverage.  Rapid response is to be provided 
 by the commissioner where permanent plant closings or 
 substantial layoffs affect at least 50 workers over a 30-day 
 period as evidenced by actual separation from employment or by 
 advance notification of a closing or layoff.  Expeditious 
 response is to be provided by worker adjustment services plan 
 grantees in coordination with rapid response activities or where 
 permanent plant closings and substantial layoffs are not 
 otherwise covered by rapid response. 

    Subd. 3.    Coordination.  The commissioner and 
 expeditious response grantees shall coordinate their respective 
 rapid response and expeditious response activities.  The roles 
 and responsibilities of each shall be detailed in written 
 agreements and address on-site contact with employer and 
 employee representatives when notified of a plant closing or 
 substantial layoff.  The activities include formation of a 
 community task force, collecting and disseminating information 
 related to economic dislocation and available services to 
 dislocated workers, providing basic readjustment assistance 
 services to workers affected by a plant closure or substantial 
 layoff, conducting a needs assessment survey of workers, and 
 developing a plan of action responsive to the worker adjustment 
 services needs of affected workers. 

    Subd. 4.    Rapid response activities.  The commissioner 
 shall be responsible for implementing the following rapid 
 response activities: 

    (1) establishing on-site contact with employer and employee 
 representatives within a short period of time after becoming 
 aware of a current or projected plant closing or substantial 
 layoff in order to: 

    (i) provide information on and facilitate access to 
 available public programs and services; and 

    (ii) provide emergency assistance adapted to the particular 
 closure or layoff; 

    (2) promoting the formation of a labor-management committee 
 by providing: 

    (i) immediate assistance in the establishment of the 
 labor-management committee; 

    (ii) technical advice and information on sources of 
 assistance, and liaison with other public and private services 
 and programs; and 

    (iii) assistance in the selection of worker representatives 
 in the event no union is present; 

    (3) collecting and disseminating information related to 
 economic dislocation, including potential closings or layoffs, 
 and all available resources with the state for dislocated 
 workers; 

    (4) providing or obtaining appropriate financial and 
 technical advice and liaison with economic development agencies 
 and other organizations to assist in effort to avert 
 dislocations; 

    (5) disseminating information throughout the state on the 
 availability of services and activities carried out by the 
 dislocated worker unit; 

    (6) assisting the local community in developing its own 
 coordinated response to a plant closing or substantial layoff 
 and access to state economic development assistance; and 

    (7) promoting the use of prefeasibility study grants under 
 section 268.978. 

    Subd. 5.    Expeditious response activities.  Grantees 
 designated to provide worker adjustment services through worker 
 adjustment services plans shall be responsible for implementing 
 the following expeditious response activities: 

    (1) establishing on-site contact with employer and employee 
 representatives, not otherwise covered under rapid response, 
 within a short period of time after becoming aware of a current 
 or projected plant closing or mass layoff in order to provide 
 information on available public programs and services; 

    (2) obtaining appropriate financial and technical advice 
 and liaison with local economic development agencies and other 
 organizations to assist in efforts to avert dislocations; 

    (3) disseminating information on the availability of 
 services and activities carried out by the grantee through its 
 worker adjustment services plan; 

    (4) providing basic readjustment assistance services for up 
 to 90 days following the initial on-site meeting with the 
 employer and employee representatives; 

    (5) assisting the local community in the development of its 
 own coordinated response to the closure or layoff and access to 
 economic development assistance; 

    (6) facilitating the formation of a community task force, 
 if appropriate, to formulate a service plan to assist affected 
 dislocated workers from plant closings and mass layoffs; 

    (7) conducting surveys of workers, if appropriate, affected 
 by plant closings or layoffs to identify worker characteristics 
 and worker adjustment service needs; and 

    (8) facilitating access to available public or private 
 programs and services, including the development of proposals to 
 provide access to additional resources to assist workers 
 affected by plant closings and substantial layoffs. 

    HIST: 1993 c 369 s 103 

     268.978 Prefeasibility studies. 

    Subdivision 1.    Prefeasibility study grants.  (a) The 
 commissioner may make grants for up to $15,000 to eligible 
 organizations to provide an initial assessment of the 
 feasibility of alternatives to plant closings or substantial 
 layoffs.  The alternatives may include employee ownership, other 
 new ownership, new products or production processes, or public 
 financial or technical assistance to keep a plant open.  Two or 
 more eligible organizations may jointly apply for a grant under 
 this section. 

    (b) Interested organizations shall apply to the 
 commissioner for the grants.  As part of the application 
 process, applicants must provide a statement of need for a 
 grant, information relating to the work force at the plant, the 
 area's unemployment rate, the community's and surrounding area's 
 labor market characteristics, information of efforts to 
 coordinate the community's response to the plant closing or 
 substantial layoff, a timetable of the prefeasibility study, a 
 description of the organization applying for the grant, a 
 description of the qualifications of persons conducting the 
 study, and other information required by the commissioner. 

    (c) The commissioner shall respond to the applicant within 
 five working days of receiving the organization's application.  
 The commissioner shall inform each organization that applied for 
 but did not receive a grant the reasons for the grant not being 
 awarded.  The commissioner may request further information from 
 those organizations that did not receive a grant, and the 
 organization may reapply for the grant. 

    Subd. 2.    Prefeasibility study.  (a) The 
 prefeasibility study must explore the current and potential 
 viability, profitability, and productivity of the plant that may 
 close or experience a substantial layoff and alternative uses 
 for the plant.  The study is not intended to be a major 
 examination of each possible alternative but rather is meant to 
 quickly determine if further action or examination is feasible 
 and should be fully explored. 

    (b) The prefeasibility study must contain: 

    (1) a description of the plant's present products, 
 production techniques, management structure, and history; 

    (2) a brief discussion of the feasibility of the various 
 alternatives for ownership, production technique, and products; 

    (3) an estimate of the financing required to keep the plant 
 open and the potential sources of that financing; 

    (4) a description of the employer's, employees', and 
 community's efforts to maintain the operation of the plant; and 

    (5) other information the commissioner may require. 

    Subd. 3. Repealed, 1993 c 369 s 146 

    HIST: 1989 c 282 art 2 s 180; 1993 c 369 s 104 

     268.9781 Worker adjustment services plans. 

    Subdivision 1.    Worker adjustment services plans.  The 
 commissioner shall establish and fund worker adjustment services 
 plans that are designed to assist dislocated workers in their 
 transition to new employment.  Authorized grantees shall submit 
 a worker adjustment services plan biennially, with an annual 
 update, in a form and manner prescribed by the commissioner.  
 The worker adjustment services plan shall include information 
 required in substate plans established under the federal Job 
 Training Partnership Act, United States Code, title 29, section 
 1501, et seq. and a detailed description of expeditious response 
 activities to be implemented under the plan.  

    Subd. 2.    Grantees.  Entities authorized to submit a 
 worker adjustment services plan include substate grantees and up 
 to six additional eligible organizations.  Criteria for 
 selecting the six authorized nonsubstate grantee eligible 
 organizations shall be established by the commissioner, in 
 consultation with the workforce development council.  The 
 criteria include, but are not limited to: 

    (1) the capacity to deliver worker adjustment services; 

    (2) an identifiable constituency from which eligible 
 dislocated workers may be drawn; 

    (3) a demonstration of a good faith effort to establish 
 coordination agreements with substate grantees in whose 
 geographic area the organization would be operating; 

    (4) the capability to coordinate delivery of worker 
 adjustment services with other appropriate programs and 
 agencies, including educational institutions, employment 
 service, human service agencies, and economic development 
 agencies; and 

    (5) sufficient administrative controls to ensure fiscal 
 accountability. 

    Subd. 3.    Coverage.  (a) Persons eligible to receive 
 worker adjustment services under this section include dislocated 
 workers as defined in section 268.975, subdivision 3. 

    (b) Worker adjustment services available under this section 
 shall also be available to additional dislocated workers as 
 defined in section 268.975, subdivision 3a, when they can be 
 provided without adversely affecting delivery of services to all 
 dislocated workers. 

    Subd. 4.    Substate grantee funding.  (a) Funds 
 allocated to substate grantees under section 268.022 for 
 expeditious response activities and worker adjustment services 
 under this section shall be allocated as follows: 

    (1) one-half of available funds shall be allocated to 
 substate grantees based on an allocation formula prescribed by 
 the commissioner, in consultation with the workforce development 
 council; and 

    (2) one-half of available funds shall be allocated based on 
 need as demonstrated to the commissioner in consultation with 
 the workforce development council. 

    (b) The formula for allocating substate grantee funds must 
 utilize the most appropriate information available to the 
 commissioner to distribute funds in order to address the state's 
 worker adjustment assistance needs.  Information for the formula 
 allocation may include, but is not limited to:  

    (1) insured unemployment data; 

    (2) dislocated worker special assessment receipts data; 

    (3) small plant closing data; 

    (4) declining industries data; 

    (5) farmer-rancher economic hardship data; and 

    (6) long-term unemployment data. 

    (c) The commissioner shall establish a uniform procedure 
 for reallocating substate grantee funds.  The criteria for 
 reallocating funds from substate grantees not expending their 
 allocations consistent with their worker adjustment services 
 plans to other substate grantees shall be developed by the 
 commissioner in consultation with the workforce development 
 council. 

    HIST: 1993 c 369 s 105; 1995 c 131 s 2; 1Sp1995 c 3 art 4 s 30 

     268.9782 Dislocation event services grants. 

    Subdivision 1.    Dislocation event services grants.  
 The commissioner shall establish and fund dislocation event 
 services grants designed to provide worker adjustment services 
 to workers displaced as a result of larger plant closings and 
 substantial layoffs.  Grantees shall apply for a dislocation 
 event services grant by submitting a proposal to the 
 commissioner in a form and manner prescribed by the 
 commissioner.  The application must describe the demonstrated 
 need for intervention, including the need for retraining, the 
 workers to be served, the coordination of available local 
 resources, the services to be provided, and the budget plan. 

    Subd. 2.    Grantees.  (a) Entities authorized to submit 
 dislocation event services grants include substate grantees and 
 other eligible organizations.  Nonsubstate grantees shall 
 demonstrate they meet criteria established by the commissioner, 
 in consultation with the workforce development council.  The 
 criteria include, but are not limited to: 

    (1) the capacity to deliver worker adjustment services; 

    (2) an ability to coordinate its activities with substate 
 grantees in whose geographic area the organization will be 
 operating; 

    (3) the capability to coordinate delivery of worker 
 adjustment services with other appropriate programs and 
 agencies, including educational institutions, employment 
 service, human service agencies, and economic development 
 agencies; and 

    (4) sufficient administrative controls to ensure fiscal 
 accountability. 

    (b) For purposes of this section, the state job service may 
 apply directly to the commissioner for a dislocation event 
 services grant only if the effect of a plant closing or 
 substantial layoff is statewide or results in the termination 
 from employment of employees of the state of Minnesota. 

    Subd. 3.    Coverage.  Persons who may receive worker 
 adjustment services under this section are limited to dislocated 
 workers affected by plant closings and substantial layoffs 
 involving at least 50 workers from a single employer. 

    Subd. 4.    Funding.  The commissioner, in consultation 
 with the workforce development council, may establish an 
 emergency funding process for dislocation event services 
 grants.  No more than 20 percent of the estimated budget of the 
 proposed grant may be awarded through this procedure.  The 
 grantee shall submit a formal dislocation event services grant 
 application within 90 days of the initial award of emergency 
 funding. 

    HIST: 1993 c 369 s 106; 1995 c 131 s 2; 1Sp1995 c 3 art 4 s 30 

     268.9783 Retraining and targeted training grants. 

    Subdivision 1.    Established.  The commissioner may 
 make grants to substate grantees or other eligible organizations 
 designed to provide for the employment of dislocated workers or 
 targeted training assistance to workers at risk of dislocation.  
 The focus of the grants must be on the provision of skill-based 
 training required by the worker's employer or prospective 
 employer.  The grants must be developed to meet the worker 
 training needs of employers individually or together.  Two or 
 more organizations may jointly apply for a grant. 

    Subd. 2.    Retraining grants.  An organization 
 interested in applying for a grant to retrain workers who are at 
 risk of becoming dislocated workers must apply to the 
 commissioner.  As part of the application process, an applicant 
 must provide: 

    (1) a statement of need that identifies the causes 
 contributing to the workers being at risk of dislocation, the 
 prospects for reemployment of the workers in the employer's 
 industry or the worker's occupation, and the employer's past 
 record of permanently laying off workers; 

    (2) a description of the current skill level of the workers 
 targeted for training and the skills needed by the workers to 
 significantly reduce their vulnerability to becoming displaced 
 from employment; 

    (3) a description of the actions and investments made and 
 planned by the employer to avert or minimize worker dislocation, 
 including the adoption of high performance workplace and worker 
 participation systems and practices; 

    (4) a training plan that details who will receive training, 
 the type and scope of training assistance to be provided to 
 workers, the providers of the training, and any impact on worker 
 wages; 

    (5) evidence that the proposal has the support and 
 involvement of labor; and 

    (6) any other relevant information the commissioner 
 requires in the grant application. 

    Subd. 3.    Targeted training grants.  An organization 
 interested in applying for a grant to target training for 
 dislocated workers being hired by an employer must apply to the 
 commissioner.  As part of the application process, applicants 
 must provide: 

    (1) a statement of need; 

    (2) a description of local labor market characteristics, 
 including the area's unemployment rate, types of workers 
 available to be employed in terms of occupation, and the local 
 availability of workers in the industry of the employer or 
 employers; 

    (3) a description of the actions and investments made and 
 planned by the employer or employers to create and retain jobs, 
 including past employment history, wages paid for the same or 
 similar work, and whether high performance workplace and worker 
 participation systems and practices have been adopted; 

    (4) a description of the type of work to be performed, the 
 work-related skills needed, projected wages, and the target 
 group of workers requiring the training assistance; 

    (5) a training plan that details who will receive training, 
 the type and scope of training assistance to be provided 
 workers, and the providers of the training; 

    (6) evidence that the proposal has the support and 
 involvement of labor; and 

    (7) any other relevant information the commissioner 
 requires in the grant application. 

    Subd. 4.    Criteria.  The criteria used to award 
 targeted training grants must include the severity of need, the 
 target group of workers, training assistance, worker wages, 
 utilization of resources, cost-effectiveness, grantee management 
 capability, and other considerations adopted by the commissioner.

    Subd. 5.    Coverage.  Persons eligible to receive 
 retraining assistance under this section include workers at risk 
 of dislocation from employment and dislocated workers as defined 
 in section 268.975, subdivision 3.  Workers are considered to be 
 at risk of dislocation as evidenced by a pattern of worker 
 layoffs from an employer, a pattern of substantial layoffs or 
 plant closures in the same or related industry, or where worker 
 skills needed by the employer have become obsolete due to 
 advances in technology. 

    Subd. 6.    Funding.  The commissioner may award 
 retraining and targeted training grants, if approved by the 
 workforce development council, through a request for proposal 
 process if:  

    (1) employers benefiting from a retraining and targeted 
 training grant provide a match of at least one for one that may 
 be in the form of funding, equipment, staff, instructors, and 
 work release time for workers enrolled in training; 

    (2) employers benefiting from a retraining and targeted 
 training grant to retrain workers at risk of dislocation 
 maintain their past rate of expenditure from other sources for 
 that training during the grant period; and 

    (3) employers benefiting from a retraining and targeted 
 training grant to train new workers do not have workers in 
 layoff status, unless it can be documented the layoff is 
 temporary or seasonal. 

    Subd. 7.    Limitation.  No more than five percent of 
 the amount available under section 268.022, subdivision 2, 
 paragraph (e), may be used for the grants authorized under this 
 section.  The funds must be used from the allocation under 
 section 268.022, subdivision 2, paragraph (e), clause (2). 

    Subd. 8. Repealed, 1996 c 452 s 40; 1996 c 460 art 2 s 3 

    HIST: 1994 c 632 art 4 s 68; 1995 c 131 s 2; 1Sp1995 c 3 art 4 
 s 30 

     268.979 Dislocated worker coordination. 

    The commissioner shall coordinate the actions taken by 
 state agencies and public post-secondary educational 
 institutions to respond to or address the specific needs of 
 dislocated workers and to provide services to dislocated workers 
 including education and retraining.  The commissioner shall also 
 assist local government units, community groups, business 
 associations or organizations, labor organizations, and others 
 in coordinating their efforts in providing services to 
 dislocated workers. 

    HIST: 1989 c 282 art 2 s 181 

     268.98 Performance standards, reporting, cost 
  limitations. 

    Subdivision 1.    Performance standards.  The 
 commissioner shall establish performance standards for the 
 programs and activities administered or funded under sections 
 268.975 to 268.98.  The commissioner may use, when appropriate, 
 existing federal performance standards or, if the commissioner 
 determines that the federal standards are inadequate or not 
 suitable, may formulate new performance standards to ensure that 
 the programs and activities of the dislocated worker program are 
 effectively administered. 

    The commissioner shall, at a minimum, establish performance 
 standards which appropriately gauge the program's effectiveness 
 at achieving the following objectives: 

    (1) placement of dislocated workers in employment; 

    (2) replacing lost income resulting from worker dislocation 
 from employment; 

    (3) early intervention with workers shortly after becoming 
 displaced from employment; and 

    (4) retraining of workers from one occupation or industry 
 to another. 

    The standards shall be applied to plans or grants 
 authorized under sections 268.9781, 268.9782, and 268.9783 and 
 for other activities the commissioner considers appropriate. 

    Subd. 2.    Reports.  (a) Grantees receiving funds under 
 sections 268.9771, 268.978, 268.9781, and 268.9782 shall report 
 to the commissioner information on program participants, 
 activities funded, and utilization of funds in a form and manner 
 prescribed by the commissioner. 

    (b) The commissioner shall report quarterly to the 
 workforce development council information on prefeasibility 
 study grants awarded, rapid response and expeditious response 
 activities, worker adjustment services plans, and dislocation 
 event services grants.  Specific information to be reported 
 shall be by agreement between the commissioner and the workforce 
 development council. 

    Subd. 3.    Cost limitations.  (a) For purposes of 
 sections 268.9781 and 268.9782, funds allocated to a grantee are 
 subject to the following limitations: 

    (1) a maximum of 15 percent for administration in a worker 
 adjustment services plan and ten percent in a dislocation event 
 services grant; 

    (2) a minimum of 50 percent for provision of training 
 assistance; 

    (3) a maximum of 15 percent may be allocated for support 
 services, as defined in section 268.975, subdivision 13; except, 
 that if the commissioner finds it essential for a specific grant 
 or plan the maximum that may be allocated for support services 
 is 20 percent; and 

    (4) the balance used for provision of basic readjustment 
 assistance. 

    (b) A waiver of the cost limitation on providing training 
 assistance may be requested.  The waiver may not permit less 
 than 30 percent of the funds be spent on training assistance. 

    (c) The commissioner shall prescribe the form and manner 
 for submission of an application for a waiver under paragraph 
 (b).  Criteria for granting a waiver shall be established by the 
 commissioner in consultation with the workforce development 
 council. 

    HIST: 1989 c 282 art 2 s 182; 1991 c 292 art 3 s 38; 1993 c 
 369 s 107; 1994 c 632 art 4 s 69; 1995 c 131 s 2; 1Sp1995 c 3 
 art 4 s 30; 1996 c 339 s 8; 1999 c 223 art 2 s 39; 2000 c 488 
 art 2 s 19