as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to reemployment insurance; making technical 1.3 changes; modifying procedures; complying with federal 1.4 requirements; modifying definitions; amending 1.5 Minnesota Statutes 1998, sections 268.035, 1.6 subdivisions 3, 4, 5, 6, 8, 12, 14, 15, 18, 20, 24, 1.7 30, 32, and by adding a subdivision; 268.042, 1.8 subdivision 3; 268.045; 268.047, subdivisions 1, 2, 3, 1.9 and 4; 268.048; 268.051, subdivisions 1, 2, 3, 4, 5, 1.10 and 8; 268.052; 268.053; 268.057, subdivisions 4 and 1.11 10; 268.058; 268.0625; 268.064; 268.065; 268.067; 1.12 268.068; 268.069; 286.07; 268.085; 268.095; 268.101; 1.13 268.103, by adding a subdivision; 268.105; 268.115; 1.14 268.125, subdivisions 1, 4, and 5; 268.135; 268.145; 1.15 268.155; 268.18; 268.182; 268.186; 268.188; 268.192, 1.16 subdivision 2; 268.194; 268.196; 268.198; 268.21; 1.17 268.23; and 268.30, subdivision 2; proposing coding 1.18 for new law in Minnesota Statutes, chapter 268; 1.19 repealing Minnesota Statutes 1998, sections 268.021; 1.20 and 268.057, subdivisions 8 and 9; Minnesota Rules, 1.21 parts 3305.0100; 3305.0200; 3305.0300; 3305.0400; 1.22 3305.0400; 3305.0500; 3305.0600; 3305.0700; 3305.0800; 1.23 3305.0900; 3305.1100; 3310.1500; 3310.1600; 3310.1700; 1.24 3310.1800; 3310.1900; 3310.2000; 3310.2100; 3310.2200; 1.25 3310.5100; and 3310.5800. 1.26 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.27 Section 1. [STATEMENT OF INTENT.] 1.28 Regardless of Minnesota Statutes, section 268.194, 1.29 subdivision 5, or any other provisions of law to the contrary, 1.30 in order to meet the requirements of section 5403 of the Federal 1.31 Balanced Budget Act of 1997, the distribution of excess Federal 1.32 Unemployment Tax Act funds under United States Code, title 42, 1.33 section 1103, also known as the Reed Act, with respect to 1.34 federal fiscal years ending in 1999, 2000, and 2001 (Minnesota's 1.35 portion being projected to be approximately $2,000,000 per year) 2.1 shall be used only for systems development for the reemployment 2.2 insurance program. 2.3 Sec. 2. Minnesota Statutes 1998, section 268.035, 2.4 subdivision 3, is amended to read: 2.5 Subd. 3. [BACK PAY.] "Back pay" means a retroactive 2.6 payment of money by an employer to an employee or former 2.7 employee for lost wagesbecause of the employer's noncompliance2.8with a state or federal law or a collective bargaining agreement2.9 as determined by an arbitration award, administrative or 2.10 judicial decision, or negotiated settlement.The payment shall2.11be applied to the period immediately following the last day of2.12employment or as specified in the award, decision, or settlement.2.13 Sec. 3. Minnesota Statutes 1998, section 268.035, 2.14 subdivision 4, is amended to read: 2.15 Subd. 4. [BASE PERIOD.] "Base period" means: 2.16 (1) the first four of the last five completed calendar 2.17 quarters immediately prior to the effective date of a claimant's 2.18reemployment insurancebenefit account; 2.19 (2) if during the base period under clause (1) a claimant 2.20 received workers' compensation for temporary disability under 2.21 chapter 176 or a similar law of the United States, or if a 2.22 claimant whose own serious illness caused a loss of work for 2.23 which the claimant received compensation for loss of wages from 2.24 some other source, the claimant may requestthat thea base 2.25 periodbe extendedas follows: 2.26 (i) if a claimant was compensated for a loss of work of 2.27 seven to 13 weeks, theoriginalbase period shall beextended to2.28includetheonefirst four of the last six completed calendar 2.29quarterquarters prior to theoriginal base periodeffective 2.30 date of the benefit account; 2.31 (ii) if a claimant was compensated for a loss of work of 14 2.32 to 26 weeks, theoriginalbase period shall beextended to2.33includethetwofirst four of the last seven completed calendar 2.34 quarters prior to theoriginal base periodeffective date of the 2.35 benefit account; 2.36 (iii) if a claimant was compensated for a loss of work of 3.1 27 to 39 weeks, theoriginalbase period shall beextended to3.2includethethreefirst four of the last eight completed 3.3 calendar quarters prior to theoriginal base periodeffective 3.4 date of the benefit account; and 3.5 (iv) if a claimant was compensated for a loss of work of 40 3.6 to 52 weeks, theoriginalbase period shall beextended to3.7includethe first four of the last nine completed calendar 3.8 quarters prior to theoriginal base periodeffective date of the 3.9 benefit account; 3.10 (3) if the claimant qualifies foran extendeda base period 3.11 under clause (2), but has insufficient wage credits to establish 3.12 areemployment insurancebenefit account, the claimant may 3.13 requestan alternatea base period of the last four completed 3.14 calendar quarters prior to the date the claimant'sreemployment3.15insurancebenefit account is effective. Thisalternatebase 3.16 period may be used only once during any five-calendar-year 3.17 period; and 3.18 (4) no base period under clause (1),extended base period3.19under clause(2), oralternate base period under clause(3) 3.20 shall include wage credits upon which a priorreemployment3.21insurancebenefit account was established. 3.22 Sec. 4. Minnesota Statutes 1998, section 268.035, 3.23 subdivision 5, is amended to read: 3.24 Subd. 5. [BENEFITS.] "Benefits" means the money 3.25 paymentspayableavailable to a claimant, as provided in3.26sections 268.03 to 268.23, with respect to the claimant's3.27unemployment. 3.28 Sec. 5. Minnesota Statutes 1998, section 268.035, 3.29 subdivision 6, is amended to read: 3.30 Subd. 6. [BENEFIT YEAR.] "Benefit year" means the period 3.31 of 52 calendar weeks beginning the date areemployment insurance3.32 benefit account is effective. For areemployment3.33insurancebenefit account established effective any January 1, 3.34 April 1, July 1,orOctober 1, or January 2, 2000, or October 2, 3.35 2011, the benefit year will be a period of 53 calendar weeks. 3.36 Sec. 6. Minnesota Statutes 1998, section 268.035, 4.1 subdivision 8, is amended to read: 4.2 Subd. 8. [CLAIMANT.] "Claimant" means an individual who 4.3 hasmadefiled an application fora reemployment insurance4.4accountbenefits and has established or isactivelypursuing the 4.5 establishment of areemployment insurancebenefit account. 4.6 Sec. 7. Minnesota Statutes 1998, section 268.035, 4.7 subdivision 12, is amended to read: 4.8 Subd. 12. [COVERED EMPLOYMENT.] "Covered employment" means 4.9 the following unlessdefinedexcluded as "noncovered employment" 4.10 under subdivision 20: 4.11 (1) an employee's entire employment if: 4.12 (i) the employment is performed entirely in Minnesota; 4.13 (ii) the employment is performed primarily in Minnesota, 4.14 and the employment performed outside Minnesota is incidental to 4.15 the employment in Minnesota; or 4.16 (iii) the employment is not performed primarily in any one 4.17 state but some of the employment is performed in Minnesota and 4.18 the base of operations or the place from which the employment is 4.19 directed or controlled is in Minnesota; or the base of 4.20 operations or place from which the employment is directed or 4.21 controlled is not in any state in which part of the employment 4.22 is performed, but the employee's residence is in Minnesota; 4.23 (2) an employee's employment wherever performed within the 4.24 United States or Canada, if: 4.25 (i) the employment is not covered under the reemployment 4.26 insurance law of any other state or Canada; and 4.27 (ii) the place from which the employment is directed or 4.28 controlled is in Minnesota; 4.29 (3) the employment of an employee who is a citizen of the 4.30 United States, performed outside the United States, except in 4.31 Canada, in the employ of an American employer if: 4.32 (i) the employer's principal place of business in the 4.33 United States is located in Minnesota; 4.34 (ii) the employer has no place of business in the United 4.35 States, but the employer is an individual who is a resident of 4.36 Minnesota, or the employer is a corporation that is organized 5.1 under the laws of Minnesota, or the employer is a partnership or 5.2 a trust and the number of partners or trustees who are residents 5.3 of Minnesota is greater than the number who are residents of any 5.4 one other state; 5.5 (iii) none of the criteria of subclauses (i) and (ii) is 5.6 met but the employer has elected coverage in Minnesota, or the 5.7 employer having failed to elect coverage in any state, a 5.8 claimant has made an application for benefits under section 5.9 268.07, based on the employment; 5.10 (iv) an "American employer," for the purposes of this 5.11 subdivision, means an individual who is a resident of the United 5.12 States, or a partnership if two-thirds or more of the partners 5.13 are residents of the United States, or a trust, if all of the 5.14 trustees are residents of the United States, or a corporation 5.15 organized under the laws of the United States, or of any state; 5.16 or 5.17 (v) as used in this subdivision, the term "United States" 5.18 includes the states, the District of Columbia, the Commonwealth 5.19 of Puerto Rico, and the Virgin Islands; 5.20 (4) all employment performed by an officer or member of the 5.21 crew of an American vessel on or in connection with the vessel, 5.22 if the operating office,from which the operations of the vessel 5.23 operating on navigable waters within, or within and without, the 5.24 United States are ordinarily and regularly supervised, managed, 5.25 directed, and controlled is in Minnesota; and 5.26 (5) for the purposes of satisfying disqualifications under 5.27 section 268.095, subdivision 10, "covered employment" shall 5.28 include covered employment under asimilarreemployment 5.29 insurance law of any other state or employment covered under a 5.30 reemployment insurancesystemprogram established by an act of 5.31 Congress; and5.32(6) periods for which an individual receives back pay are5.33periods of "covered employment," except for the satisfying of5.34disqualifications under section 268.095, subdivision 10. 5.35 Sec. 8. Minnesota Statutes 1998, section 268.035, 5.36 subdivision 14, is amended to read: 6.1 Subd. 14. [EMPLOYER.] "Employer" means any of the 6.2 following which has had one or more employees during the current 6.3 or the prior calendar year: 6.4 (1) any individual or type of organization, resident or 6.5 nonresident, for profit or nonprofit, religious, charitable, or 6.6 educational, including any partnership, limited liability 6.7 company, trust, estate, or corporation, domestic or foreign, or 6.8 the receiver, trustee in bankruptcy, trustee or successor of any 6.9 of the foregoing, or the legal representative of a deceased 6.10 person; 6.11 (2) any government entity, state or federal, foreign or 6.12 domestic, Indian tribe, including any subdivision thereof and 6.13 any instrumentality thereof owned wholly or in part; 6.14(3) any organization or person that is considered an6.15employer under United States Code, title 26, section 3306(a) of6.16the Federal Unemployment Tax Act;6.17(4)(3) any organization or person that has elected, under 6.18 section 268.042, to be subject to sections 268.03 to 268.23; 6.19(5)(4) a joint venture composed of one or more employers; 6.20(6)(5) anyprivate ornonprofit organization or government 6.21 agency providing or authorizing the hiring of homeworkers, 6.22 personal care attendants, or other individuals performing 6.23 similar services in a private home is the employer of the 6.24 homeworker, attendant, or similar worker whether 6.25 the organization or agency pays the employee directly or 6.26 provides funds to the recipient of the services to pay for the 6.27 services. This clause does not apply to the state of Minnesota 6.28 or any county that provides federal, state, or local funds to a 6.29 child care provider either directly or indirectly through a 6.30 parent who is a child care assistance recipient; or 6.31(7)(6) each individual employed to perform or assist in 6.32 performing the work of any agent or employee shall be considered 6.33 to be employed by that employer whether the individual was hired 6.34 or paid directly by that employer or by the agent or employee, 6.35 provided the employer had actual or constructive knowledge of 6.36 the work. 7.1 Sec. 9. Minnesota Statutes 1998, section 268.035, 7.2 subdivision 15, is amended to read: 7.3 Subd. 15. [EMPLOYMENT.] "Employment" means service 7.4 performed by: 7.5 (1) an individual who is considered an employee under the 7.6 common law of employer-employee and not considered an 7.7 independent contractor; 7.8 (2) an officer of a corporation; 7.9 (3) a member of a limited liability company who is 7.10 considered an employee under the common law of 7.11 employer-employee; or 7.12 (4) an individual who performs services for a person for 7.13 compensation, as: 7.14 (i) an agent-driver or commission-driver engaged in 7.15 distributing meat products, vegetable products, fruit products, 7.16 beverages, or laundry or dry cleaning services, for a principal; 7.17 or 7.18 (ii) a traveling or city salesperson, other than as an 7.19 agent-driver or commission-driver, engagedupon afull-time 7.20basisin the solicitation on behalf of, andthetransmission to,7.21a principal (except for sideline sales activities on behalf of7.22some otherperson), of orders from wholesalers, retailers, 7.23 contractors, or operators of hotels, restaurants, or other 7.24 similar establishments for merchandise for resale or supplies 7.25 for use in their business operations. 7.26 This clause shall apply only if the contract of service 7.27 provides that substantially all of the services are to be 7.28 performed personally by the individual, and the services are 7.29 part of a continuing relationship with the person for whom the 7.30 services are performed, and the individual does not have a 7.31 substantial investment in facilities used in connection with the 7.32 performance of the services(, other than facilities for 7.33 transportation); or7.34(5) an individual whose service is considered employment7.35under United States Code, title 26, section 3306(c), of the7.36Federal Unemployment Tax Act. 8.1 Sec. 10. Minnesota Statutes 1998, section 268.035, 8.2 subdivision 18, is amended to read: 8.3 Subd. 18. [FUND.] "Fund" means the Minnesota reemployment 8.4 insurance trust fund established by section 268.194. 8.5 Sec. 11. Minnesota Statutes 1998, section 268.035, 8.6 subdivision 20, is amended to read: 8.7 Subd. 20. [NONCOVERED EMPLOYMENT.] "Noncovered employment" 8.8 means: 8.9 (1) employment for the United States government or an 8.10 instrumentality thereof, including military service; 8.11 (2) employment for an Indian, an Indian-controlled 8.12 employer, and Indian tribe, or any wholly controlled 8.13 subsidiaries or subdivisions, if the employment is performed on 8.14 an Indian reservation or Indian Trust Land; 8.15 (3) employment for a state, other than Minnesota, or a 8.16 political subdivision or instrumentality thereof; 8.17 (4) employment for a foreign government; 8.18 (5) employment for an instrumentality wholly owned by a 8.19 foreign government, if the employment is of a character similar 8.20 to that performed in foreign countries by employees of the 8.21 United States government or an instrumentality thereof and the 8.22 United States Secretary of State has certified that the foreign 8.23 government grants an equivalent exemption to similar employment 8.24 performed in the foreign country by employees of the United 8.25 States government and instrumentalities thereof; 8.26 (6) employmentwith respect to which reemployment insurance8.27benefits are payable under a system established by an act of8.28Congresscovered under United States Code, title 45, section 8.29 351, the Railroad Unemployment Insurance Act; 8.30 (7) employment covered by a reciprocal arrangement between 8.31 the commissioner and another state or the federal government 8.32pursuant towhich provides that all employment performed by an 8.33 individual for an employer during the period covered by the 8.34 reciprocal arrangement is considered performed entirely within 8.35 another state; 8.36(8) employment for a religious, charitable, education, or9.1other organization described in United States Code, title 26,9.2section 501(c)(3) of the federal Internal Revenue Code and9.3exempt from income tax under section 501(a), but only if the9.4organization did not have one or more individuals in employment9.5for some portion of a day in each of 20 different weeks, whether9.6or not such weeks were consecutive, within either the current or9.7the prior calendar year, regardless of whether they were9.8employed at the same time;9.9(9)(8) employment for a church or convention or 9.10 association of churches, or an organization operated primarily 9.11 for religious purposes that is operated, supervised, controlled, 9.12 or principally supported by a church or convention or 9.13 association of churches described in United States Code, title 9.14 26, section 501(c)(3) of the federal Internal Revenue Code and 9.15 exempt from income tax under section 501(a); 9.16(10)(9) employment of a duly ordained, commissioned,or 9.17 licensed minister of a church in the exercise of a ministry or 9.18 by a member of a religious order in the exercise of duties 9.19 required by the order, for Minnesota or a political subdivision 9.20 or an organization described in United States Code, title 26, 9.21 section 501(c)(3) of the federal Internal Revenue Code and 9.22 exempt from income tax under section 501(a); 9.23(11)(10) employment of an individual receiving 9.24 rehabilitation of "sheltered" work in a facility conducted for 9.25 the purpose of carrying out a program of rehabilitation for 9.26 individuals whose earning capacity is impaired by age or 9.27 physical or mental deficiency or injury or a program providing 9.28 "sheltered" work for individuals who because of an impaired 9.29 physical or mental capacity cannot be readily absorbed in the 9.30 competitive labor market. This clause applies only to services 9.31 performed for Minnesota or a political subdivision or an 9.32 organization described in United States Code, title 26, section 9.33 501(c)(3) of the federal Internal Revenue Code and exempt from 9.34 income tax under section 501(a) in a facility certified by the 9.35 rehabilitation services branch of the department or in a day 9.36 training or habilitation program licensed by the department of 10.1 human services; 10.2(12)(11) employment of an individual receiving work relief 10.3 or work training as part of an unemployment work relief or work 10.4 training program assisted or financed in whole or in part by any 10.5 federal agency or an agency of a state or political subdivision 10.6 thereof. This clause applies only to employment for Minnesota 10.7 or a political subdivision or an organization described in 10.8 United States Code, title 26, section 501(c)(3) of the federal 10.9 Internal Revenue Code and exempt from income tax under section 10.10 501(a). This clause shall not apply to programs that require 10.11 reemployment insurance coverage for the participants; 10.12(13) employment in any calendar quarter for any10.13organization exempt from income tax under United States Code,10.14title 26, section 501(a) or 521 of the federal Internal Revenue10.15Code except a trust described in section 401(a), if the10.16compensation for the employment is less than $50;10.17(14)(12) employment for Minnesota or a political 10.18 subdivisionif the service isas an elected official, a member 10.19 of a legislative body, or a member of the judiciary; 10.20(15)(13) employment as a member of the Minnesota national 10.21 guard or air national guard; 10.22(16)(14) employment for Minnesota, a political 10.23 subdivision, or instrumentality thereof, as an employee serving 10.24 only on a temporary basis in case of fire,storm, snow,10.25earthquake,flood, tornado, or similar emergency; 10.26(17)(15) employment as an election official or election 10.27 worker for Minnesota or a political subdivision, but only if the 10.28 compensation for that employment was less than $1,000 in a 10.29 calendar year; 10.30(18)(16) employment for Minnesota that is a major 10.31nontenuredpolicy making or advisory position in the 10.32 unclassified service, including those positions established 10.33 pursuant to section 43A.08, subdivision 1a; 10.34(19) employment in a policy making position for Minnesota10.35or a political subdivision, the performance of the duties that10.36ordinarily does not require more than eight hours per week;11.1(20)(17) employment for a political subdivision of 11.2 Minnesota that is a nontenured majornontenuredpolicy making or 11.3 advisory position; 11.4(21)(18) domesticserviceemployment in a private 11.5 household, local college club, or local chapter of a college 11.6 fraternity or sorority performed for a person, only if the wages 11.7 paid in any calendar quarter in either the current or preceding 11.8 calendar year to all individualsemployedin domesticservice11.9 employment totaled less than $1,000. 11.10 "Domesticserviceemployment" includes all servicefor an11.11individualin the operation and maintenance of a private 11.12 household, for a local college club, or local chapter of a 11.13 college fraternity or sorority as distinguished from service as 11.14 an employee in the pursuit of an employer's trade, occupation,11.15profession, enterprise, or vocationor business; 11.16(22)(19) employment of an individual by a son, daughter, 11.17 or spouse, and employment of a child under the age of 18 by the 11.18 child's father or mother; 11.19(23)(20) employment of an inmate of a custodial or penal 11.20 institution; 11.21(24)(21) employment for a school, college, or university 11.22 by a student who is enrolled and is regularly attending classes 11.23 at the school, college, or university; 11.24(25)(22) employment of an individual who is enrolled as a 11.25 student in a full-time program at a nonprofit or public 11.26 educational institution thatnormallymaintains a regular 11.27 faculty and curriculum andnormallyhas a regularly organized 11.28 body of students in attendance at the place where its 11.29 educational activities are carried on, taken for credit at the 11.30 institution, that combines academic instruction with work 11.31 experience, if the employment is an integral part of the 11.32 program, and the institution has so certified to the employer, 11.33 except that this clause shall not apply to employment in a 11.34 program established for or on behalf of an employer or group of 11.35 employers; 11.36(26)(23) employment of university, college, or 12.1 professional school students in an internship or other training 12.2 program with the city of St. Paul or the city of Minneapolis 12.3 pursuant to Laws 1990, chapter 570, article 6, section 3; 12.4(27)(24) employment for a hospital by a patient of the 12.5 hospital. "Hospital" means an institution that has been 12.6 licensed, certified, or approvedby the department of health as 12.7 a hospital; 12.8(28)(25) employment as a student nurse for a hospital or a 12.9 nurses' training school by an individual who is enrolled and is 12.10 regularly attending classes inaan accredited nurses' training 12.11 schoolchartered and approved pursuant to state law; 12.12(29)(26) employment as an intern for a hospital by an 12.13 individual who has completed a four-year course inaan 12.14 accredited medical schoolchartered and approved pursuant to12.15state law; 12.16(30)(27) employment as an insuranceagent or as an12.17insurance solicitorsalesperson, by other than a corporate 12.18 officer, if all the compensation for the employment is solely by 12.19 way of commission. The word "insurance" shall include an 12.20 annuity and an optional annuity; 12.21(31)(28) employment as an officer of a township mutual 12.22 insurance company or farmer's mutual insurance company operating 12.23 pursuant to chapter 67A; 12.24(32)(29) employment as a real estate salesperson, by other 12.25 than a corporate officer, if all the compensation for the 12.26 employment is solely by way of commission; 12.27(33)(30) employment as a direct seller as defined in 12.28 United States Code, title 26, section 3508; 12.29(34)(31) employment of an individual under the age of 18 12.30 in the delivery or distribution of newspapers or shopping news, 12.31 not including delivery or distribution to any point for 12.32 subsequent delivery or distribution; 12.33(35)(32) casuallaboremployment performed for an 12.34 individual, other than domestic employment under clause (18), 12.35 that does notin the course of thepromote or advance that 12.36 employer's trade or business; 13.1(36)(33) employment in "agricultural employment" unless 13.2 considered "covered agricultural employment" under subdivision 13.3 11; or 13.4(37)(34) iftheemployment during one-half or more of any 13.5 pay periodconstituteswas covered employment, all the 13.6 employment for the pay period shall be considered covered 13.7 employment; but ifthe employment performedduring more than 13.8 one-half of any pay perioddoes not constitute coveredthe 13.9 employment was noncovered employment, thennoneall of the 13.10 employment for the pay period shall be consideredcovered13.11 noncovered employment. "Pay period" means a period of not more 13.12 than a calendar month for which a payment or compensation is 13.13 ordinarily made to the employee by the employer. 13.14 Sec. 12. Minnesota Statutes 1998, section 268.035, is 13.15 amended by adding a subdivision to read: 13.16 Subd. 21a. [REEMPLOYMENT ASSISTANCE TRAINING.] (a) A 13.17 claimant is in "reemployment assistance training" when: 13.18 (1) reasonable and suitable employment for the claimant 13.19 does not exist in the labor market area and it is necessary that 13.20 the claimant receive training in order to obtain suitable 13.21 employment; 13.22 (2) the curriculum, facilities, staff, and other essentials 13.23 are adequate to achieve the training objective; 13.24 (3) the training is vocational in nature or short term 13.25 academic training vocationally directed to an occupation or 13.26 skill for which there are reasonable employment opportunities 13.27 available to the claimant; 13.28 (4) the training course is considered full time by the 13.29 training provider; and 13.30 (5) the claimant is making satisfactory progress in the 13.31 training. 13.32 (b) Full-time training provided through the dislocated 13.33 worker program, the Trade Act of 1974, as amended, or the North 13.34 American Free Trade Agreement shall be considered "reemployment 13.35 assistance training," if that training course is in accordance 13.36 with the requirements of that program. 14.1 (c) A claimant will be considered in reemployment 14.2 assistance training only if the training course has actually 14.3 started or is scheduled to start within 30 calendar days. 14.4 Sec. 13. Minnesota Statutes 1998, section 268.035, 14.5 subdivision 24, is amended to read: 14.6 Subd. 24. [TAXABLE WAGES.] (a) "Taxable wages" means those 14.7 wages paid to an employee in covered employment each calendar 14.8 year up to an amount equal to 60 percent of the state's average 14.9 annual wage, rounded to the nearest$100$1,000. 14.10 (b) Taxable wages includes the amount of wages paid for 14.11 covered employment by the employer's predecessorin this state14.12or under the reemployment insurance law of any other state. Any14.13credit given for amounts reported under the reemployment14.14insurance law of another state shall be limited to that state's14.15taxable wage basewhen there has been an experience rating 14.16 record transfer under section 268.051, subdivision 4. 14.17 Sec. 14. Minnesota Statutes 1998, section 268.035, 14.18 subdivision 30, is amended to read: 14.19 Subd. 30. [WAGES PAID.] (a) "Wages paid" means the amount 14.20 of wageswhichthat have been actually paid orwhichthat have 14.21 been credited to or set apartfor the employeeso that payment 14.22 and disposition is under the control of the employee. Wage 14.23 payments delayed beyondtheirthe regularly scheduled pay date 14.24 are considered "actuallywages paid" on the missed pay 14.25 date. Back pay shall be considered "wages paid" on the date of 14.26 actual payment. Any wages earned but not paid with no scheduled 14.27 date of payment shall be considered "actuallywages paid" on the 14.28 last dayservices are performed inof employmentbefore14.29separation. 14.30 (b) Wages paid shall not include wages earned but not paid 14.31 except as provided for in this subdivision. 14.32 Sec. 15. Minnesota Statutes 1998, section 268.035, 14.33 subdivision 32, is amended to read: 14.34 Subd. 32. [WEEKLY BENEFIT AMOUNT.] "Weekly benefit amount" 14.35 means the amount of benefits computed under section 268.07,that14.36a claimant would be entitled to receive for a week, if totally15.1unemployed and eligiblesubdivision 2, paragraph (b). 15.2 Sec. 16. Minnesota Statutes 1998, section 268.042, 15.3 subdivision 3, is amended to read: 15.4 Subd. 3. [ELECTION AGREEMENTS; TERMINATIONPOWERS OF15.5COMMISSIONER.] (a)An organization or person, not defined as an15.6employer, that files with the commissioner a written election to15.7become an employer, shall, with the written approval of the15.8commissioner, become an employer for not less than two calendar15.9years to the same extent as all other employers, as of the date15.10stated in the approval. The organization or person shall cease15.11to be an employer as of the first day of January of any calendar15.12year, only, if at least 30 calendar days prior to the first day15.13of January, the organization or person has filed with the15.14commissioner a written notice to that effect.15.15(b)Any employer that hasservicesemployment performed for 15.16 it thatdodoes not constituteemployment andcovered 15.17 employment, may file with the commissioner a written election 15.18 that all suchserviceemployment, in one or more distinct 15.19 establishments or places of business, shall be considered 15.20 covered employment for not less than two calendar years. Upon 15.21 the written approval of the commissioner, the 15.22servicesemployment shall constitute covered employment from and 15.23 after the date stated in the approval. Theservicesemployment 15.24 shall cease to be considered covered employment as of the first 15.25 day of January of any calendar year only if at least 30 calendar 15.26 days prior to the first day of January the employer has filed 15.27 with the commissioner a written notice to that effect. 15.28(c)(b) The commissioner must terminate any election 15.29 agreement under this subdivision upon 30 calendar days' notice, 15.30 if the employer fails to pay all taxes due or payments in lieu 15.31 of taxes due the fund. 15.32 Sec. 17. Minnesota Statutes 1998, section 268.045, is 15.33 amended to read: 15.34 268.045 [EMPLOYER TAX OR REIMBURSABLE ACCOUNTS.] 15.35 (a) The commissioner shall maintain aseparatetax account 15.36 for each taxpaying employer and a reimbursable account for each 16.1 employer that is liable for payments in lieu of taxes if that 16.2 employer has employees in covered employment in the current or 16.3 the prior calendar year, except as provided in this section, and 16.4 shall charge the account for any benefits determined chargeable 16.5 to the employer under section 268.047 and shall credit the tax 16.6 account with all the taxes paid, or if the employer is liable 16.7 for payments in lieu of taxes, shall credit the reimbursable 16.8 account with the payments made. 16.9 (b) Two or more related corporations concurrently employing 16.10 the same employees and compensating those employees through a 16.11 common paymaster that is one of the corporations may apply to 16.12 the commissioner to establish a common paymaster tax account 16.13 that shall be the tax account of the common paymaster 16.14 corporation. If approved, the separate tax accounts shall be 16.15 maintained, but the employees compensated through the common 16.16 paymaster shall be reported as employees of the common paymaster 16.17 corporation. The corporations using the common paymaster tax 16.18 account shall be jointly and severally liable for any unpaid 16.19 taxes, penalties, and interest owing from the common 16.20 paymaster tax account. 16.21 (c) Two or more employers having 50 percent or more common 16.22 ownership and compensating employees through a single payer that 16.23 is one of the employers may apply to the commissioner for a 16.24 merging of the experience rating records of the employers into a 16.25 single joint tax account. 16.26 If approved, the joint tax account shall be effective on 16.27 that date assigned by the commissioner and shall remain in 16.28 effect for not less than two calendar years, and continuing 16.29 unless written notice terminating the joint tax account is filed 16.30 with the commissioner. The termination shall be effective on 16.31 January 1 next following the filing of the written notice of 16.32 termination. 16.33 The employers in the joint tax account shall be jointly and 16.34 severally liable for any unpaid taxes, penalties, and interest 16.35 owing from the joint tax account. 16.36 (d) Two or more employers that are liable for payments in 17.1 lieu of taxes may apply to the commissioner for the 17.2 establishment of a group reimbursable account for the purpose of 17.3 sharing the cost of benefits charged based upon wage credits 17.4 from all employers in the group. The application shall identify 17.5 and authorize a group representative to act as the group's agent 17.6 for the purposes of the reimbursable account. If approved, the 17.7 commissioner shall establish a group reimbursable account for 17.8 the employers effective as of the beginning of the calendar year 17.9 that the application is received. The reimbursable account 17.10 shall remain in effect for not less than two calendar years and 17.11 thereafter until terminated at the discretion of the 17.12 commissioner or upon application by the group at least 30 17.13 calendar days prior to the end of the two year period or 30 17.14 calendar days prior to January 1 of any following calendar 17.15 year. Each employer in the group shall be jointly and severally 17.16 liable for payments in lieu of taxes for all benefits paid based 17.17 upon wage credits from all employers in the group during the 17.18 period the group reimbursable account was in effect. 17.19 Sec. 18. Minnesota Statutes 1998, section 268.047, 17.20 subdivision 1, is amended to read: 17.21 Subdivision 1. [GENERAL RULE.] Benefits paid to a claimant 17.22pursuant to a reemployment insurance account, including 17.23 extended, additional, and shared work benefits, shall be charged 17.24 to the tax or reimbursable account of the claimant's base period 17.25 employer as and when paid except as provided in subdivisions 2 17.26 and 3. The amount of benefitschargeablecharged to each base 17.27 period employer's tax or reimbursable account shallbearbe the 17.28 sameratio topercentage of the total amount of benefits paidto17.29a claimantas the percentage of wage creditsthe claimant was17.30paid byfrom the employerbear tois of the total amount of wage 17.31 creditsthe claimant was paid byfrom all the claimant's base 17.32 period employers. 17.33 In making computations under this subdivision, the amount 17.34 of wage credits, if not amultiple of $1whole dollar, shall be 17.35 computed to the nearestmultiple of $1whole dollar. 17.36 Sec. 19. Minnesota Statutes 1998, section 268.047, 18.1 subdivision 2, is amended to read: 18.2 Subd. 2. [EXCEPTIONS TO CHARGES FOR ALL EMPLOYERS.] 18.3 Benefits paidto a claimantshall not be charged to the tax 18.4 account of a taxpaying base period employer or to 18.5 the reimbursable account of a base period employer that is 18.6 liable for payments in lieu of taxesunder the following18.7conditionswhen: 18.8 (1) the claimant was discharged from the employment because 18.9 ofgrossaggravated employment misconduct as determined under 18.10 section 268.095. Thisclauseexception shall apply only to 18.11 benefits paid forweeksperiods after the claimant's discharge 18.12 from employment;or18.13 (2) a claimant's discharge from that employmentwas18.14required byoccurred because a lawmandating a background check,18.15or the claimant's discharge from that employment wasrequiredby18.16law because of a criminal convictionremoval of the claimant 18.17 from the position the claimant held;or18.18 (3) the employer:18.19(i)provided regularly scheduled part-time employment to 18.20 the claimant during the claimant's base period;18.21(ii) during the claimant's benefit year,and continues to 18.22 provide the claimant with regularly scheduled part-time 18.23 employmentapproximatingduring the benefit year of at least 90 18.24 percent of the part-time employment providedthe claimant by18.25that employerin the base period,or forand is an involved 18.26 employer because of the claimant's loss of other employment. 18.27 This exception shall terminate effective the first week that the 18.28 employer fails to meet the benefit year employment requirements. 18.29 This exception shall apply to educational institutions without 18.30 consideration of the period between academic years or terms; 18.31 (4) the employer is a fire department or firefighting 18.32 corporation or operator of a life-support transportation 18.33 service, and continues to provide employment for the claimant as 18.34 a volunteer firefighter or a volunteer ambulance service 18.35 personnel during the benefit year on the same basis that 18.36 employment was provided in the base period;and19.1(iii) is an involved employer because of the claimant's19.2loss of other employment.TheThis exceptionto chargesshall 19.3 terminate effective the first weekin the claimant's benefit19.4yearthat the employer fails to meet theprovisions of subclause19.5(ii)benefit year employment requirements; 19.6This clause shall apply to educational institution19.7employers without consideration of the period between academic19.8years or terms; or19.9(4)(5) the claimant's unemployment from this employer was 19.10directly caused by a major natural disaster declared by the19.11president, if the claimant would have been eligible for federal19.12disaster unemployment assistance with respect to that19.13unemployment but for the claimant's receipt of reemployment19.14insurance benefits; or19.15(5) the claimant's unemployment from this employer was19.16directly caused bya direct result of the condemnation of 19.17 property by a governmental agency, a fire, flood, or act ofGod19.18 nature, where7025 percent or more of the employees employedin19.19 at the affected location, including the claimant, became 19.20 unemployed as a resultand the employer substantially reopens19.21its operations in that same area within 18 months.Benefits19.22 This exception shallbe charged to the employernot apply where 19.23 the unemploymentis caused bywas a direct result of thewillful19.24 intentional act of the employer or a person acting on behalf of 19.25 the employer;or19.26 (6) the benefits were paid by another state as a result of 19.27 the transferring of wage credits under a combined wage 19.28 arrangement provided for in section 268.131;or19.29 (7)on a second reemployment insurance account established19.30pursuant to section 268.07, subdivision 3, where the employer19.31provided 90 percent or more of the wage credits in the19.32claimant's prior base period and the claimant did not perform19.33services for the employer during the second base period; or19.34(8)the claimantleft or partially or totally lost19.35employmentstopped working because of astrike or otherlabor 19.36 dispute at the claimant's primary place of employment if the 20.1 employer was not a party to thestrike orlabor dispute; or 20.2(9)(8) the benefits were determined overpaid benefits 20.3 under section 268.18. 20.4 Sec. 20. Minnesota Statutes 1998, section 268.047, 20.5 subdivision 3, is amended to read: 20.6 Subd. 3. [EXCEPTIONS TO CHARGES FOR TAXPAYING EMPLOYERS.] 20.7 Benefits paidto a claimantshall not be charged to the tax 20.8 account of a taxpaying base period employerunder the following20.9conditionswhen: 20.10 (1) the claimant's wage credits from that employer are less 20.11 than $500; 20.12 (2) the claimant quit the employment, unless it was 20.13 determined under section 268.095, to have been because of a good 20.14 reason caused by the employer or because the employer notified 20.15 the claimant of discharge within 30 calendar days. Thisclause20.16 exception shall apply only to benefits paid for periods after 20.17 the claimant's quitting the employment; or 20.18 (3) the employer discharged the claimant from employment 20.19 because of employment misconduct as determined under section 20.20 268.095. Thisclauseexception shall apply only to benefits 20.21 paid for periods after the claimant's discharge from employment;. 20.22(4) the employer discharged the claimant from employment20.23because of reasons resulting directly from the claimant's20.24serious illness, that was determined not misconduct under20.25section 268.095, provided the employer made a reasonable effort20.26to retain the claimant in employment in spite of the claimant's20.27serious illness; or20.28(5) the claimant avoided or failed to accept an offer from20.29the employer of suitable reemployment, as determined under20.30section 268.095, or avoided or failed to accept an offer of20.31reemployment with substantially the same or better hourly wages20.32and conditions of employment as were previously provided by that20.33employer. This clause shall only apply to benefits paid for20.34periods after the claimant's refusal or avoidance.20.35(6) the claimant was held not disqualified from benefits20.36under section 268.095 solely because of the application of21.1section 268.105, subdivision 3a, paragraph (d).21.2 Sec. 21. Minnesota Statutes 1998, section 268.047, 21.3 subdivision 4, is amended to read: 21.4 Subd. 4. [FEDERAL REIMBURSED BENEFITS NOT CHARGED.] 21.5NotwithstandingRegardless of subdivision 1, no employer's 21.6 account shall be charged for benefits for which thereemployment21.7insurancefund is reimbursed by the federal government. 21.8 Sec. 22. Minnesota Statutes 1998, section 268.048, is 21.9 amended to read: 21.10 268.048 [BENEFITS NOT CHARGED IN WELFARE-TO-WORK.] 21.11 (a) The commissioner shall, prior to computing a tax rate, 21.12 remove benefit charges from the tax account of a taxpaying 21.13 employer if the claimant to whom those benefits were paid was: 21.14 (1) a primary wage earner who was a recipient of cash 21.15 benefits under a Minnesota welfare program in the calendar 21.16 quarter or immediately preceding calendar quarter that wages 21.17 were first paid by that employer; 21.18 (2) paid wages by that employer in no more than two 21.19 calendar quarters; and 21.20 (3) paid wages by that employer of less than $3,000. 21.21 (b)This section shall only apply to benefit charges21.22accruing after July 1, 1997.Paragraph (a), clauses (2) and 21.23 (3), shall apply to any calendar quarter and is not limited to 21.24 quarters in the claimant's base period. 21.25(c)If the commissioner finds that an employer discharged 21.26 the claimant, or engaged in the employment practice of 21.27 discharging workers, in order to meet the requirements of 21.28 paragraph (a), clauses (2) and (3), this section shall not 21.29 apply. In addition, the employer's action shall constitute 21.30 employer misconduct and the penalties under section 268.184 21.31 shall be assessed. 21.32 Sec. 23. Minnesota Statutes 1998, section 268.051, 21.33 subdivision 1, is amended to read: 21.34 Subdivision 1. [PAYMENTS.] (a) Taxes shall accrue and 21.35 become payable by each employer for each calendar year that the 21.36 employer paid wages to employees in covered employment, except 22.1 for: 22.2 (1) nonprofitcorporationsorganizations that elect to make 22.3 payments in lieu of taxes as provided in section 268.053; and 22.4 (2) the state of Minnesota and political subdivisions, 22.5 unless they elect to pay taxes as provided in section 268.052. 22.6 Each employer shall pay taxes quarterly, at the employer's 22.7 assigned tax rate, on the taxable wages paid to each employee. 22.8 The taxes shall be paid to the fund on or before the last day of 22.9 the month following the end of the calendar quarter. 22.10 (b) The tax may be paid in an amount to the nearest whole 22.11 dollar. 22.12 (c) When the tax for any calendar quarter is less than $1, 22.13 the tax shall be disregarded. 22.14 Sec. 24. Minnesota Statutes 1998, section 268.051, 22.15 subdivision 2, is amended to read: 22.16 Subd. 2. [COMPUTATION OF TAX RATES.] (a) For each calendar 22.17 year the commissioner shall compute the tax rate of 22.18 each taxpaying employer that qualifies for an experience rating 22.19 by adding the minimum tax rate to the employer's experience 22.20 rating. 22.21 (b) The minimum tax rate shall be six-tenths of one percent 22.22 if the amount in the fund is less than $200,000,000 on June 30 22.23 of the prior calendar year; or five-tenths of one percent if the 22.24 fund is more than $200,000,000 but less than $225,000,000; or 22.25 four-tenths of one percent if the fund is more than $225,000,000 22.26 but less than $250,000,000; or three-tenths of one percent if 22.27 the fund is more than $250,000,000 but less than $275,000,000; 22.28 or two-tenths of one percent if the fund is $275,000,000 but 22.29 less than $300,000,000; or one-tenth of one percent if the fund 22.30 is $300,000,000 or more. 22.31 (c) For the purposes of this subdivision the fund shall not 22.32 include any moneyadvancedborrowed from the federal 22.33 unemployment trust fund pursuant to section 268.194, subdivision 22.34 6. 22.35 Sec. 25. Minnesota Statutes 1998, section 268.051, 22.36 subdivision 3, is amended to read: 23.1 Subd. 3. [COMPUTATION OFANA TAXPAYING EMPLOYER'S 23.2 EXPERIENCE RATING.] (a) For each calendar year, the commissioner 23.3 shall compute an experience rating foraneach taxpaying 23.4 employer who has been subject to this chapter for at least the 23.5 12 calendar months prior to July 1 of the prior calendar year. 23.6 The experience rating shall be the ratio obtained by 23.7 dividing1-1/4 times125 percent of the total benefits charged 23.8 to the employer's tax account during the period the employer has 23.9 been subject to this chapter, but notless than the 12 ormore 23.10 than the 60 calendar months ending on June 30 of the prior 23.11 calendar year, by the employer's total taxable payroll for the 23.12 same period. 23.13 (b) For purposes of paragraph (a), only that taxable 23.14 payroll upon which taxes have been paid on or before September 23.15 30 of the prior calendar year may be used in computing an 23.16 employer's experience rating. 23.17 (c) The experience rating shall be computed to the nearest 23.18 one-tenth of a percent, to a maximum of 8.9 percent. 23.19 Sec. 26. Minnesota Statutes 1998, section 268.051, 23.20 subdivision 4, is amended to read: 23.21 Subd. 4. [EXPERIENCE RATING RECORD TRANSFER.] (a) When an 23.22 employer acquires the organization, trade or business or 23.23 substantially all the assets of another employer, and there is 23.24 25 percent or more common ownership, directly or indirectly, 23.25 between the predecessor and successor, the experience rating 23.26 record of the predecessor employer shall be transferred as of 23.27 the date of acquisition to the successor employer for the 23.28 purpose of computing a tax rate. 23.29 (b) When an employer acquires a distinct severable portion 23.30 of the organization, trade, business, or assets that is less 23.31 than substantially all of the employing enterprises of another 23.32 employer, and there is 25 percent or more common ownership, 23.33 directly or indirectly, between the predecessor and successor, 23.34 the successor employer shall acquire the experience rating 23.35 record attributable to the portion it acquired, and the 23.36 predecessor employer shall retain the experience rating record 24.1 attributable to the portion that it has retained, if (1) the 24.2 successor makes a written request to apply for the transfer of 24.3 the experience rating record attributable to the severable 24.4 portion acquired from the predecessor within 180 calendar days 24.5 from the date of acquisition, and (2) files an application 24.6 within the time and in the manner prescribed by the commissioner 24.7 that furnishes sufficient information to substantiate the 24.8 severable portion and to assign the appropriate total and 24.9 taxable wages and benefit charges to the successor for 24.10 experience rating purposes. 24.11 (c) The term "common ownership" for purposes of this 24.12 subdivision includes ownership by a spouse, parent, child, 24.13 brother, sister, aunt, uncle, niece, nephew, or first cousin, by 24.14 birth or by marriage. 24.15 (d) If the successor employer under paragraphs (a) and (b) 24.16 had an experience rating record at the time of the acquisition, 24.17 the transferred record of the predecessor shall be combined with 24.18 the successor's record for purposes of computing a tax rate. 24.19 (e) If there has been a transfer of an experience rating 24.20 record under paragraph (a) or (b), employment with a predecessor 24.21 employer shall not be considered to have been terminated if 24.22 similar employment is offered by the successor employer and 24.23 accepted by the employee. 24.24 (f) The commissioner, upon the commissioner's own motion or 24.25 upon application of an employer shall determine if an employer 24.26 is a successor within the meaning of this subdivision and shall 24.27 send the determination to the employer by mail or electronic 24.28 transmission. The determination shall be final unless an appeal 24.29 is filed by the employer within 30 calendar days after the 24.30 sending of the determination. Proceedings on the appeal shall 24.31 be conducted in accordance with section 268.105. 24.32 (g) The commissioner may, as the result of any 24.33 determination or decision regarding succession or nonsuccession, 24.34 recompute the tax rate of all employers affected by the 24.35 determination or decision for any year, including the year of 24.36 the acquisition and subsequent years, that is affected by the 25.1 transfer or nontransfer of part or all of the experience rating 25.2 record. This paragraph does not apply to rates that have become 25.3 final before the filing of a written request to apply for the 25.4 transfer of a severable portion of the experience rating record 25.5 under paragraph (b). 25.6 (h) The experience rating record for purposes of this 25.7 subdivision shall consist of those factors which make up an 25.8 experience rating, without the 12-month minimum required under 25.9 subdivision 3. 25.10 (i) If the commissioner finds that a transaction was done, 25.11 in whole or in part, to avoid an experience rating record or the 25.12 transfer of an experience rating record, the commissioner may 25.13 transfer all or part of the experience rating recordto an25.14employer notwithstandingregardless of the requirements or 25.15 limitations of paragraph (a). This shall include the 25.16 transferring of employees from the payroll of an employer with a 25.17 higher experience rating record to the payroll of an employer 25.18 with a lower experience rating record. 25.19 (j) Regardless of paragraph (a), if there is an acquisition 25.20 or merger of a publicly held corporation by or with another 25.21 publicly held corporation the experience rating records of the 25.22 corporations shall be combined as of the date of acquisition or 25.23 merger for the purpose of computing a tax rate. 25.24 Sec. 27. Minnesota Statutes 1998, section 268.051, 25.25 subdivision 5, is amended to read: 25.26 Subd. 5. [TAX RATE FOR NEW EMPLOYERS.] (a) Each taxpaying 25.27 employer that does not qualify for an experience rating under 25.28 subdivision 3, paragraph (a), except employers inthe25.29constructiona high experience rating industry, shall be 25.30 assigned a tax rate the higher of (1) one percent, or (2) the 25.31 state's average cost rate; to a maximum of 5-4/10 percent. For 25.32 purposes of this paragraph, the state's average cost rate shall 25.33 be computed annuallyand shall be derivedby dividing the total 25.34 amount of benefits paid all claimants during the 60consecutive25.35 calendar months prior to July 1 of each year by the total 25.36 taxable wages of all taxpaying employers during the same 26.1 period. This rate for new employers shall be applicable for the 26.2 calendar year following the computation date. 26.3 (b) Each taxpaying employer inthe constructiona high 26.4 experience rating industry that does not qualify for an 26.5 experience rating under subdivision 3, paragraph (a), shall be 26.6 assigned a tax rate, the higher of (1) one percent, or (2) the26.7state's average cost rate for construction employers to a26.8maximumof8.98.0 percent, plus the applicable minimum tax 26.9 rate.For purposes of this paragraph, the state's average cost26.10rate shall be computed annually and shall be derived by dividing26.11the total amount of benefits paid to claimants of construction26.12industry employers during the 60 consecutive calendar months26.13prior to July 1 of each year by the total taxable wages of26.14construction industry employers during the same period. This26.15rate shall be applicable for the calendar year following the26.16computation date.26.17 An employer is consideredin the constructionto be in a 26.18 high experience rating industry if: 26.19 (1) the employer iswithin division C of the Standard26.20Industrial Classification Manual issued by the United States26.21Office of Management and Budget, except as excluded by rules26.22adopted by the commissioner.engaged in residential, commercial, 26.23 or industrial construction, including general contractors; 26.24 (2) the employer is engaged in sand, gravel, or limestone 26.25 mining; 26.26 (3) the employer is engaged in the manufacturing of 26.27 concrete, concrete products, or asphalt; or 26.28 (4) the employer is engaged in road building, repair, or 26.29 resurfacing, including bridge and tunnels and residential and 26.30 commercial driveways and parking lots. 26.31 Sec. 28. Minnesota Statutes 1998, section 268.051, 26.32 subdivision 8, is amended to read: 26.33 Subd. 8. [SOLVENCY ASSESSMENT.] (a) If the fund balance is 26.34 less than $150,000,000 on June 30 of any year, a solvency 26.35 assessment on taxpaying employers will be in effect for the 26.36 following calendar year. The taxpaying employer shall pay 27.1 quarterly a solvency assessment of ten percent of the taxes due. 27.2 (b) The solvency assessment shall be placed into a special 27.3 account from which the commissioner shall pay any interest 27.4 accruing on anyadvanceloan from the federal unemployment trust 27.5 fund provided for under section 268.194, subdivision 6. If the 27.6 commissioner determines that the balance in this special account 27.7 is more than is necessary to pay the intereston any advance, 27.8 the commissioner shall pay to the fund the amount in excess of 27.9 that necessary to pay the intereston any advance. 27.10 Sec. 29. Minnesota Statutes 1998, section 268.052, is 27.11 amended to read: 27.12 268.052 [PAYMENT TO FUND BY STATE AND POLITICAL 27.13 SUBDIVISIONS.] 27.14 Subdivision 1. [PAYMENTSTO FUND BY STATE AND POLITICAL27.15SUBDIVISIONS.] In lieu of taxes payable on a quarterly basis, 27.16 the state of Minnesota or its political subdivisions shall pay 27.17 into thereemployment insurancefund the amount of benefits 27.18 charged to its reimbursable account under section 268.047. 27.19 Payments in the amount of benefits charged to the reimbursable 27.20 account during a calendar quarter shall be made on or before the 27.21 last day of the monthnextfollowing the monthin whichthat the 27.22 notice of benefits charged ismailed to the employersent 27.23 pursuant to section 268.047, subdivision 5. Past due 27.24 payments in lieu of taxes shall be subject to the same interest 27.25 charges and collection procedures that apply to past due taxes. 27.26 Subd. 2. [ELECTION BY STATE OR POLITICAL SUBDIVISION TO BE 27.27 A TAXPAYING EMPLOYER.] (a) The state or political subdivision 27.28 may elect to be a taxpaying employer for any calendar year if 27.29 awrittennotice of election is filedwith the commissioner27.30 within 30 calendar days following January 1 of that calendar 27.31 year. Upon election, the state or political subdivision shall 27.32 be assigned the new employer tax rate under section 268.051, 27.33 subdivision 5, for the calendar year of the election and until 27.34 it qualifies for an experience rating under section 268.051, 27.35 subdivision 3. 27.36 (b) An election shall be for a minimum period oftwothree 28.1 calendar yearsimmediatelyfollowing the effective date of the 28.2 election and continue unless awrittennotice terminating the 28.3 election is filedwith the commissionernot later than 30 28.4 calendar daysprior tobefore the beginning of the calendar 28.5 year. The termination shall be effective at the beginning of 28.6 the next calendar year. A termination of election shall be 28.7 allowed only if the state or political subdivision has a zero 28.8 experience rating and has no benefit charges to its tax account 28.9 that have not yet been used in computing an experience rating 28.10 under section 268.051, subdivision 3. 28.11(b)(c) The method of payments to thereemployment28.12insurancefund under subdivisions 3 and 4 shall apply to all 28.13contributionstaxes paid by or due from the state or political 28.14 subdivision that elects to be taxpaying employers under this 28.15 subdivision. 28.16 (d) The commissioner may allow a notice of election or a 28.17 notice terminating election to be filed by mail or electronic 28.18 transmission. 28.19 Subd. 3. [METHOD OF PAYMENT BY STATETO FUND.] To 28.20 discharge itsobligationsliability, the state and its wholly 28.21 owned instrumentalities shall pay thereemployment insurance28.22 fund as follows: 28.23(a)(1) Every self-sustaining department, institution and 28.24 wholly owned instrumentalityof the stateshall payintothe 28.25 fundthe amounts the commissioner shall certify has been paid28.26from the fund that were charged to its accountin accordance 28.27 with subdivision 1. For the purposes of this clause a 28.28 "self-sustaining department, institution or wholly owned 28.29 instrumentality" is onein whichwhere the dedicated income and 28.30 revenue substantially offsets its cost of operation. 28.31(b)(2) Every partially self-sustaining department, 28.32 institution and wholly owned instrumentalityof the stateshall 28.33 payintothe fundthethat same proportion of thesumamount 28.34 thatthe commissioner certifies has been paid from the fundhas 28.35 been charged to its employer account as the proportion of the 28.36 total of its income and revenuebearsis to its annual cost of 29.1 operation. 29.2(c)(3) Every department, institution or wholly owned 29.3 instrumentalityof the state whichthat is not self-sustaining 29.4 shall paytothe fundthe amount the commissioner certifies has29.5been paid from the fund which were charged to their accountsto 29.6 the extent funds are available from appropriated funds. 29.7(d)(4) The departments, institutions and wholly owned 29.8 instrumentalitiesof the state, including the University of 29.9 Minnesota,whichthat have money available shallimmediatelypay 29.10 the fundfor benefits paid which were charged to their accounts29.11upon receiving notification from the commissioner of the charges29.12 in accordance with subdivision 1. If a claimant was paidby a29.13department, institution or wholly owned instrumentalityduring 29.14 theclaimant'sbase period from a specialor administrative29.15 accountor fundprovided by law, the paymentintoto the fund 29.16 shall be made from the specialor administrativeaccountor fund29.17 with the approval of the department of administration and the 29.18 amounts are hereby appropriated. 29.19(e)(5) For those departments, institutions and wholly 29.20 owned instrumentalitiesof the state whichthat cannot 29.21immediatelypay the fundfor benefits that were charged to their29.22accounts, the commissioner shall certify on November 1 of each 29.23 calendar year to thedepartmentcommissioner of finance the 29.24 unpaid balancesdue and owing. Upon receipt of the 29.25 certification, the commissionerof the departmentof finance 29.26 shall include the unpaid balances in the biennial budget 29.27 submitted to the legislature. 29.28 Subd. 4. [METHOD OF PAYMENT BY POLITICAL SUBDIVISIONTO29.29FUND.] A political subdivision or instrumentality thereof is 29.30 authorized and directed to pay itsobligations under this29.31chapterliabilities bymoneysmoney collected from taxes or 29.32 other revenues. Every political subdivision authorized to levy 29.33 taxes may include in its tax levy the amount necessary to pay 29.34 itsobligationsliabilities. If the taxes authorized to be 29.35 leviedunder this subdivisioncause the total amount of taxes 29.36 levied to exceed any limitation upon the power of a political 30.1 subdivision to levy taxes, the political subdivision may levy 30.2 taxes in excess of the limitations in the amounts necessary to 30.3 meet itsobligation under this chapterliability. The 30.4 expenditures authorized shall not be included in computing the 30.5 cost of government as defined in any home rule charterof any30.6city. The governing body of a municipality, for the purpose of 30.7 meeting its liabilitiesunder this chapter, in the event of a 30.8 deficit, may issue its obligations payable in not more than two 30.9 years, in an amount that may cause its indebtedness to exceed 30.10 any statutory or charter limitations, without an election, and 30.11 may levy taxes in the manner provided in section 475.61. 30.12 Sec. 30. Minnesota Statutes 1998, section 268.053, is 30.13 amended to read: 30.14 268.053 [PAYMENT TO FUND BY NONPROFIT 30.15CORPORATIONSORGANIZATIONS.] 30.16 Subdivision 1. [ELECTION.] (a) Any nonprofit organization 30.17 thatis determined to be an employerhas employees in covered 30.18 employment shall pay taxes on a quarterly basis pursuant to 30.19 section 268.051 unless it elects to make payments in lieu of 30.20 taxes to thereemployment insurancefund the amount of benefits 30.21 charged tothe employer'sits employer account under section 30.22 268.047. 30.23(1) Any nonprofitThe organization may elect tobecome30.24liable formake payments in lieu of taxes for a period of not 30.25 less thantwothree calendar years beginning with the date that 30.26 the organization was determined to be an employer with covered 30.27 employment by filing awrittennotice of electionwith the30.28commissionernot later than 30 calendar daysimmediately30.29followingafter the date of the determination. 30.30(2)(b) Any nonprofit organization that makes an election 30.31 will continue to be liable for payments in lieu of taxes until 30.32 it fileswith the commissionerawrittennotice terminating its 30.33 election not later than 30 calendar daysprior tobefore the 30.34 beginning of the calendar yearfor whichthe terminationshall30.35firstis to be effective. 30.36 (c) A nonprofit organization that has been making payments 31.1 in lieu of taxes that files a notice of termination of election 31.2 shall be assigned the new employer tax rate under section 31.3 268.051, subdivision 5, for the calendar year of the termination 31.4 of election and until it qualifies for an experience rating 31.5 under section 268.051, subdivision 3. 31.6(3)(d) Any nonprofit organization that has been paying 31.7 taxes maychangeelect tomakingmake payments in lieu of taxes 31.8 by filingwith the commissioner not laterno less than 30 31.9 calendar daysprior tobefore January 1 of any calendar year a 31.10writtennotice of electionto become liable for payments in lieu31.11of taxes. An election shall be allowed only if the nonprofit 31.12 organization has a zero experience rating and has no benefit 31.13 charges to its tax account that have not yet been used in 31.14 computing an experience rating under section 268.051, 31.15 subdivision 3. The election shall not be terminable by the 31.16 organization for that and the next calendar year. 31.17(4)(e) The commissioner may for good cause extend the 31.18 period that a notice of election, or a notice of termination, 31.19 must be filed and may permit an election to be retroactive. 31.20 (f) The commissioner may allow a notice of election or 31.21 notice terminating election to be filed by mail or electronic 31.22 transmission. 31.23(5)Subd. 2. [DETERMINATION AND APPEAL.] The commissioner 31.24 shall notify each nonprofit organization by mail or electronic 31.25 transmission of any determination of its status as an employer 31.26 with covered employment and of the effective date of any 31.27 election or termination of election. The determinations shall 31.28 be final unlessa writtenan appeal is filed within 30 calendar 31.29 days aftermailingsending of the determination. Proceedings on 31.30 the appeal shall be conducted in accordance with section 268.105. 31.31(b)Subd. 3. [PAYMENTS.] (a) Payments in lieu of taxes, in 31.32 the amount of benefits charged to theemployer'sreimbursable 31.33 account, during a calendar quarter, shall be made on or before 31.34 the last day of the monthnextfollowing the monthin whichthat 31.35 the notice of benefits charged ismailed to the employersent 31.36 pursuant to section 268.047, subdivision 5. 32.1(c)(b) Past due payments in lieu of taxes shall be subject 32.2 to the same interest charges and collection procedures that 32.3 apply to past due taxes. 32.4(d)(c) If any nonprofit organization is delinquent in 32.5 making payments in lieu of taxes, the commissioner may terminate 32.6 the organization's election to make payments in lieu of taxes as 32.7 of the beginning of the next calendar year, and the termination 32.8 shall be effective for that and the following calendar year. A 32.9 nonprofit organization that has its election terminated under 32.10 this paragraph shall be assigned the new employer tax rate under 32.11 section 268.051, subdivision 5, until the organization qualifies 32.12 for an experience rating under section 268.051, subdivision 3. 32.13(e)Subd. 4. [APPLICATION.] For purposes of 32.14 thissubdivisionsection, a nonprofit organization is an 32.15 organization, or group of organizations, described in United 32.16 States Code, title 26, section 501(c)(3) of the Internal Revenue 32.17 Code that is exempt from income tax under section 501(a)of the32.18code. 32.19 Sec. 31. Minnesota Statutes 1998, section 268.057, 32.20 subdivision 4, is amended to read: 32.21 Subd. 4. [COSTS.] Anyemployer whichperson that fails to 32.22make and submit reports orpay any taxesor, payment in lieu of 32.23 taxes, or benefit overpayment, including interest and penalties, 32.24 when due is liableto the departmentfor any filing fees, 32.25 recording fees, sheriff fees, costs incurred by referral to any 32.26 public or private collection agencyoutside the department, or 32.27 litigation costs incurred in the collection of the amounts 32.28 dueor obtaining the reports. 32.29 If any check or money order, in payment of any amount due 32.30under this chapter, is not honored when presented for payment, 32.31the employer will be assesseda fee of$20 which is in addition32.32to any other fees provided by this chapter. The fee$25 shall 32.33 be assessedregardless of the amount of the check or money order32.34or the reason for nonpayment with the exception of processing32.35errors made by a financial institution. 32.36 Costsdue under this subdivisioncollected shall bepaid to33.1the department andcredited to the administrationfundaccount. 33.2 Sec. 32. Minnesota Statutes 1998, section 268.057, 33.3 subdivision 10, is amended to read: 33.4 Subd. 10. [PRIORITIES UNDER LEGAL DISSOLUTIONS OR 33.5 DISTRIBUTIONS.] In the event of any distribution of an 33.6 employer's assets pursuant to an order of any courtunder the33.7laws of this state, including any receivership, assignment for 33.8 benefit of creditors, adjudicated insolvency,composition,or 33.9 similar proceeding, taxes then or thereafter due shall be paid 33.10 in full prior to all other claims except claims for wages of not 33.11 more than$250 to each claimant$1,000 per former employee, 33.12 earned within six months of the commencement of the 33.13 proceedings. In the event of an employer's adjudication in 33.14 bankruptcy, judicially confirmed extension proposal, or33.15composition,underthefederalBankruptcy Act of 1898, as33.16amendedlaw, taxes then or thereafter due shall be entitled 33.17 tosuchthe priorityas isprovided in thatactlaw for taxes 33.18 due any stateof the United States. 33.19 Sec. 33. Minnesota Statutes 1998, section 268.058, is 33.20 amended to read: 33.21 268.058 [TAX AND PAYMENT IN LIEU OF TAXESLIEN, LEVY, 33.22 SETOFF, AND CIVIL ACTION.] 33.23 Subdivision 1. [LIEN.] (a) Any taxes, benefit 33.24 overpayments, or payments in lieu of taxes dueunder this33.25chapter andincluding interestand, penaltiesimposed with33.26respect thereto, and costs shall become a lien upon all the 33.27 property, within this state, both real and personal, of the 33.28 person liabletherefor, from the date of assessmentof the tax,33.29benefit overpayment, or payment in lieu of taxes. The term 33.30 "date of assessment" means the datea report was due or the33.31paymentthe obligation was duedate of the notice of benefits33.32charged to a payment in lieu of taxes account. 33.33 (b)(1)The lienimposed by this sectionis not enforceable 33.34 against any purchaser, mortgagee, pledgee, holder of a Uniform 33.35 Commercial Code security interest, mechanic's lien, or judgment 33.36 lien creditor, until a notice of lien has been filedby the34.1commissioner in the office ofwith the county recorder of the 34.2 countyin whichwhere the property is situated, or in the case 34.3 of personal property belonging toan individual who is not a34.4resident of the state, or which is a corporation, partnership,34.5or other organization,a nonresident person in the office of the 34.6 secretary of state. When thefiling of thenotice of lien 34.7 ismade in the office offiled with the county recorder, the fee 34.8 for filing and indexing shall be asprescribedprovided in 34.9 sections 272.483 and 272.484. 34.10(2)(c) Notices of liens, lien renewals, and lien releases, 34.11 in a form prescribed by the commissionerof economic security, 34.12 may be filed with the county recorder or the secretary of state 34.13 by mail, personal delivery, or by electronic transmissionby the34.14commissioner or a delegateinto the computerized filing system 34.15 of the secretary of stateauthorizedunder section 336.9-411. 34.16 The secretary of state shall, on any notice filed with that 34.17 office, transmit the notice electronically to theoffice of the34.18 appropriate county recorder, if that is the place of filing, in34.19the county or counties shown on the computer entry. The filing 34.20 officer, whether the county recorder or the secretary of state, 34.21 shall endorse and index a printout of the noticein the same34.22manneras if the notice had been mailed or delivered. 34.23(3)(d) County recorders and the secretary of state shall 34.24 enter informationrelative toon lien notices, renewals, and 34.25 releasesfiled in their officesinto the central database of the 34.26 secretary of state. For notices filed electronically with the 34.27 county recorders, the date and time of receipt of the notice and 34.28 county recorder's file number, and for notices filed 34.29 electronically with the secretary of state, the secretary of 34.30 state's recording information, must be enteredby the filing34.31officerinto the central database before the close of the 34.32 working day following the day of the original data entry by the 34.33departmentcommissioner. 34.34(c)(e) The lien imposed on personal propertyby this34.35section, even though properly filed, is not enforceable against 34.36 a purchaserwith respect toof tangible personal property 35.1 purchased at retail oras against thepersonal property listed 35.2 as exempt in sections 550.37, 550.38, and 550.39. 35.3(d)(f) A notice oftaxlien filedpursuant to this section35.4 has priority over any security interest arising under chapter 35.5 336, article 9,whichthat is perfected prior in time to the 35.6 lien imposed by thissectionsubdivision, but only if: 35.7 (1) the perfected security interest secures property not in 35.8 existence at the time the notice oftaxlien is filed; and 35.9 (2) the property comes into existence after the 35.10 45th calendar day following the dayon whichthe notice oftax35.11 lien is filed, or after the secured party has actual notice or 35.12 knowledge of thetaxlien filing, whichever is earlier. 35.13(e)(g) The lienimposed by this sectionshall be 35.14 enforceable from the time the lien arises and for ten years from 35.15 the date of filing the notice of lien. A notice of lien may be 35.16 renewedby the commissionerbeforetheexpirationof the35.17ten-year periodfor an additional ten years.The delinquent35.18employer must receive notice of the renewal.35.19(f)(h) The lienimposed by this sectionshall be 35.20 enforceable by levyas authorized inunder subdivision82 or by 35.21 judgment lien foreclosureas authorized inunder chapter 550. 35.22Subd. 2. [LIMITATION FOR HOMESTEAD PROPERTY.](i) The lien 35.23 may be imposedby this section is a lienupon property defined 35.24 as homestead property in chapter 510. The lienbut may be 35.25 enforced only upon the sale, transfer, or conveyance of the 35.26 homestead property. 35.27 (j) The commissioner may sell and assign to a third party 35.28 the commissioner's right of redemption in specific real property 35.29 for liens filed under this subdivision. The assignee shall be 35.30 limited to the same rights of redemption as the commissioner, 35.31 except that in a bankruptcy proceeding, the assignee does not 35.32 obtain the commissioner's priority. Any proceeds from the sale 35.33 of the right of redemption shall be credited to the contingent 35.34 account. Any sale shall be by written agreement signed by an 35.35 attorney who is a classified employee of the department 35.36 designated by the commissioner for that purpose. 36.1 Subd.3.2. [LEVY.] (a) If any taxor, payment in lieu of 36.2 taxespayable to the department, or benefit overpayment, 36.3 including interest, penalties, and costs, is not paid when due, 36.4 the amount may be collected by the commissioner, a duly36.5authorized representative, or by the sheriff of any county to36.6whom the commissioner has issued a warrant, who mayby direct 36.7 levy upon all property and rights of property of the person 36.8 liable for thetax or payment in lieu of taxes, (amount due 36.9 except thatwhich isexempt from executionpursuant tounder 36.10 section 550.37), or property on which there is a lien provided36.11by subdivision 1. The terms "tax or payment in lieu of taxes"36.12shall include any penalty, interest, and costs. The term "levy" 36.13 includes the power of distraint and seizure by any 36.14 means.Before a levy is made or warrant issued, notice and36.15demand for payment of the amount due shall be given to the36.16person liable for the tax or payment in lieu of taxes at least36.17ten days prior to the levy or issuing of a warrant.36.18 (b)UponIn addition to a direct levy, the commissioner 36.19issuingmay issue a warrant,to the sheriff of any county who 36.20 shall proceed within 60 calendar days to levy upon the property 36.21 or rights to property of theemployerdelinquent person within 36.22 theemployer'scounty, exceptthe homestead and household goods36.23of the employer and property of the employer not liable to36.24attachment, garnishment, or sale on any final process issued36.25from any courtthat exempt underthe provisions ofsection 36.26 550.37, and. The sheriff shall sellso much thereof as is36.27requiredthat property necessary to satisfy thetax, payment in36.28lieu of taxes, interest, and penaltiestotal amount due, 36.29 together with the commissioner's and sheriff's costs. The sales 36.30 shall, as to their manner,be governed by the law applicable to 36.31 sales of like property on executionissued against property upon36.32 of a judgmentof a court of record.The proceeds of the sales,36.33less the sheriff's costs, shall be turned over to the36.34commissioner, who shall retain a part thereof as is required to36.35satisfy the tax, payment in lieu of taxes, interest, penalties,36.36and costs, and pay over any balance to the employer.37.1 (c) Notice and demand for payment of the total amount due 37.2 shall be mailed to the delinquent person at least ten calendar 37.3 days prior to action being taken under paragraphs (a) and (b). 37.4(c)(d) If the commissioner has reason to believe that 37.5 collection of thetax or payment in lieu of taxesamount due is 37.6 in jeopardy, notice and demand for immediate paymentof the37.7amountmay be madeby the commissioner. If thetax or payment37.8in lieu of taxestotal amount due is not paid, the commissioner 37.9 may proceed to collect by direct levy or issue a warrant without 37.10 regard to theten-dayten calendar day periodprovided herein. 37.11(d)(e) Inmaking the execution ofexecuting the levyand37.12in collecting the tax or payment in lieu of taxes due, the 37.13 commissioner shall have all of the powers provided in chapter 37.14 550and inor any other lawfor purposes of effecting anthat 37.15 provides for execution against property in this state. The sale 37.16 of property levied upon and the time and manner of 37.17 redemptiontherefromshall be as provided in chapter 550. The 37.18 seal of the court, subscribed by the court administrator, as37.19provided in section 550.04,shall not be required. The levyfor37.20collection of taxes or payments in lieu of taxesmay be made 37.21 whether or not the commissioner has commenced a legal action for 37.22 collectionof the amount. 37.23(e)(f) Wherea jeopardy assessment oranyotherassessment 37.24 has been made by the commissioner, the property seized for 37.25 collection of thetax or payment in lieu of taxestotal amount 37.26 due shall not be sold until any determination of liability,37.27rate, or benefit chargeshas become final. No sale shall be 37.28 made unlessthe tax or payment in lieu of taxes remaina portion 37.29 of the amount due remains unpaid for a period of more than 37.30 30 calendar days after the determination of liability becomes 37.31 final. Seized property may be sold at any time if: 37.32 (1) theemployerdelinquent person consents in writing to 37.33 the sale; or 37.34 (2) the commissioner determines that the property is 37.35 perishable or may become greatly reduced in price or value by 37.36 keeping, or that the property cannot be kept without great 38.1 expense. 38.2(f)(g) Where a levy has been made to collecttaxes or38.3payments in lieu of taxes pursuant to this subdivisionthe 38.4 amount due and the property seized is properly included in a 38.5 formal proceeding commenced under sections 524.3-401 to 38.6 524.3-505 and maintained under full supervision of the court, 38.7 the property shall not be sold until the probate proceedings are 38.8 completed or until the courtsoorders. 38.9(g)(h) The property seized shall be returnedby the38.10commissionerif the owner: 38.11 (1) gives a surety bond equal to the appraised value of the 38.12 owner's interest in the property, as determined by the 38.13 commissioner, or 38.14 (2) deposits with the commissioner security in a form and 38.15 amountasthe commissionerdeemsconsiders necessary to insure 38.16 payment of the liability, but not more than twice the liability. 38.17(h) Notwithstanding any other law to the contrary,(i) If a 38.18 levy or salepursuant to this sectionwould irreparably injure 38.19 rights in propertywhichthat the court determinesto be38.20 superior to rights of the statein the property, thedistrict38.21 court may grant an injunction to prohibit the enforcement of the 38.22 levy or to prohibit the sale. 38.23(i)(j) Anypersonindividual who fails or refuses to 38.24 surrender without reasonable cause any property or rights to 38.25 property subject to levyupon demand by the commissionershall 38.26 be personally liableto the departmentin an amount equal to the 38.27 value of the property or rights not so surrendered, but not 38.28 exceeding the amountof tax or payment in lieu of taxes for the38.29collection of which the levy has been made. Any amount38.30recovered under this subdivision shall be credited against the38.31tax or payment in lieu of taxes liability for the collection of38.32which the levy was made. The term "person" includes an officer38.33or employee of a corporation or a member or employee of a38.34partnership who, as an officer, employee, or member is under a38.35duty to surrender the property or rights to property or to38.36discharge the obligationdue. 39.1(j) Any action taken by the commissioner pursuant to this39.2subdivision shall not constitute an election by the department39.3to pursue a remedy to the exclusion of any other remedy.39.4 (k)AfterIf the commissioner has seized the property of 39.5 anypersonindividual, thatpersonindividual may, upon giving 39.6 48 hours notice to the commissioner and to the court, bring a 39.7 claim for equitable relief before the district court for the 39.8 release of the propertyto the employerupon terms and 39.9 conditionsasthe courtmay deemconsiders equitable. 39.10 (l) Anypersonindividual in control or possession of(or39.11obligated with respect to)property or rights to property 39.12subject to levyupon which a levy has been made who, upon demand39.13by the commissioner,surrenders the property or rights to 39.14 property, or who paysa liability under this subdivisionthe 39.15 amount due shall be discharged from any obligation or liability 39.16 to the person liable for thepayment of the delinquent tax or39.17payment in lieu of taxesamount due with respect to the property 39.18 or rights to propertyso surrendered or paid. 39.19 (m)Notwithstanding any other provisions of law to the39.20contrary,The notice of any levyauthorized by this sectionmay 39.21 be served personally or by mailor by delivery by an employee or39.22agent of the department. 39.23 (n)It shall be lawful forThe commissionertomay release 39.24 the levy upon all or part of the property or rights to property 39.25 levied upon if the commissioner determines that the release will 39.26 facilitate the collection of the liability, but the release 39.27 shall notoperate toprevent any subsequent levy. If the 39.28 commissioner determines that property has been wrongfully levied 39.29 upon,it shall be lawful forthe commissionertoshall return: 39.30 (1) the specific property levied upon, at any time; or 39.31 (2) an amount of money equal to the amount of money levied 39.32 upon, at any time before the expiration of nine months from the 39.33 date of levy. 39.34 (o) Notwithstanding section 52.12, a levyby the39.35commissioner made pursuant to the provisions of this section39.36 uponan employer'sa person's funds on deposit in a financial 40.1 institution located in this state, shall have priority over any 40.2 unexercised right of setoff of the financial institution to 40.3 apply the levied funds toward the balance of an outstanding loan 40.4 or loans owed by theemployerperson to the financial 40.5 institution. A claim by the financial institution that it 40.6 exercised its right to setoff prior to the levyby the40.7commissionermust be substantiated by evidence of the date of 40.8 the setoff, andshall beverified bythe sworn statement of a40.9responsiblean affidavit from a corporate officer of the 40.10 financial institution.Furthermore,For purposes of determining 40.11 the priority of any levymadeunder thissectionsubdivision, 40.12 the levy shall be treated as if it were an executionmade40.13pursuant tounder chapter 550. 40.14 Subd.4.3. [RIGHT OF SETOFF.] (a) Upon certification by 40.15 the commissioner to the commissioner of finance, or to any state 40.16 agencywhichthat disburses its own funds, thatan employera 40.17 person hasan uncontested delinquent tax or payment in lieu of40.18taxesa liabilityowed to the departmentunder this chapter, 40.19 including interest, penalties, and costs, and that the state has 40.20 purchased personal services, supplies, contract services, or 40.21 property fromsaid employerthat person, the commissioner of 40.22 finance or the state agency shallapply to the delinquent tax or40.23payment in lieu of taxes liability fundsset off and pay to the 40.24 commissioner an amount sufficient to satisfy the unpaid 40.25 liability from funds appropriated for payment ofsaidthe 40.26 obligation of the stateor any of its agencies that are due and40.27owing the employerotherwise due the person.The credit shall40.28not be made againstNo amount shall be set off from any funds 40.29 exempt under section 550.37 orthosefundsoweddue an 40.30 individualemployerwho receives assistance under chapter 256. 40.31 (b) All funds, whether general or dedicated, shall be 40.32 subject to setoffin the manner provided in this subdivision.40.33Transfer of funds in payment of the obligations of the state or40.34any of its agencies to an employer and any actions for the funds40.35shall be had against the commissioner on the issue of the tax or40.36payment in lieu of taxes liability. Nothing in this section41.1shall be construed to limit the previously existing right of the41.2state or any of its agencies to setoff. 41.3NotwithstandingRegardless of any law to the contrary, the 41.4 commissioner shall have first priority to setoff from any funds 41.5owed byotherwise due from the department to a 41.6 delinquentemployerperson. 41.7 Subd.5.4. [COLLECTION BY CIVIL ACTION.] (a)In addition41.8to all other collection methods authorized, ifAnyemployer is41.9 delinquenton any payment oftaxesor, payment in lieu of taxes, 41.10 or benefit overpayment, including interestdue thereon or, 41.11 penaltiesfor failure to file a tax report and other reports as41.12required by this chapter or by any rule of the commissioner, the41.13amount due, or costs, may be collected by civil action in the 41.14 name of the state of Minnesota, and any money recovered shall be41.15credited to the funds provided for under those sections. Any41.16employer adjudged delinquent shall pay the costs of the action. 41.17 Civil actions brought under this subdivision shall be heard as 41.18 provided under section 16D.14.No action for the collection of41.19taxes, interest thereon, or penalties shall be commenced more41.20than six years after the taxes have been reported by the41.21employer or determined by the commissioner to be due and41.22payable.In any action, judgment shall be enteredagainst any41.23employerin default for the relief demanded in the complaint 41.24 without proof, together with costs and disbursements, upon the 41.25 filing of an affidavit of default. 41.26 (b) Anyemployerperson that is not a resident of this 41.27 state and any residentemployerperson removed from this state, 41.28 shall be considered to appoint the secretary of state as its 41.29 agentand attorneyfor the acceptance of process in any civil 41.30 actionunder this subdivision. In instituting an action against41.31any employer,. The commissioner shall file process with the 41.32 secretary of state, together with a payment of a fee of $15 and 41.33 that service shall be considered sufficient serviceupon the41.34employer,and shall have the same force and validity as if 41.35 servedupon the employerpersonally within this state.The41.36commissioner shall sendNotice of the service of process, 42.1 together with a copy of the process, shall be sent by certified 42.2 mail,to theemployer at itsperson's last known address.The42.3commissioner'sAn affidavit of compliance withthe provisions of42.4 thissectionsubdivision, and a copy of the notice of service 42.5 shall be appended to the original of the process and filed in 42.6 the court. 42.7 (c) No court filing fees, docketing fees, or release of 42.8 judgment fees may be assessed against the state for actions 42.9 pursuant to this subdivision. 42.10 Subd.6.5. [INJUNCTION FORBIDDEN.] Nosuit shall42.11lieinjunction or other legal action toenjoinprevent the 42.12 assessment or collection of any taxor, payment in lieu of taxes 42.13imposed by this chapter, or the, or benefit overpayment, 42.14 including interestand, penaltiesimposed thereby, and costs 42.15 shall be allowed. 42.16 Sec. 34. Minnesota Statutes 1998, section 268.0625, is 42.17 amended to read: 42.18 268.0625 [REEMPLOYMENT INSURANCE TAX CLEARANCES;42.19ISSUANCESREVOCATIONS OF BUSINESS LICENSES.] 42.20 Subdivision 1. [REEMPLOYMENT INSURANCE CLEARANCE42.21REQUIREDNOTICE OF DEBT TO LICENSING AUTHORITY.] The state of 42.22 Minnesota or a political subdivisionof the statemay not issue, 42.23 transfer, or renew, and must revoke a license for the conduct of 42.24 any profession, trade, or business, if the commissioner notifies 42.25 the licensing authority that theapplicantlicensee owesthe42.26statedelinquent taxes, payments in lieu of taxes, or benefit 42.27 overpayments. The commissioner may not notify the licensing42.28authority unless the applicant owes, including interest, 42.29 penalties, and costs, of $500 or moreto the reemployment42.30insurance fund. A licensing authority that has received such a 42.31 noticefrom the commissionermay issue, transfer, renew, or not 42.32 revoke theapplicant'slicense only if(a) the commissioner42.33issues a reemployment insurance tax clearance certificate; and42.34(b) the commissioner or the applicant forwards a copy of the42.35clearance tothe licensing authority has received a copy of the 42.36 debt clearance certificate issued by the commissioner. 43.1 Subd. 2. [ISSUANCE OFDEBT CLEARANCE CERTIFICATE.] The 43.2 commissioner may issuea reemployment insurance taxa debt 43.3 clearance certificate only if: 43.4(a)(1) theapplicant does not owe the statelicensee has 43.5 fully paid any delinquent taxes, payments in lieu of taxes, or 43.6 benefit overpayments, including interest, penalties, and costs; 43.7 or 43.8(b)(2) theapplicantlicensee has entered intoa payment43.9 an agreement toliquidate the delinquent taxes, payments in lieu43.10of taxes, or benefit overpaymentspay the total amount due and 43.11 is current with all the terms of thatpaymentagreement. 43.12 Subd. 3. [DEFINITION.] For the purposes of this 43.13 section,"applicant""licensee" means: 43.14(a)(1) an individual if the license is issued to or in the 43.15 name of an individual, or the corporation, limited liability 43.16 company, or partnership if the license is issued to or in the 43.17 name of a corporation, limited liability company, or 43.18 partnership; or 43.19(b)(2) an officer of a corporation, manager of a limited 43.20 liability company, or a member of a partnership, or an 43.21 individual who is liable for the delinquent taxes, payments in 43.22 lieu of taxes, or benefit overpayments, either for the 43.23 entityfor whichthat the license is at issue or for another 43.24 entityfor whichthat the liability was incurred, or personally 43.25 as a licensee.In the case of a license transfer, "applicant"43.26means"Licensee" includes both the transferor and the transferee 43.27 of the license. "Applicant" also meansand any holder of a 43.28 license. 43.29 Subd.3.4. [NOTICE AND RIGHT TO HEARING.] At least 43.30 30 calendar days before the commissioner notifies a licensing 43.31 authoritypursuant to subdivision 1, a noticeand demand for43.32payment of the amount dueof action under this section shall be 43.33givenmailed to theapplicantlicensee. If the 43.34applicantlicensee disputes theamount dueaction, 43.35 theapplicantlicensee mustrequest a hearing in writingappeal 43.36 within 30 calendar days after the mailing of the noticeand44.1demand for paymentto theapplicant'slicensee's last known 44.2 address. The only issue on any appeal is whether the 44.3 commissioner has complied with the requirements of this 44.4 section. Proceedings on the appealof the amount dueshall be 44.5 conducted in accordance with section 268.105. 44.6 Subd.4.5. [LICENSING AUTHORITY; DUTIES.] Upon requestof44.7the commissioner, the licensing authoritymustshall provide the 44.8 commissioner with a list of allapplicantslicensees, including 44.9 the name, address, business name and address, social security 44.10 number, and business identification numberof each applicant. 44.11 The commissioner may requestfrom a licensing authoritya list 44.12 of theapplicantslicensees no more than once each calendar year. 44.13NotwithstandingRegardless of section 268.19, the commissioner 44.14 may release information necessary to accomplishthe purpose of44.15 this section. 44.16Subd. 5. [OTHER REMEDIES.] Any action taken by the44.17commissioner pursuant to this section is not an election by the44.18commissioner to pursue a remedy to the exclusion of any other44.19remedy.44.20 Sec. 35. Minnesota Statutes 1998, section 268.064, is 44.21 amended to read: 44.22 268.064 [LIABILITYOF SUCCESSORFOR DEBTS UPON 44.23 ACQUISITION.] 44.24 Subdivision 1. [ACQUISITION OF ORGANIZATION, TRADE,OR44.25 BUSINESS, OR ASSETS.] Anyindividual or organization, whether or44.26not an employer, whichperson who acquires all or part of the 44.27 organization, trade,orbusiness orall or part of theassets 44.28thereoffrom an employer, is jointly and severally liable, in an 44.29 amount not to exceed the reasonable value of that part of the 44.30 organization, trade,orbusiness or assets acquired, for the 44.31 taxes due and unpaid by the employer, and. The amount of 44.32 liability shall, in addition, be a lien against the property or 44.33 assetssoacquiredwhichand shall be prior to all other 44.34 unrecorded liens. Thissubdivisionsection does not apply to 44.35 sales in the normal course of the employer's business. 44.36 Subd. 2. [REASONABLE VALUE.] The commissioner, upon the 45.1 commissioner's own motion or upon application of thepotential45.2successoracquiring person, shall determine the reasonable value 45.3 of the organization, trade,orbusiness or assets acquiredby45.4the successorbased on available information. The determination 45.5 shall be final unless thesuccessoracquiring person, within 30 45.6 calendar days afterthe sending ofbeing sent the determination 45.7to the successorby mail or electronic transmission, files an 45.8 appeal. Proceedings on the appeal shall be conducted in 45.9 accordance with section 268.105. 45.10 Subd. 3. [STATEMENT OF AMOUNT DUE.] Prior to the date of 45.11 acquisition, the commissioner shall furnish thepotential45.12successoracquiring person with awrittenstatement of the 45.13predecessor'staxes due and unpaid, on record as of the date of45.14issuance, onlyupon the written request of the 45.15 potentialsuccessoracquiring person and the written release of 45.16 thepredecessorobligor. No release is required after the date 45.17 of acquisition. 45.18Subd. 4. [ADDITIONAL REMEDY.] The remedy provided by this45.19section is in addition to all other existing remedies against45.20the employer or a successor and is not an election by the45.21department to pursue this remedy to the exclusion of any other45.22remedy.45.23 Sec. 36. Minnesota Statutes 1998, section 268.065, is 45.24 amended to read: 45.25 268.065 [LIABILITY OFTHIRD PARTIES TO ASSURE PAYMENT OF45.26 AMOUNTS DUE FROMCONTRACTORS,SUBCONTRACTORS,AND EMPLOYEE 45.27 LEASING FIRMS.] 45.28 Subdivision 1. [CONTRACTORSSUBCONTRACTORS.] A contractor,45.29who is or becomes an employer under this chapter,who contracts 45.30 with any subcontractor, who is or becomes an employer under this45.31chapter,shall guarantee the payment of all the taxes, interest, 45.32 penalties, and collection costswhichthat are due or become due 45.33 from the subcontractor with respect to taxable wages paidfor45.34employmenton the contract by: 45.35(a)(1) withholding sufficient money on the contract; or 45.36(b)(2) requiring the subcontractor to provide agood and46.1 sufficient bond guaranteeing the payment of all taxes, interest, 46.2 penalties, and collection costswhichthat may become due. 46.3 The contractor may make a written request for verification 46.4 that the subcontractor has paid the taxes due 60 calendar days 46.5 after the due date for filing the tax report that includes the 46.6 final wages paid forservicesemployment performed under the 46.7 contract. Ifdepartment records show thatthe subcontractor has 46.8 paid the taxes for the period covered by the contract, 46.9 thedepartmentcommissioner may release the contractor from its 46.10 liabilityunder this subdivision. 46.11 The words "contractor" and "subcontractor" include 46.12 individuals, partnerships, firms, or corporations, or other 46.13 association of persons engaged in the construction industry. 46.14 Subd. 2. [EMPLOYEE LEASING FIRMS.] A person whose work 46.15 force consists of 50 percent or more of workers provided by 46.16 employee leasing firms, isdirectlyjointly and severally liable 46.17 for thepayment of all theunpaid taxes, penalties, interest, 46.18 and collection costswhichthat are dueor become due fromon 46.19 the wages paidfor employmenton the contract, unless the46.20contract requireswith the employee leasing firmto provide a46.21good and sufficient bond guaranteeing the payment of all taxes,46.22penalties, interest, and collection costs which may become due. 46.23 "Employee leasing firm" means an employer that provides its 46.24 employees to otherfirms,persons, and employerswithout 46.25 severing its employer-employee relationship with the worker for 46.26 the services performed for the lessee. 46.27 Subd. 3. [DETERMINATION OF LIABILITY.]An official46.28designated byThe commissioner shall makean initiala 46.29 determination as to the liability under this section. The 46.30 determination shall be final unless the contractor or person 46.31 found to be liable filesa writtenan appeal within 30 calendar 46.32 days aftermailing of notice ofbeing sent the determinationto46.33the person's last known addressby mail or electronic 46.34 transmission. Proceedings on the appeal shall be conducted in 46.35 accordance with section 268.105. 46.36 Sec. 37. Minnesota Statutes 1998, section 268.067, is 47.1 amended to read: 47.2 268.067 [COMPROMISEAGREEMENTS.] 47.3 (a) The commissioner may compromise in whole or in part any 47.4 action, determination, or decision that affects only an employer 47.5 and not a claimant, and that hasbecome finaloccurred during 47.6 the prior 24 months. 47.7 (b) The commissioner may at any time compromise delinquent 47.8 employer taxes, payments in lieu of taxes, interest, penalties, 47.9 and costs. 47.10 (c) Any compromiseunder paragraphs (a) and (b)shall be by 47.11 writtenagreementorder signed bythe employer and the47.12commissioner.47.13The commissioner shall enter into a compromise agreement47.14only if it is in the best interest of the state of Minnesota.47.15The agreement must set forth the reason and all the terms. The47.16agreement must be approved byan attorney who is aregularly47.17salariedclassified employee of the departmentand who has been47.18 designated by the commissioner for that purpose. 47.19 (d) Any compromise order must set out all the terms and the 47.20 reason for the order and must be in the best interest of the 47.21 state of Minnesota. 47.22 Sec. 38. [268.0675] [NO ELECTION OF REMEDY.] 47.23 Use of any remedy under this chapter for the collection of 47.24 any delinquent taxes, payments in lieu of taxes, or benefit 47.25 overpayment, including penalties, interest, and costs, shall not 47.26 constitute an election of remedy to the exclusion of any other 47.27 available remedy. 47.28 Sec. 39. Minnesota Statutes 1998, section 268.068, is 47.29 amended to read: 47.30 268.068 [NOTICE TO WORKERS.] 47.31 Each employer shall post and maintain printed statements of 47.32 an individual's right to apply forreemployment insurance47.33 benefits in places readily accessible toindividualsworkers in 47.34 the employer's service.SuchThe printed statementsmustshall 47.35 be supplied by the commissioner at no cost to an employer. 47.36 Sec. 40. Minnesota Statutes 1998, section 268.069, is 48.1 amended to read: 48.2 268.069 [PAYMENT OF BENEFITS.] 48.3 Subdivision 1. [REQUIREMENTS.](a)The commissioner shall 48.4 payreemployment insurancebenefits from theMinnesota48.5reemployment insurancefund to a claimant who has met each of 48.6 the following requirements: 48.7 (1) the claimant has filed an application for benefits and 48.8 established areemployment insurancebenefit account in 48.9 accordance with section 268.07; 48.10 (2) the claimant is not subject to a disqualification from 48.11 benefits under section 268.095; 48.12 (3) the claimant has met all of the ongoing weekly 48.13 eligibility requirements undersection 268.08sections 268.085 48.14 and 268.086;and48.15 (4) the claimant does not have an outstanding overpayment 48.16 of benefits, including any penalties or interest, under section 48.17 268.18; and 48.18 (5) the claimant is not subject to a denial of benefits 48.19 under section 268.182. 48.20 Subd. 2. [BENEFITS PAID FROM STATE FUNDS.](b)Benefits 48.21 are paid from state funds and shall not be considered paid from 48.22 any special insurance plan, nor as paid by an employer. An 48.23 application for benefits shall not be considered a claim against 48.24 an employer but shall be considered a request for benefits from 48.25 the fund. The commissionershall determinehas the 48.26 responsibility for the proper payment of benefits regardless of 48.27 the level of interest or participation by a claimant or an 48.28 employer in any determination or appeal. A claimant's 48.29 entitlement to benefits shall be determined based upon that 48.30 information available without regard to any common law burden of 48.31 proof, and any agreement between a claimant and an employer 48.32 shall not be binding on the commissioner in determining a 48.33 claimant's entitlement.Any obligation on an employer as a48.34result of benefits charged to the employer is to the fund only.48.35 There shall be no presumption of entitlement or nonentitlement 48.36 to benefits. 49.1 Subd. 3. [COMMON LAW.] There shall be no equitable or 49.2 common law denial or allowance of benefits. 49.3 Sec. 41. Minnesota Statutes 1998, section 268.07, is 49.4 amended to read: 49.5 268.07 [REEMPLOYMENT INSURANCEBENEFIT ACCOUNT.] 49.6 Subdivision 1. [APPLICATION FOR BENEFITS; DETERMINATION OF 49.7 BENEFIT ACCOUNT.] (a) An application forreemployment insurance49.8 benefits may bemadefiled in person, by mail, by telephone, or 49.9 by electronic transmission as the commissioner shall 49.10 require.The commissioner may by rule adopt other requirements49.11for an application.The claimant must provide all requested 49.12 information in the manner required. If the claimant fails to 49.13 provide all requested information, the communication shall not 49.14 be considered an application for benefits. 49.15 (b) The commissioner shallpromptlyexamine each 49.16 application for benefits to determine the base period, the 49.17 benefit year, the weekly benefit amountpayableavailable, if 49.18 any, and the maximum amount of benefitspayableavailable, if 49.19 any. The determination shall be known as the determination 49.20 ofreemployment insurancebenefit account. A determination 49.21 ofreemployment insurancebenefit accountmustshall 49.22 bepromptlysent to the claimant and all base period employers, 49.23 by mail or electronic transmission. 49.24 (c) If a base period employerfailed todid not provide 49.25 wage information for the claimant asrequiredprovided for in 49.26 section 268.044, the commissioner shall accept a claimant 49.27 certification as to wage credits, based upon the claimant's 49.28 records, and issue a determination ofreemployment insurance49.29 benefit account. 49.30 (d)(1)The commissioner may, at any time within 24 months 49.31 from the establishment of areemployment insurancebenefit 49.32 account, reconsider any determination ofreemployment49.33insurancebenefit account and make a redetermination if the 49.34 commissioner finds that the determination was incorrect for any 49.35 reason. A redeterminationof reemployment insurance account49.36 shall be promptly sent to the claimant and all base period 50.1 employers, by mail or electronic transmission. 50.2(2)If a redetermination ofreemployment insurancebenefit 50.3 account reduces the weekly benefit amount or maximum amount of 50.4 benefitspayableavailable, any benefits that have been paid 50.5 greater than the claimant was redetermined entitled is 50.6 considered an overpaymentsubject toof benefits under section 50.7 268.18, subdivision 1. 50.8 Subd. 2. [BENEFIT ACCOUNT REQUIREMENTS AND WEEKLY BENEFIT 50.9 AMOUNT AND MAXIMUM AMOUNT OF BENEFITS.] (a) To establish 50.10 areemployment insurancebenefit account, a claimant must have: 50.11 (1)wage credits in two or more calendar quarters of the50.12claimant's base period;50.13(2) minimum total wage credits equal to or greater than the50.14high quarter wage credits multiplied by 1.25;50.15(3)high quarter wage credits ofnot less thanat 50.16 least $1,000; and 50.17 (2) wage credits, in other than the high quarter, of at 50.18 least $250. 50.19 (b) Ifthe commissioner finds thata claimant has 50.20 established areemployment insurancebenefit account, the weekly 50.21 benefit amountpayableavailable during theclaimant'sbenefit 50.22 year shall be the higher of: 50.23 (1) 50 percent of the claimant's average weekly wage during 50.24 theclaimant'sbase period, to a maximum of 66-2/3 percent of 50.25 the state's average weekly wage; or 50.26 (2) 50 percent of the claimant's average weekly wage during 50.27 the high quarter, to a maximum of the higher of $331 or 50 50.28 percent of the state's average weekly wage. 50.29 The claimant's average weekly wage under clause (1) shall 50.30 be computed by dividing theclaimant'stotal wage credits by 50.31 52. The claimant's average weekly wage under clause (2) shall 50.32 be computed by dividing theclaimant'shigh quarter wage credits 50.33 by 13. 50.34 (c) The state's maximum weekly benefit amount and the 50.35 claimant's weekly benefit amount and maximum amount of benefits 50.36 shall becomputed torounded down to thenearestnext lowest 51.1 whole dollar. 51.2 (d) The maximum amount of benefitspayableavailable on any 51.3reemployment insurancebenefit account shallequal one-thirdbe 51.4 33-1/3 percent of the claimant's total wage creditsrounded to51.5the next lower dollar, not to exceedto a maximum of 26 times 51.6 the claimant's weekly benefit amount. 51.7 Subd. 3. [SECOND BENEFIT ACCOUNT REQUIREMENTS.] To 51.8 establish a secondreemployment insurancebenefit account 51.9 following the expiration of a benefit year on a 51.10 priorreemployment insurancebenefit account, a claimant must 51.11 have sufficient wage credits to establish areemployment51.12insurancebenefit account under subdivision 2 and must have 51.13 performed services in covered employment after the effective 51.14 date of the priorreemployment insurancebenefit account. The 51.15 wages paid for that employment must equal not less than eight 51.16 times the weekly benefit amount of the priorreemployment51.17insurancebenefit account. Areemployment insurancebenefit 51.18 account established sufficiently in advance of 51.19 anticipatedunemploymentloss of employment to make the 51.20 limitations of this subdivision ineffective shall not be 51.21 allowed. The purpose of this subdivision is to prevent a 51.22 claimant from establishing more than onereemployment insurance51.23 benefit account as a result of oneseparation fromloss of 51.24 employment. 51.25 Subd. 3a. [RIGHT OF APPEAL.] (a) A determination or 51.26 redetermination of areemployment insurancebenefit account 51.27 shall be final unless a claimant or base period employer within 51.28 30 calendar days after the sending of the determination or 51.29 redetermination files an appeal. Every determination or 51.30 redetermination of areemployment insurancebenefit account 51.31 shall contain a prominent statement indicating in clear language 51.32the method of appealing, the time within which the appeal must51.33be made, andthe consequences of not appealing. Proceedings on 51.34 the appeal shall be conducted in accordance with section 268.105. 51.35 (b) Any claimant or base period employer may appeal from a 51.36 determination or redetermination of areemployment insurance52.1 benefit account on the issue of whether services performed 52.2 constitute employment and covered employment. Proceedings on 52.3 the appeal shall be conducted in accordance with section 268.105. 52.4 Subd. 3b. [LIMITATIONS.] (a) Areemployment insurance52.5 benefit account shall be established effective the Sunday of the 52.6 calendar week that the application forreemployment insurance52.7 benefits wasmadefiled. If an individual attempted tomake52.8 file an application fora reemployment insurance52.9accountbenefits, but was prevented frommakingfiling an 52.10 application by the department, thereemployment insurance52.11 benefit account shall beestablishedeffective the Sunday of the 52.12 calendar week the individual first attempted tomakefile an 52.13 application. 52.14 (b) Areemployment insurancebenefit account, once 52.15 established, may later be withdrawnandonly if: 52.16 (1) a new application for benefits is filed and a new 52.17 benefit account is establishedonly ifat the time of the 52.18 withdrawal; and 52.19 (2) the claimant has notbeen credited withserved a 52.20 waiting week under section 268.085, subdivision 1, clause (3). 52.21 A determination or amended determination pursuant to 52.22 section 268.101, that was issued before the withdrawal of 52.23 thereemployment insurancebenefit account, shall remain in 52.24 effect and shall not be voided by the withdrawal of 52.25 thereemployment insurancebenefit account. A determination of 52.26 disqualification requiring subsequent earnings to satisfy the 52.27 disqualification under section 268.095, subdivision 10, shall 52.28 apply to the weekly benefit amount on the new benefit account. 52.29 (c)A reemployment insurance account shall not be52.30establishedAn application for benefits shall not be allowed 52.31 prior to the Sunday following the expiration of the benefit year 52.32 on a priorreemployment insurancebenefit account. Except as 52.33 allowed under paragraph (b), a claimant may establish only one 52.34 benefit account each 52 calendar weeks. 52.35 (d) All benefits shall bepayableavailable from the fund 52.36 only for weeks occurring during the claimant's benefit year. 53.1 Sec. 42. Minnesota Statutes 1998, section 268.085, is 53.2 amended to read: 53.3 268.085 [ELIGIBILITY REQUIREMENTS.] 53.4 Subdivision 1. [ELIGIBILITY CONDITIONS.] A claimant shall 53.5 be eligible to receive benefits for any weekin the claimant's53.6benefit year onlyif: 53.7 (1) the claimant hasmadean active benefit account and has 53.8 filed a continuedclaimrequest for benefitsin person, by mail,53.9by telephone, or by electronic transmission as the commissioner53.10shall require. The commissioner may by rule adopt other53.11requirements for a continued claimfor that week pursuant to 53.12 section 268.086; 53.13 (2) the claimant was able to work and was available for 53.14 employment, and was actively seeking suitable employment. The 53.15 claimant's weekly benefit amount shall be reduced one-fifth for 53.16 each day the claimant is unable to work or is unavailable for 53.17 employment. 53.18Benefits shall not be denied by application ofThis clause 53.19 shall not apply to a claimant who is in reemployment assistance 53.20 trainingwith the approval of the commissioner. 53.21AThe requirement that the claimantserving as a juror53.22shallbeconsidered asavailable for employment and actively 53.23 seeking suitable employmentonshall not apply each day the 53.24 claimant is on jury duty; 53.25 (3) the claimant has served a waiting period of one week 53.26 that the claimant is otherwise entitled to some amount of 53.27 benefits. This clause shall not apply if the claimant would 53.28 have been entitled to federal disaster unemployment assistance 53.29 because of a disaster in Minnesota, but for the claimant's 53.30 establishment of areemployment insurancebenefit account under 53.31 section 268.07; and 53.32 (4) the claimant has been participating in reemployment 53.33 assistance services, such as job searchassistance servicesand 53.34 resume writing classes, if the claimant has been 53.35 determinedlikely to exhaust benefits andin need of 53.36 reemployment assistance servicespursuant to a profiling system54.1establishedby the commissioner, unless there isjustifiable54.2 good cause for the claimant's failure to participate. 54.3 Subd. 2. [NOT ELIGIBLE.] A claimant shall not be eligible 54.4 to receive benefits for any week: 54.5 (1) that occurs before theestablishmenteffective date of 54.6 areemployment insurancebenefit account; 54.7 (2) that occurs in a period when the claimant is a student 54.8 in attendance at, or on vacation from a secondary 54.9 school including the period between academic years or terms; 54.10 (3) that the claimant is incarcerated or performing court 54.11 ordered community service. The claimant's weekly benefit amount 54.12 shall be reduced by one-fifth for each day the claimant is 54.13 incarcerated or performing court ordered community service; 54.14 (4) that the claimant is on a voluntary leave of absence, 54.15 including a requested period of paid or unpaid vacation. A 54.16 leave of absence is voluntary when work, that the claimant can 54.17 perform, is available with the claimant's employer, but the 54.18 claimant chooses not to work. A claimantunemployedwho is not 54.19 working as a result of a vacation period assigned by an employer 54.20 under: (i) a uniform vacation shutdown, (ii) a collective 54.21 bargaining agreement, or (iii) an established employer policy, 54.22 shall not beconsidered on a voluntary leave of54.23absenceineligible under this clause; 54.24 (5) that the claimant is performing services 32 hours or 54.25 more, in employment, covered employment, noncovered employment, 54.26 or self-employment, or volunteer workregardless of the amount 54.27 of any earnings; or 54.28 (6) with respect to which the claimant is receiving, has 54.29 received, or has fileda claiman application for reemployment 54.30 insurance benefits under any federal law or the law of any other 54.31 state, or the federal government, but not including any federal54.32or state benefits that are merely supplementary to those54.33provided for under this chapter; provided that. If the 54.34 appropriate agency finally determines that the claimant is not 54.35 entitled to the benefits, this clause shall not apply. 54.36 Subd. 3. [DEDUCTIBLE PAYMENTS.] (a) A claimant shall not 55.1 be eligible to receive benefits for any week with respect to 55.2 which the claimant is receiving, has received, or has fileda55.3claimfor payment in an amount equal to or in excess of the 55.4 claimant's weekly benefit amount in the form of: 55.5 (1)termination,a severance, or dismissalpaymentor wages55.6in lieu of notice whether legally required or not. This clause 55.7 shall apply to the first four weeks of payment and to one-half 55.8 of the total number of any additional weeks of payment. This 55.9 clause shall be applied to the period immediately following the 55.10 last day of employment. The number of weeks of payment shall be 55.11 determined as follows: 55.12 (i) if the payments are made periodically, the total of the 55.13 payments to be received shall be divided by the claimant's last 55.14 level of regular weekly pay from the employer; or 55.15 (ii) if the payment is made in a lump sum, that sum shall 55.16 be divided by the claimant's last level of regular weekly pay 55.17 from the employer; 55.18 (2) vacationallowancepay, paid directly bythean 55.19 employer fora period of requested vacation, includingvacation 55.20 periods assigned by the employer under: (i) a collective 55.21 bargaining agreement, (ii) established employer policy, or (iii) 55.22 uniform vacation shutdown;or55.23 (3) compensation for loss of wages under the workers' 55.24 compensation law of this state or any other state or under a 55.25 similar law of the United States, or compensation for loss of 55.26 wages under any other insurance or fundestablished andpaidfor55.27 in whole or in part bythean employer;or55.28 (4) pension, retirement, or annuity payments from any plan 55.29 contributed to by a base period employer including the United 55.30 States government, except social security benefitsaswhich are 55.31 provided for in subdivision 4. The base period employer 55.32 contributed to the plan if the contribution is excluded from the 55.33 definition of wages under section 268.035, subdivision 29, 55.34 clause (1), or United States Code, title 26, section 3121, 55.35 clause (2), of the Federal Insurance Contribution Act. 55.36 If the claimant receives a lump sum payment, that sum shall 56.1 be divided by the claimant's last level of regular weekly pay to 56.2 determine the number of weeks of payment. The number of weeks 56.3 of payment shall be applied to the period immediately following 56.4 the last day of employment. A claimant shall not be considered 56.5 to have received the lump sum payment if the claimant 56.6 immediately deposits that payment in a qualified pension plan or 56.7 account; or 56.8 (5) holiday pay or sick pay, paid directly by an employer. 56.9 (b) If the deductible paymentunder this subdivisionis 56.10 less than the claimant's weekly benefit amount,the claimant56.11shall be entitled to receive for that week, if otherwise56.12eligible,benefits shall be reduced by the amount of the payment 56.13; provided, further, that. If the computation of reduced 56.14 benefits is not a whole dollar, it shall be rounded down to the 56.15 next lowest dollar. 56.16 (c) If the appropriate agencyof this state or any other56.17state or the federal governmentfinally determines that the 56.18 claimant is not entitled to payments, this subdivision shall not 56.19 apply.If the computation of reduced benefits is not a whole56.20dollar, it shall be rounded down to the next lower dollar.56.21 Subd. 4. [SOCIAL SECURITY BENEFITS.] (a) Any claimant aged 56.22 62 or over shall be required to stateat the time of makingwhen 56.23 filing an application fora reemployment insurance account56.24 benefits and whenmakingfiling continuedclaimsrequests for 56.25 benefits whether the claimant is receiving, has filed for, or 56.26 intends to file for, primary social security old age or 56.27 disability benefits for any week during the benefit year, and if56.28so. 56.29 (b) There shall be deducted fromthea claimant's weekly 56.30 benefit amountotherwise payable for that week,50 percent of 56.31 the weekly equivalent of the primary social security old age 56.32 benefit the claimant has received, has filed for, or intends to 56.33 file for, with respect to that week. 56.34(b) In addition to paragraph (a),(c) a claimant shall be 56.35 ineligible for benefits for any week with respect to which the 56.36 claimant is receiving, has received, or has fileda claimfor 57.1 primary social security disability benefits, unless the social57.2security administration has approved the payment of disability57.3benefits while the claimant was employed. 57.4 (d) Information from the Social Security Administration 57.5 shall be considered conclusive, absent specific evidence showing 57.6 that the information was erroneous. 57.7(c)(e) Any claimant who receives primary social security 57.8 old age or disability benefits, that would cause the claimant to57.9be ineligible under this subdivision,forweeksperiods that the 57.10 claimantreceivedhas been paid reemployment insurance benefits 57.11 shall be considered overpaid those reemployment insurance 57.12 benefits under section 268.18, subdivision 1. 57.13 Subd. 5. [DEDUCTIBLE EARNINGS.] (a) If the claimant has 57.14 earnings, including holiday pay,with respect to any week, from 57.15 employment, covered employment, noncovered employment, 57.16 self-employment, or volunteer work, equal to or in excess of the 57.17 claimant's weekly benefit amount, the claimant shall be 57.18 ineligible for benefits for that week. 57.19 (b) If the claimant has earnings,including holiday pay,57.20 with respect to any week, that is less than the claimant's 57.21 weekly benefit amount, from employment, covered employment, 57.22 noncovered employment, self-employment, or volunteer work,that57.23is less than the claimant's weekly benefit amount,that amount 57.24 over the following shall be deducted from theclaimant'sweekly 57.25 benefit amount: 57.26 (1)that amount in excess of $50 if the claimant's earnings57.27were $200 or less, and that amount in excess of25 percent of 57.28the claimant'searningsif those earnings were more than $200or 57.29 $50, whichever is higher; and 57.30 (2)that amount in excess of$200 for earnings from service 57.31 in the National Guard or a United States military reserve unit. 57.32 The resulting benefit, if not a whole dollar, shall be 57.33 rounded to the next lower dollar. 57.34 (c) No deduction shall be made from a claimant's weekly 57.35 benefit amount for earnings from service as a volunteer 57.36 firefighter or volunteer ambulance service personnel. No 58.1 deduction shall be made for jury duty pay. 58.2 (d) The claimant may report deductible earnings on 58.3 continuedclaimsrequests for benefits at the nearest whole 58.4 dollar amount. 58.5 (e) Earnings shall not include any money considered a 58.6 deductible payment under subdivision 3, but shall include all 58.7 other money considered wages and any other money considered 58.8 earned income under state and federal law for income tax 58.9 purposes. 58.10 Subd. 6. [RECEIPT OF BACK PAY.] (a) Back pay received by a 58.11 claimant with respect to anyweeksweek occurring in the 104 58.12 weeks prior to the payment of the back pay shall be deducted 58.13 from benefits paid forthose weeksthat week. 58.14The amount deducted shall not reduce the benefits that the58.15claimant is otherwise eligible for that week below zero. If the58.16amount of benefits after the deduction of back pay is not a58.17whole dollar amount, it shall be rounded to the next lower58.18dollar.58.19 If an arbitration award, administrative or judicial 58.20 decision, or negotiated settlement that provides for back pay 58.21 does not specify the period with respect to which it is paid, 58.22 the back pay shall be applied to the period immediately 58.23 following the last day of employment. 58.24 (b) If the back payawarded the claimantis reduced by the 58.25 amount of benefits that have been paid, theamountsamount of 58.26 back pay withheld shall be: 58.27(a)(1) paid by the employerintoto the fund within 30 58.28 calendar daysof the awardandaresubject to the same 58.29 collection procedures that apply to past due taxesunder this58.30chapter; 58.31(b)(2) applied to benefit overpayments resulting from the 58.32 payment of the back pay; and 58.33(c)(3) credited to theclaimant'smaximum amount of 58.34 benefitspayableavailable to the claimant in a benefit year 58.35 that includes the weeks for which back pay was deducted. 58.36Benefit(c) Chargesfor those weeksto the employer's tax 59.1 or reimbursable account under section 268.047 for benefits paid 59.2 the claimant shall be removed from the employer's accountas of59.3 in the calendar quarterthatthe fund receives payment. 59.4 (d) Payments to the fund under this subdivision shall be 59.5 considered as made by the claimant. 59.6 Subd. 7. [SCHOOL EMPLOYEES.] (a) No wage credits in any 59.7 amount from any employment with any educational institution or 59.8 institutions earnedwhileinan instructional, research, or59.9principal administrativeany capacity may be used for benefit 59.10 purposes for any weekbeginningduringathe period between two 59.11 successive academic years or terms, or during a period between59.12two regular but not successive terms,if: 59.13 (1) the claimant had employmentin any instructional,59.14research, or principal administrative capacityfor any 59.15 educational institution or institutions in thefirst of the59.16 prior academicyearsyear ortermsterm; and 59.17 (2) there is acontract or areasonable assurance that the 59.18 claimant will have employmentin any instructional, research, or59.19principal administrative capacityfor any educational 59.20 institution or institutions in thesecond of thefollowing 59.21 academicyearsyear ortermsterm, that is not substantially 59.22similar toless favorable than the employment of thefirstprior 59.23 academicyearsyear orterms;term. 59.24(b) With respect to employment in any capacity other than59.25those described in paragraph (a), including educational59.26assistants, benefits shall not be paid based upon wage credits59.27from any educational institution or institutions for any week59.28beginning during a period between two successive academic years59.29or terms if the claimant was employed in the first academic year59.30or term by any educational institution or institutions and there59.31is reasonable assurance that the claimant will be employed under59.32similar terms and conditions by any educational institution or59.33institutions in the second academic year or term.59.34 (b) Paragraph (a) shall not apply to a claimant whohas, at 59.35 the end of the prior academic year or term, had an agreement for 59.36 a definite period of employment between academic years or 60.1 termsshall be eligible for any weeks within that periodin 60.2 other than an instructional, research, or principal 60.3 administrative capacity and the educational institution or 60.4 institutionsfailfailed to provide that employment. 60.5 (c) If benefits are denied to any claimant underthis60.6 paragraph (a) who was employed in the prior academic year or 60.7 term in other than an instructional, research, or principal 60.8 administrative capacity andthe claimantwho was not offered an 60.9 opportunity to perform the employment in thesecond of the60.10 following academicyearsyear or term, the claimant shall be 60.11 entitled to retroactive benefits for each week during the period 60.12 between academic years or terms that the claimant filed a timely 60.13 continuedclaimrequest for benefits, but benefits were denied 60.14 solely because ofthisparagraph;(a). 60.15(c) With respect to employment described in60.16 (d) An educational assistant shall not be considered to be 60.17 in an instructional, research, or principal administrative 60.18 capacity. 60.19 (e) Paragraph (a)or (b), benefits based upon wage credits60.20from any educational institution or institutionsshallnot be60.21paid for any week beginning during an established and60.22customaryapply to any vacation period or holiday recess if the 60.23 claimant was employedin the periodimmediately before the 60.24 vacation period or holiday recess, and there is a reasonable 60.25 assurance that the claimant will be employedin the period60.26 immediately following the vacation period or holiday recess;. 60.27(d) Paragraphs (a), (b), and (c)(f) This subdivision shall 60.28 apply to employment with an educational service agency if the 60.29 claimant performed the services at an educational institution or 60.30 institutions.For purposes of this paragraph,"Educational 60.31 service agency" means a governmental agency or entity 60.32 established and operated exclusively for the purpose of 60.33 providing services to one or more educational institutions;60.34(e) Paragraphs (a) to (d). This subdivision shall also 60.35 apply to employment with Minnesota or a political subdivision, 60.36 or a nonprofit organization, if the services are provided to or 61.1 on behalf of an educational institution or institutions. 61.2(f)(g) Paragraphs (a), (b),and(c)(e) shall apply 61.3 beginning the Sunday of the week that there is acontract or61.4 reasonable assurance of employment. 61.5(g)(h) Employment with multiple education institutions 61.6 shall be aggregated for purposes of application of this 61.7 subdivision. 61.8(h)(i) If all of the claimant's employment with any 61.9 educational institution or institutions during the prior 61.10 academic year or term consisted of on-call employment, and the 61.11 claimant has a reasonable assurance of any on-call employment 61.12 with any educational institution or institutions for the 61.13 following academic year or term, it shall not be considered 61.14 substantially less favorable employment. 61.15 (j) Paragraph (a) shall also apply to the period between 61.16 two regular but not successive terms. 61.17 (k) A "reasonable assurance" may be written, oral, implied, 61.18 or established by custom or practice. 61.19 (l) An "educational institution" is an educational entity 61.20 operated by Minnesota or a political subdivision or an 61.21 instrumentality thereof, or an educational organization 61.22 described in United States Code, title 26, section 501(c)(3) of 61.23 the federal Internal Revenue Code, and exempt from income tax 61.24 under section 501(a). 61.25 Subd. 8. [SERVICES FOR SCHOOL CONTRACTORS.] Wage credits 61.26 from an employer are subject to subdivision 7,paragraphs (b)61.27and (c),if: 61.28 (1) the employment was provided pursuant to a contract 61.29 between the employer and aneducational institutionelementary 61.30 or secondary school; and 61.31 (2) the contract was for services that theeducational61.32institutionelementary or secondary school could have had 61.33 performed by its employees; and61.34(3) the claimant was notified in writing of the provisions61.35of this subdivision prior to or at the time of beginning the61.36employment. 62.1 Subd. 9. [BUSINESS OWNERS.] Wage credits from an employer 62.2 may not be used for benefit purposes by any claimant who: 62.3 (1) individually, jointly, or in combination with the 62.4 claimant's spouse, parent, or child owns or controls directly or 62.5 indirectly 25 percent or more interest in the employer, or is 62.6 the spouse, parent, or minor child of any individual who owns or 62.7 controls directly or indirectly 25 percent or more interest in 62.8 the employer; and 62.9 (2) is not permanently separated from employment. 62.10 This subdivision is effective when the claimant has been 62.11 paid four times the claimant's weekly benefit amount in the 62.12 current benefit year. 62.13 Subd. 10. [SEASONALRECREATIONAL OR TOURIST INDUSTRY 62.14 EMPLOYMENT.] (a) If a claimant has wage credits fromseasonal62.15 recreational or tourist industry employment, benefits shall 62.16 bepayableavailable only if the claimant can establish 62.17 areemployment insurancebenefit account under section 268.07, 62.18 subdivision 2, excluding the wage credits fromseasonal62.19 recreational or tourist industry employment.For purposes of62.20 This subdivision, "seasonal employment" meansapplies only to 62.21 employmentwith a single employer in the recreation or tourist62.22industrythat is available with the employer for 15 consecutive 62.23 weeks or less each calendar year. 62.24 (b) Wage credits fromseasonalrecreational or tourist 62.25 industry employment may not be used for benefit purposes during 62.26 weeks outside the normal employment season. 62.27 Subd. 11. [PROFESSIONALATHLETES AND COACHES.] Benefits 62.28 shall not be paid to a claimant on the basis of any wage credits 62.29 from employment thatsubstantiallyconsists of coaching or 62.30 participating in sports or athletic events or training or 62.31 preparing to participate for any weekthat beginsduring the 62.32 period between two successive sport seasons,(or similar periods 62.33), if: 62.34 (1) the claimant was so employed in thefirstprior season 62.35(or similar period), and 62.36 (2) there is a reasonable assurance that the claimant will 63.1 be so employed in the following season(or similar 63.2periods)period. 63.3 Subd. 12. [ALIENS.] (a) An alien shall be ineligible for 63.4 benefits for any week the alien is not authorized to work in the 63.5 United States under federal law. Information from the 63.6 Immigration and Naturalization Service shall be considered 63.7 conclusive, absent specific evidence that the information was 63.8 erroneous. 63.9 (b) Benefits shall not be paid on the basis of wage credits 63.10 earned by an alien unless the alien (1) was lawfully admitted 63.11 for permanent residence at the time of the employment, (2) was 63.12 lawfully present for the purposes of the employment, or (3) was 63.13 permanently residing in the United States under color of law at 63.14 the time of the employmentincluding section 212(d)(5) of the63.15Immigration and Nationality Act. 63.16 (c) Anydata orinformation required of claimants applying 63.17 for benefits to determine eligibility because of their alien 63.18 status shall beuniformlyrequired from all claimants. 63.19 Subd. 13. [SUSPENSION FROM EMPLOYMENT.] (a) A claimant who 63.20 has been suspended from employment without pay for 30 calendar 63.21 days or less, as a result of employment misconduct as defined 63.22 under section 268.095, subdivision 6, shall be ineligible for 63.23 benefits beginning the Sunday of the week that the claimant was 63.24 suspended and continuing for the duration of the suspension. 63.25 (b) A suspension from employment without pay for more than 63.26 30 calendar days shall be considered a discharge from employment 63.27 under section 268.095, subdivision 5. 63.28 (c) A suspension from employment with pay, regardless of 63.29 duration, shall not be considered a separation from employment 63.30 and the claimant shall be ineligible for benefits for the 63.31 duration of the suspension with pay. 63.32 Subd. 14. [ABLE TO WORK DEFINED.] "Able to work" means a 63.33 claimant has the physical and mental ability to perform the 63.34 usual duties of the claimant's customary occupation or the usual 63.35 duties of other suitable employment. 63.36 Subd. 15. [AVAILABLE FOR EMPLOYMENT DEFINED.] (a) 64.1 "Available for employment" means a claimant is ready and willing 64.2 to accept employment in the labor market area. The attachment 64.3 to the work force must be genuine. There must be no 64.4 restrictions, either self-imposed or created by circumstances, 64.5 temporary or permanent, that prevent accepting employment. 64.6 (b) To be considered "available for employment," a student 64.7 must be willing to quit school to accept employment that would 64.8 conflict with school attendance. 64.9 (c) A claimant who is absent from the labor market area for 64.10 personal reasons, other than to search for work, is not 64.11 "available for employment." 64.12 (d) A claimant who has restrictions on the hours of the day 64.13 or days of the week that the claimant can or will work, that are 64.14 not normal for the claimant's usual occupation or other 64.15 employment, is not "available for employment." A claimant whose 64.16 usual occupation is normally performed during the daytime must 64.17 be available for daytime work even though the claimant 64.18 customarily worked the night shift. 64.19 (e) A claimant must have transportation throughout the 64.20 labor market area to be considered "available for employment." 64.21 Subd. 16. [ACTIVELY SEEKING SUITABLE EMPLOYMENT DEFINED.] 64.22 (a) "Actively seeking suitable employment" means those 64.23 reasonable, diligent efforts an individual in similar 64.24 circumstances would make if genuinely interested in obtaining 64.25 suitable employment under the existing conditions in the labor 64.26 market area. Limiting the search to positions that are not 64.27 available or are above the claimant's training, experience, and 64.28 qualifications is not "actively seeking suitable employment." 64.29 (b) To be considered "actively seeking suitable employment" 64.30 a claimant shall, when reasonable, contact those employers from 64.31 whom the claimant was laid off due to lack of work and request 64.32 suitable employment. 64.33 (c) If reasonable prospects of suitable employment in the 64.34 claimant's usual or customary occupation do not exist, the 64.35 claimant must actively seek other suitable employment to be 64.36 considered "actively seeking suitable employment." This applies 65.1 to a claimant who is seasonally unemployed. 65.2 (d) A claimant who is seeking employment only through a 65.3 union is not actively seeking suitable employment unless the 65.4 claimant is in an occupation where it is required by union rule 65.5 that all the hiring in that locality is done through the union. 65.6 The claimant must be a union member in good standing, registered 65.7 with the union for employment, and in compliance with other 65.8 union rules to be considered "actively seeking suitable 65.9 employment." 65.10 Sec. 43. [268.086] [CONTINUED REQUEST FOR BENEFITS ON AN 65.11 ACTIVE BENEFIT ACCOUNT.] 65.12 Subdivision 1. [ACTIVE BENEFIT ACCOUNT.] (a) A benefit 65.13 account shall be considered active only when a claimant files 65.14 continued requests for benefits in the manner and within the 65.15 time periods prescribed. A benefit account shall be considered 65.16 inactive if a claimant stops filing a continued request or fails 65.17 to file a continued request within the time period required. 65.18 The benefit account shall be considered inactive as of the 65.19 Sunday following the last week or biweekly period for which a 65.20 continued request has been timely filed. 65.21 (b) A benefit account that is inactive shall be reactivated 65.22 the Sunday of the week that the claimant makes a contact with 65.23 the department to do so, in the manner prescribed by the 65.24 commissioner for reactivating that claimant's benefit account. 65.25 Subd. 2. [CONTINUED REQUEST FOR BENEFITS DEFINED.] A 65.26 continued request for benefits is a certification by a claimant, 65.27 done on a weekly or biweekly basis as prescribed by the 65.28 commissioner, on the claimant's eligibility for benefits under 65.29 section 268.085 for a specific week or two-week period. A 65.30 continued request shall include information on possible issues 65.31 of disqualification in accordance with section 268.101, 65.32 subdivision 1, paragraph (c). 65.33 Subd. 3. [METHODS FOR FILING CONTINUED REQUESTS FOR 65.34 BENEFITS.] (a) The commissioner shall designate to each claimant 65.35 one of the following methods for filing a continued request: 65.36 (1) by telephone under subdivision 4; 66.1 (2) by electronic transmission under subdivision 5; 66.2 (3) by mail under subdivision 6; or 66.3 (4) by in-person interview under subdivision 7. 66.4 (b) The method designated by the commissioner shall be the 66.5 only method allowed for filing a continued request by that 66.6 claimant. A claimant may ask that one of the other allowed 66.7 methods be designated and the commissioner shall consider 66.8 inconvenience to the claimant as well as administrative capacity 66.9 in determining whether to allow a claimant to change the 66.10 designated method for filing a continued request for benefits. 66.11 Subd. 4. [CONTINUED REQUEST FOR BENEFITS BY 66.12 TELEPHONE.] (a) A continued request by telephone shall be made 66.13 to a telephone number required by the commissioner for that 66.14 claimant. In order to constitute a continued request, all 66.15 information asked for, including information authenticating that 66.16 the caller is the claimant, must be provided. If all of the 66.17 information asked for is not provided, the communication shall 66.18 not constitute a continued request for benefits. 66.19 The telephone communication must be made on the date 66.20 required for the claimant for filing a continued request for 66.21 benefits by telephone. 66.22 (b) If the telephone continued request for benefits is not 66.23 filed on the date required, a continued request by telephone 66.24 shall be accepted if the claimant files the continued request by 66.25 telephone within 14 days following the week in which the date 66.26 required occurred. If the continued request by telephone is not 66.27 filed within 14 days following the week in which the date 66.28 required occurred, the telephone continued request shall not be 66.29 accepted and the claimant shall be ineligible for benefits for 66.30 the period covered by the continued request and the benefit 66.31 account shall be considered inactive, unless the claimant shows 66.32 good cause for failing to file the continued request by 66.33 telephone within the time period requested. 66.34 Subd. 5. [CONTINUED REQUEST FOR BENEFITS BY ELECTRONIC 66.35 TRANSMISSION.] (a) A continued request for benefits by 66.36 electronic transmission shall be filed to that electronic mail 67.1 address or Internet address prescribed by the commissioner for 67.2 that claimant. In order to constitute a continued request, all 67.3 information asked for, including information authenticating that 67.4 the claimant is sending the transmission, must be provided in 67.5 the format required. If all of the information asked for is not 67.6 provided, the communication shall not constitute a continued 67.7 request for benefits. 67.8 The electronic transmission communication must be filed on 67.9 the date required for the claimant for filing a continued 67.10 request by electronic transmission. 67.11 (b) If the electronic transmission continued request is not 67.12 filed on the date required, a continued request by electronic 67.13 transmission shall be accepted if the claimant files the 67.14 continued request by electronic transmission within 14 days 67.15 following the week in which the date required occurred. If the 67.16 continued request by electronic transmission is not filed within 67.17 14 days following the week in which the date required occurred, 67.18 the electronic continued request shall not be accepted and the 67.19 claimant shall be ineligible for benefits for the period covered 67.20 by the continued request and the benefit account shall be 67.21 considered inactive, unless the claimant shows good cause for 67.22 failing to file the continued request by electronic transmission 67.23 within the time period required. 67.24 Subd. 6. [CONTINUED REQUEST FOR BENEFITS BY MAIL.] (a) A 67.25 continued request for benefits by mail shall be on a form 67.26 prescribed by the commissioner. The form, in order to 67.27 constitute a continued request, must be totally completed and 67.28 signed by the claimant. 67.29 The form must be filed on the date required for the 67.30 claimant for filing a continued request by mail, in an envelope 67.31 with postage prepaid thereon, and sent to the address required 67.32 by the commissioner for that claimant. 67.33 (b) If the mail continued request for benefits is not filed 67.34 on the date required, a continued request shall be accepted if 67.35 the form is filed by mail within 14 days following the week in 67.36 which the date required occurred. If the form is not filed 68.1 within 14 days following the week in which the date required 68.2 occurred, the form shall not be accepted and the claimant shall 68.3 be ineligible for benefits for the period covered by the 68.4 continued request for benefits and the benefit account shall be 68.5 considered inactive, unless the claimant shows good cause for 68.6 failing to file the form by mail within the time period required. 68.7 (c) If the claimant has been designated to file a continued 68.8 request for benefits by mail, a claimant may submit the form by 68.9 facsimile transmission on the day otherwise required for 68.10 mailing, or within 14 days following the week in which the date 68.11 required occurred. A form submitted by facsimile transmission 68.12 shall be sent only to the telephone number assigned for that 68.13 purpose. 68.14 (d) A claimant who has been designated to file a continued 68.15 request by mail may personally deliver a continued request form 68.16 only to the location to which the form was otherwise required to 68.17 be mailed. 68.18 Subd. 7. [IN-PERSON CONTINUED REQUEST FOR BENEFITS.] The 68.19 commissioner may require any claimant who has been designated to 68.20 make a continued request for benefits by mail, by telephone, by 68.21 electronic transmission, or by mail to appear for a personal 68.22 interview at a place, time, and date designated, during which a 68.23 written continued request for benefits form shall be completed 68.24 and submitted by the claimant. 68.25 A claimant shall be ineligible for benefits for the week or 68.26 biweekly period covered by a continued request and the benefit 68.27 account shall be considered inactive if the claimant fails, 68.28 without good cause, to comply with the requirement that the 68.29 claimant appear for a personal interview and at that time 68.30 complete and submit a written continued request form. 68.31 Subd. 8. [GOOD CAUSE.] A continued request for benefits 68.32 that is not filed within the time periods required by this 68.33 section shall be accepted only for those weeks that the claimant 68.34 has "good cause" for not filing within the time periods required. 68.35 Subd. 9. [GOOD CAUSE DEFINED.] "Good cause" for purposes 68.36 of this section is a compelling substantial reason that would 69.1 have prevented a reasonable person acting with due diligence 69.2 from filing a continued request for benefits within the time 69.3 periods required. 69.4 "Good cause" shall not include forgetfulness, loss of the 69.5 continued request form, having returned to work, or inability to 69.6 file a continued request for benefits by the method designated 69.7 if the claimant was aware of the inability and did not make 69.8 diligent effort to have the method of filing a continued request 69.9 changed by the commissioner. "Good cause" shall not include 69.10 having previously made an attempt to file a continued request 69.11 for benefits but where the communication was not considered a 69.12 continued request because the claimant failed to submit all 69.13 required information. 69.14 Sec. 44. Minnesota Statutes 1998, section 268.095, is 69.15 amended to read: 69.16 268.095 [DISQUALIFICATION PROVISIONS.] 69.17 Subdivision 1. [QUIT.] A claimant whoquitsquit 69.18 employment shall be disqualified from all benefits except when: 69.19 (1)unlessthe claimant quit the employment because of a 69.20 good reason caused by the employer; 69.21 (2)unlessthe claimant quit the employment to accept other 69.22 covered employment that provided substantiallyhigher wages or69.23substantiallybetter terms and conditions of employmentor both, 69.24 but the claimant did not work long enough at the other 69.25 employment to have sufficient subsequent earnings to satisfy the 69.26 disqualification that would otherwise be imposed; 69.27 (3)unlessthe claimant quit the employment within 30 69.28 calendar days of beginning the employment because the employment 69.29 was unsuitable for the claimant; 69.30 (4)unlessthe employment was unsuitable for the claimant 69.31 and the claimant quit to enterapprovedreemployment assistance 69.32 training; 69.33 (5)unlessthe employment was part time and the claimant 69.34 had full-time employment in the base period, that the claimant 69.35 separated from because of nondisqualifying reasons, sufficient 69.36 to meet the minimum requirements to establish areemployment70.1insurancebenefit account under section 268.07;or70.2 (6)unlessthe claimant quit because the employer notified 70.3 the claimant that the claimant was going to be laid off due to 70.4 lack of work within 30 calendar days. A claimant who quit 70.5 employment within 30 calendar days of a notified date of layoff 70.6 due to lack of work shall be disqualified from benefits through 70.7 the end of the week that includes the scheduled date of layoff; 70.8 or 70.9 (7) the claimant quit the employment because the claimant's 70.10 serious illness or injury made it medically necessary that the 70.11 claimant quit, provided that the claimant made reasonable 70.12 efforts to remain in that employment in spite of the serious 70.13 illness or injury. 70.14 Reasonable efforts to remain in that employment are those a 70.15 reasonable individual would make if interested in remaining with 70.16 the employer and require that the claimant inform the employer 70.17 of the serious illness or injury and request accommodation. 70.18A claimant who quit employment because ofIf the claimant's 70.19 serious illnessofis chemical dependency, the claimant has not 70.20 made reasonable efforts to remain in that employment if the 70.21 claimant has previously beenprofessionallydiagnosed as 70.22 chemically dependent, or has previouslyvoluntarily submitted to70.23 had treatment for chemical dependency, and has failed to make 70.24 consistent efforts to control the chemical dependency. 70.25 Subd. 2. [QUIT DEFINED.] (a) A quit from employment occurs 70.26 when the decision to end the employment was, at the time the 70.27 employment ended, the employee's. 70.28 (b) An employee who has been notified that the employee 70.29 will be discharged in the future, who chooses to end the 70.30 employment while employment in any capacity is still available, 70.31 shall be considered to have quit the employment. 70.32 (c) An employee who seeks to withdraw a previously 70.33 submitted notice of quitting shall be considered to have quit 70.34 the employment if the employer does not agree that the notice 70.35 may be withdrawn. 70.36 Subd. 3. [GOOD REASON CAUSED BY THE EMPLOYER DEFINED.] (a) 71.1 A good reason caused by the employer for quitting is a reason: 71.2 (1) that is directly related to the employment and for 71.3 which the employer is responsible; and 71.4 (2) that is significant and would compel an average, 71.5 reasonable worker to quit and become unemployed rather than 71.6 remaining in the employment. 71.7 (b) If a claimant was subjected to adverse working 71.8 conditions by the employer, the claimant must complain to the 71.9 employer and give the employer a reasonable opportunity to 71.10 correct the adverse working conditions before that may be 71.11 considered a good reason caused by the employer for quitting. 71.12 (c) A substantial adverse change in the wages, hours, or 71.13 other terms of employment by the employer shall be considered a 71.14 good reason caused by the employer for quitting unless the 71.15 change occurred because of the claimant's employment misconduct. 71.16 (d) Notification of discharge in the future, including a 71.17 layoff due to lack of work, shall not be considered a good 71.18 reason caused by the employer for quitting. 71.19 (e) A claimant has a good reason caused by the employer for 71.20 quitting if it results from sexual harassment of which the 71.21 employer was aware, or should have been aware, and the employer 71.22 failed to take timely and appropriate action. Sexual harassment 71.23 means unwelcome sexual advances, requests for sexual favors, 71.24 sexually motivated physical contact or other conduct or 71.25 communication of a sexual nature when: 71.26 (1) the claimant's submission to the conduct or 71.27 communication is made a term or condition of the employment; 71.28 (2) the claimant's submission to or rejection of the 71.29 conduct or communication is the basis for decisions affecting 71.30 employment; or 71.31 (3) the conduct or communication has the purpose or effect 71.32 of substantially interfering with a claimant's work performance 71.33 or creating an intimidating, hostile, or offensive working 71.34 environmentand the employer knows or should know of the71.35existence of the harassment and fails to take timely and71.36appropriate action. 72.1 (f) The definition of a good reason caused by the employer 72.2 for quitting employment provided by this subdivision shall be 72.3 exclusive. 72.4 Subd. 4. [DISCHARGE.] A claimant whoiswas discharged 72.5 from employment by an employer shall not be disqualified from 72.6 any benefits except when: 72.7 (1)unlessthe claimant was discharged because of 72.8 employment misconductthat interfered with and adversely72.9affected that employment. This clause shall not apply if:; or 72.10(i) the misconduct was a direct result of the claimant's72.11serious illness provided that the claimant made reasonable72.12efforts to remain in that employment in spite of the serious72.13illness.72.14Reasonable efforts to remain in that employment require72.15that the claimant inform the employer of the serious illness and72.16request accommodation.72.17If the misconduct was a direct result of the claimant's72.18serious illness of chemical dependency, the claimant has not72.19made reasonable efforts to remain in that employment if the72.20claimant has previously been professionally diagnosed chemically72.21dependent or the claimant has previously voluntarily submitted72.22to treatment for chemical dependency and has failed to make72.23consistent efforts to control the chemical dependency.72.24This subclause shall not apply if the misconduct was a72.25violation of section 169.121, 169.1211, or 169.123; or72.26(ii) the employment was part time and the claimant had72.27full-time employment in the base period, that the claimant72.28separated from because of nondisqualifying reasons, sufficient72.29to meet the minimum requirements to establish a reemployment72.30insurance account under section 268.07;72.31 (2)unlessthe claimant was discharged because of 72.32grossaggravated employment misconductthat interfered with and72.33adversely affected that employment. 72.34 Subd. 4a. [AGGRAVATED EMPLOYMENT MISCONDUCT DEFINED.] For 72.35 the purpose of thisclausesection, "grossaggravated employment 72.36 misconduct" means: 73.1(i)(1) the commission of any act, on the job or off the 73.2 job, thatamountswould amount to a gross misdemeanor or felony 73.3 if the act interfered with or adversely affected the employment; 73.4 or 73.5(ii)(2) for an employee of a facility as defined in 73.6 section 626.5572,grossaggravated employment misconduct 73.7 includes an act of patient or resident abuse, financial 73.8 exploitation, or recurring or serious neglect, as defined in 73.9 section 626.5572 and applicable rules. 73.10 If a claimant is convicted of a gross misdemeanor or felony 73.11 for the same actor actsfor which the claimant was discharged, 73.12 it isgrossaggravated employment misconduct; or. 73.13(3) if the claimant was discharged because the claimant73.14gave notice of intention to quit the employment within 3073.15calendar days. This clause shall be effective only through the73.16end of the calendar week that includes the intended date of73.17quitting. Thereafter the separation from employment shall be73.18considered a quit of employment by the claimant, and a73.19disqualification, if any, shall begin with the Sunday of the73.20week following the week that includes the intended date of73.21quitting.73.22 Subd. 5. [DISCHARGE DEFINED.] (a) A discharge from 73.23 employment occurs when any words or actions by an employer would 73.24 lead a reasonable employee to believe that theemployee's73.25services are no longer desired by theemployer will no longer 73.26 allow the employee to work for the employer in any capacity. A 73.27 layoff due to lack of work shall be considered a discharge. A 73.28 suspension from employment without pay of more than 30 calendar 73.29 days shall be considered a discharge. 73.30 (b) An employee who gives notice of intention to quit the 73.31 employment and is not allowed by the employer to work the entire 73.32 notice period shall be considered discharged from the employment 73.33 as of the date the employer will no longer allow the employee to 73.34 work. If the discharge occurs within 30 calendar days prior to 73.35 the intended date of quitting, then, as of the intended date of 73.36 quitting, the separation from employment shall be considered a 74.1 quit from employment subject to subdivision 1. 74.2 Subd. 6. [EMPLOYMENT MISCONDUCT DEFINED.] (a) Employment 74.3 misconductismeans: 74.4 (1) any intentional conductshowing a disregard of:, on the 74.5 job or off the job, that 74.6(1) the employer's interest;74.7(2)disregards the standards of behavior that an employer 74.8 has the right to expect of the employee;or 74.9(3)disregards the employee's duties and obligations to the 74.10 employer.; or 74.11Misconduct also includes(2) negligent or indifferent 74.12 conductby an employee demonstrating, on the job or off the job, 74.13 that demonstrates a substantial lack of concern for the 74.14 employment. 74.15 (b) Inefficiency, inadvertence, simple unsatisfactory 74.16 conduct,orpoor performanceas a resultbecause of inability or 74.17 incapacity, or absence because of illness or injury with proper 74.18 notice to the employer, are not employment misconduct. 74.19 (c) Any conduct in violation of paragraph (a), clause (1) 74.20 or (2), that was a result of the claimant's chemical dependency 74.21 is employment misconduct if the claimant has previously been 74.22 diagnosed chemically dependent or had treatment for chemical 74.23 dependency, and has failed to make consistent efforts to control 74.24 the chemical dependency. 74.25 (d) A driving offense in violation of section 169.121, 74.26 169.1211, or 169.123 that interferes with or adversely affects 74.27 the employment is employment misconduct. 74.28 (e) The definition of employment misconduct provided by 74.29 this subdivision shall be exclusive. 74.30 Subd. 7. [ACT OR OMISSIONS AFTER SEPARATION.] Except as 74.31 provided for under subdivision 8, a claimant shall not be 74.32 disqualified from benefits under this section for any acts or 74.33 omissions occurring after the claimant's separation from 74.34 employment with the employer. A layoff due to lack of work is 74.35 considered a separation from employment. 74.36 Subd. 8. [OFFERS OF EMPLOYMENT.] (a) A claimant shall be 75.1 disqualified from all benefits if the claimant, without good 75.2 cause: 75.3 (1) failed to apply for available, suitable employment of 75.4 which the claimant was advised by the commissioner or an 75.5 employer; 75.6 (2) failed to accept suitable employment when offered; or 75.7 (3) avoided an offer of suitable employment. 75.8 (b)The claimant shall not be disqualified from benefits75.9under paragraph (a) if the claimant"Good cause" is a reason 75.10 that would cause a reasonable individual who wants suitable 75.11 employment to fail to apply for, accept, or avoid suitable 75.12 employment. Good cause includes: 75.13 (1)wasthe claimant is employed in other suitable 75.14 employment; 75.15 (2) the claimant is inapprovedreemployment assistance 75.16 training;or75.17(2)(3) the claimant formerly worked for the employer and 75.18 theclaimant's last separation fromloss of employmentwith the75.19employeroccurred prior to the commencement of astrike or other75.20 labor dispute, was permanent or for an indefinite period, and 75.21 the claimant failed to apply for or acceptreemploymentthe 75.22 employment because astrike or otherlabor dispute was in 75.23 progress at the establishmentwhere the claimant was previously75.24employed by that employer; or 75.25 (4) the claimant formerly worked for the employer and quit 75.26 that employment because of a good reason caused by the employer. 75.27 Subd. 9. [SUITABLE EMPLOYMENTDEFINED.] (a) Suitable 75.28 employmentismeans employment in the claimant's labor market 75.29 area that is reasonably related to the claimant's 75.30 qualifications. In determining whether any employment is 75.31 suitable for a claimant, the degree of risk involved to the 75.32 health and safety, physical fitness, prior training, experience, 75.33 length of unemployment, prospects for securinglocalemployment 75.34 in the claimant's customary occupation, and the distance of the 75.35 employment from the claimant's residence shall be considered. 75.36 (b)NoIn determining what is suitable employment, primary 76.1 consideration shall be given to the temporary or permanent 76.2 nature of the claimant's separation from employment and whether 76.3 the claimant has favorable prospects of finding employment in 76.4 the claimant's usual or customary occupation at the claimant's 76.5 past wage level within a reasonable period of time. 76.6 If prospects are unfavorable, employment at lower skill or 76.7 wage levels is suitable if the claimant is reasonably suited for 76.8 the employment because of education, training, work experience, 76.9 or ability. 76.10 The total compensation must be considered, including the 76.11 wage rate, hours of employment, method of payment, overtime 76.12 practices, bonuses, incentive payments, and fringe benefits. 76.13 (c) When potential employment is at a rate of pay lower 76.14 than the claimant's former rate, consideration must be given to 76.15 the length of the claimant's unemployment and the proportion of 76.16 difference in the rates. Employment that may not be suitable 76.17 because of lower wages during the early weeks of the claimant's 76.18 unemployment may become suitable as the duration of unemployment 76.19 lengthens. 76.20 (d) For a claimant seasonally unemployed, suitable 76.21 employment includes temporary work in a lower skilled occupation 76.22 that pays average gross weekly wages equal to or more than 150 76.23 percent of the claimant's weekly benefit amount. 76.24 (e) If a majority of the claimant's wage credits were 76.25 earned from part-time employment, part-time employment in a 76.26 position with comparable skills and comparable hours that pays 76.27 average gross weekly wages equal to or more than 150 percent of 76.28 the claimant's weekly benefit amount shall be considered 76.29 suitable employment. 76.30 (f) To determine suitability of employment in terms of 76.31 shifts, the arrangement of hours in addition to the total number 76.32 of hours is to be considered. Employment on a second, third, 76.33 rotating, or split shift is suitable employment if it is 76.34 customary in the occupation in the labor market area. 76.35 (g) Employment shall not be considered suitable if: 76.36 (1) the position offered is vacantdue directly tobecause 77.1 of astrike, lockout, or otherlabor dispute; 77.2 (2) the wages, hours, or other conditions of employment are 77.3 substantially less favorable than those prevailing for similar 77.4 employment in thelocalitylabor market area; or 77.5 (3) as a condition of becoming employed, the claimant would 77.6 be required to join a company union or to resign from or refrain 77.7 from joining any bona fide labor organization. 77.8 Subd. 10. [DISQUALIFICATION DURATION.] (a) A 77.9 disqualification from the payment of all benefits under 77.10 subdivisions 1, 4, and 8 shall be for the duration of the 77.11 claimant's unemployment and until the end of the calendar week 77.12 that the claimant had total earnings in subsequent covered 77.13 employment of eight times the claimant's weekly benefit amount. 77.14 (b) Any disqualification imposed under subdivisions 1 and 4 77.15 shall begin on the Sunday of the week that the claimant became 77.16 separated from employment. Any disqualification imposed under 77.17 subdivision 8 shall begin on the Sunday of the week the claimant 77.18 failed to apply for, accept, or avoided employment. 77.19 (c)NotwithstandingIn addition to paragraph (a), if the 77.20 claimant was discharged from employment because ofgross77.21 aggravated employment misconduct,the disqualification shall be77.22for the duration of the claimant's unemployment and until the77.23end of the calendar week that the claimant had total earnings in77.24subsequent covered employment of 12 times the claimant's weekly77.25benefit amount. In addition,wage credits from that employment 77.26 shall be canceled. 77.27 Subd. 11. [APPLICATION.] This section shall apply to: 77.28 (1) all covered employment, full time or part time, 77.29 temporary or of limited duration, permanent or of indefinite 77.30 duration, that occurred during the base period, the period 77.31 between the end of the base period and the effective date of the 77.32reemployment insurancebenefit account, or the benefit year, 77.33 except as provided for insubdivisionssubdivision 1, clause 77.34 (5);and 4, clause (1)(ii);or 77.35 (2) all covered employment occurring in this state, and 77.36 employment covered under a reemployment insurance program, (i) 78.1 of any other state or (ii) established by an act of Congress. 78.2 Subd. 12. [LABOR DISPUTE.] (a) A claimant who hasleft or78.3partially or totally lost employment with an employerstopped 78.4 working because of astrike or otherlabor dispute at the 78.5 establishment where the claimant isor wasemployed shall be 78.6 disqualified from benefits: 78.7 (1) until the end of the calendar week that thestrike or78.8 labor dispute was in active progress if the claimant is 78.9 participating in or directly interested in thestrike orlabor 78.10 dispute; or 78.11 (2) until the end of the calendar week that thestrike or78.12 labor disputecommencedbegan if the claimant is not 78.13 participating in or directly interested in thestrike orlabor 78.14 dispute. 78.15 Participation includestheany failure or refusal by a 78.16 claimant, voluntarily or involuntarily, to accept and perform 78.17 available and customary work at the establishment. 78.18 (b) A claimant who hasleft or partially or totally lost78.19employment with an employerstopped working because of a 78.20 jurisdictional controversy between two or more labor 78.21 organizations at the establishment where the claimant isor was78.22 employed shall be disqualified for benefits until the end of the 78.23 calendar week that the jurisdictional controversy was in 78.24 progress. 78.25 (c) A claimant shall not be disqualified from benefits 78.26 under this subdivision if: 78.27 (1) the claimantbecomes unemployedstops working because 78.28 ofa strike caused byan employer'swillfulintentional failure 78.29 to observe the terms of the safety and health section of a union 78.30 contract or failure to comply with an official citation for a 78.31 violation of federalandor state laws involving occupational 78.32 safety and health; 78.33 (2) the claimantbecomes unemployedstops working because 78.34 of a lockout; or 78.35 (3) the claimant is dischargedduring the period of78.36negotiation andprior to thecommencementbeginning of astrike79.1or otherlabor dispute. 79.2 (d) A quit from employment by the claimant during the time 79.3 that thestrike or otherlabor dispute is in active progress at 79.4 the establishment shall notbe considered toterminate the 79.5 claimant's participation in or direct interest in thestrike or79.6otherlabor dispute for purposes of this subdivision. 79.7 (e) For the purpose of this subdivision, the term "labor 79.8 dispute" shall have the same definition as provided in section 79.9 179.01, subdivision 7. 79.10 Sec. 45. Minnesota Statutes 1998, section 268.101, is 79.11 amended to read: 79.12 268.101 [DETERMINATIONS ON DISQUALIFICATION AND 79.13 ELIGIBILITY.] 79.14 Subdivision 1. [NOTIFICATION.] (a)UponIn an application 79.15 fora reemployment insurance accountbenefits, each claimant 79.16 shall report the names of all employers and the reasons for no 79.17 longer working for all employers during the claimant's last 30 79.18 days of employment. If the reason reported for no longer 79.19 working for any of those employers is other than a layoff due to 79.20 lack of work, that shall raise an issue of disqualification that 79.21 the department shall determine. A claimant's failure to report 79.22 the name of an employer, or giving an incorrect reason for no 79.23 longer working for an employer, shall be considered a violation 79.24 of section 268.182, paragraph (b). 79.25 In an application, the claimant shall provide all 79.26 information necessary to determine the claimant's eligibility 79.27 for benefits under section 268.085. 79.28 (b) Upon establishment of areemployment insurancebenefit 79.29 account, the commissioner shall notify, by mail or electronic 79.30 transmission, all employers the claimant was employed by during 79.31 the claimant's last 30 days of employment prior to making an 79.32 application and all base period employers and determined 79.33 successors to those employers under section 268.051, subdivision 79.34 4. An employer shall have ten calendar days after the sending 79.35 of the notice tomake a protestraise, in a manner prescribed by 79.36 the commissionerraising, any issue of disqualification or any 80.1 issue of eligibility. An employer shall be informed of the 80.2 effect that failure totimely protestraise an issue may have on 80.3 the employer charges under section 268.047.A protest madeAn 80.4 issue raised more than ten calendar days after sending of the 80.5 notice shall be considered untimely. 80.6 (c) Each claimant shall report any employment, loss of 80.7 employment, and offers of employment received, during those 80.8 weeks the claimantmadefiled continuedclaimsrequests for 80.9 benefits pursuant to section 268.086. Each claimant who 80.10 stopsmakingfiling continuedclaimsrequests during the benefit 80.11 year and later beginsmakingfiling continuedclaimsrequests 80.12 during that same benefit year shall report the name of any 80.13 employer the claimant worked for during the period between 80.14 themakingfiling of continuedclaimsrequests, up to a period 80.15 of the last 30 days of employment, and the reason the claimant 80.16 stopped working for the employer. The claimant shall report any 80.17 offers of employment during the period between themakingfiling 80.18 of continuedclaimsrequests for benefits. Those employers from 80.19 which the claimant has reported a loss of employment or an offer 80.20 of employment pursuant to this paragraph shall be notified by 80.21 mail or electronic transmission. An employer shall have ten 80.22 calendar days after the sending of the notice tomake a80.23protestraise, in a manner prescribed by the 80.24 commissionerraising, any issue of disqualification or any issue 80.25 of eligibility. An employer shall be informed of the effect 80.26 that failure totimely protestraise an issue may have on the 80.27 employer charges under section 268.047.A protest madeAn issue 80.28 raised more than ten calendar days after sending of the notice 80.29 shall be considered untimely. 80.30 (d) The purpose for requiring the claimant to report the 80.31 name of all employers and the reason for no longer working for 80.32 all employers during the claimant's "last 30 days of employment" 80.33 under paragraphs (a) and (c) is for the commissioner to obtain 80.34 information from a claimantonraising all issues that may have 80.35 the potential of disqualifying the claimant from benefits under 80.36 section 268.095. If the reason given by the claimant for no 81.1 longer working for an employer isa discharge,other than a 81.2 layoff due to lack of work, the claimant shall be required to 81.3 state all the facts about the causeof the dischargefor no 81.4 longer working for the employer, if known. 81.5 Subd. 2. [DISQUALIFICATION DETERMINATION.] (a) The 81.6 commissioner shallpromptlydetermine any issue of 81.7 disqualification timely raisedby a timely protest madeby an 81.8 employer, and mail to the claimant and that employer at the last 81.9 known address a determination of disqualification or a 81.10 determination of nondisqualification, as is appropriate. The 81.11 determination shallset forthstate the effect on employer 81.12 charges under section 268.047. 81.13 (b) The commissioner shallpromptlydetermine any issue of 81.14 disqualification raised by informationobtainedrequired from a 81.15 claimantpursuant tounder subdivision 1, paragraph (a) or (c), 81.16 and mail to the claimant and employer at the last known address 81.17 a determination of disqualification or a determination of 81.18 nondisqualification, as is appropriate. The determination shall 81.19set forthstate the effect on employer charges under section 81.20 268.047. A determination shall be made pursuant to this 81.21 paragraph only on those issues involving the claimant's last 30 81.22 days of employment and shall be made even if a notified employer 81.23 has not raised the issue of disqualification. 81.24 (c) The commissioner shallpromptlydetermine any untimely 81.25 issue of disqualification raisedby an untimely protest madeby 81.26 an employer and mail to the claimant and that employer at the 81.27 last known address a determination of disqualification or a 81.28 determination of nondisqualification as is appropriate. The 81.29 determination shallset forthstate the effect on employer 81.30 charges under section 268.047.Notwithstanding section 268.095,81.31any disqualification imposed as a result of determination issued81.32pursuant to this paragraph shall begin the Sunday two weeks81.33following the week that the untimely protest was made.81.34Notwithstanding any provisions to the contraryIf the employer 81.35 did not employ the claimant during the claimant's last 30 days 81.36 of employment prior to the claimant's application for benefits, 82.1 but only employed the claimant for periods prior to that, 82.2 anyrelief ofexception to employer chargesas a result of a82.3determination issued pursuant to this paragraphunder section 82.4 268.047, subdivisions 2 and 3, shall begin the Sunday two weeks 82.5 following the week that the untimelyprotestissue wasmade82.6 raised. 82.7 (d) If any time within 24 months from the establishment of 82.8 areemployment insurancebenefit account the commissioner finds 82.9 that a claimant failed to report any employment, loss of 82.10 employment, or offers of employment that were required to be 82.11 provided by the claimant under this section, the commissioner 82.12 shallpromptlydetermine any issue of disqualification on that 82.13 loss of employment or offer of employment and mail to the 82.14 claimant and involved employer at the last known address a 82.15 determination of disqualification or a determination of 82.16 nondisqualification, as is appropriate. The determination shall 82.17set forthstate the effect on employer charges under section 82.18 268.047. 82.19This paragraph shall not apply if the involved employer was82.20notified and given the opportunity to protest pursuant to82.21subdivision 1, paragraph (b) or (c).82.22 This paragraph shall not prevent the imposition of any 82.23 penalty under section 268.18, subdivision 2, or 268.182. 82.24 (e) An issue of disqualification shall be determined based 82.25 upon that information required of a claimant, any information 82.26 that may be obtained from a claimant or employer, and 82.27 information from any other source, without regard to any common 82.28 law burden of proof. 82.29 (f) A determination of disqualification or a determination 82.30 of nondisqualification shall be final unless an appeal is filed 82.31 by the claimant or notified employer within 30 calendar days 82.32 after mailing. The determination shall contain a prominent 82.33 statement indicatingin clear language the method of appealing,82.34the time within which an appeal must be made, andthe 82.35 consequences of not appealing. Proceedings on the appeal shall 82.36 be conducted in accordance with section 268.105. 83.1(f)(g) An issue of disqualification for purposes of this 83.2 section shall include any reason for no longer working for an 83.3 employer other than a layoff due to lack of work, any question 83.4 of a disqualification from benefits under section 268.095, any 83.5 question of an exception to disqualification under section 83.6 268.095, any question of benefit charge to an employer under 83.7 section 268.047, and any question of an otherwise imposed 83.8 disqualification that a claimant hashad subsequent earnings83.9sufficient to satisfy the disqualificationsatisfied under 83.10 section 268.095, subdivision 10. 83.11(g) Notwithstanding(h) Regardless of the requirements of 83.12 this subdivision, the commissioner is not required to mail to a 83.13 claimant a determinationof nondisqualificationwhere the 83.14 claimant hashad subsequent earnings sufficient to83.15satisfysatisfied any otherwise potential disqualification under 83.16 section 268.095, subdivision 10. 83.17 Subd. 3. [ELIGIBILITY DETERMINATION.] (a) The commissioner 83.18 shallpromptlydetermine any issue of eligibility raisedby a83.19timely protest madeby an employer, whether timely or untimely, 83.20 and mail to the claimant and that employer at the last known 83.21 address a determination of eligibility or a determination of 83.22 ineligibility, as is appropriate. 83.23 (b) The commissioner shallpromptlydetermine any issue of 83.24 eligibility raised by information obtained from a claimant and 83.25 mail to the claimantand any involved employerat the last known 83.26 address a determination of eligibility or a determination of 83.27 ineligibility, as is appropriate. A determination shall be made 83.28 pursuant to this paragraph even if a notified employer has not 83.29 raised the issue of eligibility. 83.30 (c)The commissioner shall promptly determine any issue of83.31eligibility raised by an untimely protest made by an employer83.32and mail to the claimant and that employer at the last known83.33address a determination of eligibility or a determination of83.34ineligibility, as is appropriate. Any denial of benefits83.35imposed as a result of determination issued pursuant to this83.36paragraph shall begin the Sunday two weeks following the week84.1that the untimely protest was made.84.2(d)If any time within 24 months from the establishment of 84.3 areemployment insurancebenefit account the commissioner finds 84.4 the claimant failed to provide, on an application for benefits 84.5 or on a continued request for benefits, requested 84.6 informationregarding the claimant'son an issue of eligibility 84.7for benefits, the commissioner shall determine the issue of 84.8 eligibility and mail to the claimantand any involved employer84.9 at the last known address a determination of eligibility or a 84.10 determination of ineligibility, as is appropriate. 84.11This paragraph shall not apply if the involved employer was84.12notified, was aware, or should have been aware of the issue of84.13eligibility at the time of notification, and was given the84.14opportunity to protest pursuant to subdivision 1, paragraph (b)84.15or (c).84.16 This paragraph shall not prevent the imposition of a 84.17 penalty under section 268.18, subdivision 2, or 268.182. 84.18(e)(d) A determination of eligibility or determination of 84.19 ineligibility shall be final unless an appeal is filed by the 84.20 claimant or notified employer within 30 calendar days after 84.21 mailing. The determination shall contain a prominent statement 84.22 indicatingin clear language the method of appealing, the time84.23within which an appeal must be made, andthe consequences of not 84.24 appealing. Proceedings on the appeal shall be conducted in 84.25 accordance with section 268.105. 84.26(f)(e) An issue of eligibility for purposes of this 84.27 section shall include any questionofregarding the denial or 84.28 allowing of benefits under sections 268.085, 268.086, 268.115, 84.29 268.125, 268.135, and 268.155. 84.30 (f) Only if an employer raised the issue of eligibility 84.31 shall the employer be: (1) mailed the determination of 84.32 eligibility or a determination of ineligibility, or (2) 84.33 considered an involved employer for purposes of an appeal under 84.34 section 268.105. 84.35 Subd. 3a. [DIRECT HEARING.]NotwithstandingRegardless of 84.36 any provision of sections 268.03 to 268.23, the commissioner or 85.1 a reemployment insurance judge may refer any issue of 85.2 disqualification, any issue of eligibility, or any other 85.3 issue under sections 268.035 to 268.23, directly for hearing in 85.4 accordance with section 268.105, subdivision 1. The status of 85.5 the issue shall be the same as if a determination had been made 85.6 and an appeal filed. 85.7 Subd. 4. [AMENDED DETERMINATION.] Unless an appeal has 85.8 been filed, the commissioner, on the commissioner's own motion, 85.9 may reconsider a determination of disqualification or 85.10 nondisqualification or a determination of eligibility or 85.11 ineligibility that has not become final and issue an amended 85.12 determination.An amended determination shall not be done at85.13the request of a claimant or an employer.Any amended 85.14 determination shall be mailed to the claimant and any involved 85.15 employer at the last known address. Any amended determination 85.16 shall be final unless an appeal is filed by the claimant or 85.17 notified employer within 30 calendar days after mailing. 85.18 Proceedings on the appeal shall be conducted in accordance with 85.19 section 268.105. 85.20 Subd. 5. [PROMPTBENEFIT PAYMENT.] If a determination or 85.21 amended determinationawardsallows benefits to a claimant, the 85.22 benefits shall bepromptlypaid regardless of any appeal period 85.23 or any appeal having been filed. 85.24 Subd. 6. [OVERPAYMENT.] A determination or amended 85.25 determination that holds a claimant disqualified or ineligible 85.26 for benefits for periods a claimant has been paid benefits is 85.27 considered an overpayment of those benefitssubject tounder 85.28 section 268.18, subdivision 1. 85.29 Subd. 7. [EMPLOYER INFORMATION; ABSOLUTE PRIVILEGE.] (a) 85.30 Regardless of any provision of law to the contrary, an employer 85.31 may provide the commissioner with information on a claimant so 85.32 that the commissioner can determine a claimant's entitlement to 85.33 benefits under sections 268.03 to 268.23. 85.34 (b) Information obtained pursuant to sections 268.03 to 85.35 268.23, in order to determine a claimant's entitlement to 85.36 benefits, shall be absolutely privileged and shall not be made 86.1 the subject matter or the basis for any civil proceeding, 86.2 administrative, or judicial. 86.3 Sec. 46. Minnesota Statutes 1998, section 268.103, is 86.4 amended by adding a subdivision to read: 86.5 Subd. 4. [PROTESTS BY TELEPHONE AND ELECTRONIC 86.6 TRANSMISSION.] This section shall apply to the filing of 86.7 protests to those determinations and notices that require a 86.8 protest and affirmation procedure prior to an appeal. 86.9 Sec. 47. Minnesota Statutes 1998, section 268.105, is 86.10 amended to read: 86.11 268.105 [REEMPLOYMENT INSURANCEHEARINGS; APPEALS.] 86.12 Subdivision 1. [HEARING.] (a) Upon appeal the department 86.13 shall set a time and place for a de novo evidentiary hearing and 86.14givemail notice to any involved claimant and any involved 86.15 employerwritten notice, by mail,not less than ten calendar 86.16 days prior to the date of the hearing. 86.17 (b) The evidentiary hearing shall be conducted by a 86.18 reemployment insurance judge without regard to any common law 86.19 burden of proof as an evidence gathering inquiry and not an 86.20 adversarial proceeding. The commissioner shallby ruleadopta86.21procedure by which reemployment insurance judges hear and decide86.22appeals, subject to further appeal to the commissionerrules on 86.23 evidentiary hearings. The rules need not conform to common law 86.24 or statutory rules of evidence and other technical rules of 86.25 procedure.The writtenA report of any employee of the 86.26 department, except a determination, made in the regular course 86.27 ofthe performance ofthe employee's duties, shall be competent 86.28 evidence of the facts contained in it. 86.29 (c) After the conclusion of the hearing, upon the evidence 86.30presentedobtained, the reemployment insurance judge shall32. 86.35Subd. 2. [REEMPLOYMENT INSURANCE JUDGES.](d) The 86.36 commissioner shall designateregular salariedclassified 87.1 employees of the department asimpartialreemployment insurance 87.2 judges to conduct evidentiary hearings on appeals. The 87.3 commissioner or authorized representative may personally hear or 87.4 transfer to another reemployment insurance judge any proceedings 87.5 pending before a reemployment insurance judge. Any proceedings 87.6 removed to the commissioner or authorized representative shall 87.7 be heard in accordance with this subdivision1. 87.8 Subd.3.2. [COMMISSIONER REVIEW.] (a) Within 30 calendar 87.9 days after mailing of the reemployment insurance judge's 87.10 decision, any involvedpartyclaimant or involved employer may 87.11 appeal and obtain a de novo review by the commissioner or an 87.12 authorized representative. The commissioner within the same 87.13 period of time may on the commissioner's own motion order a de 87.14 novo reviewof a decision. 87.15 (b) The authorized representative of the commissioner shall 87.16 be an attorney who is a classified employee of the department. 87.17 The authority to act on behalf of the commissioner under this 87.18 section shall be by specific written delegation filed with the 87.19 secretary of state. 87.20 (c) Upon de novo review, the commissioner shall, on the 87.21 basis ofthethat evidence submitted at the hearingbefore the87.22reemployment insurance judgeunder subdivision 1, make findings 87.23 of fact and decision, or remand the matter back to a 87.24 reemployment insurance judge for the taking of additional 87.25 evidence and the making of new findings and decision based on 87.26 all the evidence. The commissionermay disregardshall, 87.27 independent of the findings of fact and decision of the 87.28 reemployment insurance judgeand, examine the evidence and 87.29 makeanythose findings of fact as the evidencemay, in the 87.30 judgment of the commissioner require, and makeanythat decision 87.31 as the facts found by the commissioner require. 87.32 (d) The commissioner may conduct a de novo review without 87.33 argument by any involved party, or the commissioner may allow 87.34 written argument. The commissioner shall not, except for 87.35 purposes of deciding whether to remand a matter to a 87.36 reemployment insurance judge for a further evidentiary hearing, 88.1 consider any evidence that was not submitted at the hearing 88.2 before the reemployment insurance judge. 88.3(c)(e) The commissioner shall mail to any involved party 88.4 the commissioner's findings of fact and decision. The decision 88.5 of the commissioner is the final department decision. Unless 88.6 judicial review is soughtas provided byunder subdivision 7, 88.7 the decision of the commissioner shall become final 30 calendar 88.8 days after mailing. 88.9 Subd. 3. [WITHDRAWAL OF APPEAL.] (a) Any appeal that is 88.10 pending a decision before a reemployment insurance judge or the 88.11 commissioner may be withdrawn by the appealing person, or an 88.12 authorized representative of that person, upon filing of a 88.13 notice of withdrawal. 88.14 (b) The appeal shall, by written order, be dismissed if a 88.15 notice of withdrawal is filed, unless the commissioner, by 88.16 written order, directs that further adjudication is required for 88.17 a proper result. 88.18 (c) A notice of withdrawal may be filed by mail, by 88.19 telephone, or if the commissioner allows, by electronic 88.20 transmission. 88.21 Subd. 3a. [DECISIONS.] (a) If a reemployment insurance 88.22 judge's decision or the commissioner's decisionawardsallows 88.23 benefits to a claimant, the benefits shall bepromptlypaid 88.24 regardless of any appeal period or any appeal having been filed. 88.25 (b) If a reemployment insurance judge's decision modifies 88.26 or reverses a determinationawardingallowing benefits to a 88.27 claimant, any benefits paid pursuant to the determination is 88.28 considered an overpayment of those benefitssubject tounder 88.29 section 268.18, subdivision 1. 88.30 (c) If a commissioner's decision modifies or reverses a 88.31 reemployment insurance judge's decisionawardingallowing 88.32 benefits to a claimant, any benefits paid pursuant to the 88.33 reemployment insurance judge's decision is considered an 88.34 overpayment of those benefitssubject tounder section 268.18, 88.35 subdivision 1. 88.36 (d) If the commissioner affirms a reemployment insurance 89.1 judge's decision on an issue of disqualification thatawards89.2 allows benefits to a claimant, the commissioner's decision, if 89.3 finally reversed by the Minnesota Court of Appeals or the 89.4 Supreme Court of Minnesota, shall not result in a 89.5 disqualification of the claimant from benefits under section 89.6 268.095. 89.7 (e) If the commissioner, pursuant to subdivision32, 89.8 remands a matter to a reemployment insurance judge for the 89.9 taking of additional evidence, the prior reemployment insurance 89.10 judge's decision shall continue to be enforced until new 89.11 findings of fact and decision are made by a reemployment 89.12 insurance judge. 89.13 Subd. 4. [TESTIMONIAL POWERS.]In the discharge of the89.14duties imposed by this section,The reemployment insurance 89.15 judge, the commissioner, or authorized representative, may 89.16 administer oaths and affirmations, take depositions,certify to89.17official acts,and issue subpoenas to compel the attendance of 89.18 witnesses and the production ofbooks, papers, correspondence,89.19memoranda,documents and otherrecordspersonal property 89.20 considered necessary as evidence in connection with the subject 89.21 matter ofthean evidentiary hearing. The subpoenas shall be 89.22 enforceable through the district court in the districtin which89.23 that the subpoena is issued. Witnesses subpoenaed, other than 89.24 an involved claimant or involved employer or officers and 89.25 employees of an involved employer,subpoenaed pursuant to this89.26sectionshall beallowed feespaid by the commissioner the same 89.27aswitness fees as in a civil action in district court.These89.28fees shall be considered a part of the expense of administering89.29this chapter.89.30 Subd. 5. [USE OF INFORMATION.] (a) All testimony at 89.31 any evidentiary hearing conducted pursuant to subdivision 1 89.32 shall be recorded. A copy of any recorded testimony and 89.33 exhibits received into evidence at the hearing shall, upon 89.34 request, or upon directive of the commissioner, be furnished to 89.35 a party at no cost during the time period for filing an appeal 89.36 to the commissioner or while such an appeal is pending. If 90.1 requested, therepresentative of acommissioner shall make 90.2 available a device for listening to the recording if an appeal 90.3 is pending before the commissioner under subdivision 2. 90.4 (b) Regardless of any provision of law to the contrary, if 90.5 recorded testimony and exhibits received into evidence at the 90.6 evidentiary hearing are not requested during the time period for 90.7 filing an appeal to the commissioner, or while such an appeal is 90.8 pending, that testimony and other evidence shall later be made 90.9 available to an involved party only pursuant to a court order. 90.10 A subpoena shall not be considered a court order. 90.11 (c) Testimony obtained under subdivision 1, may not be used 90.12 or considered for any purpose, including impeachment, in any 90.13 civil, administrative, or contractual proceeding, except by a 90.14 local, state, or federal human rights agency with enforcement 90.15 powers, unless the proceeding is initiated by the department. 90.16(c)(d) No findings of fact or decision issued by a 90.17 reemployment insurance judge or the commissioner may be held 90.18 conclusive or binding or used as evidence in any separate or 90.19 subsequent action in any other forum, except proceedings 90.20 provided for under this chapter, regardless of whether the 90.21 action involves the same or related parties or involves the same 90.22 facts. 90.23 Subd. 6. [REPRESENTATION; FEES.] (a) In any proceeding 90.24under these sections, a partyunder subdivision 1 or 2, a 90.25 claimant or involved employer may be represented by any agent. 90.26 (b) Except for services provided by an attorney-at-law, a 90.27 claimant shall not be charged feesor, costs, or disbursements 90.28 of any kind in a proceeding before a reemployment insurance 90.29 judge, the commissioner,or by any court or any of its90.30officersthe Minnesota court of appeals, or supreme court of 90.31 Minnesota. 90.32 Subd. 7. [COURT OF APPEALS; ATTORNEY FOR COMMISSIONER90.33 JUDICIAL REVIEW.] (a) The Minnesota court of appealsmayshall, 90.34 by writ of certiorari to the commissioner, reviewanythe 90.35 decision of the commissioner provided a petition for the writ is 90.36 filed with the court and a copy is served upon the commissioner 91.1 and any other involved party within 30 calendar days of the 91.2 mailing of the commissioner's decision. 91.3 (b) Anyinvolvedemployer,petitioning for a writ of 91.4 certiorari shall pay to the court the required filing fee and 91.5 upon the service of the writ shall furnish a cost bond to the 91.6 commissioner in accordance with the rules of civil appellate 91.7 procedure. If the employer requests a written transcript of the 91.8 testimony received at the evidentiary hearing conducted pursuant 91.9 to subdivision 1, the employer shall pay to the commissioner the 91.10 cost of preparing the transcript. 91.11 (c) Uponreview beforeissuance by the Minnesota court of 91.12 appeals of a writ of certiorari as a result of a claimant's 91.13 petition, the commissioner shall, if requested,furnish to the 91.14 claimant at no cost a written transcript of the testimony 91.15 received at the evidentiary hearing conducted pursuant to 91.16 subdivision 1, and, if requested, a copy of all exhibits entered 91.17 into evidence. No filing fee or cost bond shall be required of 91.18 a claimant petitioning the Minnesota court of appeals for a writ 91.19 of certiorari. 91.20(c)(d) The commissioner shall be consideredto be athe 91.21 primary responding party to any judicial action involvingany91.22 the commissioner's decision and the case title shall be, "In Re 91.23 the matter of: (named petitioner) and the commissioner of 91.24 economic security." The commissioner may be represented byany91.25qualifiedan attorney who is aregular salariedclassified 91.26 employee of the departmentand has beendesignated by the 91.27 commissioner for that purposeor, at the commissioner's request,91.28by the attorney general. 91.29 Subd. 8. [SCOPE OF JUDICIAL REVIEW.] In judicial review 91.30 under subdivision 7, the Minnesota court of appeals shall 91.31 consider only the decision of the commissioner and may affirm 91.32 that decision, remand the matter for further proceedings, or 91.33 reverse and modify that decision but only if the commissioner's 91.34 findings of fact or decision are: 91.35 (1) in violation of constitutional provisions; 91.36 (2) in excess of statutory authority or jurisdiction; 92.1 (3) made upon improper procedure; 92.2 (4) unsupported by the evidence submitted at the hearing 92.3 under subdivision 1; 92.4 (5) affected by a clear error of law; or 92.5 (6) arbitrary or capricious. 92.6 Sec. 48. Minnesota Statutes 1998, section 268.115, is 92.7 amended to read: 92.8 268.115 [EXTENDED BENEFITS.] 92.9 Subdivision 1. [DEFINITIONS.]AsThe terms used in this 92.10 section, unless the context clearly requires otherwiseshall 92.11 have the following meaning: 92.12 (1)[EXTENDED BENEFIT PERIOD.]"Extended benefit period" 92.13 means a periodwhichthat lasts for a minimum of 13 weeks and 92.14 that: 92.15(a)(i) Begins with the third week aftera week for which92.16 there is a state "on" indicator; and 92.17(b)(ii) Ends witheither of the following weeks, whichever92.18occurs later:the third week afterthe first week for which92.19 there is a state "off" indicator; or the 13th consecutive week92.20of the period;. 92.21Provided, thatNo extended benefit period may begin before 92.22 the 14th week following the end of a prior extended benefit 92.23 periodwhich was in effect with respect to this state. 92.24 (2)[STATE "ON" INDICATOR.]There is a "state 'on' 92.25 indicator"for this statefor a week ifthe commissioner92.26determines, in accordance with the regulations of the United92.27States Secretary of Labor, that: 92.28 (i) forthe period consisting of suchthat week and the 92.29immediately precedingprior 12 weeks, the rate of insured 92.30 unemployment(not seasonally adjusted) under this law: 92.31 (a) equaled or exceeded 120 percent of the average of 92.32suchthe rates for the corresponding 13-week period ending in 92.33 each of theprecedingprior two calendar years, and 92.34(b) equaled or exceededwas five percent.or more; or 92.35The determination of whether there has been a state "on"92.36indicator beginning any extended benefit period may be made as93.1provided in clauses (a) and (b) above or a "state 'on'93.2indicator" shall exist if the rate described in clause (b)93.3 (b) equaled or exceeded six percentirrespective of whether93.4the percentage requirement provided by clause (a) is met or93.5exceeded.; or 93.6 (ii) The United States Secretary of Labor determines that 93.7 the average rate of seasonally adjusted total unemployment in 93.8 Minnesota for the most recent three months for which data is 93.9 published equals or exceeds 6.5 percent and this rate equals or 93.10 exceeds 110 percent of the rate of the corresponding three-month 93.11 period in either of the prior two calendar years. 93.12 (3)[STATE "OFF" INDICATOR.]There is a "state 'off' 93.13 indicator"for this statefor a week if: 93.14 (i) under clause (2)(i), forthe period consisting of93.15suchthat week and theimmediately precedingprior 12 weeks, 93.16the rate of insured unemployment is less than six percent and93.17 the requirements for a "state 'on' indicator"under clause (2)93.18 are not satisfied; or 93.19 (ii) under clause (2)(ii) the requirements for a "state 93.20 'on' indicator" are not satisfied. 93.21 (4)[RATE OF INSURED UNEMPLOYMENT.]"Rate of insured 93.22 unemployment,"for purposes of clauses (2) and (3),means the 93.23 percentage derived by dividing the average weekly number of 93.24individualsclaimants filingclaimscontinued requests for 93.25 regular benefits inthis state for weeks of unemployment with93.26respect tothe most recent13 consecutive week13-week period,93.27as determined by the commissioner on the basis of the93.28commissioner's reports to the United States Secretary of Labor,93.29 by the average monthly covered employmentcovered under this law93.30 for the first four of themost recentlast six completed 93.31 calendar quartersendingbefore the end ofsuchthat 13-week 93.32 period. 93.33 (5)[REGULAR BENEFITS.]"Regular benefits" means 93.34 benefitspayableavailable toan individual under this law or93.35under any other state law (including benefits payable to federal93.36civilian employees and to ex-servicemen pursuant to United94.1States Code, title 5, chapter 85)a claimant other than extended 94.2 benefits and additional benefits. 94.3 (6)[EXTENDED BENEFITS.] "Extended benefits" means benefits94.4(including benefits payable to federal civilian employees and to94.5ex-servicemen pursuant to United States Code, title 5, chapter94.685) payable to an individual under the provisions of this94.7section for weeks of unemployment in the individual's94.8eligibility period.94.9(7) [ADDITIONAL BENEFITS.] "Additional benefits" means94.10benefits payable to exhaustees by reason of conditions of high94.11unemployment or by reason of other special factors under the94.12provisions of any state law.94.13(8) [ELIGIBILITY PERIOD.]"Eligibility period"of an94.14individualfor a claimant means the period consisting of the 94.15 weeks remaining in theindividual'sclaimant's benefit year 94.16which begin in anwithin the extended benefit period and, if the 94.17 benefit year ends withinsuchthe extended benefit period, any 94.18 weeksthereafter which begininsuchthe extended benefit period. 94.19(9)(7)[EXHAUSTEE.]"Exhaustee" meansan individuala 94.20 claimant who,with respect to any week of unemploymentin the 94.21individual'seligibility period: 94.22 (a) the benefit year having not expired has received, prior94.23to such week, all ofthe maximum amount of regular benefits that 94.24 were available underthis law or any other state law (including94.25dependents' allowances and benefits payable to federal civilian94.26employees and ex-servicemen under United States Code, title 5,94.27chapter 85) in the individual's current benefit year that94.28includes such week;94.29Provided, that, for the purposes of this paragraph, an94.30individual shall be considered to have received all of the94.31regular benefits that were available to the individual although94.32as a result of a pending appeal with respect to wage credits94.33that were not considered in the original monetary determination94.34in the individual's benefit year, the individual may94.35subsequently be determined to be entitled to added regular94.36benefitssection 268.07;or95.1 (b) theindividual'sbenefit year having expiredprior to95.2such week, hasno, orinsufficient, wages and/or employment on95.3the basis of which the individual couldwage credits to 95.4 establish a new benefityear that would include such week or95.5having established a benefit year that includes such week, the95.6individual is precluded from receiving regular compensation by95.7reason of: (i) a state law provision which meets the95.8requirements of section 3304 (a) (7) of the Internal Revenue95.9Code of 1954, or (ii) a disqualification determination which95.10canceled wage credits or totally reduced benefit rights, or95.11(iii) benefits are not payable by reason of a seasonal95.12limitation in a state reemployment insurance benefits95.13lawaccount; and 95.14 (c) has no right to any type of reemployment insurance 95.15 benefitsor allowances, as the case may be,under theRailroad95.16Unemployment Insurance Act, the Trade Expansion Act of 1962, the95.17Automotive Products Act of 1965 and suchlaw of any other state 95.18 or under federal lawsas are specified in regulations issued by95.19the United States Secretary of Labor; and has not receivedand 95.20 is notseekingreceiving reemployment insurance benefits under 95.21 theunemployment compensationlaw of Canada; but if the95.22individual is seeking such benefits and the appropriate agency95.23finally determines that the individual is not entitled to95.24benefits under such law the individual is considered an95.25exhaustee. 95.26(10) [STATE LAW.] "State law" means the reemployment95.27insurance benefits law of any state, approved by the United95.28States Secretary of Labor under section 3304 of the Internal95.29Revenue Code of 1954.95.30Subd. 2. [EFFECT OF STATE LAW PROVISIONS RELATING TO95.31REGULAR BENEFITS ON CLAIMS FOR, AND THE PAYMENT OF, EXTENDED95.32BENEFITS.] Except when the result would be inconsistent with the95.33other provisions of this section, as provided in the rules of95.34the commissioner, the provisions of this chapter which apply to95.35claims for, or the payment of, regular benefits shall apply to95.36claims for, and the payment of, extended benefits.96.1 Subd. 3. [ELIGIBILITYREQUIREMENTS FOR EXTENDED BENEFITS.] 96.2 If an extended benefit period is in effect, a claimant shall 96.3 beeligible to receivepaid extended benefitswith respect to96.4 from the fund for any week in the claimant's eligibility 96.5 periodonlyifwith respect to that weekthe claimant: 96.6 (1) is an "exhaustee"as defined in subdivision 1,96.7paragraph (9); 96.8 (2) has satisfied the same requirementsof this lawas 96.9 those forthe receipt ofregular benefitsthat are applicable to96.10claimants claiming extended benefits, including not being96.11subject to a disqualification for the receipt of benefitsunder 96.12 section 268.069;and96.13 (3) has, during the claimant's base period earnedwage 96.14 creditsavailable for benefit purposesof not less than 40 times 96.15 theclaimant'sweekly benefit amountas determined pursuant to96.16section 268.07, subdivision 2.; and 96.17 (4) is not subject to a denial of extended benefits under 96.18 subdivision 9. 96.19 Subd. 4. [WEEKLY EXTENDED BENEFIT AMOUNT.] The weekly 96.20 extended benefit amountpayable to an individual for a week of96.21total unemployment in the individual's eligibility periodshall 96.22 bean amount equal tothe same as the weekly benefit amount 96.23payable during the individual's applicable benefit yearof 96.24 regular benefits. 96.25 Subd. 5. [TOTAL EXTENDED BENEFITMAXIMUM AMOUNT OF 96.26 EXTENDED BENEFITS.] Thetotal extended benefitmaximum amount 96.27payable to any eligible individual with respect to the96.28individual's applicable benefit yearof extended benefits 96.29 available to a claimant shall be 50 percent of thetotalmaximum 96.30 amount of regular benefitswhich were payable under this96.31lawavailable in theapplicablebenefit year, provided that at96.32the expiration of the benefit year, the individual's remaining96.33balance of extended benefits shall be reduced, but not below96.34zero, by the product arrived at by multiplying the individual's96.35weekly extended benefit amount by the number of weeks in the96.36individual's expired benefit year for which any trade97.1readjustment allowance was paid pursuant to sections 231 to 23497.2of the Trade Act of 1974, as amended. If the total rate of 97.3 unemployment computed under subdivision 1, clause (2)(ii), 97.4 equaled or exceeded eight percent, the maximum amount of 97.5 extended benefits available shall be 80 percent of the maximum 97.6 amount of regular benefits available in the benefit year. 97.7 Subd. 6. [BEGINNING AND TERMINATION OF EXTENDED BENEFIT97.8PERIODPUBLIC ANNOUNCEMENT.](a)Whenever an extended benefit 97.9 period is tobecome effective in this statebegin as a result of 97.10 a state "on" indicator, or an extended benefit period is tobe97.11terminated in this stateend as a result of a state "off" 97.12 indicator the commissioner shall make an appropriate public 97.13 announcement. 97.14(b) Computations required by the provisions of subdivision97.151, paragraph (4), shall be made by the commissioner, in97.16accordance with regulations prescribed by the United States97.17Secretary of Labor.97.18 Subd. 7. [EFFECT OFFEDERAL LAW.]IfThis section is 97.19 enacted to conform to the requirements of United States Code, 97.20 title 26, section 3304, the Federal-State Extended Unemployment 97.21 Compensation Act of 1970isas amendedso as to authorize this97.22state to pay benefits for an extended benefit period in a manner97.23other than that currently provided by this section, then, and in97.24such case, all the terms and conditions contained in the amended97.25provisions of such federal law shall become a part of this97.26section to the extent necessary to authorize the payment of97.27benefits to eligible individuals as permitted under such amended97.28provision, provided that the federal share continues to be at97.29least 50 percent of the extended benefits paid to individuals97.30under the extended benefit program. The commissioner shall also97.31pay benefits at the earliest possible date in the manner allowed97.32by the Federal-State Unemployment Compensation Act of 1970, as97.33amended through January 1, 1975, the provisions of which shall97.34become a part of this section to the extent necessary to97.35authorize the payment of benefits to eligible individualsand 97.36 the applicable federal regulations. 98.1 Subd. 8. [INTERSTATECLAIMSCLAIMANTS.]An individualA 98.2 claimant residing in a state other than Minnesota shallnotbe 98.3 eligible for only the first two weeks of extended benefitsfor98.4any weekif:98.5(a) Extended benefits are payable for that week pursuant to98.6an interstate claim filed in any state underthe claimant's 98.7 benefit account was established pursuant to the interstate 98.8 benefit payment plan;and 98.9(b)no extended benefit period is in effect for the week in 98.10 that state.This subdivision shall not apply to the first two98.11weeks for which extended benefits are payable pursuant to an98.12interstate claim filed under the interstate benefit payment plan98.13to the individual from the extended benefit account established98.14for the individual with respect to the benefit year.98.15 Subd. 9. [ELIGIBILITY REQUIREMENTSDENIAL 98.16 PROVISIONS.]Notwithstanding the provisions of subdivision98.172,(a) A claimant shall beineligible for the payment ofdenied 98.18 extended benefits for any week in the claimant's eligibility 98.19 period if during that week the claimant failed to accept any 98.20 offer of suitable employment, failed to apply for any suitable 98.21 employmentto whichthat the claimant was referred to by the 98.22 commissioner, or failed to actively seek suitable employment. 98.23Any claimant who has been found ineligible for extended98.24benefits for any week by reason of this subdivisionThe denial 98.25 shallalso be denied benefitscontinue until the claimant has 98.26 been employed in covered employment in each of four subsequent 98.27 weeks, whether or not consecutive, andhas earned remuneration98.28 had earnings from that covered employment of not less than four 98.29 times the claimant'sextendedweekly benefit amount. 98.30 (b) For the purpose of this subdivision "suitable 98.31 employment" means any employmentwhichthat is within the 98.32 claimant's capabilities andwhichthat has a gross average 98.33 weeklyremuneration payable whichwage that exceeds thesum of98.34theclaimant's weekly benefit amountas determined under98.35subdivision 4 plus the amount, if any, of supplemental98.36reemployment insurance benefits, as defined in section 501(c)99.1(17) (D) of the Internal Revenue Code of 1954, as amended,99.2payable to the claimant for that week. The employment must pay 99.3 wages not less than the higher of the federal minimum wage 99.4 without regard to any exemption, or the applicable state minimum 99.5 wage. 99.6 (c) No claimant shall be denied extended benefits for 99.7 failure to accept an offer of or apply for any suitable 99.8 employment if: 99.9(a)(1) the position was not offered to the claimant in 99.10 writingor; 99.11 (2) the position was not listed withemploymentthe job 99.12 service; 99.13(b) the failure could not result in a denial of benefits99.14under the definition of suitable employment for regular benefit99.15claimants in section 268.095 to the extent that the criteria of99.16suitability is not inconsistent with this subdivision;or 99.17(c)(3) the claimant furnishes satisfactory evidenceto the99.18commissionerthat prospects for obtaining employment in the 99.19 claimant's customary occupation within a reasonably short period 99.20 are good. If the evidencefurnishedisfound to besatisfactory 99.21for this purpose, the determination of whether any employment is 99.22 suitablefor the claimantshall be made in accordance with the 99.23 definition of suitable employment in section268.095,99.24subdivision 9, paragraph (a), without regard to the definition99.25or special disqualification specified in this99.26subdivision268.035, subdivision 23a. 99.27No employment shall be found to be suitable employment for99.28a claimant which would not be suitable employment under section99.29268.095, subdivision 9, paragraph (b).99.30 (d) For the purpose of this subdivision a claimant is 99.31 "actively seeking suitable employment"during any weekonly if 99.32 the claimant has engaged in a systematic and sustained effort to 99.33 obtain employmentduring the week, and the claimant furnishes 99.34 tangible evidence ofengaging inthat effortduring the week. 99.35 Subd. 10. [JOB SERVICE REFERRAL.] Theemploymentjob 99.36 service shall refer any claimantentitled towho is filing 100.1 continued requests for extended benefitsunder this sectionto 100.2 any employmentwhichthat is suitableemployment for that100.3claimantunderthissubdivision 9. 100.4 Sec. 49. Minnesota Statutes 1998, section 268.125, 100.5 subdivision 1, is amended to read: 100.6 Subdivision 1. [ADDITIONAL BENEFITS; WHEN AVAILABLE.] 100.7 Additionalreemployment insurancebenefits areauthorized100.8 available if: 100.9 (1) at a facility that had 100 or more employeesfor at100.10least six months during the prior 12 months, the employer 100.11 reduced operations, resulting within a one-month period in the 100.12 layoff of 50 percent or more of the facility's work force 100.13amounting to 50 or more employees, including reductions caused 100.14 as a result of a major natural disaster declared by the 100.15 president; 100.16 (2) the employer has no expressed plan to resume operations 100.17 that would lead to the reemployment of those employeesat any100.18timein the immediate future; and 100.19 (3) the seasonally adjusted unemployment rate in the county 100.20 that the facility is located was ten percent or more during the 100.21 month of the reduction or any of the three months before or 100.22 after the month of the reduction. 100.23 Sec. 50. Minnesota Statutes 1998, section 268.125, 100.24 subdivision 4, is amended to read: 100.25 Subd. 4. [WEEKLY BENEFIT AMOUNT.] A claimant's weekly 100.26 additional benefit amount shall be the same as the claimant's 100.27 weekly benefit amount during the current benefit year under 100.28 section 268.07. 100.29 Sec. 51. Minnesota Statutes 1998, section 268.125, 100.30 subdivision 5, is amended to read: 100.31 Subd. 5. [MAXIMUM AMOUNT OF BENEFITSPAYABLE.] The maximum 100.32 amount of additional benefitspayableavailable in the 100.33 claimant's benefit year shall be13 timesone half of the 100.34 claimant'sweekly benefitmaximum amount of regular benefits 100.35 available under section 268.07, subdivision 2. Extended 100.36 benefits paid and benefits paidto a claimantunder anystate or101.1 federal law other than regular benefitsunder section 268.07101.2 shall be deducted from the maximum amount of additional benefits 101.3 available. 101.4 Sec. 52. Minnesota Statutes 1998, section 268.135, is 101.5 amended to read: 101.6 268.135 [SHARED WORK PLAN.] 101.7 Subdivision 1. [SHARED WORK PLAN;DEFINITIONS.] For 101.8 purposes of this section, the following terms have the meanings101.9given: 101.10(a)(1) "Affected employee" means anindividualemployee 101.11 who was continuously employed as a member of the affected group, 101.12by the shared work employer,for at least six monthsprior to101.13application, on a full-time basis, prior to submission of the 101.14 shared work plan. 101.15(b)(2) "Affected group" means five or more employees 101.16 designated by the employer to participate in a shared work plan. 101.17(c) "Shared work employer" means an employer with a shared101.18work plan in effect.101.19(d)(3) "Shared work plan" or "plan" means an employer's 101.20voluntary,written planfor reducing unemployment,under which a 101.21specifiedgroup of employeesshares the work remaining after101.22theirwhose normal weekly hours of work are reduced, in order to 101.23 prevent employees from being laid off due to lack of work. 101.24(e) "Approved shared work plan" or "approved plan" means an101.25employer's shared work plan which meets the requirement of this101.26section.101.27(f)(4) "Normal weekly hours of work" means the number of 101.28 hours in a week that the employee normally would work for the 101.29 shared work employer or 40 hours, whichever is less. 101.30 Subd. 2. [PARTICIPATION.] (a) An employer wishing to 101.31 participate in the shared workunemploymentbenefit program 101.32 shall submit asigned,written shared work plan to the 101.33 commissioner for approval. The commissioner maygive written101.34approval ofapprove a shared work plan only if it: 101.35 (1) specifies the employees in the affected group; 101.36 (2) applies to only one affected group; 102.1 (3) includes a certified statement by the employer that 102.2 eachindividualemployee specified in the affected group is an 102.3 affected employee; 102.4 (4) includes a certified statement by the employer that for 102.5 the duration of the plan the reduction in normal weekly hours of 102.6 work of the employees in the affected group is instead of 102.7 layoffswhichthat otherwise would result in at leastatas 102.8 large a reduction in the total normal weekly hours of work; 102.9 (5) specifies an expiration datewhichthat is no more than 102.10 one year from the date the employer submits the plan for 102.11 approval; 102.12 (6) specifies that fringe benefits, such as health and 102.13 retirement, available to the employees in the affected group are 102.14 not reduced beyond the percentage of reduction in hours of work; 102.15 and 102.16 (7) is approved in writing by the collective bargaining 102.17 agent for each collective bargaining agreementwhichthat covers 102.18 any employee in the affected group. 102.19 (b) The commissioner shallestablishset the beginning and 102.20 ending dates of an approved shared work plan. 102.21 (c) The commissioner shallapprove or disapprovemail to 102.22 the employer a written determination approving or disapproving 102.23 the plan within 15 calendar days of its receipt.The102.24commissioner shall notify the employer of the reasons for102.25disapproval of a shared work plan within ten days of the102.26determination.Determinationsof the commissionerare final. 102.27 (d) Disapproval of a plan may be reconsideredupon102.28application of the employer orat the discretion of the 102.29 commissioner. Approval of a shared work plan may be revokedby102.30the commissioner when it is established thatif the approval was 102.31 based, in whole or in part, upon informationin the plan which102.32is eitherthat was false orsubstantiallymisleading. 102.33 Subd. 3. [ELIGIBILITY.] (a)NotwithstandingRegardless of 102.34 any other provisionof this chapter,an individuala claimant is 102.35unemployed andeligible to receive shared work benefits with 102.36 respect to any week ifthe commissioner finds that: 103.1 (1) during the week theindividualclaimant is employed as 103.2 a member of an affected group inan approveda planwhichthat 103.3 was approved prior to the week and is in effect for the week; 103.4 and 103.5 (2) during the week theindividual'snormal weekly hours of 103.6 work were reduced, in accordance withan approvedthe plan, at 103.7 least 20 percent but not more than 40 percent, with a 103.8 corresponding reduction in wages. 103.9 (b) Shared work benefits shall not be paid toan eligible103.10individuala claimant beyond one benefit yearunder an approved103.11plan or modification of an approved plan. 103.12 (c) The total amount of regular benefits and shared work 103.13 benefits paid toan individuala claimant in a benefit year 103.14 shall not exceed the maximumbenefitamountestablishedof 103.15 regular benefits available. 103.16 (d) An otherwise eligibleindividualclaimant shall not be 103.17 denied shared work benefitsunder this sectionbecause of the 103.18 application of any provisionof this chapterrelating to 103.19 availability forworkemployment, active search forwork103.20 employment, or refusal to apply for or acceptworksuitable 103.21 employment from other than theindividual'sclaimant's shared 103.22 work employer. 103.23 Subd. 4. [WEEKLY BENEFIT AMOUNT.] (a)An individualA 103.24 claimant who is eligible for shared work benefitsunder this103.25sectionshall be paid, with respect to any week of unemployment,103.26a weekly shared work reemployment insurance benefits amount.103.27Thean amountshall beequal to theindividual'sregular weekly 103.28 benefit amount multiplied by the nearest full percentage of 103.29 reduction of theindividual'sclaimant's regular weekly hours of 103.30 work as setforthin theemployer'splan. The benefit payment, 103.31 if not amultiple of $1whole dollar shall be rounded to the 103.32 next lower dollar. 103.33 (b) The deductible earnings provisions of section 268.085, 103.34 subdivision 5, shall not apply to earnings from the shared work 103.35 employer ofan individuala claimant eligible forpayments under103.36this sectionshared work benefits unless the resultingpayment104.1 amount would be less than the regular weekly benefitpayment for104.2whichamount theindividualclaimant would otherwise be eligible 104.3 for without regard to shared workreemployment insurance104.4 benefits. 104.5 (c)An individualA claimant shall not be eligible for 104.6 shared work benefitspayable under this sectionfor any weekin104.7which paid workthat employment is performed for the shared work 104.8 employer in excess of the reduced hours set forth in 104.9 theapprovedplan. 104.10 Sec. 53. Minnesota Statutes 1998, section 268.145, is 104.11 amended to read: 104.12 268.145 [INCOME TAX WITHHOLDING.] 104.13 Subdivision 1. [NOTIFICATION.] (a) Upon filing an 104.14 application fora reemployment insurance accountbenefits, the 104.15 claimant shall be informed that: 104.16 (1)reemployment insurancebenefits are subject to federal 104.17 and state income tax; 104.18 (2) there are requirements for filing estimated tax 104.19 payments; 104.20 (3) the claimant may elect to have federal income tax 104.21 withheld from benefits; 104.22 (4) if the claimant elects to have federal income tax 104.23 withheld, the claimant may, in addition, elect to have Minnesota 104.24 state income tax withheld; and 104.25 (5) at any time during the benefit year the claimant may 104.26 change a prior election. 104.27 (b) If a claimant elects to have federal income tax 104.28 withheld, the commissioner shall deductthat percentage required104.29by the Internal Revenue Code15 percent for federal income tax, 104.30 rounded to the nearest whole dollar. If a claimant, in addition104.31to federal income tax withholding,also elects to have Minnesota 104.32 state income tax withheld, the commissioner shall make an 104.33 additional five percent deduction forMinnesotastate income 104.34 tax. Any amounts deducted or offset pursuant to sections 104.35 268.155, 268.156, 268.18,268.182,and 268.184 have priority 104.36 over any amounts deducted under this section. Federal income 105.1 tax withholding has priority overMinnesotastate income tax 105.2 withholding. 105.3 (c) An election to havefederal income tax, or federal and105.4Minnesota stateincome tax,withheld shall not be retroactive 105.5 and shall only apply to benefits paid after the election. 105.6 Subd. 2. [TRANSFER OF FUNDS.] The amount of any benefits 105.7 deducted under this section shall remain in theMinnesota105.8reemployment insurancefund until transferred to the federal 105.9 Internal Revenue Service, or theMinnesotadepartment of 105.10 revenue, as an income tax payment on behalf of the claimant. 105.11 Subd. 3. [CORRECTION OF ERRORS.] Any errorwhichthat 105.12 resulted in underwithholding or overwithholding under this 105.13 section shall not be corrected retroactively. 105.14 Subd. 4. [FEDERAL REQUIREMENT.] The commissioner shall 105.15 follow all federal requirements for the deduction and 105.16 withholding offederal and Minnesota stateincome tax from 105.17reemployment insurancebenefits. 105.18 Subd. 5. [APPLICATIONEFFECT OF PAYMENTS.]This section105.19applies to any payments under federal or state law as105.20compensation, assistance, or allowance with respect to105.21unemployment.Any amount deducted under this section shall be 105.22 considered as benefits paid to the claimant. 105.23 Sec. 54. Minnesota Statutes 1998, section 268.155, is 105.24 amended to read: 105.25 268.155 [CHILD SUPPORTINTERCEPT OF UNEMPLOYMENTDEDUCTED 105.26 FROM BENEFITS.] 105.27 Subdivision 1. [DEFINITIONS.] As used in this section 105.28unless the context clearly requires otherwise: 105.29(a) "Reemployment insurance" means any compensation payable105.30under this chapter including amounts payable by the commissioner105.31pursuant to an agreement under any federal law providing for105.32compensation, assistance, or allowance with respect to105.33unemployment;105.34(b)(1) "Child support obligations" means obligationswhich105.35 that are being enforced bythe public agency responsible fora 105.36 child supportenforcementagency pursuant to a plan described in 106.1 United States Code, title 42, section 454, of the Social 106.2 Security Actwhichthat has been approved by the secretary of 106.3 health and human services under part D of title IV of the Social 106.4 Security Act. This shall not include any type of spousal 106.5 maintenance or foster care payments; and 106.6(c)(2) "Child support agency" means the public agency 106.7 responsible for child support enforcementpursuant to a plan106.8described in section 454 of the Social Security Act. 106.9 Subd. 2. [NOTICEOF CLAIMUPON APPLICATION.]UponIn an 106.10 application fora reemployment insurance accountbenefits, the 106.11 claimant shall disclosewhether or not the claimant owesif 106.12 child support obligations are owed and, if so, in what state and 106.13 county. Ifthe claimant discloses that the claimant oweschild 106.14 support obligations are owed,and establishes a reemployment106.15insurance account,the commissioner shall, if the claimant 106.16 establishes a benefit account, notify the child support agency 106.17that the claimant has established a reemployment insurance106.18account. 106.19 Subd. 3. [WITHHOLDING OF BENEFITS.] The commissioner shall 106.20 deduct and withhold from anyreemployment insurancebenefits 106.21 payable to a claimantthatwho owes child support obligations: 106.22(a) The amount specified by the claimant to the106.23commissioner to be deducted and withheld under this section, if106.24neither clause (b) or (c) is applicable; or106.25(b)(1) the amount required pursuant to a proper order of a 106.26 court or administrative agency; or 106.27 (2) if clause (1) is not applicable, the amount determined 106.28 pursuant to an agreementsubmitted to the commissionerunder 106.29 United States Code, title 42, section 454 (20) (B) (i), of the 106.30 Social Security Actby the child support agency, unless (c) is106.31applicable; or 106.32(c) Any amount otherwise required to be so deducted and106.33withheld from the unemployment compensation pursuant to "legal106.34process" as defined in section 462(e) of the Social Security106.35Act, properly served upon the commissioner.(3) if clause (1) 106.36 or (2) is not applicable, the amount specified by the claimant. 107.1 Subd. 4. [PAYMENTBY THE COMMISSIONER.] Any amount 107.2 deducted and withheldunder subdivision 3shall be paidby the107.3commissionerto thepublic agency responsible forchild support 107.4enforcement.agency, 107.5Subd. 5. [EFFECT OF PAYMENTS.] Any amount deducted and107.6withheld under subdivision 3but shall for all purposes be 107.7 treated as if it were paid to the claimant asreemployment107.8insurancebenefits and paid by the claimant to thepublic agency107.9responsible forchild supportenforcementagency in satisfaction 107.10 of the claimant's child support obligations. 107.11 Subd. 5. [FAILURE TO DISCLOSE CHILD SUPPORT OBLIGATIONS.] 107.12 If a claimant fails to disclose that child support obligations 107.13 are owed, the claimant shall be penalized under section 268.182. 107.14 Subd. 6. [REIMBURSEMENTPAYMENT OF COSTS.]Appropriate107.15arrangements shall be made for reimbursement byThe child 107.16 support agencyforshall pay theadministrativecosts incurred 107.17 by the commissionerunderin the implementation and 107.18 administration of thissubdivisionsection and sections 518.551 107.19 and 518.6111which are attributable to child support obligations107.20being enforced by the public agency responsible for child107.21support enforcement. 107.22 Sec. 55. Minnesota Statutes 1998, section 268.18, is 107.23 amended to read: 107.24 268.18 [BENEFIT OVERPAYMENTS.] 107.25 Subdivision 1. [ERRONEOUS PAYMENTSOVERPAYMENT DUE TO 107.26 ERROR.] (a) Any claimant who,(1) by reason of the claimant's 107.27 own mistake, orthrough the(2) because of an errorofby any 107.28individual engaged in the administration of this107.29chapteremployee of the department, or (3) because of a 107.30 determination, redetermination, or amended determination issued 107.31 pursuant to section 268.07 or 268.101, or (4) because of an 107.32 appeal decision under section 268.105, has received any benefits 107.33 that the claimant was not entitled to, shall promptly repay the 107.34 benefits to thedepartmentfund. If the claimant fails to repay 107.35 the benefits, the commissioner shall, as soon as the erroneous 107.36 payment is discovered, determine the amount due and notify the 108.1 claimant in writing to repay the benefits. 108.2 (b) Unless the claimant files an appeal within 30 calendar 108.3 days after the mailing of the determination of overpayment to 108.4 the claimant's last known address, the determination shall 108.5 become final. Proceedings on the appeal shall be conducted in 108.6 accordance with section 268.105. A claimant may not 108.7 collaterally attack, by way of an appeal to an overpayment 108.8 determination, any prior determination issued pursuant to 108.9 section 268.07 or 268.101, or decision issued pursuant to 108.10 section 268.105, that has become final. 108.11 (c) If the claimant fails to repay the benefits, the 108.12 commissioner maydeductoffset from any future benefits 108.13 otherwise payableto the claimant in the current or any108.14subsequent benefit yearthe amount of the overpayment,. Except 108.15thatwhen the overpayment resulted because the claimant failed 108.16 to report deductible earnings or deductible payments, no 108.17 singlededuction under this subdivisionoffset shall exceed 50 108.18 percent of the amount of the payment from which thededuction108.19 offset is made, or. The overpayment may also be collected by 108.20 the same methods as delinquent taxes. A determination of 108.21 overpayment shall state the methods of collection the 108.22 commissioner may use to recover the overpayment. 108.23 (d) If a claimant has been overpaid benefits under the law 108.24 of another state because of an error and that state certifiesto108.25the commissionerthat the claimant is liable under its law to 108.26 repay the benefits and requests the commissioner to recover the 108.27 overpayment, the commissioner maydeductoffset from future 108.28 benefits otherwise payableto the claimant in the current or any108.29subsequent benefit yearthe amount of overpayment, except that 108.30 no singlededuction under this subdivisionoffset shall exceed 108.31 50 percent of the amount of the payment from which thededuction108.32 offset is made. 108.33 (e) Benefits paid for weeks more than three years prior to 108.34 the discovery of error are noterroneous paymentsoverpaid 108.35 benefits. 108.36 Subd. 2. [OVERPAYMENT DUE TO FRAUD.] (a) Any claimant who 109.1 receives benefits byknowingly and willfullyintentionally 109.2 misrepresenting, misstating, or failing to disclose any material 109.3 factthat would have made the claimant not entitled to those109.4benefitshas committed fraud. After the discovery of facts 109.5 indicating fraud, the commissioner shall make a written 109.6 determination that the claimantwas not entitled to benefits109.7that wereobtained benefits by fraud and that the claimant must 109.8 promptly repay the benefits to the department. In addition, the 109.9 commissioner shall assess a penalty equal to 25 percent of the 109.10 amount fraudulently obtained. If the claimant had a prior 109.11 overpayment due to fraud, the commissioner shall, on the present 109.12 overpayment, assess a penalty equal to 50 percent of the amount 109.13 fraudulently obtained. 109.14 (b) Unless the claimant files an appeal within 30 calendar 109.15 days after the mailing of the determination of overpayment by 109.16 fraud to the claimant's last known address, the determination 109.17 shall become final. Proceedings on the appeal shall be 109.18 conducted in accordance with section 268.105. 109.19 (c) If the claimant fails to repay the benefits, penalty, 109.20 andanyinterest assessedunder subdivision 2b, the commissioner 109.21 shalldeductoffset from future benefits otherwise payableto109.22the claimant in the current or any subsequent benefit yearthe 109.23 amount of overpaymentor. The total due may also be collected 109.24 by the same methods as delinquent taxes. A determination of 109.25 overpayment by fraud shall state the methods of collection the 109.26 commissioner may use to recover the overpayment. Money received 109.27 in repayment of fraudulently obtained benefits, penalties, and 109.28 interest shall first be applied to the benefits overpaid, then 109.29 to the penalty amount due, then to any interest due. Payments 109.30 made toward penalty and interest shall be credited to the 109.31 contingent account. 109.32 (d) If a claimant has been overpaid benefits under the law 109.33 of another state because of fraud and that state certifiesto109.34the commissionerthat the claimant is liable to repay the 109.35 benefits and requests the commissioner to recover the 109.36 overpayment, the commissioner maydeductoffset from future 110.1 benefits otherwise payableto the claimant in the current or any110.2subsequent benefit yearthe amount of overpayment. 110.3 (e) A determination of overpayment by fraud may be made at 110.4 any time. 110.5 Subd. 2b. [INTEREST.] (a) Beginning January 1, 2002, on 110.6 any benefits fraudulently obtained,as determinedand any 110.7 penalty amounts assessed under subdivision 2, the commissioner 110.8 shallhave the discretion toassess interest at the rate of 110.9 1-1/2 percent per month on anyoverpaidamount that remains 110.10 unpaid 30 calendar days after the date of the determination of 110.11 overpayment by fraud. A determination of overpayment by fraud 110.12 shall state that interestmayshall be assessed. 110.13 (b) If this subdivision became effective after the date of 110.14 the determinationof overpayment by fraud, or the determination 110.15 did not state that interestmayshall be assessed, interest 110.16pursuant to this subdivision mayshall be assessed beginning 30 110.17 calendar days after written notification to the claimant. 110.18 Subd. 3a. [OFFSET OF FEDERAL BENEFITS.] The commissioner 110.19 is authorized to enter into reciprocal agreements with the 110.20 United States Secretary of Labor, whereby, overpayments of 110.21 benefits as determined under federal law,with respect to110.22benefits under a federal program administered by Minnesota,may 110.23 be recovered by offset from benefits otherwise payableunder110.24this chapter or any federal program. As provided by reciprocal110.25agreement,and benefit overpayments under subdivisions 1 and 2 110.26 may be recovered by offset from benefits otherwise payable under 110.27 a federal program. 110.28 Subd. 4. [CANCELLATION OFBENEFITS PAID THROUGH ERROR OR110.29FRAUDOVERPAYMENTS.] (a) If benefits paidthroughbecause of an 110.30 error are not repaid ordeductedoffset from subsequent benefits 110.31 as provided for in subdivision 1 within six years after the date 110.32 of the determination of overpayment, the commissioner shall 110.33 cancel the overpayment balance, and no administrative or legal 110.34 proceedings shall be used to enforce collection of those amounts. 110.35 (b) If benefits paid as a result of fraud including 110.36 penalties and interest are not repaid ordeductedoffset from 111.1 subsequent benefits as provided for in subdivision 2 within ten 111.2 years after the date of the determination of overpayment by 111.3 fraud, the commissioner shall cancel the overpayment balance and 111.4 any penalties and interest due, and no administrative or legal 111.5 proceeding shall be used to enforce collection of those amounts. 111.6 (c) The commissioner may cancel at any timebenefits paid111.7through error or fraudany overpayment, including penalties and 111.8 interest, that the commissioner determinesareis uncollectible 111.9 due to death or bankruptcy. 111.10 Subd. 4a. [COURT FEES.] (a) If the commissioner is 111.11 required to pay any court fees in an attempt to enforce 111.12 collection of overpaid benefits, penalties, or interest, the 111.13 commissioner may add the amount of the court fees to the total 111.14 amount due. 111.15 (b) If a claimant who has been determined overpaid benefits 111.16 because of fraud seeks to have any portion of the debt 111.17 discharged under the federal bankruptcy code, and the 111.18 commissioner files an objection in bankruptcy court to the 111.19 discharge, the commissioner may add the commissioner's cost of 111.20 any court fees to the debt if the bankruptcy court does not 111.21 discharge the debt. 111.22 Subd. 5. [REMEDIES.] (a) Any method undertaken to recover 111.23 an overpayment of benefits, including any penalties and 111.24 interest, shall not be considered an election of a method of 111.25 recovery. 111.26 (b) Intervention or lack thereof, in whole or in part, in a 111.27 workers' compensation matter under section 176.361 shall not be 111.28 considered an election of a remedy and shall not prevent the 111.29 commissioner from determining any benefits overpaid under 111.30 subdivision 1 or 2 or taking action under section 268.182. 111.31 Subd. 6. [COLLECTION OF OVERPAYMENTS.] (a) The 111.32 commissioner may not compromise the amount that has been 111.33 determined overpaid under this section including penalties and 111.34 interest. 111.35 (b) The commissioner shall have discretion regarding the 111.36 use of any method of recovery of any overpayment under 112.1 subdivision 1. Regardless of any law to the contrary, the 112.2 commissioner shall not be required to refer any amount 112.3 determined overpaid under subdivision 1 to a public or private 112.4 collection agency, including agencies of this state. 112.5 (c) Amounts determined overpaid under subdivision 1 shall 112.6 not be considered a "debt" to the state of Minnesota for 112.7 purposes of any reporting requirements to the commissioner of 112.8 finance. 112.9 (d) A pending appeal under section 268.105 shall not toll 112.10 the assessment of interest, penalties, or collection of an 112.11 overpayment under this section. 112.12 Sec. 56. Minnesota Statutes 1998, section 268.182, is 112.13 amended to read: 112.14 268.182 [FALSE REPRESENTATIONS; CONCEALMENT OF FACTS; 112.15 PENALTY.] 112.16 (a) Whoever obtains, or attempts to obtain, or aids or 112.17 abets any individual to obtain by means of an intentional false 112.18 statement or representation, by intentional concealment of a 112.19 material fact, or by impersonation or other fraudulent means, 112.20 benefits that the individual is not entitled or benefits greater 112.21 than the individual is entitled under this chapter, or under the 112.22 law of any state or of the federal government, either personally 112.23 or for any other individual, is guilty of theft and shall be 112.24 sentenced pursuant to section 609.52. 112.25 (b) Any individual whoviolates paragraph (a)intentionally 112.26 makes a false statement or representation, who intentionally 112.27 fails to disclose a material fact, or who makes a false 112.28 statement or representation without a good faith belief as to 112.29 the correctness of the statement or representation, in order to 112.30 obtain or in an attempt to obtain benefits may be assessed an 112.31 administrative penalty of denial of benefits for one to 52 weeks 112.32 that the individual would otherwise be entitled to benefits. A 112.33 denial shall not apply to any week more than two years after the 112.34 week that theviolation of paragraph (a)penalty was 112.35 determined. A written determination of denial shall be mailed 112.36 to the individual's last known address. Unless an appeal is 113.1 filed within 30 calendar days of mailing, the determination 113.2 shall be final. Proceeding on the appeal shall be conducted in 113.3 accordance with section 268.105.This paragraph shall not apply113.4if prosecution is commenced under paragraph (a) or a penalty is113.5imposed under section 268.18, subdivision 2.113.6 (c) Any employer or any officer or agent of an employer or 113.7 any otherpersonindividual who makes a false statement or 113.8 representation knowing it to be false, or who knowingly fails to 113.9 disclose a material fact, to prevent or reduce the payment of 113.10 benefits to any claimant, is guilty of a gross misdemeanor 113.11 unless the benefit underpayment exceeds $500, in that case 113.12 thepersonindividual is guilty of a felony. 113.13 Sec. 57. Minnesota Statutes 1998, section 268.186, is 113.14 amended to read: 113.15 268.186 [RECORDS.] 113.16 (a) Each employer shall keep true and accurate records for 113.17 the periods of time and containing the information the 113.18 commissioner may require. For the purpose ofdetermining113.19compliance with this chapter, or for the purpose of collection113.20of any amounts due underadministering this chapter, the 113.21 commissioneror any delegated representativehas the power to 113.22 examine, or cause to beexaminedsupplied or copied, any books, 113.23 correspondence, papers, records, or memorandawhichthat are 113.24 relevantto making these determinations, whether the books, 113.25 correspondence, papers, records, or memoranda are the property 113.26 of or in the possession of the employer or any other personor113.27corporationat any reasonable time and as often as may be 113.28 necessary. 113.29 (b) The commissioneror any delegated representativemay 113.30 make summaries, compilations, photographs, duplications, or 113.31 reproductions of any records, or reports that the commissioner 113.32 considers advisable for theeffective and economical113.33 preservation of the information contained therein, and. Any 113.34 summaries, compilations, photographs, duplications, or 113.35 reproductions shall be admissible in any proceeding under this 113.36 chapter, if the original record or records would have been114.1admissible.NotwithstandingRegardless of any restrictions 114.2 contained in section 16B.50, the commissioneris hereby114.3authorized tomay duplicate records, reports, summaries, 114.4 compilations, instructions, determinations, or any other written 114.5 or recorded matter pertaining to the administration ofthe114.6Minnesota Economic Security Lawthis chapter. 114.7 (c)NotwithstandingRegardless of anyinconsistent114.8provisions elsewherelaw to the contrary, the commissioner may 114.9 provide for the destructionor dispositionof any records, 114.10 reports, or reproductions thereof, or other papersin the114.11commissioner's custody, that are more than two years old,the114.12preservation of which isand that are no longer necessary for 114.13 determining employer liability or a claimant's benefit rights or 114.14 forany purpose necessary totheproperadministration of this 114.15 chapter, including any required audit, provided that. The 114.16 commissioner may provide for the destruction or disposition of 114.17 any record, report, or other paperin the commissioner's custody114.18whichthat has been photographed, duplicated, or reproduced. 114.19 Sec. 58. Minnesota Statutes 1998, section 268.188, is 114.20 amended to read: 114.21 268.188 [SUBPOENAS; OATHS.] 114.22 (a)In the discharge of the duties imposed by sections114.23268.03 to 268.23,The commissioneror any delegated114.24representative,shall have power to administer oaths and 114.25 affirmations, take depositions, certify to official acts, and 114.26 issue subpoenas to compel the attendance ofpersonsindividuals 114.27 and the production ofbooks, papers, correspondence, memoranda,114.28 documents and otherrecordspersonal property necessary in 114.29 connection with the administration ofthesesections 268.03 to 114.30 268.23. 114.31 (b)PersonsIndividuals subpoenaed, other than claimants or 114.32 officers and employees of an employer that is the subject of the 114.33 inquiry,subpoenaed pursuant to this subdivision,shall be 114.34 allowed fees the same as witness fees in civil actions in 114.35 district court. The fees need not be paid in advance. 114.36 (c) The subpoena shall be enforceable through the district 115.1 court in the districtin whichthat the subpoena is issued. 115.2 Sec. 59. Minnesota Statutes 1998, section 268.192, 115.3 subdivision 2, is amended to read: 115.4 Subd. 2. [NO ASSIGNMENT OF BENEFITS; EXEMPTIONS.] Any 115.5 assignment, pledge, or encumbrance ofany right tobenefits 115.6which are or may become due or payable under sections 268.03 to115.7268.23shall be void; and such rights to. Benefits shall be 115.8 exempt from levy, execution, attachment, or any other remedy 115.9 provided for the collection of debt; and benefits received by115.10any individual so long as they are not mingled with other funds115.11of the recipient shall be exempt from any remedy for the115.12collection of all debts, except debts incurred for necessaries115.13furnished to such individual or a spouse or dependents during115.14the time when such individual was unemployed. Any waiver ofany115.15exemption provided for inthis subdivision shall be void. 115.16 Sec. 60. Minnesota Statutes 1998, section 268.194, is 115.17 amended to read: 115.18 268.194 [REEMPLOYMENT INSURANCE TRUST FUND.] 115.19 Subdivision 1. [ESTABLISHMENT; HOW CONSTITUTED.] There is 115.20 hereby established as a special state fund, separate and apart 115.21 from all other public money or funds of this state, a 115.22 reemployment insurance trust fund,whichthat shall be 115.23 administered by the commissioner exclusively for thepurpose of115.24sections 268.03 to 268.23payment of benefits. This fund shall 115.25 consist of: 115.26 (1) all taxes collectedunder those sections; 115.27 (2) interest earned upon any money in the fund; 115.28 (3)Any property or securities acquired through the use of115.29money belonging to the fundpayments in lieu of taxes paid by 115.30 nonprofit organizations and the state and political 115.31 subdivisions; 115.32 (4)All earnings of such property or securitiesvoluntary 115.33 payments under section 268.051, subdivision 7; 115.34 (5) any money receivedfrom the Federal Unemployment115.35Account inas a loan from the federal unemployment trust fund in 115.36 accordance withTitle XIIUnited States Code, title 42, section 116.1 1321, of the Social Security Act, as amended, and; 116.2 (6) any other moneymade available to the fund andreceived 116.3 pursuant toan agreement, between this state and any agency ofa 116.4 reciprocal benefit arrangement with the federal government or 116.5 any other state, for the payment of reemployment insurance116.6benefits; 116.7 (7) all money recovered on overpaid benefits; 116.8(6)(8) all money recovered on losses sustained by the 116.9 fund; 116.10 (9) all money received from the contingent account under 116.11 section 268.196, subdivision 3; 116.12(7)(10) all money credited to the account ofthis116.13stateMinnesota in the federal unemployment trust fund pursuant 116.14 to United States Code, title 42, section9031103, of the Social 116.15 Security Act,as amendedalso known as the Reed Act; and 116.16(8)(11) all money received for the fund from any other 116.17 source. 116.18All money in the fund shall be mingled and undivided.116.19 Subd. 2. [COMMISSIONER OF FINANCE TO BE CUSTODIAN; 116.20 SEPARATE ACCOUNTS.] (a) The commissioner of finance shall be the 116.21 treasurer and custodian of the fund, administer the fund in 116.22 accordance with the directions of the commissioner, and issue 116.23 warrants upon it. The commissioner of finance shall maintain 116.24 within the fund three separate accounts: 116.25 (1) a clearing account; 116.26 (2) an unemployment trust fund account; and 116.27 (3) a benefit payment account. 116.28 All money payable to the fund, upon receipt by the 116.29 commissioner, shall be forwarded to the commissioner of finance 116.30 who shall immediately deposit the money in the clearing 116.31 account. All money in the clearing account, after clearance, 116.32 shall, except as otherwise provided,beimmediatelydeposited to 116.33 the credit oftheMinnesota's accountof Minnesotain the 116.34 federal unemployment trust fund. Tax refunds payable pursuant 116.35 to section 268.057 may be paid from the clearing account or the 116.36 benefit payment account. 117.1 (b) The benefit payment account shall consist of all money 117.2 requisitioned from Minnesota's account in the federal 117.3 unemployment trust fund for the payment of benefits. Money in 117.4 the clearing and benefit payment accounts may be deposited by 117.5 the commissioner of finance, under the direction of the 117.6 commissioner, in any depository bank that general funds of 117.7 Minnesota may be deposited, but no public deposit insurance 117.8 charge or premium shall be paid out of the fund. Money in the 117.9 clearing and benefit payment accounts shallnot be commingled117.10with other state funds, but shallbe maintained in separate 117.11 accounts on the books of the depository bank. This money shall 117.12 be secured by the depository bank to the same extent and in the 117.13 same manner as required by the general depository law of 117.14 Minnesota; and collateral pledged for this purpose shall be kept117.15separate and distinct from any collateral pledged to secure117.16other funds of Minnesota. All sums recovered for losses117.17sustained by the fund shall be deposited in the fund. 117.18 Subd. 3. [WITHDRAWALSEXCLUSIVE USE.](1)(a) Money 117.19 requisitioned from Minnesota's account in the federal 117.20 unemployment trust fund shall be used exclusively for the 117.21 payment of benefits and for tax refunds pursuant to section 117.22 268.057, except that money credited to Minnesota's account 117.23 pursuant to United States Code, title 42, section 1103 of the 117.24 Social Security Act,shallalso known as the Reed Act, may be 117.25 usedexclusivelyfor the payment of expenses of administration. 117.26 The commissioner shall from time to time requisition from the 117.27 federal unemployment trust fund the amounts, not exceeding the117.28amount in Minnesota's account, the commissioner considers117.29 necessary for the payment of benefits and tax refunds for a 117.30 reasonable future period. Upon receipt the commissioner of 117.31 finance shall deposit the money in the benefit payment account 117.32 and issue warrants for the payment of benefits solely from the 117.33 benefit payment account. 117.34 (b) Expenditures of money in the benefit payment account 117.35 and tax refunds from the clearing account shall not be subject 117.36 to any provisions of law requiring specific appropriations or 118.1 other formal release by state officers. 118.2 (c) All warrants issued for the payment of benefits and tax 118.3 refunds shall bear the signature of the commissioner of finance 118.4 and the counter signature of the commissioner. 118.5(2) Any balance of money requisitioned from the118.6unemployment trust fund that remains unclaimed or unpaid in the118.7benefit account after the expiration of the period for which the118.8sums were requisitioned shall either be deducted from estimates118.9for, and may be utilized for the payment of, benefits and118.10refunds during following periods or, in the discretion of the118.11commissioner, shall be redeposited in the federal unemployment118.12trust fund, as provided in subdivision 2.118.13 Subd.3a4. [REIMBURSEMENTS.] The commissioner is 118.14 authorized to make to other state or federal agencies and to 118.15 receive from other state or federal agencies, reimbursements 118.16 from or to the fund, in accordance with reciprocal arrangements 118.17 entered into pursuant to section 268.131. 118.18Subd. 4. [DISPOSAL OF CERTAIN MONEY.] AnyMoneymade118.19available to the reemployment insurance fund andreceived 118.20 pursuant toana reciprocal agreementbetween this state and any118.21agency of the federal government or any other state for the118.22payment of reemployment insurance benefitsshall be placed 118.23 directly in the benefit payment account of theunemployment118.24trustfund. 118.25 Subd. 5. [PAYMENT OF EXPENSES OF ADMINISTRATIONREED ACT 118.26 MONEY.](1)(a) Money credited to the account ofthis state118.27 Minnesota in the federal unemployment trust fundby the118.28secretary of the treasury of the United States of America118.29 pursuant to United States Code, title 42, section9031103, of 118.30 the Social Security Act, also known asamendedthe Reed Act, may 118.31 be requisitioned and used for (1) the payment of benefits, or (2) 118.32 expenses incurred for the administration ofLaws 1957, chapter118.33883sections 268.03 to 268.23 pursuant to a specific 118.34 appropriation by the legislature,. Any money used for the 118.35 payment of benefits may be restored for appropriation and use 118.36 for administrative expenses upon request of the governor to the 119.1 United States Secretary of Labor. 119.2 (b) Reed Act money may be used for expenses in the 119.3 administration of sections 268.03 to 268.23 provided that the 119.4 expenses are incurred and the money is requisitioned after the 119.5 enactment of an appropriation lawwhichthat: 119.6(a)(1) specifies the amounts and the purposes for which 119.7suchthe money is appropriatedand the amounts appropriated119.8therefor.; 119.9(b)(2) Limits the period within whichsuchthe money may 119.10 be obligated to a period ending not more than two years after 119.11 the date of the enactment of the appropriation law,; and 119.12(c)(3) Limits the amountwhichthat may be obligated 119.13during any 12-month period beginning on July 1 and ending on the119.14next June 30to an amountwhichthat does not exceed the amount 119.15 by which(i)the aggregate of the amountscreditedtransferred 119.16 to the account ofthis stateMinnesota pursuant tosection 903119.17oftheSocial SecurityReed Act, as amended, during the same119.1812-month period and the 34 preceding 12-month periods,exceeds 119.19(ii)the aggregate of the amounts used pursuant to this 119.20 subdivision and charged against the amountscreditedtransferred 119.21 to the account ofthis state during any of such 35 12-month119.22periodsMinnesota. For the purposes of this subdivision, 119.23 amounts usedduring any such 12-month period shall be charged119.24against equivalent amounts which were first credited and which119.25are not already so charged; except that no amount obligated for119.26administration during any such 12-month period may be charged119.27against any amount credited during such a 12-month period119.28earlier than the 24th preceding such periodfor administration 119.29 shall be chargeable against the transferred amounts at the time 119.30 of the obligation. 119.31(2) Money credited to the account of this state pursuant to119.32section 903 of the Social Security Act, as amended, may not be119.33withdrawn or used except for the payment of benefits and for the119.34payment of expenses for the administration of Laws 1957, chapter119.35883 and of public employment offices pursuant to this119.36subdivision. Any moneys used for the payment of benefits may be120.1restored for appropriation and use for administrative expenses120.2upon request of the governor, under section 903(c) of the Social120.3Security Act.120.4(3)(c) Reed Act money requisitioned for the payment of 120.5 expenses of administrationpursuant to this subdivision shall be120.6deposited in the economic security administration fund, but,120.7until expended,shall remain a part of the reemployment 120.8 insurance trust fund. The commissioner shallmaintain a120.9separate record of the deposit, obligation, expenditure, and120.10return of funds so depositedaccount for the use of this money 120.11 in accordance with the standards established by the United 120.12 States Secretary of Labor. If any moneyso depositedis, for120.13any reason,notto be expendedspent for the purpose for which 120.14 it was appropriated, or, if it remainsunexpendedunspent at the 120.15 end of the period specified by the law appropriatingsuchthe 120.16 money, it shall bewithdrawn andreturnedto the secretary of120.17the treasury of the United Statesfor credit tothis state's120.18 Minnesota's account in the federal unemployment trust fund. 120.19 Subd. 6. [ADVANCE ONBORROWING FEDERAL FUNDS.] (a) The 120.20 governor is hereby authorized, if necessary, tomake application120.21as may be necessary to secure an advance ofborrow funds from 120.22 the federal unemployment trust fund in accordance with United 120.23 States Code, title 42, section 1321 of the Social Security 120.24 Act in order to pay benefits. 120.25 (b) Any amount transferred to the fund under the terms of 120.26 anyapplicationloan shall be repayable as provided in United 120.27 States Code, title 42, sections 1101(d)(1), 1103(b)(2), and 1322 120.28 of the Social Security Act. 120.29 (c) Interest payable on anyadvanceloan shall be paid in 120.30 accordance with section 268.051, subdivision 8, paragraph (b). 120.31 Sec. 61. Minnesota Statutes 1998, section 268.196, is 120.32 amended to read: 120.33 268.196 [ECONOMIC SECURITY ADMINISTRATIONFUNDACCOUNT.] 120.34 Subdivision 1. [ADMINISTRATIONFUNDACCOUNT.] (a) There is 120.35 hereby created in the state treasury a specialfundaccount to 120.36 be known as the economic security administrationfundaccount. 121.1 Allmoneys which aremoney that is deposited or paid into this 121.2fundaccount shall be continuously available to the commissioner 121.3 for expenditurein accordance with the provisions ofto 121.4 administer sections 268.03 to 268.23, and shall not lapse at any 121.5 time. Thefundadministration account shall consist of: 121.6 (1) allmoneysmoney received from theUnited States or any121.7agency thereof, including the United States department of labor,121.8and includefederal government to administer sections 268.03 to 121.9 268.23; 121.10 (2) anymoneysmoney receivedfrom any agency of the United121.11States or any other stateas compensation for services or 121.12 facilities supplied tosuch agency,the federal government or 121.13 any other state; 121.14 (3) any amounts receivedpursuant to any surety bond or121.15insurance policy or from other sourcesfor losses sustained by 121.16the economic security administration fundthis account or by 121.17 reason of damage to equipment or suppliespurchased from moneys121.18in such fund,; and 121.19 (4) any proceedsrealizedfrom the sale or disposition of 121.20 anysuchequipment or supplieswhichthat may no longer be 121.21 necessary for the proper administration of those 121.22 sections.Notwithstanding any provision of this section, all121.23money requisitioned and deposited in this fund pursuant to121.24section 268.194, subdivision 5, shall remain part of the121.25reemployment fund and shall be used only in accordance with the121.26conditions specified in section 268.194, subdivision 5.121.27 (b) Allmoneysmoney in thisfundaccount shall be 121.28 deposited, administered, and disbursed in the same manner and 121.29 under the same conditions and requirements as are provided by 121.30 law for the other specialfundsaccounts in the state treasury. 121.31 Thestatecommissioner of finance, as treasurer and custodian of 121.32 this account, shall be liableon the treasurer's official bond121.33 for the faithful performance of duties in connection withthe121.34economic security administration fund provided for under these121.35sections. Such liability on the official bond shall be121.36effective immediately upon the enactment of this provision, and122.1such liability shall exist in addition to any liability upon any122.2separate bond existent on April 29, 1941, or which may be given122.3in the future. All sums recovered on any surety bond for losses122.4sustained by the economic security administration fund shall be122.5deposited in this fundthis account. 122.6 (c) All money in thisfund, except money received pursuant122.7to section 268.194, subdivision 5, clause (3),account shall 122.8 beexpendedspent solely for the purposes and in the amounts 122.9 found necessary by the United States Secretary of Labor for the 122.10 proper and efficient administration ofthe economic security122.11programsections 268.03 to 268.23. 122.12 Subd. 2. [STATE TO REPLACE MONEY WRONGFULLY USED.] If any 122.13 money received under United States Code, title 42, section 501 122.14 of the Social Security Act or the Wagner-Peyser Act, are found 122.15 by the United States Secretary of Labor, because of any action122.16or contingency,to have beenlost or been expendedspent for 122.17 purposes other than, or in amounts in excess of, thosefound122.18 necessaryby the secretary of laborfor the proper 122.19 administration ofthesesections 268.03 to 268.23, the 122.20 commissioner may, with the approval of the commissioner of122.21administration,replace the money from the contingent account. 122.22 If the money is not replaced from the contingent account, it is 122.23 the policy of this state that the money be replaced by money 122.24 appropriated for that purpose from the general funds of this 122.25 state.Upon receipt of a finding by the secretary of laborIf 122.26 not replaced from the contingent account, the commissioner shall 122.27promptly report the amount required for replacement to the122.28governor and the governor shall, at the earliest opportunity, 122.29 submit to the legislature a request for the appropriation of 122.30 that amount. 122.31 Subd. 3. [CONTINGENT ACCOUNT.] (a) There is hereby created 122.32 in the state treasury a special account, to be known as the 122.33 economic security contingent account,whichthat shall not lapse 122.34 nor revert to any other fund.SuchThis account shall consist 122.35 of all money appropriated therefor by the legislature, all money 122.36 in the form of interest and penalties collected pursuant to 123.1 sections 268.057and, 268.18, and 268.184, all money received in 123.2 the form of voluntary contributions to this account, and any 123.3 interestthereonearned on the account. All money insuchthis 123.4 account shall be supplemental to all federal moneythat would be123.5 available to the commissionerbut for the existence of this123.6account.MoneysMoney in this accountareis hereby 123.7 appropriated to the commissioner and shall be available to the 123.8 commissioner forsuchthose expendituresasthe commissionermay123.9deemconsiders necessary in connection with the administration 123.10 of sections268.04268.03 to 268.23. 123.11 Whenever the commissionerexpendsspends money from 123.12saidthe contingent account for theproper and efficient123.13 administration ofthe Minnesota Economic Security Lawsections 123.14 268.03 to 268.23 for whichfunds have not yet beenmoney will 123.15 later be made available by the federal government,such money so123.16withdrawn fromthe contingent account shall, when money is 123.17 available, bereplaced as hereinafter provided. Upon the123.18deposit inreimbursed from theeconomic securityadministration 123.19fund of moneys which are received in reimbursement of payments123.20made as above provided for said contingentaccount,. The 123.21 commissioner shall certify to thestate treasurercommissioner 123.22 of finance the amount ofsuchthe reimbursement andthereupon123.23 thestate treasurercommissioner of finance shall transfersuch123.24 that amount from theeconomic securityadministrationfund123.25 account tosaidthe contingent account. 123.26 (c) All money in this account shall be deposited, 123.27 administered, and disbursed in the same manner and under the 123.28 same conditions and requirements as is provided by law for the 123.29 other special accounts in the state treasury.The state123.30treasurer shall be liable on the treasurer's official bond for123.31the faithful performance of duties in connection with the123.32economic security contingent account provided for herein.123.33Notwithstanding anything to the contrary contained herein,On 123.34 June 30 of each year,except 1982,all amounts in excess of 123.35 $300,000 in this account shall be paid over to the reemployment 123.36 insurance trust fundestablished under section 268.194 and124.1administered in accordance with the provisions set forth therein. 124.2 Sec. 62. Minnesota Statutes 1998, section 268.198, is 124.3 amended to read: 124.4 268.198 [FREE EMPLOYMENTJOB SERVICE OFFICES.] 124.5 Subdivision 1. [ACCEPTANCE OF FEDERAL ACTESTABLISHMENT.] 124.6A state employment service is hereby established in the124.7department.The commissioner shall establish and maintain free 124.8 publicemploymentjob service offices, in that number and in 124.9 those places as may be necessary for the purpose of providing 124.10 reemployment assistance services to claimants, as well as 124.11 performing the functionswithin the purview ofunder the 124.12 Wagner-Peyser Act, United States Code, title 29,chapter 4B124.13 section 49. 124.14 Subd. 2. [FINANCING.] Allmoneysmoney received by this 124.15 state undersuchthe Wagner-Peyser Actof Congress referred to124.16in subdivision 1shall be paid into the economic security 124.17 administrationfund,account and expended solely for the 124.18 maintenance of state publicemploymentjob service offices. For 124.19 the purpose of establishing and maintaining free public 124.20employmentjob service offices and promoting the use of their 124.21 facilities, the commissioner is authorized to enter into 124.22 agreements withthe railroad retirement board oranyother124.23 public agencyof the United States or of this or any other state124.24charged with the administration of any lawwhose purposes are 124.25 reasonably related to the purposes ofsections 268.03 to 268.23124.26 the job service. 124.27 Subd. 3. [VETERANS REPRESENTATIVES.]As may be determined124.28by the commissioner, based on a demonstrated need for the124.29service,There shall be assignedby the commissionerto the 124.30 staff ofeach full functioning employmentthe job serviceoffice124.31a veterans employment representative whose activitiesone or 124.32 more employees of the department who shallbe devoted to124.33dischargingperform the dutiesprescribedof a veterans 124.34 employment representative. The position of veterans employment 124.35 representative shall be filled byone or more employees of the124.36department who areveterans as defined in section 197.447. 125.1 Sec. 63. Minnesota Statutes 1998, section 268.21, is 125.2 amended to read: 125.3 268.21 [NONLIABILITY OF STATE.] 125.4 (a) Benefits shall beconsidered to be due andpayable only 125.5 to the extent provided in this chapter and to the extent that 125.6 money is available in thereemployment insurancefund and 125.7 neither the state nor the commissioner shall be liable for any 125.8 amount in excess ofsuch sumsthe money available in the fund. 125.9 (b) No person shall make any demand, bring any suit, or 125.10 other proceeding to recover from the state or the commissioner 125.11 any sum alleged to be due on areemployment insurancebenefit 125.12 account after the expiration of two years from the effective 125.13 date of thereemployment insurancebenefit account. 125.14 Sec. 64. Minnesota Statutes 1998, section 268.23, is 125.15 amended to read: 125.16 268.23 [SEVERABLE.] 125.17 In the event that the United States Department of Labor 125.18shall determinedetermines that any provision of sections 268.03 125.19 to 268.23, or any other provision of Minnesota Statutes relating 125.20 to the reemployment insurance program, is not in conformity with 125.21various provisions of the Federal Internal Revenue Code orthe 125.22Social Security Act then suchrequirements of federal law, the 125.23 provision shall have no force or effectfor any purpose; but if 125.24any suchonly a portion of the provision, or the application 125.25thereofto any person or circumstances, is heldinvalidnot in 125.26 conformity, the remainder ofsaid sectionsthe provision and the 125.27 application ofsuchthe provision to other persons or 125.28 circumstances shall not be affectedthereby. 125.29 Sec. 65. Minnesota Statutes 1998, section 268.30, 125.30 subdivision 2, is amended to read: 125.31 Subd. 2. [APPLICATIONS.] Applications for a grant-in-aid 125.32 shall be made by the administering agency to the commissioner. 125.33 The grant-in-aid is contingent upon the agency having obtained 125.34 from the community in which the youth intervention program is 125.35 established local matching money two times the amount of the 125.36 grant that is sought. 126.1 The commissioner shall provideby rulethe application 126.2 form, procedures for making application form, criteria for 126.3 review of the application, and kinds of contributions in 126.4 addition to cash that qualify as local matching money. No grant 126.5 to any agency may exceed $50,000. 126.6 Sec. 66. [REVISOR'S INSTRUCTIONS.] 126.7 The revisor of statutes shall renumber each section of 126.8 Minnesota Statutes listed in column A with the number listed in 126.9 column B. The revisor shall also make necessary cross-reference 126.10 changes. 126.11 Column A Column B 126.12 268.182, paragraph (c) 268.184, paragraph (e) 126.13 268.095, subd. 9 268.035, subd. 23a 126.14 The term "reemployment insurance account" shall be changed 126.15 to "benefit account" in Minnesota Statutes, sections 268.03 to 126.16 268.23. 126.17 The term "reemployment insurance fund" shall be changed to 126.18 "reemployment compensation trust fund" wherever it appears in 126.19 Minnesota Statutes. 126.20 The term "notwithstanding" shall be changed to "regardless 126.21 of" in Minnesota Statutes, sections 268.03 to 268.23. 126.22 The term "reemployment insurance" shall be changed to 126.23 "reemployment compensation" wherever it appears in Minnesota 126.24 Statutes. 126.25 The term "claimant" shall be changed to "applicant" in 126.26 Minnesota Statutes, sections 268.03 to 268.23. 126.27 The term "claimants" shall be changed to "applicants" in 126.28 Minnesota Statutes, sections 268.03 to 268.23. 126.29 The term "a claimant's" shall be changed to "an 126.30 applicant's" in Minnesota Statutes, sections 268.03 to 268.23. 126.31 Sec. 67. [REPEALER.] 126.32 Minnesota Statutes 1998, sections 268.021; and 268.057, 126.33 subdivisions 8 and 9; and Minnesota Rules, parts 3305.0100; 126.34 3305.0200; 3305.0300; 3305.0400; 3305.0500; 3305.0600; 126.35 3305.0700; 3305.0800; 3305.0900; 3305.1100; 3310.1500; 126.36 3310.1600; 3310.1700; 3310.1800; 3310.1900; 3310.2000; 127.1 3310.2100; 3310.2200; 3310.5100; and 3310.5800, are repealed. 127.2 Sec. 68. [EFFECTIVE DATE.] 127.3 Section 3 is effective with applications for benefits filed 127.4 on and after July 1, 2000. 127.5 Section 13 is effective January 1, 2000. 127.6 Section 27 is effective January 1, 2001. 127.7 Section 41, subdivision 2, is effective July 1, 2000. 127.8 Section 42, subdivision 7, is effective the day following 127.9 final enactment. 127.10 Sec. 69. [SUNSET.] 127.11 Section 22 expires July 1, 2002.