1.1                          A bill for an act 
  1.2             relating to economic security; making technical 
  1.3             changes in the department of economic security; 
  1.4             amending Minnesota Statutes 1996, sections 248.07, 
  1.5             subdivision 15; 268.0122, subdivision 2; 268.08, as 
  1.6             amended; 268.101, as amended; 268.13, subdivision 4; 
  1.7             and 268.18, as amended; Minnesota Statutes 1997 
  1.8             Supplement, sections 268.03; 268.042, subdivisions 1 
  1.9             and 3; 268.043; 268.044, subdivision 1; 268.045; 
  1.10            268.047, subdivisions 2, 3, and 5; 268.051; 268.057, 
  1.11            subdivisions 1, 5, 6, and 7; 268.059; 268.063; 
  1.12            268.064, subdivision 2; 268.066; 268.067; 268.07; 
  1.13            268.09, subdivisions 1a, 10, 13, 16, and 17; 268.105, 
  1.14            subdivision 3a; 268.125; 268.13, subdivisions 1 and 2; 
  1.15            268.182; 268.184; 268.192, subdivision 1; 268.194, 
  1.16            subdivisions 2, 3, and 6; and 268.196, subdivision 2; 
  1.17            proposing coding for new law in Minnesota Statutes, 
  1.18            chapter 268; repealing Minnesota Statutes 1996, 
  1.19            sections 268.04, as amended; 268.08, subdivision 5a; 
  1.20            268.13, subdivisions 3 and 5; and 268.25; Minnesota 
  1.21            Statutes 1997 Supplement, sections 268.042, 
  1.22            subdivision 2; and 268.054. 
  1.23  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.24     Section 1.  Minnesota Statutes 1996, section 248.07, 
  1.25  subdivision 15, is amended to read: 
  1.26     Subd. 15.  [APPEALS FROM AGENCY ACTION.] An applicant for 
  1.27  or recipient of rehabilitation service who is dissatisfied with 
  1.28  an agency's action with regard to the furnishing or denial of 
  1.29  services may file a request for administrative review and fair 
  1.30  hearing in accordance with ~~the Code of Federal Regulations,~~ 
  1.31  ~~title 34, section 361.48, and~~ rules adopted under subdivision 
  1.32  14a. 
  1.33     Sec. 2.  Minnesota Statutes 1996, section 268.0122, 
  1.34  subdivision 2, is amended to read: 
  2.1      Subd. 2.  [SPECIFIC POWERS.] The commissioner of economic 
  2.2   security shall: 
  2.3      (1) administer and supervise all forms of 
  2.4   ~~unemployment~~ reemployment insurance provided for under federal 
  2.5   and state laws that are vested in the commissioner~~;~~, including 
  2.6   make investigations and audits, secure and transmit information, 
  2.7   and make available services and facilities as the commissioner 
  2.8   considers necessary or appropriate to facilitate the 
  2.9   administration of any other states, or the federal economic 
  2.10  security law, and accept and use information, services, and 
  2.11  facilities made available by other states or the federal 
  2.12  government; 
  2.13     (2) administer and supervise all employment and training 
  2.14  services assigned to the department ~~of economic security~~ under 
  2.15  federal or state law; 
  2.16     (3) review and comment on local service unit plans and 
  2.17  community investment program plans and approve or disapprove the 
  2.18  plans; 
  2.19     (4) establish and maintain administrative units necessary 
  2.20  to perform administrative functions common to all divisions of 
  2.21  the department; 
  2.22     (5) supervise the county boards of commissioners, local 
  2.23  service units, and any other units of government designated in 
  2.24  federal or state law as responsible for employment and training 
  2.25  programs; 
  2.26     (6) establish administrative standards and payment 
  2.27  conditions for providers of employment and training services; 
  2.28     (7) act as the agent of, and cooperate with, the federal 
  2.29  government in matters of mutual concern, including the 
  2.30  administration of any federal funds granted to the state to aid 
  2.31  in the performance of functions of the commissioner; 
  2.32     (8) obtain reports from local service units and service 
  2.33  providers for the purpose of evaluating the performance of 
  2.34  employment and training services; and 
  2.35     (9) review and comment on plans for Indian tribe employment 
  2.36  and training services and approve or disapprove the plans. 
  3.1      Sec. 3.  Minnesota Statutes 1997 Supplement, section 
  3.2   268.03, is amended to read: 
  3.3      268.03 [DECLARATION OF PUBLIC POLICY.] 
  3.4      Subdivision 1.  [STATEMENT.] ~~As a guide to the~~ 
  3.5   ~~interpretation and application of sections 268.03 to 268.30,~~ The 
  3.6   public policy ~~of this state~~ underlying sections 268.03 to 268.23 
  3.7   is ~~declared to be~~ as follows:  Economic insecurity due to 
  3.8   involuntary unemployment is a serious ~~menace~~ threat to the 
  3.9   ~~health, morals, and welfare~~ well-being of the people of ~~this~~ 
  3.10  ~~state~~ Minnesota.  Involuntary unemployment is ~~therefore~~ a 
  3.11  subject of general interest and concern ~~which~~ that requires 
  3.12  appropriate action by the legislature to prevent its spread and 
  3.13  to lighten its burdens.  ~~This can be provided by encouraging~~ 
  3.14  ~~employers to provide more stable employment and by the~~ 
  3.15  ~~systematic accumulation of funds during periods of employment to~~ 
  3.16  ~~provide benefits for periods of unemployment, thus maintaining~~ 
  3.17  ~~purchasing power and limiting the serious social consequences of~~ 
  3.18  ~~poor relief assistance.  The legislature, therefore, declares~~ 
  3.19  ~~that in its considered judgment~~ The public good and the ~~general~~ 
  3.20  ~~welfare~~ well-being of the citizens of ~~this state~~ Minnesota will 
  3.21  be promoted by providing, under the ~~police~~ taxing powers of the 
  3.22  state for the compulsory setting aside of ~~unemployment~~ reserves 
  3.23  to be used for the benefit of ~~persons~~ individuals unemployed 
  3.24  through no fault of their own.  In recognition of its focus 
  3.25  on ~~returning~~ providing a temporary partial wage replacement to 
  3.26  assist the unemployed worker to ~~gainful employment~~ become 
  3.27  reemployed, this program will be known ~~in Minnesota~~ as 
  3.28  "reemployment insurance." 
  3.29     Subd. 2.  [STANDARD OF PROOF.] All issues of fact under 
  3.30  sections 268.03 to 268.23 shall be determined by a preponderance 
  3.31  of the evidence.  Preponderance of the evidence means evidence 
  3.32  in substantiation of a fact that, when weighed against the 
  3.33  evidence opposing the fact, is more convincing and has a greater 
  3.34  probability of truth. 
  3.35     Sec. 4.  [268.035] [DEFINITIONS.] 
  3.36     Subdivision 1.  [SCOPE.] Unless the language or context 
  4.1   clearly indicates that a different meaning is intended, the 
  4.2   words, terms, and phrases in this section shall, for the 
  4.3   purposes of sections 268.03 to 268.23, have the meaning stated. 
  4.4      Subd. 2.  [AGRICULTURAL EMPLOYMENT.] "Agricultural 
  4.5   employment" means services: 
  4.6      (1) on a farm, in the employ of any person or family farm 
  4.7   corporation in connection with cultivating the soil, or in 
  4.8   connection with raising or harvesting any agricultural or 
  4.9   horticultural commodity, including the raising, shearing, 
  4.10  feeding, caring for, training, and management of livestock, 
  4.11  bees, poultry, fur-bearing animals, and wildlife; 
  4.12     (2) in the employ of the owner or tenant or other operator 
  4.13  of a farm, in connection with the operation, management, 
  4.14  conservation, improvement, or maintenance of the farm and its 
  4.15  tools and equipment, or in salvaging timber or clearing land of 
  4.16  brush and other debris left by a tornado-like storm, if the 
  4.17  major part of the employment is performed on a farm; 
  4.18     (3) in connection with the production or harvesting of any 
  4.19  commodity defined as an agricultural product in United States 
  4.20  Code, title 7, section 1626 of the Agricultural Marketing Act, 
  4.21  or in connection with cotton ginning, or in connection with the 
  4.22  operation or maintenance of ditches, canals, reservoirs, or 
  4.23  waterways, not owned or operated for profit, used exclusively 
  4.24  for supplying and storing water for farming purposes; 
  4.25     (4) in the employ of the operator of a farm in handling, 
  4.26  planting, drying, packing, packaging, processing, freezing, 
  4.27  grading, storing, or delivering to storage or to market or to a 
  4.28  carrier for transportation to market, in its unmanufactured 
  4.29  state, any agricultural or horticultural commodity; but only if 
  4.30  the operator produced more than one-half of the commodity with 
  4.31  respect to which the employment is performed, or in the employ 
  4.32  of a group of operators of farms or a cooperative organization 
  4.33  of which the operators are members, but only if the operators 
  4.34  produced more than one-half of the commodity with respect to 
  4.35  which the employment is performed; however, this clause shall 
  4.36  not be applicable to employment performed in connection with 
  5.1   commercial canning or commercial freezing or in connection with 
  5.2   any agricultural or horticultural commodity after its delivery 
  5.3   to a terminal market for distribution for consumption; or 
  5.4      (5) on a farm operated for profit if the employment is not 
  5.5   in the course of the employer's trade or business. 
  5.6      For purposes of this subdivision, the term "farm" includes 
  5.7   stock, dairy, poultry, fruit, fur-bearing animals, and truck 
  5.8   farms, plantations, ranches, nurseries, orchards, ranges, 
  5.9   greenhouses, or other similar structures used primarily for the 
  5.10  raising of agricultural or horticultural commodities. 
  5.11     Subd. 3.  [BACK PAY.] "Back pay" means a retroactive 
  5.12  payment of money by an employer to an employee or former 
  5.13  employee for lost wages because of the employer's noncompliance 
  5.14  with a state or federal law or a collective bargaining agreement 
  5.15  as determined by an arbitration award, administrative or 
  5.16  judicial decision, or negotiated settlement.  The payment shall 
  5.17  be applied to the period immediately following the last day of 
  5.18  employment or as specified in the award, decision, or settlement.
  5.19     Subd. 4.  [BASE PERIOD.] "Base period" means: 
  5.20     (1) the first four of the last five completed calendar 
  5.21  quarters immediately prior to the effective date of a claimant's 
  5.22  reemployment insurance account; 
  5.23     (2) if during the base period under clause (1) a claimant 
  5.24  received workers' compensation for temporary disability under 
  5.25  chapter 176 or a similar law of the United States, or if a 
  5.26  claimant whose own serious illness caused a loss of work for 
  5.27  which the claimant received compensation for loss of wages from 
  5.28  some other source, the claimant may request that the base period 
  5.29  be extended as follows: 
  5.30     (i) if a claimant was compensated for a loss of work of 
  5.31  seven to 13 weeks, the original base period shall be extended to 
  5.32  include the one calendar quarter prior to the original base 
  5.33  period; 
  5.34     (ii) if a claimant was compensated for a loss of work of 14 
  5.35  to 26 weeks, the original base period shall be extended to 
  5.36  include the two calendar quarters prior to the original base 
  6.1   period; 
  6.2      (iii) if a claimant was compensated for a loss of work of 
  6.3   27 to 39 weeks, the original base period shall be extended to 
  6.4   include the three calendar quarters prior to the original base 
  6.5   period; and 
  6.6      (iv) if a claimant was compensated for a loss of work of 40 
  6.7   to 52 weeks, the original base period shall be extended to 
  6.8   include the four quarters prior to the original base period; 
  6.9      (3) if the claimant qualifies for an extended base period 
  6.10  under clause (2), but has insufficient wage credits to establish 
  6.11  a reemployment insurance account, the claimant may request an 
  6.12  alternate base period of the last four completed calendar 
  6.13  quarters prior to the date the claimant's reemployment insurance 
  6.14  account is effective.  This alternate base period may be used 
  6.15  only once during any five-calendar-year period; and 
  6.16     (4) no base period under clause (1), extended base period 
  6.17  under clause (2), or alternate base period under clause (3) 
  6.18  shall include wage credits upon which a prior reemployment 
  6.19  insurance account was established. 
  6.20     Subd. 5.  [BENEFITS.] "Benefits" means the money payments 
  6.21  payable to a claimant, as provided in sections 268.03 to 268.23, 
  6.22  with respect to the claimant's unemployment. 
  6.23     Subd. 6.  [BENEFIT YEAR.] "Benefit year" means the period 
  6.24  of 52 calendar weeks beginning the date a reemployment insurance 
  6.25  account is effective.  For a reemployment insurance account 
  6.26  established effective January 1, April 1, July 1, or October 1, 
  6.27  the benefit year will be a period of 53 calendar weeks. 
  6.28     Subd. 7.  [CALENDAR QUARTER.] "Calendar quarter" means the 
  6.29  period of three consecutive calendar months ending on March 31, 
  6.30  June 30, September 30, or December 31. 
  6.31     Subd. 8.  [CLAIMANT.] "Claimant" means an individual who 
  6.32  has made an application for a reemployment insurance account and 
  6.33  has established or is actively pursuing the establishment of a 
  6.34  reemployment insurance account. 
  6.35     Subd. 9.  [CONSTRUCTION/INDEPENDENT CONTRACTOR.] A worker 
  6.36  doing commercial or residential building construction or 
  7.1   improvement, in the public or private sector, performing 
  7.2   services in the course of the trade, business, profession, or 
  7.3   occupation of the employer, shall be considered an employee and 
  7.4   not an "independent contractor" unless the worker meets all the 
  7.5   following conditions: 
  7.6      (1) maintains a separate business with the independent 
  7.7   contractor's own office, equipment, materials, and other 
  7.8   facilities; 
  7.9      (2) holds or has applied for a federal employer 
  7.10  identification number; 
  7.11     (3) operates under contracts to perform specific services 
  7.12  or work for specific amounts of money under which the 
  7.13  independent contractor controls the means of performing the 
  7.14  services or work; 
  7.15     (4) incurs the main expenses related to the service or work 
  7.16  that the independent contractor performs under contract; 
  7.17     (5) is responsible for the satisfactory completion of work 
  7.18  or services that the independent contractor contracts to perform 
  7.19  and is liable for a failure to complete the work or service; 
  7.20     (6) receives compensation for work or service performed 
  7.21  under a contract on a commission or per job or competitive bid 
  7.22  basis and not on any other basis; 
  7.23     (7) may realize a profit or suffer a loss under contracts 
  7.24  to perform work or service; 
  7.25     (8) has continuing or recurring business liabilities or 
  7.26  obligations; and 
  7.27     (9) the success or failure of the independent contractor's 
  7.28  business depends on the relationship of business receipts to 
  7.29  expenditures. 
  7.30     Subd. 10.  [CORPORATION.] "Corporation" includes 
  7.31  associations, joint-stock companies, and insurance companies.  
  7.32  This definition shall not be exclusive. 
  7.33     Subd. 11.  [COVERED AGRICULTURAL EMPLOYMENT.] "Covered 
  7.34  agricultural employment" means agricultural employment where: 
  7.35     (1) The employment is performed for a person who: 
  7.36     (i) during any calendar quarter in either the current or 
  8.1   the prior calendar year paid wages of $20,000 or more to 
  8.2   employees in agricultural employment; or 
  8.3      (ii) for some portion of a day in each of 20 different 
  8.4   calendar weeks, whether or not the weeks were consecutive, in 
  8.5   either the current or prior calendar year employed in 
  8.6   agricultural employment four or more employees, regardless of 
  8.7   whether they were employed at the same time. 
  8.8      (2) Any employee who is a member of a crew furnished by a 
  8.9   crew leader to be employed in agricultural employment for any 
  8.10  other person shall be treated as an employee of the crew leader: 
  8.11     (i) if the crew leader holds a valid certificate of 
  8.12  registration under United States Code, title 29, section 1802, 
  8.13  the Migrant and Seasonal Agricultural Worker Protection Act; or 
  8.14  substantially all of the members of the crew operate or maintain 
  8.15  tractors, mechanized harvesting or crop dusting equipment, or 
  8.16  any other mechanized equipment, that is provided by the crew 
  8.17  leader; and 
  8.18     (ii) if the employee is not an employee of another person. 
  8.19     (3) Any employee who is furnished by a crew leader to be 
  8.20  employed in agricultural employment for any other person and who 
  8.21  is not treated as an employee of the crew leader under clause 
  8.22  (2): 
  8.23     (i) the other person and not the crew leader shall be 
  8.24  treated as the employer of the employee; and 
  8.25     (ii) the other person shall be treated as having paid wages 
  8.26  to the employee in an amount equal to the amount of wages paid 
  8.27  to the employee by the crew leader (either on the crew leader's 
  8.28  behalf or on behalf of the other person) for the agricultural 
  8.29  employment performed for the other person. 
  8.30     (4) The term "crew leader" means an individual who: 
  8.31     (i) furnishes employees to be employed in agricultural 
  8.32  employment for any other person; 
  8.33     (ii) pays (either on the crew leader's own behalf or on 
  8.34  behalf of the other person) the employees furnished by the crew 
  8.35  leader for the agricultural employment performed by them; and 
  8.36     (iii) has not entered into a written agreement with the 
  9.1   other person under which the furnished employee is designated as 
  9.2   an employee of the other person. 
  9.3      (5) Employment of an officer or shareholder of a family 
  9.4   farm corporation shall be excluded from covered agricultural 
  9.5   employment unless the corporation is an employer under United 
  9.6   States Code, title 26, section 3306(a)(2) of the Federal 
  9.7   Unemployment Tax Act. 
  9.8      (6) Employment of an individual 16 years of age or under 
  9.9   shall be excluded from covered agricultural employment unless 
  9.10  the employer is an employer under United States Codes, title 26, 
  9.11  section 3306(a)(2) of the Federal Unemployment Tax Act. 
  9.12     Subd. 12.  [COVERED EMPLOYMENT.] "Covered employment" means 
  9.13  the following unless defined as "noncovered employment" under 
  9.14  subdivision 20: 
  9.15     (1) an employee's entire employment if: 
  9.16     (i) the employment is performed entirely in Minnesota; 
  9.17     (ii) the employment is performed primarily in Minnesota, 
  9.18  and the employment performed outside Minnesota is incidental to 
  9.19  the employment in Minnesota; or 
  9.20     (iii) the employment is not performed primarily in any one 
  9.21  state but some of the employment is performed in Minnesota and 
  9.22  the base of operations or the place from which the employment is 
  9.23  directed or controlled is in Minnesota; or the base of 
  9.24  operations or place from which the employment is directed or 
  9.25  controlled is not in any state in which part of the employment 
  9.26  is performed, but the employee's residence is in Minnesota; 
  9.27     (2) an employee's employment wherever performed within the 
  9.28  United States or Canada, if: 
  9.29     (i) the employment is not covered under the reemployment 
  9.30  insurance law of any other state or Canada; and 
  9.31     (ii) the place from which the employment is directed or 
  9.32  controlled is in Minnesota; 
  9.33     (3) the employment of an employee who is a citizen of the 
  9.34  United States, performed outside the United States, except in 
  9.35  Canada, in the employ of an American employer if: 
  9.36     (i) the employer's principal place of business in the 
 10.1   United States is located in Minnesota; 
 10.2      (ii) the employer has no place of business in the United 
 10.3   States, but the employer is an individual who is a resident of 
 10.4   Minnesota, or the employer is a corporation that is organized 
 10.5   under the laws of Minnesota, or the employer is a partnership or 
 10.6   a trust and the number of partners or trustees who are residents 
 10.7   of Minnesota is greater than the number who are residents of any 
 10.8   one other state; 
 10.9      (iii) none of the criteria of subclauses (i) and (ii) is 
 10.10  met but the employer has elected coverage in Minnesota, or the 
 10.11  employer having failed to elect coverage in any state, a 
 10.12  claimant has made an application for benefits under section 
 10.13  268.07, based on the employment; 
 10.14     (iv) an "American employer," for the purposes of this 
 10.15  subdivision, means an individual who is a resident of the United 
 10.16  States, or a partnership if two-thirds or more of the partners 
 10.17  are residents of the United States, or a trust, if all of the 
 10.18  trustees are residents of the United States, or a corporation 
 10.19  organized under the laws of the United States, or of any state; 
 10.20  or 
 10.21     (v) as used in this subdivision, the term "United States" 
 10.22  includes the states, the District of Columbia, the Commonwealth 
 10.23  of Puerto Rico, and the Virgin Islands; 
 10.24     (4) all employment performed by an officer or member of the 
 10.25  crew of an American vessel on or in connection with the vessel, 
 10.26  if the operating office, from which the operations of the vessel 
 10.27  operating on navigable waters within, or within and without, the 
 10.28  United States are ordinarily and regularly supervised, managed, 
 10.29  directed, and controlled is in Minnesota; 
 10.30     (5) for the purposes of satisfying disqualifications under 
 10.31  section 268.095, subdivision 10, "covered employment" shall 
 10.32  include covered employment under a similar law of any other 
 10.33  state or employment covered under a reemployment insurance 
 10.34  system established by an act of Congress; and 
 10.35     (6) periods for which an individual receives back pay are 
 10.36  periods of "covered employment," except for the satisfying of 
 11.1   disqualifications under section 268.095, subdivision 10. 
 11.2      Subd. 13.  [EMPLOYEE.] "Employee" means every individual, 
 11.3   who is performing, or has performed services for an employer in 
 11.4   employment. 
 11.5      Subd. 14.  [EMPLOYER.] "Employer" means any of the 
 11.6   following which has had one or more employees during the current 
 11.7   or the prior calendar year: 
 11.8      (1) any individual or type of organization, resident or 
 11.9   nonresident, for profit or nonprofit, religious, charitable, or 
 11.10  educational, including any partnership, limited liability 
 11.11  company, trust, estate, or corporation, domestic or foreign, or 
 11.12  the receiver, trustee in bankruptcy, trustee or successor of any 
 11.13  of the foregoing, or the legal representative of a deceased 
 11.14  person; 
 11.15     (2) any government entity, state or federal, foreign or 
 11.16  domestic, Indian tribe, including any subdivision thereof and 
 11.17  any instrumentality thereof owned wholly or in part; 
 11.18     (3) any organization or person that is considered an 
 11.19  employer under United States Code, title 26, section 3306(a) of 
 11.20  the Federal Unemployment Tax Act; 
 11.21     (4) any organization or person that has elected, under 
 11.22  section 268.042, to be subject to sections 268.03 to 268.23; 
 11.23     (5) a joint venture composed of one or more employers; 
 11.24     (6) any private or nonprofit organization or government 
 11.25  agency providing or authorizing the hiring of homeworkers, 
 11.26  personal care attendants, or other individuals performing 
 11.27  similar services in a private home is the employer of the 
 11.28  homeworker, attendant, or similar worker whether the agency pays 
 11.29  the employee directly or provides funds to the recipient of the 
 11.30  services to pay for the services.  This clause does not apply to 
 11.31  the state of Minnesota or any county that provides federal, 
 11.32  state, or local funds to a child care provider either directly 
 11.33  or indirectly through a parent who is a child care assistance 
 11.34  recipient; or 
 11.35     (7) each individual employed to perform or assist in 
 11.36  performing the work of any agent or employee shall be considered 
 12.1   to be employed by that employer whether the individual was hired 
 12.2   or paid directly by that employer or by the agent or employee, 
 12.3   provided the employer had actual or constructive knowledge of 
 12.4   the work. 
 12.5      Subd. 15.  [EMPLOYMENT.] "Employment" means service 
 12.6   performed by: 
 12.7      (1) an individual who is considered an employee under the 
 12.8   common law of employer-employee and not considered an 
 12.9   independent contractor; 
 12.10     (2) an officer of a corporation; 
 12.11     (3) a member of a limited liability company who is 
 12.12  considered an employee under the common law of 
 12.13  employer-employee; 
 12.14     (4) an individual who performs services for compensation, 
 12.15  as: 
 12.16     (i) an agent-driver or commission-driver engaged in 
 12.17  distributing meat products, vegetable products, fruit products, 
 12.18  beverages, or laundry or dry cleaning services, for a principal; 
 12.19  or 
 12.20     (ii) a traveling or city salesperson, other than as an 
 12.21  agent-driver or commission-driver, engaged upon a full-time 
 12.22  basis in the solicitation on behalf of, and the transmission to, 
 12.23  a principal (except for sideline sales activities on behalf of 
 12.24  some other person) of orders from wholesalers, retailers, 
 12.25  contractors, or operators of hotels, restaurants, or other 
 12.26  similar establishments for merchandise for resale or supplies 
 12.27  for use in their business operations. 
 12.28     This clause shall apply only if the contract of service 
 12.29  provides that substantially all of the services are to be 
 12.30  performed personally by the individual, and the services are 
 12.31  part of a continuing relationship with the person for whom the 
 12.32  services are performed, and the individual does not have a 
 12.33  substantial investment in facilities used in connection with the 
 12.34  performance of the services (other than facilities for 
 12.35  transportation); or 
 12.36     (5) an individual whose service is considered employment 
 13.1   under United States Code, title 26, section 3306(c), of the 
 13.2   Federal Unemployment Tax Act. 
 13.3      Subd. 16.  [FAMILY FARM CORPORATION.] "Family farm 
 13.4   corporation" has the meaning given to it in section 500.24, 
 13.5   subdivision 2. 
 13.6      Subd. 17.  [FILING; FILED.] "Filing" or "filed" means the 
 13.7   delivery of any document to the commissioner or any of the 
 13.8   commissioner's agents, or the depositing of the document in the 
 13.9   United States mail properly addressed to the department with 
 13.10  postage prepaid, in which case the document shall be considered 
 13.11  filed on the day indicated by the cancellation mark of the 
 13.12  United States Postal Service. 
 13.13     If, where allowed, an application, protest, appeal, or 
 13.14  other required action is made by telephone or electronic 
 13.15  transmission, it shall be considered filed on the day received 
 13.16  by the department. 
 13.17     Subd. 18.  [FUND.] "Fund" means the Minnesota reemployment 
 13.18  insurance fund established by section 268.194. 
 13.19     Subd. 19.  [HIGH QUARTER.] "High quarter" means the 
 13.20  calendar quarter in a claimant's base period with the highest 
 13.21  amount of wage credits. 
 13.22     Subd. 20.  [NONCOVERED EMPLOYMENT.] "Noncovered employment" 
 13.23  means: 
 13.24     (1) employment for the United States government or an 
 13.25  instrumentality thereof; 
 13.26     (2) employment for an Indian, an Indian-controlled 
 13.27  employer, and Indian tribe, or any wholly controlled 
 13.28  subsidiaries or subdivisions, if the employment is performed on 
 13.29  an Indian reservation or Indian Trust Land; 
 13.30     (3) employment for a state, other than Minnesota, or a 
 13.31  political subdivision or instrumentality thereof; 
 13.32     (4) employment for a foreign government; 
 13.33     (5) employment for an instrumentality wholly owned by a 
 13.34  foreign government, if the employment is of a character similar 
 13.35  to that performed in foreign countries by employees of the 
 13.36  United States government or an instrumentality thereof and the 
 14.1   United States Secretary of State has certified that the foreign 
 14.2   government grants an equivalent exemption to similar employment 
 14.3   performed in the foreign country by employees of the United 
 14.4   States government and instrumentalities thereof; 
 14.5      (6) employment with respect to which reemployment insurance 
 14.6   benefits are payable under a system established by an act of 
 14.7   Congress; 
 14.8      (7) employment covered by a reciprocal arrangement between 
 14.9   the commissioner and another state or the federal government 
 14.10  pursuant to which all employment performed by an individual for 
 14.11  an employer during the period covered by the reciprocal 
 14.12  arrangement is considered performed entirely within another 
 14.13  state; 
 14.14     (8) employment for a religious, charitable, education, or 
 14.15  other organization described in United States Code, title 26, 
 14.16  section 501(c)(3) of the federal Internal Revenue Code and 
 14.17  exempt from income tax under section 501(a), but only if the 
 14.18  organization did not have one or more individuals in employment 
 14.19  for some portion of a day in each of 20 different weeks, whether 
 14.20  or not such weeks were consecutive, within either the current or 
 14.21  the prior calendar year, regardless of whether they were 
 14.22  employed at the same time; 
 14.23     (9) employment for a church or convention or association of 
 14.24  churches, or an organization operated primarily for religious 
 14.25  purposes that is operated, supervised, controlled, or 
 14.26  principally supported by a church or convention or association 
 14.27  of churches described in United States Code, title 26, section 
 14.28  501(c)(3) of the federal Internal Revenue Code and exempt from 
 14.29  income tax under section 501(a); 
 14.30     (10) employment of a duly ordained, commissioned, or 
 14.31  licensed minister of a church in the exercise of a ministry or 
 14.32  by a member of a religious order in the exercise of duties 
 14.33  required by the order, for Minnesota or a political subdivision 
 14.34  or an organization described in United States code, title 26, 
 14.35  section 501(c)(3) of the federal Internal Revenue Code and 
 14.36  exempt from income tax under section 501(a); 
 15.1      (11) employment of an individual receiving rehabilitation 
 15.2   of "sheltered" work in a facility conducted for the purpose of 
 15.3   carrying out a program of rehabilitation for individuals whose 
 15.4   earning capacity is impaired by age or physical or mental 
 15.5   deficiency or injury or a program providing "sheltered" work for 
 15.6   individuals who because of an impaired physical or mental 
 15.7   capacity cannot be readily absorbed in the competitive labor 
 15.8   market.  This clause applies only to services performed for 
 15.9   Minnesota or a political subdivision or an organization 
 15.10  described in United States Code, title 26, section 501 (c)(3) of 
 15.11  the federal Internal Revenue Code and exempt from income tax 
 15.12  under section 501(a) in a facility certified by the 
 15.13  rehabilitation services branch of the department or in a day 
 15.14  training or habilitation program licensed by the department of 
 15.15  human services; 
 15.16     (12) employment of an individual receiving work relief or 
 15.17  work training as part of an unemployment work relief or work 
 15.18  training program assisted or financed in whole or in part by any 
 15.19  federal agency or an agency of a state or political subdivision 
 15.20  thereof.  This clause applies only to employment for Minnesota 
 15.21  or a political subdivision or an organization described in 
 15.22  United States Code, title 26, section 501(c)(3) of the federal 
 15.23  Internal Revenue Code and exempt from income tax under section 
 15.24  501(a).  This clause shall not apply to programs that require 
 15.25  reemployment insurance coverage for the participants; 
 15.26     (13) employment in any calendar quarter for any 
 15.27  organization exempt from income tax under United States Code, 
 15.28  title 26, section 501(a) or 521 of the federal Internal Revenue 
 15.29  Code except a trust described in section 401(a), if the 
 15.30  compensation for the employment is less than $50; 
 15.31     (14) employment for Minnesota or a political subdivision if 
 15.32  the service is as an elected official, a member of a legislative 
 15.33  body, or a member of the judiciary; 
 15.34     (15) employment as a member of the Minnesota national guard 
 15.35  or air national guard; 
 15.36     (16) employment for Minnesota, a political subdivision, or 
 16.1   instrumentality thereof, as an employee serving only on a 
 16.2   temporary basis in case of fire, storm, snow, earthquake, flood, 
 16.3   or similar emergency; 
 16.4      (17) employment as an election official or election worker 
 16.5   for Minnesota or a political subdivision, but only if the 
 16.6   compensation for that employment was less than $1,000 in a 
 16.7   calendar year; 
 16.8      (18) employment for Minnesota that is a major nontenured 
 16.9   policy making or advisory position in the unclassified service; 
 16.10     (19) employment in a policy making position for Minnesota 
 16.11  or a political subdivision, the performance of the duties that 
 16.12  ordinarily does not require more than eight hours per week; 
 16.13     (20) employment for a political subdivision of Minnesota 
 16.14  that is a major nontenured policy making or advisory position; 
 16.15     (21) domestic service in a private household, local college 
 16.16  club, or local chapter of a college fraternity or sorority 
 16.17  performed for a person, only if the wages paid in any calendar 
 16.18  quarter in either the current or preceding calendar year to all 
 16.19  individuals employed in domestic service totaled less than 
 16.20  $1,000. 
 16.21     "Domestic service" includes all service for an individual 
 16.22  in the operation and maintenance of a private household, for a 
 16.23  local college club, or local chapter of a college fraternity or 
 16.24  sorority as distinguished from service as an employee in the 
 16.25  pursuit of an employer's trade, occupation, profession, 
 16.26  enterprise, or vocation; 
 16.27     (22) employment of an individual by a son, daughter, or 
 16.28  spouse, and employment of a child under the age of 18 by the 
 16.29  child's father or mother; 
 16.30     (23) employment of an inmate of a custodial or penal 
 16.31  institution; 
 16.32     (24) employment for a school, college, or university by a 
 16.33  student who is enrolled and is regularly attending classes at 
 16.34  the school, college, or university; 
 16.35     (25) employment of an individual who is enrolled as a 
 16.36  student in a full-time program at a nonprofit or public 
 17.1   educational institution that normally maintains a regular 
 17.2   faculty and curriculum and normally has a regularly organized 
 17.3   body of students in attendance at the place where its 
 17.4   educational activities are carried on, taken for credit at the 
 17.5   institution, that combines academic instruction with work 
 17.6   experience, if the employment is an integral part of the 
 17.7   program, and the institution has so certified to the employer, 
 17.8   except that this clause shall not apply to employment in a 
 17.9   program established for or on behalf of an employer or group of 
 17.10  employers; 
 17.11     (26) employment of university, college, or professional 
 17.12  school students in an internship or other training program with 
 17.13  the city of St. Paul or the city of Minneapolis pursuant to Laws 
 17.14  1990, chapter 570, article 6, section 3; 
 17.15     (27) employment for a hospital by a patient of the hospital.
 17.16  "Hospital" means an institution that has been licensed, 
 17.17  certified, or approved by the department of health as a 
 17.18  hospital; 
 17.19     (28) employment as a student nurse for a hospital or a 
 17.20  nurses' training school by an individual who is enrolled and is 
 17.21  regularly attending classes in a nurses' training school 
 17.22  chartered and approved pursuant to state law; 
 17.23     (29) employment as an intern for a hospital by an 
 17.24  individual who has completed a four-year course in a medical 
 17.25  school chartered and approved pursuant to state law; 
 17.26     (30) employment as an insurance agent or as an insurance 
 17.27  solicitor, by other than a corporate officer, if all the 
 17.28  compensation for the employment is solely by way of commission.  
 17.29  The word "insurance" shall include an annuity and an optional 
 17.30  annuity; 
 17.31     (31) employment as an officer of a township mutual 
 17.32  insurance company or farmer's mutual insurance company operating 
 17.33  pursuant to chapter 67A; 
 17.34     (32) employment as a real estate salesperson, by other than 
 17.35  a corporate officer, if all the compensation for the employment 
 17.36  is solely by way of commission; 
 18.1      (33) employment as a direct seller as defined in United 
 18.2   States Code, title 26, section 3508; 
 18.3      (34) employment of an individual under the age of 18 in the 
 18.4   delivery or distribution of newspapers or shopping news, not 
 18.5   including delivery or distribution to any point for subsequent 
 18.6   delivery or distribution; 
 18.7      (35) casual labor not in the course of the employer's trade 
 18.8   or business; 
 18.9      (36) employment in "agricultural employment" unless 
 18.10  considered "covered agricultural employment" under subdivision 
 18.11  11; or 
 18.12     (37) if the employment during one-half or more of any pay 
 18.13  period constitutes covered employment, all the employment for 
 18.14  the period shall be considered covered employment; but if the 
 18.15  employment performed during more than one-half of any pay period 
 18.16  does not constitute covered employment, then none of the 
 18.17  employment for the period shall be considered covered 
 18.18  employment.  "Pay period" means a period of not more than a 
 18.19  calendar month for which a payment or compensation is ordinarily 
 18.20  made to the employee by the employer. 
 18.21     Subd. 21.  [PERSON.] "Person" means an individual, trust or 
 18.22  estate, a partnership or a corporation. 
 18.23     Subd. 22.  [STATE.] "State" includes, in addition to the 
 18.24  states of the United States, the Commonwealth of Puerto Rico, 
 18.25  the District of Columbia, and the Virgin Islands. 
 18.26     Subd. 23.  [STATE'S AVERAGE ANNUAL AND AVERAGE WEEKLY 
 18.27  WAGE.] (a) On or before June 30 of each year, the commissioner 
 18.28  shall calculate the state's average annual wage and the state's 
 18.29  average weekly wage in the following manner: 
 18.30     (1) The sum of the total monthly covered employment 
 18.31  reported by all employers for the prior calendar year shall be 
 18.32  divided by 12 to calculate the average monthly covered 
 18.33  employment. 
 18.34     (2) The sum of the total wages paid for all covered 
 18.35  employment reported by all employers for the prior calendar year 
 18.36  shall be divided by the average monthly covered employment to 
 19.1   calculate the state's average annual wage. 
 19.2      (3) The state's average annual wage shall be divided by 52 
 19.3   to calculate the state's average weekly wage. 
 19.4      (b) For purposes of calculating the amount of taxable 
 19.5   wages, the state's average annual wage shall apply to the 
 19.6   calendar year following the calculation. 
 19.7      (c) For purposes of calculating the state's maximum weekly 
 19.8   benefit amount payable on any reemployment insurance account, 
 19.9   the state's average weekly wage shall apply to the 12-month 
 19.10  period beginning August 1 of the calendar year of the 
 19.11  calculation. 
 19.12     Subd. 24.  [TAXABLE WAGES.] (a) "Taxable wages" means those 
 19.13  wages paid to an employee in covered employment each calendar 
 19.14  year up to an amount equal to 60 percent of the state's average 
 19.15  annual wage, rounded to the nearest $100. 
 19.16     (b) Taxable wages includes the amount of wages paid for 
 19.17  covered employment by the employer's predecessor in this state 
 19.18  or under the reemployment insurance law of any other state.  Any 
 19.19  credit given for amounts reported under the reemployment 
 19.20  insurance law of another state shall be limited to that state's 
 19.21  taxable wage base. 
 19.22     Subd. 25.  [TAXES.] "Taxes" means the money payments 
 19.23  required by sections 268.03 to 268.23 to be paid into the fund 
 19.24  by an employer on account of paying wages to employees in 
 19.25  covered employment. 
 19.26     Subd. 26.  [UNEMPLOYED.] A claimant shall be considered 
 19.27  "unemployed," (1) in any week that the claimant performs no 
 19.28  service in employment, covered employment, noncovered 
 19.29  employment, self-employment, or volunteer work, and with respect 
 19.30  to which the claimant has no earnings; or (2) in any week of 
 19.31  less than 32 hours of service in employment, covered employment, 
 19.32  noncovered employment, self-employment, or volunteer work if the 
 19.33  earnings with respect to that week are less than the claimant's 
 19.34  weekly benefit amount.  
 19.35     Subd. 27.  [WAGE CREDITS.] "Wage credits" mean the amount 
 19.36  of wages paid within a claimant's base period for covered 
 20.1   employment. 
 20.2      Subd. 28.  [WAGE DETAIL REPORT.] "Wage detail report" means 
 20.3   the report of wages paid and hours worked by each employee in 
 20.4   covered employment on a calendar quarter basis.  An auxiliary 
 20.5   report broken down by business locations, when required by the 
 20.6   commissioner, shall contain the number of employees in covered 
 20.7   employment for each month, and the quarterly total wages for 
 20.8   each location.  The auxiliary report may be made part of the 
 20.9   wage detail report, the tax report, or filed separately, as 
 20.10  required by the commissioner. 
 20.11     Subd. 29.  [WAGES.] "Wages" means all compensation for 
 20.12  services, including commissions; bonuses; severance payments; 
 20.13  vacation and holiday pay; back pay as of the date of payment; 
 20.14  tips and gratuities paid to an employee by a customer of an 
 20.15  employer and accounted for by the employee to the employer; 
 20.16  sickness and accident disability payments, except as otherwise 
 20.17  provided in this subdivision; and the cash value of all 
 20.18  compensation in any medium other than cash, except: 
 20.19     (1) the amount of any payment made to, or on behalf of, an 
 20.20  employee under a plan established by an employer that makes 
 20.21  provision for employees generally or for a class or classes of 
 20.22  employees, including any amount paid by an employer for 
 20.23  insurance or annuities, or into a plan, to provide for a 
 20.24  payment, on account of (i) retirement or (ii) medical and 
 20.25  hospitalization expenses in connection with sickness or accident 
 20.26  disability, or (iii) death; 
 20.27     (2) the payment by an employer of the tax imposed upon an 
 20.28  employee under United States Code, title 26, section 3101 of the 
 20.29  Federal Insurance Contribution Act, with respect to compensation 
 20.30  paid to an employee for domestic service in a private household 
 20.31  of the employer or for agricultural employment; 
 20.32     (3) any payment made to, or on behalf of, an employee or 
 20.33  beneficiary (i) from or to a trust described in United States 
 20.34  Code, title 26, section 401(a) of the federal Internal Revenue 
 20.35  Code that is exempt from tax under section 501(a) at the time of 
 20.36  the payment unless the payment is made to an employee of the 
 21.1   trust as compensation for services as an employee and not as a 
 21.2   beneficiary of the trust, or (ii) under or to an annuity plan 
 21.3   that, at the time of the payment, is a plan described in section 
 21.4   403(a); 
 21.5      (4) sickness or accident disability payments made by the 
 21.6   employer after the expiration of six calendar months following 
 21.7   the last calendar month that the individual worked for the 
 21.8   employer; 
 21.9      (5) disability payments made under the provisions of any 
 21.10  workers' compensation law; 
 21.11     (6) sickness or accident disability payments made by a 
 21.12  third party payer such as an insurance company; 
 21.13     (7) payments made into a fund, or for the purchase of 
 21.14  insurance or an annuity, to provide for sickness or accident 
 21.15  disability payments to employees pursuant to a plan or system 
 21.16  established by the employer that provides for the employer's 
 21.17  employees generally or for a class or classes of employees; or 
 21.18     (8) nothing in this subdivision shall exclude from the term 
 21.19  "wages" any payment made under any type of salary reduction 
 21.20  agreement, including payments made under a cash or deferred 
 21.21  arrangement and cafeteria plan, as defined in United States 
 21.22  Code, title 26, sections 401(k) and 125, of the federal Internal 
 21.23  Revenue Code, to the extent that the employee has the option to 
 21.24  receive the payment in cash. 
 21.25     Subd. 30.  [WAGES PAID.] "Wages paid" means the amount of 
 21.26  wages which have been actually paid or which have been credited 
 21.27  to or set apart for the employee so that payment and disposition 
 21.28  is under the control of the employee.  Wage payments delayed 
 21.29  beyond their regularly scheduled pay date are considered 
 21.30  "actually paid" on the missed pay date.  Any wages earned but 
 21.31  not paid with no scheduled date of payment shall be considered 
 21.32  "actually paid" on the last day services are performed in 
 21.33  employment before separation. 
 21.34     Wages paid shall not include wages earned but not paid 
 21.35  except as provided for in this subdivision. 
 21.36     Subd. 31.  [WEEK.] "Week" means calendar week, ending at 
 22.1   midnight Saturday. 
 22.2      Subd. 32.  [WEEKLY BENEFIT AMOUNT.] "Weekly benefit amount" 
 22.3   means the amount of benefits computed under section 268.07, that 
 22.4   a claimant would be entitled to receive for a week, if totally 
 22.5   unemployed and eligible. 
 22.6      Sec. 5.  Minnesota Statutes 1997 Supplement, section 
 22.7   268.042, subdivision 1, is amended to read: 
 22.8      Subdivision 1.  [EMPLOYER FOR PART OF YEAR.] Except as 
 22.9   provided in ~~subdivisions 2 and~~ subdivision 3, any ~~employing unit~~ 
 22.10  ~~which~~ organization or person that is or becomes an employer 
 22.11  subject to sections 268.03 to 268.23 within any calendar year 
 22.12  shall be ~~deemed~~ considered to be an employer during the ~~whole of~~ 
 22.13  ~~such~~ entire calendar year.  
 22.14     Sec. 6.  Minnesota Statutes 1997 Supplement, section 
 22.15  268.042, subdivision 3, is amended to read: 
 22.16     Subd. 3.  [ELECTION AGREEMENTS; TERMINATION POWERS OF 
 22.17  COMMISSIONER.] ~~(1)~~ (a) An ~~employing unit~~ organization or person, 
 22.18  not defined as an employer ~~under this chapter~~, that files with 
 22.19  the commissioner a written election to become an employer, 
 22.20  shall, with the written approval of the commissioner, become an 
 22.21  employer for not less than two calendar years to the same extent 
 22.22  as all other employers, as of the date stated in the approval.  
 22.23  The ~~employing unit~~ organization or person shall cease to be an 
 22.24  employer as of the first day of January of any calendar year, 
 22.25  only, if at least 30 calendar days prior to the first day of 
 22.26  January, the ~~employing unit~~ organization or person has filed 
 22.27  with the commissioner a written notice to that effect. 
 22.28     ~~(2)~~ (b) Any ~~employing unit~~ employer that has services 
 22.29  performed for it that do not constitute employment and covered 
 22.30  employment, may file with the commissioner a written election 
 22.31  that all such service, in one or more distinct establishments or 
 22.32  places of business, shall be ~~deemed to constitute~~ considered 
 22.33  covered employment ~~for purposes of this chapter~~ for not less 
 22.34  than two calendar years.  Upon the written approval of the 
 22.35  commissioner, the services shall ~~be deemed to~~ constitute covered 
 22.36  employment from and after the date stated in the approval.  The 
 23.1   services shall cease to be ~~deemed~~ considered covered employment 
 23.2   as of the first day of January of any calendar year only if at 
 23.3   least 30 calendar days prior to the first day of January 
 23.4   the ~~employing unit~~ employer has filed with the commissioner a 
 23.5   written notice to that effect.  
 23.6      ~~(3)~~ (c) The commissioner must terminate any election 
 23.7   agreement under this subdivision upon 30 calendar days notice ~~to~~ 
 23.8   ~~the employing unit~~, if the ~~employing unit~~ employer fails to pay 
 23.9   all ~~contributions~~ taxes due or payments in lieu of ~~contributions~~ 
 23.10  taxes due the ~~reemployment insurance~~ fund. 
 23.11     Sec. 7.  Minnesota Statutes 1997 Supplement, section 
 23.12  268.043, is amended to read: 
 23.13     268.043 [DETERMINATIONS OF COVERAGE.] 
 23.14     ~~An official, designated by~~ (a) The commissioner, upon the 
 23.15  commissioner's own motion or upon application of an ~~employing~~ 
 23.16  ~~unit~~ organization or person, shall determine if ~~an employing~~ 
 23.17  ~~unit~~ that organization or person is an employer ~~within the~~ 
 23.18  ~~meaning of this chapter~~ or ~~as to~~ whether services performed for 
 23.19  it constitute employment ~~within the meaning of this chapter~~ and 
 23.20  covered employment, or whether the ~~remuneration~~ compensation for 
 23.21  services constitutes wages ~~as defined in section 268.04,~~ 
 23.22  ~~subdivision 25~~, and shall notify the ~~employing unit~~ organization 
 23.23  or person of the determination.  The determination shall be 
 23.24  final unless the ~~employing unit~~ organization or person, within 
 23.25  30 calendar days after ~~the mailing~~ sending of ~~notice of~~ the 
 23.26  determination ~~to the employing unit's last known address~~ by mail 
 23.27  or electronic transmission, files ~~a written~~ an appeal ~~from it~~.  
 23.28  Proceedings on the appeal shall be conducted in accordance with 
 23.29  section 268.105. 
 23.30     (b) The commissioner may at any time upon the 
 23.31  commissioner's own motion correct any error of the department 
 23.32  resulting in an erroneous determination under this section~~,~~ 
 23.33  ~~except for those matters that have been appealed to the court of~~ 
 23.34  ~~appeals and heard on the merits~~.  ~~The commissioner shall issue a~~ 
 23.35  ~~redetermination which~~ A corrected determination shall be final 
 23.36  unless ~~the employing unit~~, within 30 calendar days after ~~the~~ 
 24.1   ~~mailing~~ sending of ~~notice of~~ the ~~redetermination~~ corrected 
 24.2   determination to the ~~employing unit's last known~~ 
 24.3   ~~address~~ organization or person by mail or electronic 
 24.4   transmission, ~~files a written~~ an appeal ~~from it~~ is filed.  
 24.5   Proceedings on the appeal shall be conducted in accordance with 
 24.6   section 268.105. 
 24.7      (c) No organization or person shall be initially determined 
 24.8   an employer, or that services performed for it were in 
 24.9   employment or covered employment, for periods more than four 
 24.10  years prior to the year in which the determination is made, 
 24.11  unless the commissioner finds that there was fraudulent action 
 24.12  to avoid liability under this chapter. 
 24.13     Sec. 8.  Minnesota Statutes 1997 Supplement, section 
 24.14  268.044, subdivision 1, is amended to read: 
 24.15     Subdivision 1.  [WAGE DETAIL REPORT.] (a) Each employer 
 24.16  that has employees in covered employment shall provide the 
 24.17  commissioner with a quarterly wage detail report ~~that~~.  The 
 24.18  report shall include for each employee in covered employment, 
 24.19  the employee's name, social security number, the total wages 
 24.20  paid to the employee, and total number of paid hours worked.  
 24.21  For employees exempt from the definition of employee in section 
 24.22  177.23, subdivision 7, clause (6), the employer shall report 40 
 24.23  hours worked for each week any duties were performed by a 
 24.24  full-time employee and shall report a reasonable estimate of the 
 24.25  hours worked for each week duties were performed by a part-time 
 24.26  employee.  The report is due and must be filed on or before the 
 24.27  last day of the month following the end of the calendar quarter. 
 24.28     (b) The employer may report the wages paid to the nearest 
 24.29  whole dollar amount. 
 24.30     (c) An employer need not include the name of the employee 
 24.31  or other required information on the wage detail report if 
 24.32  disclosure is specifically exempted by federal law. 
 24.33     Sec. 9.  Minnesota Statutes 1997 Supplement, section 
 24.34  268.045, is amended to read: 
 24.35     268.045 [EMPLOYER ACCOUNTS.] 
 24.36     (a) The commissioner shall maintain a separate account for 
 25.1   each employer that has employees in covered employment in the 
 25.2   current or the prior calendar year, except as provided in this 
 25.3   section, and shall charge the account for any benefits 
 25.4   determined chargeable to the employer under section 268.047 and 
 25.5   shall credit the account with all the ~~contributions~~ taxes paid, 
 25.6   or if the employer is liable for payments in lieu 
 25.7   of ~~contributions~~ taxes, the payments made. 
 25.8      (b) Two or more related corporations concurrently employing 
 25.9   the same employees and compensating those employees through a 
 25.10  common paymaster ~~which~~ that is one of the corporations may apply 
 25.11  to the commissioner to establish a common paymaster account that 
 25.12  shall be the account of the common paymaster corporation.  If 
 25.13  approved, the separate accounts shall be maintained, but the 
 25.14  employees compensated through the common paymaster shall be 
 25.15  reported as employees of the common paymaster corporation.  The 
 25.16  corporations using the common paymaster account shall be jointly 
 25.17  and severally liable for any unpaid ~~contributions~~ taxes, 
 25.18  penalties, and interest owing from the common paymaster 
 25.19  account.  ~~The commissioner may prescribe rules for the~~ 
 25.20  ~~establishment, maintenance and termination of common paymaster~~ 
 25.21  ~~accounts.~~ 
 25.22     (c) Two or more ~~employing units~~ employers having 50 percent 
 25.23  or more common ownership and compensating employees through a 
 25.24  single ~~payee~~ payer that is one of the ~~employing units~~ employers 
 25.25  may apply to the commissioner for a merging of the experience 
 25.26  rating records of the ~~employing units~~ employers into a single 
 25.27  joint account. 
 25.28     If approved, the joint account shall be effective on that 
 25.29  date assigned by the commissioner and shall remain in effect for 
 25.30  not less than two calendar years, and continuing unless written 
 25.31  notice terminating the joint account is filed with the 
 25.32  commissioner.  The termination shall be effective on January 1 
 25.33  next following the filing of the written notice of termination. 
 25.34     The ~~employing units~~ employers in the joint account shall be 
 25.35  jointly and severally liable for any unpaid ~~contributions~~ taxes, 
 25.36  penalties, and interest owing from the joint account. 
 26.1      (d) Two or more employers that are liable for payments in 
 26.2   lieu of ~~contributions~~ taxes may apply to the commissioner for 
 26.3   the establishment of a group account for the purpose of sharing 
 26.4   the cost of benefits charged based upon wage credits from all 
 26.5   employers in the group.  The application shall identify and 
 26.6   authorize a group representative to act as the group's agent for 
 26.7   the purposes of the account.  If approved, the commissioner 
 26.8   shall establish a group account for the employers effective as 
 26.9   of the beginning of the calendar year that the application is 
 26.10  received.  The account shall remain in effect for not less than 
 26.11  two calendar years and thereafter until terminated at the 
 26.12  discretion of the commissioner or upon application by the group 
 26.13  at least 30 calendar days prior to the end of the two year 
 26.14  period or 30 calendar days prior to January 1 of any following 
 26.15  calendar year ~~subsequent~~.  Each employer in the group shall be 
 26.16  jointly and severally liable for payments in lieu 
 26.17  of ~~contributions~~ taxes for all benefits paid based upon wage 
 26.18  credits from all employers in the group during the period the 
 26.19  group account was in effect.  ~~The commissioner may prescribe~~ 
 26.20  ~~rules for the establishment, maintenance and termination of~~ 
 26.21  ~~group accounts.~~ 
 26.22     Sec. 10.  Minnesota Statutes 1997 Supplement, section 
 26.23  268.047, subdivision 2, is amended to read: 
 26.24     Subd. 2.  [EXCEPTIONS TO CHARGES FOR ALL EMPLOYERS.] 
 26.25  Benefits paid to a claimant shall not be charged to the account 
 26.26  of a ~~contributing~~ taxpaying base period employer or to the 
 26.27  account of a base period employer that is liable for payments in 
 26.28  lieu of ~~contributions~~ taxes under the following conditions: 
 26.29     ~~(a)~~ (1) the claimant was discharged from the employment 
 26.30  because of gross misconduct as determined under section ~~268.09,~~ 
 26.31  ~~subdivision 10, clause (2)~~ 268.095.  This ~~paragraph~~ clause shall 
 26.32  apply only to benefits paid for weeks ~~occurring subsequent to~~ 
 26.33  after the claimant's discharge from employment; or 
 26.34     ~~(b)~~ (2) a claimant's discharge from that employment was 
 26.35  required by a law mandating a background check, or the 
 26.36  claimant's discharge from that employment was required by law 
 27.1   because of a criminal conviction; or 
 27.2      ~~(c)~~ (3) the employer: 
 27.3      ~~(1)~~ (i) provided regularly scheduled part-time employment 
 27.4   to the claimant during the claimant's base period; 
 27.5      ~~(2)~~ (ii) during the claimant's benefit year, continues to 
 27.6   provide the claimant with regularly scheduled employment 
 27.7   approximating 90 percent of the employment provided the claimant 
 27.8   by that employer in the base period, or, for a fire department 
 27.9   or firefighting corporation or operator of a life-support 
 27.10  transportation service, continues to provide employment for a 
 27.11  volunteer firefighter or a volunteer ambulance service personnel 
 27.12  on the same basis that employment was provided in the base 
 27.13  period; and 
 27.14     ~~(3)~~ (iii) is an involved employer because of the claimant's 
 27.15  loss of other employment.  The exception to charges shall 
 27.16  terminate effective the first week in the claimant's benefit 
 27.17  year that the employer fails to meet the provisions of ~~clause~~ 
 27.18  ~~(2)~~ subclause (ii); 
 27.19     This clause shall apply to educational institution 
 27.20  employers without consideration of the period between academic 
 27.21  years or terms; or 
 27.22     ~~(d)~~ (4) the claimant's unemployment~~:~~ 
 27.23     ~~(1)~~ from this employer was directly caused by a major 
 27.24  natural disaster declared by the president ~~pursuant to Section~~ 
 27.25  ~~102(2) of the Disaster Relief Act of 1974, United States Code,~~ 
 27.26  ~~title 42, section 5122(2)~~, if the claimant would have been 
 27.27  eligible for federal disaster unemployment assistance with 
 27.28  respect to that unemployment but for the claimant's receipt of 
 27.29  reemployment insurance benefits; or 
 27.30     ~~(2)~~ (5) the claimant's unemployment from this employer was 
 27.31  directly caused by the condemnation of property by a 
 27.32  governmental agency, a fire, flood, or act of God where 70 
 27.33  percent or more of the employees employed in the affected 
 27.34  location became unemployed as a result and the employer 
 27.35  substantially reopens its operations in that same area within 18 
 27.36  months.  Benefits shall be charged to the employer where the 
 28.1   unemployment is caused by the willful act of the employer or a 
 28.2   person acting on behalf of the employer; or 
 28.3      ~~(e)~~ (6) the benefits were paid by another state as a result 
 28.4   of the transferring of wage credits under a ~~federally~~ combined 
 28.5   wage ~~agreement~~ arrangement provided for in section 
 28.6   ~~268.13~~ 268.131; or 
 28.7      ~~(f)~~ (7) on a second reemployment insurance account 
 28.8   established pursuant to section 268.07, subdivision 3, where the 
 28.9   employer provided 90 percent or more of the wage credits in the 
 28.10  claimant's ~~preceding~~ prior base period and the claimant did not 
 28.11  perform services for the employer during the ~~subsequent~~ second 
 28.12  base period; or 
 28.13     ~~(g)~~ (8) the claimant left or partially or totally lost 
 28.14  employment because of a strike or other labor dispute at the 
 28.15  claimant's primary place of employment if the employer was not a 
 28.16  party to the ~~particular~~ strike or labor dispute; or 
 28.17     ~~(h)~~ (9) the benefits were determined overpaid benefits 
 28.18  under section 268.18. 
 28.19     Sec. 11.  Minnesota Statutes 1997 Supplement, section 
 28.20  268.047, subdivision 3, is amended to read: 
 28.21     Subd. 3.  [EXCEPTIONS TO CHARGES FOR ~~CONTRIBUTING~~ TAXPAYING 
 28.22  EMPLOYERS.] Benefits paid to a claimant shall not be charged to 
 28.23  the account of a ~~contributing~~ taxpaying base period employer 
 28.24  under the following conditions: 
 28.25     ~~(a)~~ (1) the claimant's wage credits from that employer are 
 28.26  less than $500; 
 28.27     ~~(b)~~ (2) the claimant quit the employment, unless it was 
 28.28  determined under section ~~268.09, subdivisions 1a and 9~~ 268.095, 
 28.29  to have been because of a good reason caused by the employer.  
 28.30  This ~~paragraph~~ clause shall apply only to benefits paid for 
 28.31  periods ~~occurring subsequent to~~ after the claimant's quitting 
 28.32  the employment; 
 28.33     ~~(c)~~ (3) the employer discharged the claimant from 
 28.34  employment because of misconduct as determined ~~pursuant to~~ under 
 28.35  section ~~268.09, subdivisions 10 and 12~~ 268.095.  This ~~paragraph~~ 
 28.36  clause shall apply only to benefits paid for periods ~~occurring~~ 
 29.1   ~~subsequent to~~ after the claimant's discharge from employment; 
 29.2      ~~(d)~~ (4) the employer discharged the claimant from 
 29.3   employment because of reasons resulting directly from the 
 29.4   claimant's serious illness, that was determined not misconduct 
 29.5   under section 268.095, provided the employer made a reasonable 
 29.6   effort to retain the claimant in employment in spite of the 
 29.7   claimant's serious illness; or 
 29.8      ~~(e)~~ (5) the claimant avoided or failed to accept an offer 
 29.9   from the employer of suitable reemployment, as determined under 
 29.10  section 268.095, or avoided or failed to accept an offer of 
 29.11  reemployment ~~that offered~~ with substantially the same or better 
 29.12  hourly wages ~~or~~ and conditions of employment~~, or both,~~ as were 
 29.13  previously provided by that employer.  This ~~paragraph~~ clause 
 29.14  shall only apply to benefits paid for ~~weeks occurring~~ periods 
 29.15  after the claimant's refusal or avoidance. 
 29.16     (6) the claimant was held not disqualified from benefits 
 29.17  under section 268.095 solely because of the application of 
 29.18  section 268.105, subdivision 3a, paragraph (d). 
 29.19     Sec. 12.  Minnesota Statutes 1997 Supplement, section 
 29.20  268.047, subdivision 5, is amended to read: 
 29.21     Subd. 5.  [NOTICE OF BENEFITS CHARGED.] (a) The 
 29.22  commissioner shall ~~mail to the last known address of~~ notify each 
 29.23  employer ~~a~~ quarterly ~~notice~~ by mail or electronic transmission 
 29.24  of the benefits that have been charged to the employer's 
 29.25  account.  Unless a ~~written~~ protest is filed in a manner 
 29.26  prescribed by the commissioner within 30 calendar days from the 
 29.27  date of ~~mailing~~ sending of the notice, the charges set forth in 
 29.28  the notice shall be final and shall not be subject to collateral 
 29.29  attack by way of review of a ~~contribution~~ tax rate notice, 
 29.30  application for a credit adjustment or refund, or otherwise. 
 29.31     (b) Upon receipt of a protest, the commissioner shall 
 29.32  review the charges on the notice and determine whether there has 
 29.33  been an error in the charging of the employer's account.  The 
 29.34  commissioner shall either affirm or make a redetermination of 
 29.35  the charges, and a notice of affirmation or redetermination 
 29.36  shall be ~~mailed~~ sent to the employer by mail or electronic 
 30.1   transmission. 
 30.2      (c) The affirmation or redetermination shall be final 
 30.3   unless the employer files ~~a written~~ an appeal within 30 calendar 
 30.4   days after the date ~~of mailing~~ the affirmation or 
 30.5   redetermination was sent.  Proceedings on the appeal shall be 
 30.6   conducted in accordance with section 268.105. 
 30.7      (d) An employer may not collaterally attack, by way of a 
 30.8   protest to a notice of benefits charged, any prior determination 
 30.9   or decision holding that benefits shall be charged to the 
 30.10  employer's account, that has become final. 
 30.11     (e) The commissioner may at any time upon the 
 30.12  commissioner's own motion correct a clerical error that resulted 
 30.13  in charges to an employer's account. 
 30.14     Sec. 13.  Minnesota Statutes 1997 Supplement, section 
 30.15  268.051, is amended to read: 
 30.16     268.051 [EMPLOYERS ~~CONTRIBUTIONS~~ TAXES.] 
 30.17     Subdivision 1.  [PAYMENTS.] (a) ~~Contributions~~ Taxes shall 
 30.18  accrue and become payable by each employer for each calendar 
 30.19  year that the employer ~~is subject to this chapter~~ paid wages to 
 30.20  employees in covered employment, except for:  
 30.21     (1) nonprofit corporations as provided in section 268.053; 
 30.22  and 
 30.23     (2) the state of Minnesota and political subdivisions as 
 30.24  provided in section 268.052.  
 30.25  Each employer shall pay ~~contributions~~ taxes quarterly, at the 
 30.26  employer's assigned ~~contribution~~ tax rate, on the taxable wages 
 30.27  paid to each employee.  The ~~contributions~~ taxes shall be paid to 
 30.28  the ~~Minnesota reemployment insurance~~ fund on or before the last 
 30.29  day of the month following the end of the calendar quarter. 
 30.30     (b) The ~~contribution~~ tax may be paid in an amount to the 
 30.31  nearest whole dollar. 
 30.32     (c) When the ~~contribution~~ tax for any calendar quarter is 
 30.33  less than $1, the ~~contribution~~ tax shall be disregarded. 
 30.34     Subd. 1a.  [TAX REPORTS.] (a) Every employer, except those 
 30.35  making payments in lieu of taxes, shall submit a tax report on a 
 30.36  form, or in a manner, prescribed by the commissioner on or 
 31.1   before the last day of the month following the end of the 
 31.2   calendar quarter, unless the employer meets the requirements for 
 31.3   submitting tax reports annually under section 268.0511.  An 
 31.4   employer that fails to submit a tax report when due, or submits 
 31.5   an incorrect tax report, shall be subject to section 268.057, 
 31.6   subdivision 1. 
 31.7      (b) Each tax report shall include the total wages paid and 
 31.8   the taxable wages paid that quarter, the amount of tax due, and 
 31.9   any other information required by the commissioner.  
 31.10     (c) A tax report must be submitted for each calendar 
 31.11  quarter even though no wages were paid or no tax is due.  
 31.12     Subd. 2.  [COMPUTATION OF ~~CONTRIBUTION~~ TAX RATES.] (a) For 
 31.13  each calendar year the commissioner shall compute the 
 31.14  ~~contribution~~ tax rate of each employer that qualifies for an 
 31.15  experience rating by adding the minimum ~~contribution~~ tax rate to 
 31.16  the employer's experience rating. 
 31.17     (b) The minimum ~~contribution~~ tax rate shall be six-tenths 
 31.18  of one percent if the amount in the ~~reemployment insurance~~ fund 
 31.19  is less than $200,000,000 on June 30 of the ~~preceding~~ prior 
 31.20  calendar year; or five-tenths of one percent if the fund is more 
 31.21  than $200,000,000 but less than $225,000,000; or four-tenths of 
 31.22  one percent if the fund is more than $225,000,000 but less than 
 31.23  $250,000,000; or three-tenths of one percent if the fund is more 
 31.24  than $250,000,000 but less than $275,000,000; or two-tenths of 
 31.25  one percent if the fund is $275,000,000 but less than 
 31.26  $300,000,000; or one-tenth of one percent if the fund is 
 31.27  $300,000,000 or more. 
 31.28     (c) ~~The maximum contribution rate shall be 9.0 percent.~~ 
 31.29     ~~(d)~~ For the purposes of this subdivision the ~~reemployment~~ 
 31.30  ~~insurance~~ fund shall not include any money advanced from the 
 31.31  federal unemployment trust fund. 
 31.32     Subd. 3.  [COMPUTATION OF ~~EACH~~ AN EMPLOYER'S EXPERIENCE 
 31.33  RATING.] (a) For each calendar year, the commissioner shall 
 31.34  compute an experience rating for ~~each~~ an employer who has been 
 31.35  subject to this chapter for at least the ~~15 consecutive~~ 12 
 31.36  calendar months ~~immediately preceding~~ prior to July 1 of 
 32.1   the ~~preceding~~ prior calendar year.  The experience rating shall 
 32.2   be the ratio obtained by dividing 1-1/4 times the total benefits 
 32.3   charged to the employer's account during the period the employer 
 32.4   has been subject to this chapter but not less than the ~~15~~ 12 or 
 32.5   more than the 60 ~~consecutive~~ calendar months ending on June 30 
 32.6   of the ~~preceding~~ prior calendar year by the employer's total 
 32.7   taxable payroll for the same period ~~on which all contributions~~ 
 32.8   ~~due have been paid on or before October 31 of the preceding~~ 
 32.9   ~~calendar year~~. 
 32.10     (b) For purposes of paragraph (a), only that taxable 
 32.11  payroll upon which taxes have been paid on or before September 
 32.12  30 of the prior calendar year may be used in computing an 
 32.13  employer's experience rating. 
 32.14     (c) The experience rating shall be computed to the nearest 
 32.15  one-tenth of a percent, to a maximum of 8.9 percent.  
 32.16     Subd. 4.  [EXPERIENCE RATING RECORD TRANSFER.] (a) When 
 32.17  an ~~employing unit succeeds to or~~ employer acquires the 
 32.18  organization, trade or business or substantially all the assets 
 32.19  of another ~~employing unit that at the time of the acquisition~~ 
 32.20  ~~was an employer subject to this law, and continues the~~ 
 32.21  ~~organization, trade or business~~ employer, and there is 25 
 32.22  percent or more common ownership, directly or indirectly, 
 32.23  between the predecessor and successor, the experience rating 
 32.24  record of the predecessor employer shall be transferred as of 
 32.25  the date of acquisition to the successor employer for the 
 32.26  purpose of ~~computation of~~ computing a ~~contribution~~ tax rate. 
 32.27     (b) When an ~~employing unit succeeds to or~~ employer acquires 
 32.28  a distinct severable portion of the organization, trade, 
 32.29  business, or assets that is less than substantially all of the 
 32.30  employing enterprises of another ~~employing unit~~ employer, and 
 32.31  there is 25 percent or more common ownership, directly or 
 32.32  indirectly, between the predecessor and successor, the successor 
 32.33  ~~employing unit~~ employer shall acquire the experience rating 
 32.34  record attributable to the portion ~~to which~~ it ~~has succeeded~~ 
 32.35  acquired, and the predecessor ~~employing unit~~ employer shall 
 32.36  retain the experience rating record attributable to the portion 
 33.1   that it has retained, if (1) ~~the successor continues the~~ 
 33.2   ~~organization, trade, or business of the portion acquired, (2)~~ 
 33.3   the successor makes a written request to ~~file an~~ 
 33.4   ~~application~~ apply for the transfer of the experience rating 
 33.5   record ~~for~~ attributable to the severable portion acquired from 
 33.6   the predecessor ~~(3) and~~ within ~~90~~ 180 calendar days from the 
 33.7   date of ~~mailing the application to the successor the successor~~ 
 33.8   ~~and predecessor jointly sign and file~~ acquisition and (2) files 
 33.9   an application ~~as~~ within the time and in the manner prescribed 
 33.10  by the commissioner that furnishes sufficient information to 
 33.11  substantiate the severable portion and to assign the appropriate 
 33.12  total and taxable wages and benefit charges to the successor for 
 33.13  experience rating purposes.  
 33.14     (c) The term "common ownership" for purposes of this 
 33.15  subdivision includes ownership by a spouse, parent, child, 
 33.16  brother, sister, aunt, uncle, or first cousin, by birth or by 
 33.17  marriage. 
 33.18     (d) If the successor employer under paragraphs (a) and (b) 
 33.19  had an experience rating record at the time of the acquisition, 
 33.20  the transferred record of the predecessor shall be combined with 
 33.21  the successor's record for purposes of ~~computation of~~ computing 
 33.22  a ~~contribution~~ tax rate. 
 33.23     ~~(d)~~ (e) If there has been a transfer of an experience 
 33.24  rating record under paragraph (a) or (b), employment with a 
 33.25  predecessor employer shall not be ~~deemed~~ considered to have been 
 33.26  terminated if similar employment is offered by the successor 
 33.27  employer and accepted by the employee. 
 33.28     ~~(e)~~ (f) The commissioner, upon the commissioner's own 
 33.29  motion or upon application of an ~~employing unit~~ employer shall 
 33.30  determine if an ~~employing unit~~ employer is a successor within 
 33.31  the meaning of this subdivision and shall ~~mail~~ send the 
 33.32  determination to the ~~last known address of the employing~~ 
 33.33  ~~unit~~ employer by mail or electronic transmission.  The 
 33.34  determination shall be final unless ~~a written~~ an appeal is filed 
 33.35  by the ~~employing unit~~ employer within 30 calendar days 
 33.36  after ~~mailing of~~ the sending of the determination.  Proceedings 
 34.1   on the appeal shall be conducted in accordance with section 
 34.2   268.105. 
 34.3      ~~(f)~~ (g) The commissioner ~~shall~~ may, as the result of any 
 34.4   determination or decision regarding succession or nonsuccession, 
 34.5   recompute the ~~contribution~~ tax rate of all employers affected by 
 34.6   the determination or decision for any year, including the year 
 34.7   of the acquisition ~~or succession~~ and subsequent years, that is 
 34.8   affected by the transfer or nontransfer of part or all of the 
 34.9   experience rating record ~~under this subdivision~~.  This paragraph 
 34.10  does not apply to rates that have become final ~~prior to~~ before 
 34.11  the filing of a written request to ~~file an application~~ apply for 
 34.12  the transfer of a severable portion of the experience rating 
 34.13  record ~~as provided in~~ under paragraph (b). 
 34.14     ~~(g)~~ (h) The experience rating record for purposes of this 
 34.15  subdivision shall consist of those factors which make up an 
 34.16  experience rating, without the ~~15-month~~ 12-month minimum 
 34.17  required under subdivision 3. 
 34.18     (i) If the commissioner finds that a transaction was done, 
 34.19  in whole or in part, to avoid an experience rating record or the 
 34.20  transfer of an experience rating record, the commissioner may 
 34.21  transfer the experience rating record to an employer 
 34.22  notwithstanding the requirements of paragraph (a). 
 34.23     Subd. 5.  [TAX RATE FOR NEW EMPLOYERS.] (a) Each employer 
 34.24  that does not qualify for an experience rating, except employers 
 34.25  in the construction industry, shall be assigned a ~~contribution~~ 
 34.26  tax rate the higher of (1) one percent, or (2) the state's 
 34.27  ~~benefit~~ average cost rate; to a maximum of 5-4/10 percent.  For 
 34.28  purposes of this paragraph, the state's ~~benefit~~ average cost 
 34.29  rate shall be computed annually and shall be derived by dividing 
 34.30  the total ~~dollar~~ amount of benefits paid during the 60 
 34.31  consecutive calendar months ~~immediately preceding~~ prior to July 
 34.32  1 of each year by the total taxable wages of all ~~contributing~~ 
 34.33  taxpaying employers during the same period.  This rate shall be 
 34.34  applicable for the calendar year ~~next succeeding~~ following the 
 34.35  computation date.  
 34.36     (b) Each employer in the construction industry that does 
 35.1   not qualify for an experience rating shall be assigned a 
 35.2   ~~contribution~~ tax rate, the higher of (1) one percent, or (2) the 
 35.3   state's ~~benefit~~ average cost rate for construction employers to 
 35.4   a maximum of ~~9.0~~ 8.9 percent, plus the applicable minimum tax 
 35.5   rate.  For purposes of this paragraph, the state's ~~benefit~~ 
 35.6   average cost rate shall be computed annually and shall be 
 35.7   derived by dividing the total ~~dollar~~ amount of benefits paid to 
 35.8   claimants of construction industry employers during the 60 
 35.9   consecutive calendar months ~~immediately preceding~~ prior to July 
 35.10  1 of each year by the total taxable wages of construction 
 35.11  industry employers during the same period.  This rate shall be 
 35.12  applicable for the calendar year ~~next succeeding~~ following the 
 35.13  computation date.  
 35.14     ~~For purposes of this subdivision~~ An employer is considered 
 35.15  in the construction industry if the employer is within division 
 35.16  C of the Standard Industrial Classification Manual issued by the 
 35.17  United States Office of Management and Budget, except as 
 35.18  excluded by rules adopted by the commissioner. 
 35.19     Subd. 6.  [NOTICE OF ~~CONTRIBUTION~~ TAX RATE.] (a) The 
 35.20  commissioner shall ~~mail to the last known address of~~ notify each 
 35.21  employer ~~notice~~ by mail or electronic transmission of the 
 35.22  employer's ~~contribution~~ tax rate as determined for any calendar 
 35.23  year.  The notice shall contain the ~~contribution~~ tax rate and 
 35.24  the factors used in determining the employer's experience 
 35.25  rating.  Unless a protest of the rate is made, the assigned rate 
 35.26  shall be final except for fraud and shall be the rate ~~upon~~ at 
 35.27  which ~~contributions~~ taxes shall be paid ~~for the calendar year~~ 
 35.28  ~~for which the rate was assigned~~.  The ~~contribution~~ tax rate 
 35.29  shall not be subject to collateral attack by way of claim for a 
 35.30  credit adjustment or refund, or otherwise.  
 35.31     (b) If the legislature, subsequent to the ~~mailing~~ sending 
 35.32  of the ~~contribution~~ tax rate, changes any of the factors used to 
 35.33  determine the rate, the earlier notice shall be void.  A 
 35.34  new ~~contribution~~ tax rate based on the new factors shall be 
 35.35  computed and ~~mailed~~ sent to the employer.  
 35.36     (c) A review of an employer's ~~contribution~~ tax rate may be 
 36.1   obtained by the employer filing ~~with~~, in a manner prescribed by 
 36.2   the commissioner, a ~~written~~ protest within 30 calendar days from 
 36.3   the date ~~of the mailing of~~ the ~~contribution~~ tax rate notice was 
 36.4   sent to the employer.  Upon receipt of the protest, the 
 36.5   commissioner shall review the ~~contribution~~ tax rate to determine 
 36.6   whether or not there has been any clerical error or error in 
 36.7   computation.  The commissioner shall either affirm or make a 
 36.8   redetermination of the rate and a notice of the affirmation or 
 36.9   redetermination shall be ~~mailed~~ sent to the employer by mail or 
 36.10  electronic transmission.  The affirmation or redetermination 
 36.11  shall be final unless the employer files ~~a written~~ an appeal 
 36.12  within 30 calendar days after the date ~~of mailing~~ the 
 36.13  affirmation or redetermination was sent.  Proceedings on the 
 36.14  appeal shall be conducted in accordance with section 268.105.  
 36.15     (d) The commissioner may at any time upon the 
 36.16  commissioner's own motion correct any error in the computation 
 36.17  or the assignment of an employer's ~~contribution~~ tax rate.  
 36.18     Subd. 7.  [~~CONTRIBUTION~~ TAX RATE BUYDOWN.] (a) Any employer 
 36.19  who has been assigned a ~~contribution~~ tax rate based upon an 
 36.20  experience rating may, upon the voluntary payment of an amount 
 36.21  equivalent to any portion or all of the benefits charged to the 
 36.22  employer's account, plus a surcharge of 25 percent, obtain a 
 36.23  cancellation of benefits charged to the account equal to the 
 36.24  payment made, less the surcharge.  Upon the payment, the 
 36.25  commissioner shall compute a new experience rating for the 
 36.26  employer, and determine a new ~~contribution~~ tax rate.  
 36.27     (b) Voluntary payments may be made only during the 30 
 36.28  calendar day period immediately following the date of 
 36.29  ~~mailing~~ sending of the notice of ~~contribution~~ tax rate.  This 
 36.30  period may be extended, upon a showing of good cause, but in no 
 36.31  event shall a voluntary payment be allowed after 120 calendar 
 36.32  days ~~immediately following~~ from the beginning of the calendar 
 36.33  year for which the ~~contribution~~ tax rate is effective. 
 36.34     (c) Voluntary payments made within the time required will 
 36.35  not be refunded unless a request is made in writing within 30 
 36.36  calendar days after ~~mailing~~ sending of the notice of the new 
 37.1   ~~contribution~~ tax rate. 
 37.2      Subd. 8.  [SOLVENCY ASSESSMENT.] (a) If the fund balance is 
 37.3   ~~greater than $75,000,000 but~~ less than $150,000,000 on June 30 
 37.4   of any year, a solvency assessment on taxpaying employers will 
 37.5   be in effect for the following calendar year.  ~~Each~~ The employer 
 37.6   ~~, except those making payments in lieu of contributions~~ shall 
 37.7   pay ~~a~~ quarterly a solvency assessment of ten percent ~~multiplied~~ 
 37.8   ~~by~~ of the ~~contributions paid or~~ taxes due ~~and payable for each~~ 
 37.9   ~~calendar quarter in that year.  Quarterly contributions and the~~ 
 37.10  ~~solvency assessment payments shall be combined and will be~~ 
 37.11  ~~computed notwithstanding the maximum contribution rate, by~~ 
 37.12  ~~multiplying the quarterly taxable payroll by the assigned~~ 
 37.13  ~~contribution rate multiplied by 1.10~~. 
 37.14     ~~(b) If the fund balance is less than $75,000,000 on June 30~~ 
 37.15  ~~of any year, a solvency assessment will be in effect for the~~ 
 37.16  ~~following calendar year.  Each employer, except those making~~ 
 37.17  ~~payments in lieu of contributions, shall pay a quarterly~~ 
 37.18  ~~solvency assessment of 15 percent multiplied by the~~ 
 37.19  ~~contributions paid or due and payable for each calendar quarter~~ 
 37.20  ~~in that year.  Quarterly contributions and the solvency~~ 
 37.21  ~~assessment payments shall be combined and will be computed~~ 
 37.22  ~~notwithstanding the maximum contribution rate, by multiplying~~ 
 37.23  ~~the quarterly taxable payroll by the assigned contribution rate~~ 
 37.24  ~~multiplied by 1.15 rounded to the nearest one-hundredth of a~~ 
 37.25  ~~percent.~~  
 37.26     (b) The solvency assessment shall be placed into a special 
 37.27  account from which the commissioner shall pay any interest 
 37.28  accruing on any advance from the federal unemployment trust fund 
 37.29  provided for under section 268.194, subdivision 6.  If the 
 37.30  commissioner determines that the balance in this special account 
 37.31  is more than is necessary to pay the interest on any advance, 
 37.32  the commissioner shall pay to the fund the amount in excess of 
 37.33  that necessary to pay interest on any advance. 
 37.34     Sec. 14.  Minnesota Statutes 1997 Supplement, section 
 37.35  268.057, subdivision 1, is amended to read: 
 37.36     Subdivision 1.  [REPORTS; DELINQUENCIES; PENALTIES.] (a) 
 38.1   Any employer who knowingly fails to ~~make and~~ submit to the 
 38.2   commissioner any ~~contribution~~ tax report at the time the report 
 38.3   is required under section 268.051, subdivision 1a, or 268.0511 
 38.4   shall pay to the department a penalty of up to $25 or an amount 
 38.5   of 1-1/2 percent of ~~contributions~~ taxes accrued for each month 
 38.6   from and after the due date until the tax report is properly 
 38.7   ~~made and~~ submitted, whichever is greater.  
 38.8      (b) If any employer required to ~~make and~~ submit 
 38.9   ~~contribution~~ tax reports fails to do so ~~within the time~~ 
 38.10  ~~required~~, or ~~makes~~ submits, willfully or otherwise, an 
 38.11  incorrect~~,~~ or false~~, or fraudulent contribution~~ tax report, the 
 38.12  employer shall, on the ~~written~~ demand of the commissioner sent 
 38.13  by mail or electronic transmission, ~~make~~ submit the ~~contribution~~ 
 38.14  tax report, or corrected report, within ten days ~~after the~~ 
 38.15  ~~mailing of the written demand~~ and at the same time pay the ~~whole~~ 
 38.16  ~~contribution, or any additional contribution,~~ tax due.  If the 
 38.17  employer fails within that time to ~~make~~ submit the tax report~~,~~ 
 38.18  or corrected report and pay any tax due, the commissioner shall 
 38.19  make ~~a report, or corrected report,~~ an estimated tax report from 
 38.20  the commissioner's own knowledge and from information the 
 38.21  commissioner may obtain and assess a ~~contribution~~ tax on that 
 38.22  basis~~, which contribution~~.  That assessed tax, plus any 
 38.23  penalties and interest shall be paid within ten days after ~~the~~ 
 38.24  ~~commissioner has mailed to the employer a written~~ notice of the 
 38.25  amount due ~~and demand for payment~~ has been sent by mail or 
 38.26  electronic transmission.  Any ~~contribution report or assessment~~ 
 38.27  ~~made by the commissioner on account~~ assessed tax because of the 
 38.28  failure of the employer to ~~make~~ submit a tax report or corrected 
 38.29  tax report shall be prima facie correct and valid, and the 
 38.30  employer shall have the burden of establishing its incorrectness 
 38.31  or invalidity in any subsequent action or proceeding.  Whenever 
 38.32  the delinquent employer files a tax report or corrected tax 
 38.33  report, the commissioner may, on finding it substantially 
 38.34  correct, ~~substitute it for the commissioner's~~ accept that report.
 38.35     (c) If the commissioner finds that any part of any 
 38.36  employer's ~~contribution~~ tax deficiency is due to fraud with 
 39.1   intent to avoid payment of ~~contributions~~ taxes to the fund, 50 
 39.2   percent of the total amount of the deficiency or $500, whichever 
 39.3   is greater, shall be assessed as a penalty against the employer 
 39.4   and collected in addition to the deficiency. 
 39.5      (d) ~~Any employing unit that fails to make and submit to the~~ 
 39.6   ~~commissioner any report, other than a contribution report or~~ 
 39.7   ~~wage detail report, as and when required by rule, shall be~~ 
 39.8   ~~subject to a penalty of $50.~~ 
 39.9      ~~(e)~~ The penalties provided for in paragraphs (a)~~, (c),~~ and 
 39.10  ~~(d)~~ (c) are in addition to interest and any other penalties and 
 39.11  shall be paid to the department and credited to the contingent 
 39.12  account. 
 39.13     ~~(f)~~ (e) An employer or officer or agent of an employer is 
 39.14  guilty of a gross misdemeanor, unless the ~~contribution~~ tax or 
 39.15  other payment involved exceeds $500, in which case the person is 
 39.16  guilty of a felony, if the individual: 
 39.17     (1) in order to avoid becoming or remaining a subject 
 39.18  employer or to avoid or reduce any ~~contribution~~ tax or other 
 39.19  payment required under this chapter: 
 39.20     (i) makes a false statement or representation knowing it to 
 39.21  be false; or 
 39.22     (ii) knowingly fails to disclose a material fact; or 
 39.23     (2) willfully fails or refuses to ~~make~~ pay any 
 39.24  ~~contributions~~ taxes or other payment at the time required. 
 39.25     Sec. 15.  Minnesota Statutes 1997 Supplement, section 
 39.26  268.057, subdivision 5, is amended to read: 
 39.27     Subd. 5.  [INTEREST ON PAST DUE ~~CONTRIBUTIONS~~ TAXES.] If 
 39.28  ~~contributions~~ taxes or ~~reimbursements~~ payments in lieu of taxes 
 39.29  to the ~~unemployment~~ fund are not paid on the date ~~on which they~~ 
 39.30  ~~are~~ due the unpaid balance ~~thereof~~ shall bear interest at the 
 39.31  rate of one and one-half percent per month or any part thereof.  
 39.32  ~~Contributions~~ Taxes or ~~reimbursements~~ payments in lieu of taxes 
 39.33  received by mail postmarked on a day following the date ~~on which~~ 
 39.34  ~~the law requires contributions to be paid~~ due shall be ~~deemed~~ 
 39.35  considered to have been paid on the due date if there is 
 39.36  substantial evidence ~~tending to prove~~ that the 
 40.1   ~~contribution~~ payment was actually deposited in the United States 
 40.2   mails properly addressed to the department with postage prepaid 
 40.3   thereon on or before the due date.  Interest collected ~~pursuant~~ 
 40.4   ~~to this subdivision~~ shall be ~~paid into~~ credited to the 
 40.5   contingent account.  Interest ~~on contributions due under this~~ 
 40.6   ~~subdivision~~ may be waived ~~in accordance with~~ by rules ~~as~~ 
 40.7   adopted by the commissioner ~~may adopt~~. 
 40.8      Sec. 16.  Minnesota Statutes 1997 Supplement, section 
 40.9   268.057, subdivision 6, is amended to read: 
 40.10     Subd. 6.  [INTEREST ON JUDGMENTS.] Notwithstanding section 
 40.11  549.09, if judgment is ~~or has been~~ entered upon any past 
 40.12  due ~~contribution~~ tax or ~~reimbursement which has not been paid~~ 
 40.13  ~~within the time specified by law for~~ payment in lieu of taxes, 
 40.14  the unpaid judgment shall bear interest at the rate specified in 
 40.15  subdivision ~~1~~ 5 until the date of payment.  ~~The rate will be~~ 
 40.16  ~~effective after July 1, 1987, on any unpaid judgment balances~~ 
 40.17  ~~and all new judgments docketed after that date.~~ 
 40.18     Sec. 17.  Minnesota Statutes 1997 Supplement, section 
 40.19  268.057, subdivision 7, is amended to read: 
 40.20     Subd. 7.  [CREDIT ADJUSTMENTS, REFUNDS.] (a) If an employer 
 40.21  makes an application for ~~an~~ a credit adjustment of any amount 
 40.22  paid as ~~contributions~~ taxes or interest thereon~~, to be applied~~ 
 40.23  ~~against subsequent contribution payments, or for a refund~~ 
 40.24  ~~thereof because such adjustment cannot be made, and the payment~~ 
 40.25  ~~was made~~ within four years ~~prior to~~ of the year ~~in which~~ that 
 40.26  the ~~application is~~ payment was made, and ~~if~~ the commissioner 
 40.27  ~~shall determine~~ determines that the payment ~~of such~~ 
 40.28  ~~contributions or interest~~ or any portion ~~thereof~~ was erroneous, 
 40.29  the commissioner shall ~~allow such employer to~~ make an adjustment 
 40.30  ~~thereof,~~ and issue a credit without interest~~, in connection with~~ 
 40.31  ~~subsequent contribution payments by the employer, or~~.  If ~~such~~ 
 40.32  ~~adjustment~~ a credit cannot be ~~made~~ used, the commissioner shall 
 40.33  refund ~~from the fund to which such payment has been credited,~~ 
 40.34  without interest, the amount erroneously paid.  ~~For like cause~~ 
 40.35  ~~and within the same period,~~ The commissioner, on the 
 40.36  commissioner's own motion, may make a credit adjustment or 
 41.1   refund ~~may be so made on the commissioner's own initiative~~ under 
 41.2   this subdivision. 
 41.3      ~~In the event that any application for~~ (b) If a credit 
 41.4   adjustment or refund is denied in whole or in part, a ~~written~~ 
 41.5   notice of ~~such~~ denial shall be ~~mailed~~ sent to the ~~applicant~~ 
 41.6   employer by mail or electronic transmission.  Within 30 calendar 
 41.7   days after ~~the mailing~~ sending of ~~such~~ the notice of denial ~~to~~ 
 41.8   ~~the applicant's last known address~~, the ~~applicant~~ employer may 
 41.9   ~~request, in writing, that the commissioner grant a hearing for~~ 
 41.10  ~~the purpose of reconsidering the facts submitted and to consider~~ 
 41.11  ~~any additional information~~ appeal.  Proceedings on the appeal 
 41.12  shall be conducted in accordance with section 268.105. 
 41.13     Sec. 18.  Minnesota Statutes 1997 Supplement, section 
 41.14  268.059, is amended to read: 
 41.15     268.059 [GARNISHMENT FOR DELINQUENT TAXES AND BENEFIT 
 41.16  OVERPAYMENTS.] 
 41.17     (a) The commissioner ~~or a delegated representative~~ may~~,~~ 
 41.18  ~~within six years after the date of assessment of the tax, or~~ 
 41.19  ~~payment in lieu of contribution, or determination of benefit~~ 
 41.20  ~~overpayment, or if a lien has been filed, within the statutory~~ 
 41.21  ~~period for enforcement of the lien,~~ give notice to any employer 
 41.22  that an employee ~~of that employer~~ owes delinquent ~~reemployment~~ 
 41.23  ~~insurance~~ taxes ~~or~~, payments in lieu of ~~contributions~~ taxes, 
 41.24  or overpaid benefits, including penalties, interest, and costs, 
 41.25  ~~or has an unpaid benefit overpayment~~ and that the obligation to 
 41.26  the department should be withheld from the employee's wages.  
 41.27  The commissioner ~~can~~ may proceed ~~under this section~~ only if the 
 41.28  tax, payment in lieu of ~~contributions~~ taxes, or benefit 
 41.29  overpayment is uncontested or if the time for any appeal has 
 41.30  expired.  The commissioner shall not proceed ~~under this section~~ 
 41.31  until ~~the expiration of~~ 30 calendar days after mailing to the 
 41.32  debtor employee, at the debtor's last known address, a written 
 41.33  notice of ~~garnishment~~ intent to garnish wages and exemption 
 41.34  notice.  ~~The~~ That notice shall list: 
 41.35     (1) the amount of taxes, payments in lieu of ~~contributions~~ 
 41.36  taxes, overpaid benefits, interest, penalties, or costs~~, or~~ 
 42.1   ~~benefit overpayment~~ due from the debtor; 
 42.2      (2) demand for immediate payment; and 
 42.3      (3) the ~~commissioner's~~ intention to serve a garnishment 
 42.4   notice on the debtor's employer ~~pursuant to this section~~. 
 42.5      The ~~effect of the~~ notice shall expire 180 calendar days 
 42.6   after it has been mailed to the debtor provided that the notice 
 42.7   may be renewed by mailing a new notice ~~which~~ that is in 
 42.8   accordance with this section.  The renewed notice shall have the 
 42.9   effect of reinstating the priority of the original ~~claim~~ notice. 
 42.10  The exemption notice ~~to the debtor~~ shall be in substantially the 
 42.11  same form as ~~that provided~~ in section 571.72.  The notice shall 
 42.12  ~~further~~ inform the debtor of the ~~wage~~ right to claim exemptions 
 42.13  contained in section 550.37, subdivision 14.  If no ~~statement~~ 
 42.14  written claim of exemption is received by the commissioner 
 42.15  within 30 calendar days ~~from the~~ after mailing of the notice, 
 42.16  the commissioner may proceed ~~under this section~~ with the 
 42.17  garnishment.  The notice to the debtor's employer may be served 
 42.18  by mail ~~or by delivery by an employee of the commissioner~~ and 
 42.19  shall be in substantially the same form as ~~provided~~ in section 
 42.20  571.75.  Upon receipt of the garnishment notice, the employer 
 42.21  shall ~~retain~~ withhold from the earnings due or to become due to 
 42.22  the employee, the ~~total~~ amount shown ~~by~~ on the notice plus 
 42.23  accrued interest, subject to ~~the provisions of~~ section 571.922.  
 42.24  The employer shall continue to ~~retain~~ withhold each pay period 
 42.25  the amount shown on the notice plus accrued interest until the 
 42.26  garnishment notice is released by the commissioner.  Upon 
 42.27  receipt of notice by the employer, the claim of the commissioner 
 42.28  shall have priority over any subsequent garnishments or wage 
 42.29  assignments.  The commissioner may arrange between the employer 
 42.30  and employee for ~~retaining~~ withholding a portion of the total 
 42.31  amount due the employee each pay period, until the total amount 
 42.32  shown ~~by~~ on the notice plus accrued interest has been ~~retained~~ 
 42.33  withheld. 
 42.34     The "earnings due" any employee is as defined in ~~accordance~~ 
 42.35  ~~with~~ section 571.921.  The maximum garnishment allowed ~~under~~ 
 42.36  ~~this section~~ for any one pay period shall be decreased by any 
 43.1   amounts payable pursuant to ~~a~~ any other garnishment action ~~with~~ 
 43.2   ~~respect to which the employer was~~ served prior to ~~being served~~ 
 43.3   ~~with~~ the garnishment notice ~~of delinquency~~, and any amounts 
 43.4   covered by any irrevocable and previously effective assignment 
 43.5   of wages; the employer shall give notice to the commissioner of 
 43.6   the amounts and the facts relating to the assignment within ten 
 43.7   days after the service of the garnishment notice ~~of delinquency~~ 
 43.8   on the form provided by the commissioner ~~as noted in this~~ 
 43.9   ~~section~~. 
 43.10     (b) If the employee ceases to be employed by the employer 
 43.11  before the full amount set forth ~~in a~~ on the garnishment notice 
 43.12  ~~of garnishment~~ plus accrued interest has been ~~retained~~ withheld, 
 43.13  the employer shall immediately notify the commissioner in 
 43.14  writing of the termination date of the employee and the total 
 43.15  amount ~~retained~~ withheld.  No employer may discharge or 
 43.16  ~~otherwise~~ discipline any employee ~~by the reason of the fact that~~ 
 43.17  because the commissioner has proceeded under this section.  If 
 43.18  an employer discharges an employee in violation of 
 43.19  this ~~provision~~ section, the employee shall have the same remedy 
 43.20  as provided in section 571.927, subdivision 2. 
 43.21     (c) Within ten calendar days after the expiration of the 
 43.22  pay period, the employer shall remit to the commissioner, on a 
 43.23  form and in the manner prescribed by the commissioner, the 
 43.24  amount ~~retained~~ withheld during each pay period ~~under this~~ 
 43.25  ~~section~~. 
 43.26     (d) Paragraphs (a) to (c)~~, except provisions imposing a~~ 
 43.27  ~~liability on the employer for failure to retain or remit,~~ shall 
 43.28  apply ~~to cases in which~~ if the employer is the ~~United States or~~ 
 43.29  ~~any instrumentality thereof or this~~ state of Minnesota or any 
 43.30  political subdivision ~~thereof~~. 
 43.31     (e) The commissioner shall refund to the employee any 
 43.32  excess amounts ~~retained~~ withheld from the employee ~~under this~~ 
 43.33  ~~section.  If any excess results from payments by the employer~~ 
 43.34  ~~because of willful failure to retain or remit as prescribed in~~ 
 43.35  ~~paragraph (c), the excess attributable to the employer's payment~~ 
 43.36  ~~shall be refunded to the employer~~. 
 44.1      ~~(f) Employers required to retain delinquent amounts under~~ 
 44.2   ~~this section shall not be required to compute any additional~~ 
 44.3   ~~interest, costs, or other charges to be retained.~~ 
 44.4      ~~(g)~~ (f) An employer that fails or refuses to comply with 
 44.5   ~~the requirements of~~ this section shall be liable as provided in 
 44.6   section 268.058, subdivision 3, paragraph (i). 
 44.7      Sec. 19.  Minnesota Statutes 1997 Supplement, section 
 44.8   268.063, is amended to read: 
 44.9      268.063 [PERSONAL LIABILITY.] 
 44.10     (a) Any officer, director, or employee of a corporation or 
 44.11  any manager, governor, member, or employee of a limited 
 44.12  liability company ~~which is an employer under sections 268.03 to~~ 
 44.13  ~~268.23,~~ who 
 44.14     (1) either individually or jointly with others, have or 
 44.15  should have had control of, supervision over, or responsibility 
 44.16  for the filing of the tax reports or ~~the making of payments~~ 
 44.17  paying the amounts due under this chapter, and 
 44.18     (2) willfully fails to file the tax reports or ~~to make~~ 
 44.19  ~~payments as required~~ pay the amounts due, shall be personally 
 44.20  liable for ~~contributions~~ taxes or ~~reimbursement~~ payments in lieu 
 44.21  of taxes, including interest, penalties, and costs in the event 
 44.22  the employer does not pay ~~to the department those amounts for~~ 
 44.23  ~~which the employer is liable~~. 
 44.24     For purposes of this ~~subdivision~~ section, "willfulness" 
 44.25  means that the facts demonstrate that the responsible party used 
 44.26  or allowed the use of corporate or company assets to pay other 
 44.27  creditors knowing that the ~~payments required~~ amounts due under 
 44.28  this chapter were unpaid.  An evil motive or intent to defraud 
 44.29  is not necessary ~~to satisfy the willfulness requirement~~.  
 44.30     (b) Any partner of a limited liability partnership, or 
 44.31  professional limited liability partnership, shall be jointly and 
 44.32  severally liable for ~~contributions~~ taxes or 
 44.33  ~~reimbursement~~ payments in lieu of taxes, including interest, 
 44.34  penalties, and costs in the event the employer does not pay ~~to~~ 
 44.35  ~~the department those amounts for which the employer is liable~~.  
 44.36     (c) Any personal representative of the estate of a decedent 
 45.1   or fiduciary who voluntarily distributes the assets ~~filed~~ 
 45.2   ~~therein~~ without reserving a sufficient amount to pay the 
 45.3   ~~contributions~~ taxes, payments in lieu of taxes, interest, and 
 45.4   penalties due ~~pursuant to this chapter~~ shall be personally 
 45.5   liable for the deficiency. 
 45.6      (d) The personal liability of any ~~person as provided herein~~ 
 45.7   individual shall survive dissolution, reorganization, 
 45.8   receivership, or assignment for the benefit of creditors.  For 
 45.9   the purposes of this ~~subdivision~~ section, all wages paid by the 
 45.10  employer shall be considered earned from the ~~person~~ individual 
 45.11  determined to be personally liable. 
 45.12     ~~An official designated by~~ (e) The commissioner shall make 
 45.13  an initial determination as to ~~the~~ personal liability ~~under this~~ 
 45.14  ~~section~~.  The determination shall be final unless the ~~person~~ 
 45.15  individual found to be personally liable ~~shall~~ within 30 
 45.16  calendar days after mailing of notice of determination to 
 45.17  the ~~person's~~ individual's last known address ~~file~~ files a 
 45.18  ~~written~~ protest.  Upon receipt of the protest, the 
 45.19  ~~official~~ commissioner shall reexamine the personal liability 
 45.20  determination and either affirm or redetermine the assessment of 
 45.21  personal liability and a notice of the affirmation or 
 45.22  redetermination shall be mailed to the ~~person's~~ individual's 
 45.23  last known address.  The affirmation or redetermination shall 
 45.24  become final unless ~~a written~~ an appeal is filed within 30 
 45.25  calendar days ~~of~~ after the date of mailing.  Proceedings on the 
 45.26  appeal shall be conducted in accordance with section 268.105.  
 45.27     Sec. 20.  Minnesota Statutes 1997 Supplement, section 
 45.28  268.064, subdivision 2, is amended to read: 
 45.29     Subd. 2.  [REASONABLE VALUE.] ~~An official, designated by~~ 
 45.30  The commissioner, upon the ~~official's~~ commissioner's own motion 
 45.31  or upon application of the potential successor, shall determine 
 45.32  the reasonable value of the organization, trade, or business or 
 45.33  assets acquired by the successor based on available 
 45.34  information.  The determination shall be final unless the 
 45.35  successor, within 30 calendar days after the ~~mailing~~ sending of 
 45.36  ~~notice of~~ the determination to the ~~successor's last known~~ 
 46.1   ~~address~~ successor by mail or electronic transmission, files ~~a~~ 
 46.2   ~~written~~ an appeal ~~from it~~.  Proceedings on the appeal shall be 
 46.3   conducted in accordance with section 268.105. 
 46.4      Sec. 21.  Minnesota Statutes 1997 Supplement, section 
 46.5   268.066, is amended to read: 
 46.6      268.066 [CANCELLATION OF DELINQUENT ~~CONTRIBUTIONS~~ TAXES.] 
 46.7      (a) The commissioner ~~may~~ shall cancel as uncollectible any 
 46.8   ~~contributions~~ taxes, ~~reimbursements~~ payments in lieu of taxes, 
 46.9   penalties, or the interest or costs thereon, which remain unpaid 
 46.10  six years after the amounts have been first determined ~~by the~~ 
 46.11  ~~commissioner to be~~ due and payable~~.  This section does not~~ 
 46.12  ~~prohibit the commissioner from collecting any~~, except where the 
 46.13  delinquent amounts are secured by a notice of lien ~~or~~, a 
 46.14  judgment ~~which are older than six years~~, are in the process of 
 46.15  garnishment, or are under a payment plan. 
 46.16     (b) The commissioner may cancel at any time as 
 46.17  uncollectible any taxes, payments in lieu of taxes, penalties, 
 46.18  or the interest or costs thereon, that the commissioner 
 46.19  determines are uncollectible due to death or bankruptcy. 
 46.20     Sec. 22.  Minnesota Statutes 1997 Supplement, section 
 46.21  268.067, is amended to read: 
 46.22     268.067 [COMPROMISE AGREEMENTS.] 
 46.23     (a) The commissioner~~, or an authorized representative,~~ may 
 46.24  compromise in whole or in part any action, determination, or 
 46.25  decision ~~which~~ that affects an employer and ~~which~~ that has 
 46.26  become final during the ~~preceding~~ prior 24 months. 
 46.27     (b) The commissioner~~, or an authorized representative,~~ may 
 46.28  at any time compromise delinquent employer ~~contributions~~ taxes, 
 46.29  ~~reimbursements~~ payments in lieu of taxes, interest, penalties, 
 46.30  and costs ~~under this section~~. 
 46.31     (c) Any compromise under paragraphs (a) and (b) shall be by 
 46.32  written agreement signed by the ~~employing unit~~ employer and the 
 46.33  commissioner ~~or authorized representative~~. 
 46.34     The ~~department~~ commissioner shall enter into a compromise 
 46.35  agreement only if it is in the best interest of the state of 
 46.36  Minnesota.  The ~~written~~ agreement must set forth the reason and 
 47.1   all the terms ~~of the agreement~~.  ~~Any agreements under this~~ 
 47.2   ~~section~~ The agreement must be approved by an attorney who is a 
 47.3   regularly salaried employee of the department and who has been 
 47.4   designated by the commissioner for that purpose. 
 47.5      Sec. 23.  Minnesota Statutes 1997 Supplement, section 
 47.6   268.07, is amended to read: 
 47.7      268.07 [REEMPLOYMENT INSURANCE ACCOUNT.] 
 47.8      Subdivision 1.  [APPLICATION; DETERMINATION.] (a) An 
 47.9   application for reemployment insurance benefits may be made in 
 47.10  person, by mail, by telephone, or by electronic transmission as 
 47.11  the commissioner shall require.  The commissioner may by rule 
 47.12  adopt other requirements for an application. 
 47.13     (b) ~~An official, designated by~~ The commissioner~~,~~ shall 
 47.14  promptly examine each application for benefits to determine the 
 47.15  base period, the benefit year, the weekly benefit amount 
 47.16  payable, if any, and the maximum ~~benefit~~ amount of benefits 
 47.17  payable, if any. The determination shall be known as the 
 47.18  determination of reemployment insurance account.  A ~~written~~ 
 47.19  determination of reemployment insurance account must be promptly 
 47.20  ~~mailed~~ sent to the claimant and all base period employers, by 
 47.21  mail or electronic transmission. 
 47.22     (c) If a base period employer failed to provide wage 
 47.23  information for the claimant as required in section 268.044, the 
 47.24  commissioner shall accept a claimant certification as to wage 
 47.25  credits, based upon the claimant's records, and issue a 
 47.26  determination of reemployment insurance account. 
 47.27     (d)(1) The commissioner may, at any time within 24 months 
 47.28  from the establishment of a reemployment insurance account, 
 47.29  reconsider any determination of reemployment insurance account 
 47.30  and make a redetermination if the commissioner finds that the 
 47.31  determination was incorrect for any reason.  A ~~written~~ 
 47.32  redetermination of reemployment insurance account shall be 
 47.33  promptly ~~mailed~~ sent to the claimant and all base period 
 47.34  employers, by mail or electronic transmission. 
 47.35     (2) If a redetermination of reemployment insurance account 
 47.36  reduces the weekly benefit amount or maximum ~~benefit~~ amount of 
 48.1   benefits payable, any benefits paid greater than the claimant 
 48.2   was entitled is an overpayment ~~of those benefits~~ subject to 
 48.3   section 268.18~~, except when, in the absence of fraud, a~~ 
 48.4   ~~redetermination is due to an error or omission by an employer in~~ 
 48.5   ~~providing wage information as required in section 268.044~~. 
 48.6      Subd. 2.  [WEEKLY BENEFIT AMOUNT AND ~~DURATION~~ MAXIMUM 
 48.7   AMOUNT OF BENEFITS.] (a) To establish a reemployment insurance 
 48.8   account, a claimant must have: 
 48.9      (1) wage credits in two or more calendar quarters of the 
 48.10  claimant's base period; 
 48.11     (2) minimum total wage credits equal to or greater than the 
 48.12  high quarter wage credits multiplied by 1.25; 
 48.13     (3) high quarter wage credits of not less than $1,000.  
 48.14     (b) If the commissioner finds that a claimant has 
 48.15  established a reemployment insurance account, the weekly benefit 
 48.16  amount payable ~~to the claimant~~ during the claimant's benefit 
 48.17  year shall be ~~equal to 1/26 of the claimant's high quarter wage~~ 
 48.18  ~~credits, rounded to the next lower whole dollar.~~ the higher of: 
 48.19     (1) 50 percent of the claimant's average weekly wage during 
 48.20  the claimant's base period, to a maximum of 66-2/3 percent of 
 48.21  the state's average weekly wage; or 
 48.22     (2) 50 percent of the claimant's average weekly wage during 
 48.23  the high quarter to a maximum of 50 percent of the state's 
 48.24  average weekly wage, or $331, whichever is higher. 
 48.25     The claimant's average weekly wage under clause (1) shall 
 48.26  be computed by dividing the claimant's total wage credits by 
 48.27  52.  The claimant's average weekly wage under clause (2) shall 
 48.28  be computed by dividing the claimant's high quarter wage credits 
 48.29  by 13.  
 48.30     ~~(c) Notwithstanding paragraph (b), the maximum weekly~~ 
 48.31  ~~benefit amount for any reemployment insurance account~~ 
 48.32  ~~established during the 12-month period subsequent to June 30 of~~ 
 48.33  ~~any year shall be determined on the basis of the reemployment~~ 
 48.34  ~~insurance fund balance on December 31 of the preceding year.  If~~ 
 48.35  ~~the fund balance is less than $70,000,000 on that date, the~~ 
 48.36  ~~maximum weekly benefit amount shall be 66-2/3 percent of the~~ 
 49.1   ~~state's average weekly wage; if the fund balance is more than~~ 
 49.2   ~~$70,000,000 but less than $100,000,000, the maximum weekly~~ 
 49.3   ~~benefit amount is 66 percent of the state's average weekly wage;~~ 
 49.4   ~~if the fund balance is more than $100,000,000 but less than~~ 
 49.5   ~~$150,000,000, the maximum weekly benefit amount is 65 percent of~~ 
 49.6   ~~the state's average weekly wage; if the fund balance is more~~ 
 49.7   ~~than $150,000,000 but less than $200,000,000, the maximum weekly~~ 
 49.8   ~~benefit amount is 64 percent of the state's average weekly wage;~~ 
 49.9   ~~if the fund balance is more than $200,000,000 but less than~~ 
 49.10  ~~$250,000,000, the maximum weekly benefit amount is 63 percent of~~ 
 49.11  ~~the state's average weekly wage; if the fund balance is more~~ 
 49.12  ~~than $250,000,000 but less than $300,000,000, the maximum weekly~~ 
 49.13  ~~benefit amount is 62 percent of the state's average weekly wage;~~ 
 49.14  ~~if the fund balance is more than $300,000,000 but less than~~ 
 49.15  ~~$350,000,000, the maximum weekly benefit amount is 61 percent of~~ 
 49.16  ~~the state's average weekly wage; if the fund balance is more~~ 
 49.17  ~~than $350,000,000, the maximum weekly benefit amount is 60~~ 
 49.18  ~~percent.~~  
 49.19     (c) The state's maximum weekly benefit amount and the 
 49.20  claimant's weekly benefit amount shall be computed to the 
 49.21  nearest whole dollar.  
 49.22     (d) The maximum ~~benefit~~ amount of benefits payable on any 
 49.23  reemployment insurance account shall equal one-third of the 
 49.24  claimant's total wage credits rounded to the next lower dollar, 
 49.25  not to exceed 26 times the claimant's weekly benefit amount.  
 49.26     Subd. 3.  [SECOND ACCOUNT REQUIREMENTS.] To establish a 
 49.27  second reemployment insurance account following the expiration 
 49.28  of a benefit year on a ~~preceding~~ prior reemployment insurance 
 49.29  account, a claimant must have sufficient wage credits to 
 49.30  establish a reemployment insurance account under ~~the provisions~~ 
 49.31  ~~of~~ subdivision 2 and must have performed services in covered 
 49.32  employment after the ~~establishment~~ effective date of the 
 49.33  ~~preceding~~ prior reemployment insurance account.  The wages paid 
 49.34  for ~~those services~~ that employment must equal not less than 
 49.35  eight times the weekly benefit amount of the ~~preceding~~ prior 
 49.36  reemployment insurance account.  A reemployment insurance 
 50.1   account established sufficiently in advance of anticipated 
 50.2   unemployment to make the limitations of this 
 50.3   ~~paragraph~~ subdivision ineffective shall not be allowed.  ~~It is~~ 
 50.4   The purpose of this ~~provision~~ subdivision is to prevent a 
 50.5   claimant from establishing more than one reemployment insurance 
 50.6   account as a result of one separation from employment. 
 50.7      Subd. 3a.  [RIGHT OF APPEAL.] (a) A determination or 
 50.8   redetermination of a reemployment insurance account shall be 
 50.9   final unless a claimant or base period employer within ~~15~~ 30 
 50.10  calendar days after the ~~mailing~~ sending of the determination or 
 50.11  redetermination ~~to the last known address~~ files ~~a written~~ an 
 50.12  appeal.  Every determination or redetermination of a 
 50.13  reemployment insurance account shall contain a prominent 
 50.14  statement indicating in clear language the method of appealing, 
 50.15  the time within which the appeal must be made, and the 
 50.16  consequences of not appealing.  Proceedings on the appeal shall 
 50.17  be conducted in accordance with section 268.105. 
 50.18     (b) Any claimant or base period employer may appeal from a 
 50.19  determination or redetermination of a reemployment insurance 
 50.20  account on the issue of whether ~~an employing unit is an employer~~ 
 50.21  ~~within the meaning of this chapter or whether~~ services performed 
 50.22  constitute employment ~~within the meaning of this chapter~~ and 
 50.23  covered employment.  Proceedings on the appeal shall be 
 50.24  conducted in accordance with section 268.105. 
 50.25     Subd. 3b.  [LIMITATIONS.] (a) A reemployment insurance 
 50.26  account shall be established the Sunday of the calendar week ~~in~~ 
 50.27  ~~which~~ that the application for reemployment insurance benefits 
 50.28  was made.  If an individual attempted to make an application for 
 50.29  a reemployment insurance account, but was prevented from making 
 50.30  an application by the department, the reemployment insurance 
 50.31  account shall be established the Sunday of the calendar week the 
 50.32  individual first attempted to make an application. 
 50.33     (b) A reemployment insurance account, once established, may 
 50.34  be withdrawn and a new account established only if the claimant 
 50.35  has not been credited with a waiting week under section 
 50.36  ~~268.08~~ 268.085, subdivision 1, clause (3).  A determination or 
 51.1   amended determination pursuant to section 268.101, that was 
 51.2   issued before the withdrawal of the reemployment insurance 
 51.3   account, shall remain in effect and shall not be voided by the 
 51.4   withdrawal of the reemployment insurance account.  A 
 51.5   determination of disqualification requiring subsequent earnings 
 51.6   to satisfy the disqualification shall apply to the weekly 
 51.7   benefit amount on the new account. 
 51.8      (c) A reemployment insurance account shall not be 
 51.9   established prior to the Sunday following the expiration of the 
 51.10  benefit year on a ~~preceding~~ prior reemployment insurance account.
 51.11     (d) All benefits shall be payable from the ~~Minnesota~~ 
 51.12  ~~reemployment insurance~~ fund only for weeks occurring during the 
 51.13  benefit year. 
 51.14     Sec. 24.  Minnesota Statutes 1996, section 268.08, as 
 51.15  amended by Laws 1997, chapter 66, sections 36, 37, 38, 39, 40, 
 51.16  41, and 42, is amended to read: 
 51.17     268.08 [PERSONS ELIGIBLE TO RECEIVE BENEFITS.] 
 51.18     Subdivision 1.  [ELIGIBILITY CONDITIONS.] A claimant shall 
 51.19  be eligible to receive benefits for any week in the claimant's 
 51.20  benefit year only if: 
 51.21     (1) the claimant has made a continued claim for benefits in 
 51.22  person, by mail, by telephone, or by electronic transmission as 
 51.23  the commissioner shall require.  The commissioner may by rule 
 51.24  adopt other requirements for a continued claim; 
 51.25     (2) the claimant was able to work and was available for 
 51.26  employment, and was actively seeking employment.  The claimant's 
 51.27  weekly benefit amount shall be reduced one-fifth for each day 
 51.28  the claimant is unable to work or is unavailable for employment. 
 51.29     Benefits shall not be denied by application of this clause 
 51.30  to a claimant who is in training with the approval of the 
 51.31  commissioner~~, is a dislocated worker as defined in section~~ 
 51.32  ~~268.975, subdivision 3, in training approved by the~~ 
 51.33  ~~commissioner, or in training approved pursuant to section 236 of~~ 
 51.34  ~~the Trade Act of 1974, as amended~~. 
 51.35     A claimant serving as a juror shall be considered as 
 51.36  available for employment and actively seeking employment on each 
 52.1   day the claimant is on jury duty; 
 52.2      (3) the claimant has ~~been unemployed for~~ served a waiting 
 52.3   period of one week ~~during which~~ that the claimant is otherwise 
 52.4   entitled to benefits.  This clause shall not apply if the 
 52.5   claimant would have been entitled to federal disaster 
 52.6   unemployment assistance because of a disaster in Minnesota, but 
 52.7   for the claimant's establishment of a reemployment insurance 
 52.8   account under section 268.07; and 
 52.9      (4) the claimant has been participating in reemployment 
 52.10  services, such as job search assistance services, if the 
 52.11  claimant has been determined likely to exhaust benefits and in 
 52.12  need of reemployment services pursuant to a profiling system 
 52.13  established by the commissioner, unless there is justifiable 
 52.14  cause for the claimant's failure to participate. 
 52.15     Subd. 1a.  [BENEFITS DUE DECEASED PERSONS.] ~~Upon the death~~ 
 52.16  ~~of any claimant for benefits, and in the event it is found by~~ 
 52.17  ~~the commissioner that~~ If benefits ~~have accrued and~~ are due and 
 52.18  payable ~~to that claimant and remain wholly or partially unpaid~~ 
 52.19  at the time of ~~the~~ a claimant's death, ~~or in the event there~~ 
 52.20  ~~have been issued and unpaid one or more benefit checks,~~ those 
 52.21  ~~checks~~ benefits may, upon application ~~therefor~~, be paid to 
 52.22  the ~~duly qualified administrator or executor~~ personal 
 52.23  representative of the estate of the deceased ~~claimant~~.  In the 
 52.24  event that no ~~administrator or executor~~ personal representative 
 52.25  is appointed ~~to administer the estate of the deceased, if any~~, 
 52.26  the benefits may, upon ~~the order and direction of the~~ 
 52.27  ~~commissioner~~ application be paid ~~to any person designated by the~~ 
 52.28  ~~commissioner~~ in the following order:  (1) the surviving spouse, 
 52.29  (2) the surviving child or children, or (3) the surviving parent 
 52.30  or parents. 
 52.31     ~~A person~~ An individual seeking payment ~~under this~~ 
 52.32  ~~subdivision~~ shall complete an ~~affidavit on a form~~ application 
 52.33  prescribed by the ~~department~~ commissioner and the payment of 
 52.34  benefits ~~to a person pursuant to an affidavit under this~~ 
 52.35  ~~subdivision~~ shall discharge the obligations ~~of the department~~ to 
 52.36  the claimant ~~to the extent of the payment,~~ and no other ~~person~~ 
 53.1   individual shall claim or assert any right ~~with respect~~ 
 53.2   ~~thereto~~ to those benefits. 
 53.3      Subd. 2.  [NOT ELIGIBLE.] A claimant shall not be eligible 
 53.4   to receive benefits for any week: 
 53.5      (1) ~~unless it~~ that occurs ~~subsequent to~~ before the 
 53.6   establishment of a reemployment insurance account; 
 53.7      (2) ~~which~~ that occurs in a period when the claimant is a 
 53.8   ~~full-time~~ student in attendance at, or on vacation from ~~an~~ 
 53.9   ~~established~~ a secondary school~~, college, or university unless a~~ 
 53.10  ~~majority of the claimant's wages paid during the 52 weeks~~ 
 53.11  ~~preceding the establishment of a reemployment insurance account~~ 
 53.12  ~~were for services performed during weeks that the claimant was~~ 
 53.13  ~~attending school as a full-time student~~; 
 53.14     (3) ~~in which~~ that the claimant is incarcerated.  The 
 53.15  claimant's weekly benefit amount shall be reduced by one-fifth 
 53.16  for each day the claimant is incarcerated; 
 53.17     (4) ~~in which~~ that the claimant is on a voluntary leave of 
 53.18  absence.  A claimant unemployed as a result of a uniform 
 53.19  vacation shutdown shall not be considered on a voluntary leave 
 53.20  of absence; 
 53.21     (5) ~~in which~~ that the claimant is performing services ~~on a~~ 
 53.22  ~~full-time basis~~ 32 hours or more, in employment, covered 
 53.23  employment, noncovered employment, self-employment, or volunteer 
 53.24  work regardless of the amount of any earnings; or 
 53.25     (6) with respect to which the claimant is receiving, has 
 53.26  received, or has filed a claim for reemployment insurance 
 53.27  benefits under any law of any other state, or the federal 
 53.28  government, but not including any federal or state benefits that 
 53.29  are merely supplementary to those provided for under this 
 53.30  chapter; provided that if the appropriate agency finally 
 53.31  determines that the claimant is not entitled to the benefits, 
 53.32  this clause shall not apply. 
 53.33     Subd. 2a.  [SUSPENSION FROM EMPLOYMENT.] (a) A claimant who 
 53.34  has been suspended from employment for 30 calendar days or less, 
 53.35  as a result of misconduct as defined under section ~~268.09~~ 
 53.36  268.095, subdivision ~~12~~ 6, shall be ineligible for 
 54.1   benefits ~~commencing~~ beginning the Sunday of the week ~~in which~~ 
 54.2   that the claimant was suspended and continuing for the duration 
 54.3   of the suspension. 
 54.4      (b) A suspension from employment for more than 30 calendar 
 54.5   days shall be considered a discharge from employment under 
 54.6   section ~~268.09~~ 268.095, subdivision ~~11~~ 5. 
 54.7      Subd. 3.  [DEDUCTIBLE PAYMENTS.] A claimant shall not be 
 54.8   eligible to receive benefits for any week with respect to which 
 54.9   the claimant is receiving, has received, or has filed a claim 
 54.10  for payment in an amount equal to or in excess of the claimant's 
 54.11  weekly benefit amount in the form of: 
 54.12     (1) termination, severance, or dismissal payment or wages 
 54.13  in lieu of notice whether legally required or not.  This clause 
 54.14  shall apply to the first four weeks of payment and to one-half 
 54.15  of the total number of any additional weeks of payment.  This 
 54.16  clause shall be applied to the period immediately following the 
 54.17  last day of employment.  The number of weeks of payment shall be 
 54.18  determined as follows: 
 54.19     (i) if the payments are made periodically, the total of the 
 54.20  payments to be received shall be divided by the claimant's last 
 54.21  level of regular weekly pay from the employer; or 
 54.22     (ii) if the payment is made in a lump sum, that sum shall 
 54.23  be divided by the claimant's last level of regular weekly pay 
 54.24  from the employer; 
 54.25     (2) vacation allowance paid directly by the employer for a 
 54.26  period of requested vacation, including vacation periods 
 54.27  assigned by the employer under a collective bargaining 
 54.28  agreement, or uniform vacation shutdown; or 
 54.29     (3) compensation for loss of wages under the workers' 
 54.30  compensation law of this state or any other state or under a 
 54.31  similar law of the United States, or under other insurance or 
 54.32  fund established and paid for by the employer; or 
 54.33     (4) ~~50 percent of the~~ pension, retirement, or annuity 
 54.34  payments from any ~~fund, annuity or insurance maintained or~~ plan 
 54.35  contributed to by a base period employer including the ~~armed~~ 
 54.36  ~~forces of the~~ United States ~~if the claimant contributed to the~~ 
 55.1   ~~fund, annuity or insurance and all of the pension payments if~~ 
 55.2   ~~the claimant did not contribute to the fund, annuity or~~ 
 55.3   ~~insurance; or~~ 
 55.4      ~~(5) 50 percent of a primary insurance benefit under title~~ 
 55.5   ~~II of the Social Security Act, as amended, or similar benefits~~ 
 55.6   ~~under any act of Congress or this state or any other~~ 
 55.7   ~~state.~~ government, except social security benefits as provided 
 55.8   for in subdivision 4.  The base period employer contributed to 
 55.9   the plan if the contribution is excluded from the definition of 
 55.10  wages under section 268.035, subdivision 29, clause (1), or 
 55.11  United States Code, title 26, section 3121, clause (2), of the 
 55.12  Federal Insurance Contribution Act. 
 55.13     ~~Provided, that~~ If the payment under this subdivision is 
 55.14  less than the claimant's weekly benefit amount, the claimant 
 55.15  shall be entitled to receive for that week, if otherwise 
 55.16  eligible, benefits reduced by the amount of the payment; 
 55.17  provided, further, that if the appropriate agency of this state 
 55.18  or any other state or the federal government finally determines 
 55.19  that the claimant is not entitled to payments, this subdivision 
 55.20  shall not apply.  If the computation of reduced benefits is not 
 55.21  a whole dollar, it shall be rounded down to the next lower 
 55.22  dollar. 
 55.23     Subd. 3a.  [DEDUCTIBLE EARNINGS.] (a) If the claimant has 
 55.24  earnings, including holiday pay, with respect to any week, 
 55.25  from employment, covered employment, noncovered employment, 
 55.26  self-employment, or volunteer work, equal to or in excess of the 
 55.27  claimant's weekly benefit amount, the claimant shall be 
 55.28  ineligible for benefits for that week. 
 55.29     (b) If the claimant has earnings, including holiday pay, 
 55.30  with respect to any week, from employment, covered employment, 
 55.31  noncovered employment, self-employment, or volunteer work, that 
 55.32  is less than the claimant's weekly benefit amount, the following 
 55.33  shall be deducted from the claimant's weekly benefit amount: 
 55.34     (1) that amount in excess of $50 if the claimant's earnings 
 55.35  were $200 or less, and that amount in excess of 25 percent of 
 55.36  the claimant's earnings if those earnings were more than $200; 
 56.1   and 
 56.2      (2) that amount in excess of $200 for earnings from service 
 56.3   in the National Guard or a United States military reserve unit. 
 56.4      The resulting benefit, if not a whole dollar, shall be 
 56.5   rounded to the next lower dollar. 
 56.6      (c) No deduction shall be made from a claimant's weekly 
 56.7   benefit amount for earnings from service as a volunteer 
 56.8   firefighter or volunteer ambulance service personnel.  No 
 56.9   deduction shall be made for jury duty pay. 
 56.10     (d) The claimant may report deductible earnings on 
 56.11  continued claims for benefits at the nearest whole dollar amount.
 56.12     Subd. 3b.  [RECEIPT OF BACK PAY.] Back pay received by a 
 56.13  claimant with respect to any weeks occurring in the 104 weeks 
 56.14  ~~immediately preceding~~ prior to the payment of the back pay shall 
 56.15  be deducted from benefits paid for those weeks.  
 56.16     The amount deducted shall not reduce the benefits that the 
 56.17  claimant is otherwise eligible for that week below zero.  If the 
 56.18  amount of benefits after the deduction of back pay is not a 
 56.19  whole dollar amount, it shall be rounded to the next lower 
 56.20  dollar.  
 56.21     If the back pay awarded the claimant is reduced by benefits 
 56.22  paid, the amounts withheld shall be:  (a) paid by the employer 
 56.23  into the fund within 30 days of the award and are subject to the 
 56.24  same collection procedures that apply to past due 
 56.25  ~~contributions~~ taxes under this chapter; (b) applied to benefit 
 56.26  overpayments resulting from the payment of the back pay; (c) 
 56.27  credited to the claimant's maximum amount of benefits payable in 
 56.28  a benefit year that includes the weeks for which back pay was 
 56.29  deducted.  Benefit charges for those weeks shall be removed from 
 56.30  the employer's account as of the calendar quarter ~~in which~~ that 
 56.31  the fund receives payment.  
 56.32     Payments to the fund under this subdivision shall be 
 56.33  considered as made by the claimant.  
 56.34     Subd. 4.  [SOCIAL SECURITY ~~AMOUNT DEDUCTED FROM~~ BENEFITS.] 
 56.35  (a) Any claimant aged 62 or over ~~who has not established a~~ 
 56.36  ~~reemployment insurance account based on employment subsequent to~~ 
 57.1   ~~the first receipt of primary insurance benefits under Title II~~ 
 57.2   ~~of the federal social security act, as amended, or similar old~~ 
 57.3   ~~age benefits under any act of Congress or this state or any~~ 
 57.4   ~~other state~~ shall be required to state ~~in writing~~ at the time of 
 57.5   ~~establishing~~ making an application for a reemployment insurance 
 57.6   account and when making continued claims whether the claimant is 
 57.7   receiving, has filed for, or intends to ~~seek Title II~~ file for, 
 57.8   primary social security old age or disability benefits for any 
 57.9   week during ~~which the claimant will receive unemployment~~ 
 57.10  ~~benefits~~ the benefit year, and if ~~the claimant~~ so ~~intends~~ there 
 57.11  shall be ~~withheld~~ deducted from the claimant's 
 57.12  weekly ~~unemployment benefits an~~ benefit amount ~~sufficient to~~ 
 57.13  ~~cover the~~ otherwise payable for that week, 50 percent of the 
 57.14  weekly equivalent of the social security benefit. 
 57.15     (b) In addition to paragraph (a), a claimant shall be 
 57.16  ineligible for benefits for any week with respect to which the 
 57.17  claimant is receiving, has received, or has filed a claim for 
 57.18  primary social security disability benefits, unless the social 
 57.19  security administration has approved the payment of disability 
 57.20  benefits while the claimant was employed. 
 57.21     (c) Any claimant ~~disclaiming such intention but~~ who 
 57.22  ~~nevertheless~~ receives ~~such~~ social security benefits, that would 
 57.23  cause the claimant to be ineligible under this subdivision, for 
 57.24  weeks ~~for which~~ that the claimant ~~previously~~ received 
 57.25  ~~unemployment~~ reemployment insurance benefits shall be ~~liable for~~ 
 57.26  ~~repayment of such unemployment~~ considered overpaid reemployment 
 57.27  insurance benefits ~~and otherwise subject to the provisions~~ 
 57.28  ~~of~~ under section 268.18. 
 57.29     Subd. 5a.  [SELF-EMPLOYMENT.] (a) A claimant who is 
 57.30  determined to be likely to exhaust regular reemployment 
 57.31  insurance benefits and is enrolled in a dislocated worker 
 57.32  program shall be considered in approved training for purposes of 
 57.33  this chapter for each week the claimant is engaged on a 
 57.34  full-time basis in activities, including training, relating to 
 57.35  the establishment of a business and becoming self-employed.  A 
 57.36  claimant who meets the requirements of this subdivision shall be 
 58.1   considered unemployed for purposes of this chapter.  Income 
 58.2   earned from the self-employment activity shall not be considered 
 58.3   for purposes of subdivision ~~3a~~ 5.  Under no circumstances shall 
 58.4   more than five percent of the number of claimants receiving 
 58.5   regular reemployment insurance benefits be actively enrolled in 
 58.6   this program at any time.  This subdivision shall not apply to 
 58.7   claimants claiming state or federal extended or additional 
 58.8   benefits. 
 58.9      (b) This subdivision shall apply to weeks beginning after 
 58.10  April 18, 1995, or weeks beginning after approval of this 
 58.11  subdivision by the United States Department of Labor whichever 
 58.12  date is later.  This subdivision shall have no force or effect 
 58.13  for any purpose as of the end of the week preceding the date 
 58.14  when federal law no longer authorizes the provisions of this 
 58.15  subdivision, unless such date is a Saturday in which case this 
 58.16  subdivision shall have no force and effect for any purpose as of 
 58.17  that date. 
 58.18     Subd. 6.  [~~SERVICES PERFORMED FOR STATE, MUNICIPALITIES, OR~~ 
 58.19  ~~CHARITABLE CORPORATION~~ SCHOOL EMPLOYEES.] ~~Benefits based on~~ 
 58.20  ~~service in employment defined in section 268.04, subdivision 12,~~ 
 58.21  ~~clauses (7), (8) and (9), are payable in the same amount, on the~~ 
 58.22  ~~same terms and subject to the same conditions as benefits~~ 
 58.23  ~~payable on the basis of other service subject to this chapter;~~ 
 58.24  ~~except that:~~ 
 58.25     (a) ~~Benefits based upon service performed~~ No wage credits 
 58.26  in any amount from any employment with any educational 
 58.27  institution or institutions earned while in an instructional, 
 58.28  research, or principal administrative capacity ~~for an~~ 
 58.29  ~~educational institution, shall not be paid~~ may be used for 
 58.30  benefit purposes for any week ~~of unemployment~~ 
 58.31  ~~commencing~~ beginning during ~~the~~ a period between two successive 
 58.32  academic years or terms, or during a ~~similar~~ period between two 
 58.33  regular but not successive terms, ~~or during a period of paid~~ 
 58.34  ~~sabbatical leave provided for in the claimant's contract, to any~~ 
 58.35  ~~claimant~~ if: 
 58.36     (1) the claimant ~~performs the services~~ had employment in 
 59.1   any instructional, research, or principal administrative 
 59.2   capacity for any educational institution or institutions in the 
 59.3   first of the academic years or terms; and 
 59.4      ~~if~~ (2) there is a contract or a reasonable assurance that 
 59.5   the claimant will ~~perform services in any such capacity~~ have 
 59.6   employment in any instructional, research, or principal 
 59.7   administrative capacity for ~~an~~ any educational institution or 
 59.8   institutions in the second of the academic years or terms, that 
 59.9   is substantially similar to the employment of the first academic 
 59.10  years or terms; 
 59.11     (b) With respect to employment in any capacity other than 
 59.12  those described in paragraph (a), including educational 
 59.13  assistants, benefits shall not be paid based upon wage credits 
 59.14  ~~earned with~~ from any educational institution or institutions for 
 59.15  any week ~~which commences~~ beginning during a period between two 
 59.16  successive academic years or terms if the claimant was employed 
 59.17  in the first academic year or term by any educational 
 59.18  institution or institutions and there is reasonable assurance 
 59.19  that the claimant will be employed under similar terms and 
 59.20  conditions by any educational institution or institutions in the 
 59.21  second academic year or term.  A claimant who has an agreement 
 59.22  for a definite period of employment between academic years or 
 59.23  terms shall be eligible for any weeks within that period the 
 59.24  educational institution or institutions fails to provide 
 59.25  employment.  If benefits are denied to any claimant under this 
 59.26  paragraph and the claimant was not offered an opportunity to 
 59.27  perform the employment in the second of the academic years or 
 59.28  term, the claimant shall be entitled to ~~a~~ retroactive ~~payment of~~ 
 59.29  benefits for each week ~~in which~~ that the claimant filed a timely 
 59.30  continued claim for benefits, but ~~the continued claim was~~ 
 59.31  benefits were denied solely because of this paragraph; 
 59.32     (c) With respect to ~~services~~ employment described in 
 59.33  paragraph (a) or (b), benefits ~~payable on the basis of the~~ 
 59.34  ~~services~~ based upon wage credits from any educational 
 59.35  institution or institutions shall not be paid ~~to any claimant~~ 
 59.36  for any week ~~which commences~~ beginning during an established and 
 60.1   customary vacation period or holiday recess if the 
 60.2   claimant ~~performs the services~~ was employed in the period 
 60.3   immediately before the vacation period or holiday recess, and 
 60.4   there is a reasonable assurance that the claimant will ~~perform~~ 
 60.5   ~~the services~~ be employed in the period immediately following the 
 60.6   vacation period or holiday recess; 
 60.7      (d) ~~With respect to services described in paragraph (a) or~~ 
 60.8   ~~(b), benefits shall not be payable on the basis of services in~~ 
 60.9   ~~any capacity specified in~~ Paragraphs (a), (b), and (c) ~~to any~~ 
 60.10  ~~claimant who performed those services in an educational~~ 
 60.11  ~~institution while in the employ of~~ shall apply to employment 
 60.12  with an educational service agency if the claimant performed the 
 60.13  services at an educational institution or institutions.  For 
 60.14  purposes of this paragraph, "educational service agency" means a 
 60.15  governmental agency or ~~governmental~~ entity ~~which is~~ established 
 60.16  and operated exclusively for the purpose of providing services 
 60.17  to one or more educational institutions; ~~and~~ 
 60.18     (e) ~~With respect to services to state and local~~ 
 60.19  ~~government~~ Paragraphs (a) to (d) shall apply to employment with 
 60.20  Minnesota or a political subdivision, or a nonprofit 
 60.21  ~~organizations covered by section 501(c)(3) of the Internal~~ 
 60.22  ~~Revenue Code of 1986, as amended through December 31,~~ 
 60.23  ~~1992~~ organization, if the services are provided to or on behalf 
 60.24  of an educational institution~~, benefits must be denied under the~~ 
 60.25  ~~same circumstances as described in paragraphs (a) to (d)~~ or 
 60.26  institutions. 
 60.27     (f) Paragraphs (a), (b), and (c) shall apply beginning the 
 60.28  Sunday of the week that there is a contract or reasonable 
 60.29  assurance of employment. 
 60.30     (g) Employment with multiple education institutions shall 
 60.31  be aggregated for purposes of application of this subdivision. 
 60.32     (h) An "educational institution" is an educational entity 
 60.33  operated by Minnesota or a political subdivision or an 
 60.34  instrumentality thereof, or an educational organization 
 60.35  described in United States Code, title 26, section 501(c)(3), of 
 60.36  the federal Internal Revenue Code and exempt from income tax 
 61.1   under section 501(a).  
 61.2      Subd. 7.  [PROFESSIONAL ATHLETES.] Benefits shall not be 
 61.3   paid to a claimant on the basis of any ~~service~~ wage credits from 
 61.4   employment that substantially ~~all of which consist~~ consists of 
 61.5   participating in sports or athletic events or training or 
 61.6   preparing to ~~so~~ participate for any week ~~which commences~~ that 
 61.7   begins during the period between two successive sport seasons 
 61.8   (or similar periods) if the claimant ~~performed such service~~ was 
 61.9   so employed in the first ~~of such seasons~~ season (or similar 
 61.10  period) and there is a reasonable assurance that the claimant 
 61.11  will ~~perform such service~~ be so employed in the ~~later of such~~ 
 61.12  ~~seasons~~ following season (or similar periods). 
 61.13     Subd. 8.  [~~ILLEGAL~~ ALIENS.] (a) An alien shall be 
 61.14  ineligible for benefits for any week the alien is not authorized 
 61.15  to work in the United States under federal law. 
 61.16     (b) Benefits shall not be paid on the basis ~~of services~~ 
 61.17  ~~performed~~ wage credits earned by an alien unless ~~such~~ the 
 61.18  alien ~~is a claimant who~~ (1) was lawfully admitted for permanent 
 61.19  residence at the time ~~such services were performed~~ of the 
 61.20  employment, (2) was lawfully present for the purposes 
 61.21  of ~~performing such services~~ the employment, or (3) was 
 61.22  permanently residing in the United States under color of law at 
 61.23  the time ~~such services were performed (~~of the employment 
 61.24  including ~~an alien who was lawfully present in the United States~~ 
 61.25  ~~as a result of the application of the provision of section~~ 
 61.26  ~~203(a)(7) or~~ section 212(d)(5) of the Immigration and 
 61.27  Nationality Act~~)~~. 
 61.28     ~~(b)~~ (c) Any data or information required of claimants 
 61.29  applying for benefits to determine ~~whether benefits are not~~ 
 61.30  ~~payable to them~~ eligibility because of their alien status shall 
 61.31  be uniformly required from all ~~applicants for benefits~~ claimants.
 61.32     ~~(c) In the case of a claimant whose application for~~ 
 61.33  ~~benefits would otherwise be approved, no determination that~~ 
 61.34  ~~benefits to such claimant are not payable because of alien~~ 
 61.35  ~~status shall be made except upon a preponderance of the evidence.~~
 61.36     Subd. 9.  [SERVICES FOR ~~CERTAIN~~ SCHOOL CONTRACTORS.] 
 62.1   ~~Benefits based upon services performed for~~ Wage credits from an 
 62.2   employer are subject to subdivision ~~6~~ 7, paragraphs (b) and (c) 
 62.3   if:  
 62.4      ~~(a)~~ (1) the employment was provided pursuant to a contract 
 62.5   between the employer and ~~a public or private school~~ an 
 62.6   educational institution; 
 62.7      ~~(b)~~ (2) the contract was for services ~~which~~ that the 
 62.8   ~~public or private school~~ educational institution could have had 
 62.9   performed by its employees; and 
 62.10     ~~(c) the employment was not as defined in section 268.04,~~ 
 62.11  ~~subdivision 12, clauses (7), (8), and (9); and~~ 
 62.12     ~~(d)~~ (3) the claimant was notified in writing of the 
 62.13  provisions of this subdivision ~~while employed in 1983 or~~ prior 
 62.14  to or at the time of ~~commencing~~ beginning the employment.  
 62.15     Subd. 10.  [SEASONAL EMPLOYMENT.] (a) If a claimant has 
 62.16  wage credits from seasonal employment, benefits shall be payable 
 62.17  only if the claimant can establish a reemployment insurance 
 62.18  account under section 268.07, subdivision 2, excluding the wage 
 62.19  credits from seasonal employment.  For purposes of this 
 62.20  subdivision, "seasonal employment" means employment with a 
 62.21  single employer in the recreation or tourist industry that is 
 62.22  available with the employer for 15 consecutive weeks or less 
 62.23  each calendar year. 
 62.24     (b) Wage credits from seasonal employment may not be used 
 62.25  for benefit purposes during weeks outside the normal season. 
 62.26     Subd. 11.  [BUSINESS OWNERS.] ~~Wages paid by~~ Wage credits 
 62.27  from an ~~employing unit~~ employer may not be used for benefit 
 62.28  purposes by any claimant who:  
 62.29     (1) individually, jointly, or in combination with the 
 62.30  claimant's spouse, parent, or child owns or controls directly or 
 62.31  indirectly 25 percent or more interest in the ~~employing unit~~ 
 62.32  employer, or is the spouse, parent, or minor child of any 
 62.33  individual who owns or controls directly or indirectly 25 
 62.34  percent or more interest in the ~~employing unit~~ employer; and 
 62.35     (2) is not permanently separated from employment. 
 62.36     This subdivision is effective when the claimant has been 
 63.1   paid four times the claimant's weekly benefit amount in the 
 63.2   current benefit year. 
 63.3      Sec. 25.  Minnesota Statutes 1997 Supplement, section 
 63.4   268.09, subdivision 1a, is amended to read: 
 63.5      Subd. 1a.  [QUIT.] A claimant who quits employment shall be 
 63.6   disqualified from benefits: 
 63.7      (1) unless the claimant quit the employment because of a 
 63.8   good reason caused by the employer; 
 63.9      (2) unless the claimant quit the employment to accept other 
 63.10  covered employment that provided substantially higher wages or 
 63.11  substantially better conditions of employment or both, but the 
 63.12  claimant did not work long enough at the other employment to 
 63.13  have sufficient subsequent earnings to satisfy the 
 63.14  disqualification that would otherwise be imposed; 
 63.15     (3) unless the claimant quit the employment within 30 
 63.16  calendar days of ~~commencing~~ beginning the employment because the 
 63.17  employment was unsuitable for the claimant; 
 63.18     (4) unless the employment was unsuitable for the claimant 
 63.19  and the claimant quit to enter approved training; 
 63.20     (5) unless the employment was part time and the claimant 
 63.21  had full-time employment in the base period, that the claimant 
 63.22  separated from because of nondisqualifying reasons, sufficient 
 63.23  to meet the minimum requirements to establish a reemployment 
 63.24  insurance account under section 268.07~~, subdivision 2~~; or 
 63.25     (6) unless the claimant quit the employment because ~~of~~ the 
 63.26  claimant's serious illness made it medically necessary that the 
 63.27  claimant quit, provided that the claimant made reasonable 
 63.28  efforts to ~~retain~~ remain in that employment in spite of the 
 63.29  serious illness. 
 63.30     Reasonable efforts to remain in that employment require 
 63.31  that the claimant inform the employer of the serious illness and 
 63.32  request accommodation.  
 63.33     A claimant who quit employment because of the claimant's 
 63.34  serious illness of chemical dependency, has not made reasonable 
 63.35  efforts to ~~retain the~~ remain in that employment if the claimant 
 63.36  has previously been professionally diagnosed as chemically 
 64.1   dependent, or has previously voluntarily submitted to treatment 
 64.2   for chemical dependency, and has failed to make consistent 
 64.3   efforts to ~~maintain the treatment the claimant knows or has been~~ 
 64.4   ~~professionally advised is necessary to~~ control the chemical 
 64.5   dependency. 
 64.6      Sec. 26.  Minnesota Statutes 1997 Supplement, section 
 64.7   268.09, subdivision 10, is amended to read: 
 64.8      Subd. 10.  [DISCHARGE.] A claimant who is discharged from 
 64.9   employment by an employer shall not be disqualified from 
 64.10  benefits: 
 64.11     (1) unless the claimant was discharged because of 
 64.12  misconduct that interfered with and adversely affected that 
 64.13  employment.  This clause shall not apply if: 
 64.14     (i) the misconduct was a direct result of the claimant's 
 64.15  serious illness provided that the claimant made reasonable 
 64.16  efforts to ~~retain the~~ remain in that employment in spite of the 
 64.17  serious illness.  
 64.18     Reasonable efforts to remain in that employment require 
 64.19  that the claimant inform the employer of the serious illness and 
 64.20  request accommodation. 
 64.21     If the misconduct was a direct result of the 
 64.22  claimant's serious illness of chemical dependency, the claimant 
 64.23  has not made reasonable efforts to ~~retain~~ remain in that 
 64.24  employment if the claimant has previously been professionally 
 64.25  diagnosed chemically dependent or the claimant has previously 
 64.26  voluntarily submitted to treatment for chemical dependency and 
 64.27  has failed to make consistent efforts to ~~maintain the treatment~~ 
 64.28  ~~the claimant knows or has been professionally advised is~~ 
 64.29  ~~necessary to~~ control the chemical dependency~~; or~~. 
 64.30     This subclause shall not apply if the misconduct was a 
 64.31  violation of section 169.121, 169.1211, or 169.123; or 
 64.32     (ii) the employment was part time and the claimant had 
 64.33  full-time employment in the base period, that the claimant 
 64.34  separated from because of nondisqualifying reasons, sufficient 
 64.35  to meet the minimum requirements to establish a reemployment 
 64.36  insurance account under section 268.07~~, subdivision 2~~; 
 65.1      (2) unless the claimant was discharged because of gross 
 65.2   misconduct that interfered with and adversely affected that 
 65.3   employment.  For the purpose of this clause, "gross misconduct" 
 65.4   means: 
 65.5      (i) the commission of any act that amounts to a gross 
 65.6   misdemeanor or felony; or 
 65.7      (ii) for an employee of a facility as defined in section 
 65.8   626.5572, gross misconduct includes an act of patient or 
 65.9   resident abuse, financial exploitation, or recurring or serious 
 65.10  neglect, as defined in section 626.5572 and applicable rules. 
 65.11     If a claimant is convicted of a gross misdemeanor or felony 
 65.12  for the same act or acts for which the claimant was discharged, 
 65.13  it is ~~conclusively presumed to be~~ gross misconduct; or 
 65.14     (3) if the claimant was discharged because the claimant 
 65.15  gave notice of intention to quit the employment within 30 
 65.16  calendar days.  This clause shall be effective only through the 
 65.17  end of the calendar week that includes the intended date of 
 65.18  quitting.  Thereafter the separation from employment shall be 
 65.19  considered a quit of employment by the claimant, and a 
 65.20  disqualification, if any, shall ~~commence~~ begin with the Sunday 
 65.21  of the week following the week that includes the intended date 
 65.22  of quitting. 
 65.23     Sec. 27.  Minnesota Statutes 1997 Supplement, section 
 65.24  268.09, subdivision 13, is amended to read: 
 65.25     Subd. 13.  [ACT OR OMISSIONS AFTER SEPARATION.] Except as 
 65.26  provided for under subdivision ~~14~~ 8, a claimant shall not be 
 65.27  disqualified from benefits for any acts or omissions occurring 
 65.28  after the claimant's separation from employment with the 
 65.29  employer. 
 65.30     Sec. 28.  Minnesota Statutes 1997 Supplement, section 
 65.31  268.09, subdivision 16, is amended to read: 
 65.32     Subd. 16.  [DISQUALIFICATION DURATION.] (a) A 
 65.33  disqualification from the payment of benefits under subdivisions 
 65.34  ~~1a~~ 1, ~~10~~ 4, and ~~14~~ 8 shall be for the duration of the 
 65.35  claimant's unemployment and until the end of the calendar 
 65.36  week ~~in which~~ that the claimant had total earnings in subsequent 
 66.1   covered employment of eight times the claimant's weekly benefit 
 66.2   amount. 
 66.3      (b) Any disqualification imposed under subdivisions ~~1a~~ 1 
 66.4   and ~~10~~ 4 shall ~~commence~~ begin on the Sunday of the week ~~in~~ 
 66.5   ~~which~~ that the claimant became separated from employment.  Any 
 66.6   disqualification imposed under subdivision ~~14~~ 8 shall 
 66.7   ~~commence~~ begin on the Sunday of the week the claimant failed to 
 66.8   apply for, accept, or avoided employment. 
 66.9      (c) Notwithstanding paragraph (a), if the claimant was 
 66.10  discharged from employment because of gross misconduct ~~that~~ 
 66.11  ~~interfered with and adversely affected that employment~~, the 
 66.12  disqualification shall be for the duration of the claimant's 
 66.13  unemployment and until the end of the calendar week ~~in which~~ 
 66.14  that the claimant had total earnings in subsequent covered 
 66.15  employment of 12 times the claimant's weekly benefit amount.  In 
 66.16  addition, wage credits from that employment shall be 
 66.17  canceled ~~and the claimant's reemployment insurance account~~ 
 66.18  ~~redetermined pursuant to section 268.07, subdivision 1,~~ 
 66.19  ~~paragraph (d)~~. 
 66.20     Sec. 29.  Minnesota Statutes 1997 Supplement, section 
 66.21  268.09, subdivision 17, is amended to read: 
 66.22     Subd. 17.  [APPLICATION.] This section shall apply to: 
 66.23     (1) all covered employment, full time or part time, 
 66.24  temporary or limited duration, permanent or indefinite duration, 
 66.25  that occurred during the base period, the period between the end 
 66.26  of the base period and the effective date of the reemployment 
 66.27  insurance account, or the benefit year, except as provided for 
 66.28  in subdivisions ~~1a~~ 1, clause (5); and ~~10~~ 4, clause (1)(ii); or 
 66.29     (2) all covered employment occurring in this state, and 
 66.30  employment covered under a reemployment insurance program, (i) 
 66.31  of any other state~~, federal employment, or employment covered~~ 
 66.32  ~~under the Railroad Unemployment Compensation Act~~ or (ii) 
 66.33  established by an act of Congress. 
 66.34     Sec. 30.  Minnesota Statutes 1996, section 268.101, as 
 66.35  amended by Laws 1997, chapter 66, sections 55, 56, 57, and 58, 
 66.36  is amended to read: 
 67.1      268.101 [DETERMINATIONS ON DISQUALIFICATION AND 
 67.2   ELIGIBILITY.] 
 67.3      Subdivision 1.  [NOTIFICATION.] (a) Upon application for a 
 67.4   reemployment insurance account, each claimant shall report the 
 67.5   names of all employers and the reasons for no longer working for 
 67.6   all employers during the claimant's last 30 days of employment. 
 67.7      (b) Upon establishment of a reemployment insurance account, 
 67.8   the commissioner shall notify, by mail or electronic 
 67.9   transmission, all employers the claimant was employed by during 
 67.10  the claimant's last 30 days of employment prior to making an 
 67.11  application and all base period employers and determined 
 67.12  successors to those employers under section 268.051, subdivision 
 67.13  4.  An employer ~~so notified~~ shall have ten calendar days after 
 67.14  the ~~mailing~~ sending of the notice to make a protest in a manner 
 67.15  prescribed by the commissioner raising any issue of 
 67.16  disqualification or any issue of eligibility.  An employer ~~so~~ 
 67.17  ~~notified~~ shall be informed of the effect that failure to timely 
 67.18  protest may have on the employer charges.  A protest made more 
 67.19  than ten calendar days after ~~mailing~~ sending of the notice shall 
 67.20  be considered untimely. 
 67.21     (c) Each claimant shall report any employment, loss of 
 67.22  employment, and offers of employment received, ~~for~~ during those 
 67.23  weeks the claimant made continued claims for benefits.  Each 
 67.24  claimant who stops making continued claims during the benefit 
 67.25  year and later ~~commences~~ begins making continued claims during 
 67.26  that same benefit year shall report the name of any employer the 
 67.27  claimant worked for during the period between the making of 
 67.28  continued claims, up to a period of the last 30 days of 
 67.29  employment, and the reason the claimant stopped working for the 
 67.30  employer.  The claimant shall report any offers of employment 
 67.31  during the period between the making of continued claims.  Those 
 67.32  employers from which the claimant has reported a loss of 
 67.33  employment or an offer of employment pursuant to this paragraph 
 67.34  shall be notified by mail or electronic transmission.  An 
 67.35  employer ~~so notified~~ shall have ten calendar days after the 
 67.36  ~~mailing~~ sending of the notice to make a protest in a manner 
 68.1   prescribed by the commissioner raising any issue of 
 68.2   disqualification or any issue of eligibility.  An employer ~~so~~ 
 68.3   ~~notified~~ shall be informed of the effect that failure to timely 
 68.4   protest may have on the employer charges.  A protest made more 
 68.5   than ten calendar days after ~~mailing~~ sending of the notice shall 
 68.6   be considered untimely. 
 68.7      (d) The purpose for requiring the claimant to report the 
 68.8   name of all employers and the reason for no longer working for 
 68.9   all employers during the claimant's "last 30 days of employment" 
 68.10  is for the commissioner to obtain information from a claimant on 
 68.11  all issues that have the potential of disqualifying the claimant 
 68.12  from benefits under section 268.095.  If the reason given by the 
 68.13  claimant for no longer working for an employer is a discharge, 
 68.14  other than a layoff due to lack of work, the claimant shall be 
 68.15  required to state all the facts about the cause of the 
 68.16  discharge, if known. 
 68.17     Subd. 2.  [DISQUALIFICATION DETERMINATION.] (a) The 
 68.18  commissioner shall promptly determine any issue of 
 68.19  disqualification raised by a timely protest made by an employer, 
 68.20  and mail to the claimant and that employer at the last known 
 68.21  address a determination of disqualification or a determination 
 68.22  of nondisqualification, as is appropriate.  The determination 
 68.23  shall set forth the effect on employer charges. 
 68.24     (b) The commissioner shall promptly determine any issue of 
 68.25  disqualification raised by information obtained from a claimant 
 68.26  pursuant to subdivision 1, paragraph (a) or (c), and mail to the 
 68.27  claimant and employer at the last known address a determination 
 68.28  of disqualification or a determination of nondisqualification, 
 68.29  as is appropriate.  The determination shall set forth the effect 
 68.30  on employer charges. 
 68.31     (c) The commissioner shall promptly determine any issue of 
 68.32  disqualification raised by an untimely protest made by an 
 68.33  employer and mail to the claimant and that employer at the last 
 68.34  known address a determination of disqualification or a 
 68.35  determination of nondisqualification as is appropriate.  The 
 68.36  determination shall set forth the effect on employer charges.  
 69.1   Notwithstanding section ~~268.09~~ 268.095, any disqualification 
 69.2   imposed as a result of determination issued pursuant to this 
 69.3   paragraph shall ~~commence~~ begin the Sunday two weeks following 
 69.4   the week ~~in which~~ that the untimely protest was made.  
 69.5   Notwithstanding any provisions to the contrary, any relief of 
 69.6   employer charges as a result of a determination issued pursuant 
 69.7   to this paragraph shall ~~commence~~ begin the Sunday two weeks 
 69.8   following the week ~~in which~~ that the untimely protest was made. 
 69.9      (d) If any time within 24 months from the establishment of 
 69.10  a reemployment insurance account the commissioner finds that a 
 69.11  claimant failed to report any employment, loss of employment, or 
 69.12  offers of employment that were required to be provided by the 
 69.13  claimant under this section, the commissioner shall promptly 
 69.14  determine any issue of disqualification on that loss of 
 69.15  employment or offer of employment and mail to the claimant and 
 69.16  involved employer at the last known address a determination of 
 69.17  disqualification or a determination of nondisqualification, as 
 69.18  is appropriate.  The determination shall set forth the effect on 
 69.19  employer charges. 
 69.20     This paragraph shall not apply if the involved employer was 
 69.21  notified and given the opportunity to protest pursuant to 
 69.22  subdivision 1, paragraph (b) or (c). 
 69.23     (e) A determination of disqualification or a determination 
 69.24  of nondisqualification shall be final unless an appeal is filed 
 69.25  by the claimant or notified employer within ~~15~~ 30 calendar days 
 69.26  after mailing ~~of the determination to the last known address~~.  
 69.27  The determination shall contain a prominent statement indicating 
 69.28  in clear language the method of appealing, the time within which 
 69.29  an appeal must be made, and the consequences of not appealing.  
 69.30  Proceedings on the appeal shall be conducted in accordance with 
 69.31  section 268.105. 
 69.32     (f) An issue of disqualification for purposes of this 
 69.33  section shall include any reason for no longer working for an 
 69.34  employer other than a layoff due to lack of work, any question 
 69.35  of ~~denial of~~ a disqualification from benefits under section 
 69.36  ~~268.09~~ 268.095, any question of an exception to disqualification 
 70.1   under section ~~268.09~~ 268.095, any question of benefit charge to 
 70.2   an employer under section 268.047, and any question of an 
 70.3   otherwise imposed disqualification ~~for which~~ that a claimant has 
 70.4   had subsequent earnings sufficient to satisfy the 
 70.5   disqualification.  
 70.6      (g) Notwithstanding the requirements of this subdivision, 
 70.7   the commissioner is not required to mail to a claimant a 
 70.8   determination of nondisqualification where the claimant has had 
 70.9   subsequent earnings sufficient to satisfy any otherwise 
 70.10  potential disqualification.  
 70.11     Subd. 3.  [ELIGIBILITY DETERMINATION.] (a) The commissioner 
 70.12  shall promptly determine any issue of eligibility raised by a 
 70.13  timely protest made by an employer and mail to the claimant and 
 70.14  that employer at the last known address a determination of 
 70.15  eligibility or a determination of ineligibility, as is 
 70.16  appropriate. 
 70.17     (b) The commissioner shall promptly determine any issue of 
 70.18  eligibility raised by information obtained from a claimant and 
 70.19  mail to the claimant and any involved employer at the last known 
 70.20  address a determination of eligibility or a determination of 
 70.21  ineligibility, as is appropriate. 
 70.22     (c) The commissioner shall promptly determine any issue of 
 70.23  eligibility raised by an untimely protest made by an employer 
 70.24  and mail to the claimant and that employer at the last known 
 70.25  address a determination of eligibility or a determination of 
 70.26  ineligibility, as is appropriate.  Any denial of benefits 
 70.27  imposed as a result of determination issued pursuant to this 
 70.28  paragraph shall ~~commence~~ begin the Sunday two weeks following 
 70.29  the week ~~in which~~ that the untimely protest was made. 
 70.30     (d) If any time within 24 months from the establishment of 
 70.31  a reemployment insurance account the commissioner finds the 
 70.32  claimant failed to provide requested information regarding the 
 70.33  claimant's eligibility for benefits, the commissioner shall 
 70.34  determine the issue of eligibility and mail to the claimant and 
 70.35  any involved employer at the last known address a determination 
 70.36  of eligibility or a determination of ineligibility, as is 
 71.1   appropriate. 
 71.2      This paragraph shall not apply if the involved employer was 
 71.3   notified, was aware, or should have been aware of the issue of 
 71.4   eligibility at the time of notification, and was given the 
 71.5   opportunity to protest pursuant to subdivision 1, paragraph (b) 
 71.6   or (c). 
 71.7      (e) A determination of eligibility or determination of 
 71.8   ineligibility shall be final unless an appeal is filed by the 
 71.9   claimant or notified employer within ~~15~~ 30 calendar days after 
 71.10  mailing ~~of the determination to the last known address~~.  The 
 71.11  determination shall contain a prominent statement indicating in 
 71.12  clear language the method of appealing, the time within which an 
 71.13  appeal must be made, and the consequences of not appealing.  
 71.14  Proceedings on the appeal shall be conducted in accordance with 
 71.15  section 268.105. 
 71.16     (f) An issue of eligibility for purposes of this section 
 71.17  shall include any question of denial of benefits under sections 
 71.18  ~~268.08~~ 268.085, 268.115, 268.125, 268.135, and 268.155. 
 71.19     Subd. 3a.  [DIRECT HEARING.] Notwithstanding ~~subdivision 2~~ 
 71.20  ~~or 3~~ any provision of sections 268.03 to 268.23, the 
 71.21  commissioner may refer any issue of disqualification ~~or~~, any 
 71.22  issue of eligibility, or any other issue, directly for hearing 
 71.23  in accordance with section 268.105, subdivision 1.  The status 
 71.24  of the issue shall be the same as if a determination had been 
 71.25  made and an appeal filed. 
 71.26     Subd. 4.  [AMENDED DETERMINATION.] Unless an appeal has 
 71.27  been filed, the commissioner, on the commissioner's own motion, 
 71.28  ~~upon finding that an error has occurred in the issuing of~~ may 
 71.29  reconsider a determination of disqualification or 
 71.30  nondisqualification or a determination of eligibility or 
 71.31  ineligibility~~, may~~ that has not become final and issue an 
 71.32  amended determination.  An amended determination shall not be 
 71.33  done at the request of a claimant or an employer.  Any amended 
 71.34  determination shall be mailed to the claimant and any involved 
 71.35  employer at the last known address.  Any amended determination 
 71.36  shall be final unless an appeal is filed by the claimant or 
 72.1   notified employer within ~~15~~ 30 calendar days after mailing ~~of~~ 
 72.2   ~~the amended determination to the last known address~~.  
 72.3   Proceedings on the appeal shall be conducted in accordance with 
 72.4   section 268.105. 
 72.5      Subd. 5.  [PROMPT PAYMENT.] If a determination or amended 
 72.6   determination awards benefits to a claimant, the benefits shall 
 72.7   be promptly paid regardless of any appeal period or any appeal 
 72.8   having been filed. 
 72.9      Subd. 6.  [OVERPAYMENT.] A determination or amended 
 72.10  determination ~~which~~ that holds a claimant disqualified or 
 72.11  ineligible for benefits for periods a claimant has been paid 
 72.12  benefits is an overpayment of those benefits subject to section 
 72.13  268.18. 
 72.14     Sec. 31.  Minnesota Statutes 1997 Supplement, section 
 72.15  268.105, subdivision 3a, is amended to read: 
 72.16     Subd. 3a.  [DECISIONS.] (a) If a reemployment insurance 
 72.17  judge's decision or the commissioner's decision awards 
 72.18  benefits to a claimant, the benefits shall be promptly paid 
 72.19  regardless of any appeal period or any appeal having been filed. 
 72.20     (b) If a reemployment insurance judge's decision modifies 
 72.21  or reverses a determination awarding benefits to a claimant, any 
 72.22  benefits paid pursuant to the determination is an overpayment of 
 72.23  those benefits subject to section 268.18. 
 72.24     (c) ~~Except as provided in paragraph (d),~~ If a 
 72.25  commissioner's decision modifies or reverses a reemployment 
 72.26  insurance judge's decision awarding benefits to a claimant, any 
 72.27  benefits paid pursuant to the reemployment insurance judge's 
 72.28  decision is an overpayment of those benefits subject to section 
 72.29  268.18. 
 72.30     (d) If ~~a reemployment insurance judge's decision affirms a~~ 
 72.31  ~~determination on an issue of disqualification awarding benefits~~ 
 72.32  ~~or~~ the commissioner affirms a reemployment insurance judge's 
 72.33  decision on an issue of disqualification ~~awarding~~ that awards 
 72.34  benefits to a claimant, the commissioner's decision, if finally 
 72.35  reversed by the Minnesota Court of Appeals or the Supreme Court 
 72.36  of Minnesota, shall not result in a disqualification of the 
 73.1   claimant from benefits ~~only for weeks following the week in~~ 
 73.2   ~~which the decision reversing the award of benefits was issued~~ 
 73.3   ~~and benefits paid for that week and previous weeks shall not be~~ 
 73.4   ~~deemed overpaid and the benefits paid shall not be charged to a~~ 
 73.5   ~~contributing employer's account~~ under section 268.095. 
 73.6      (e) If the commissioner, pursuant to subdivision 3, remands 
 73.7   a matter to a reemployment insurance judge for the taking of 
 73.8   additional evidence, the prior reemployment insurance judge's 
 73.9   decision shall continue to be enforced until new findings of 
 73.10  fact and decision are made by a reemployment insurance judge. 
 73.11     Sec. 32.  Minnesota Statutes 1997 Supplement, section 
 73.12  268.125, is amended to read: 
 73.13     268.125 [ADDITIONAL REEMPLOYMENT INSURANCE BENEFITS.] 
 73.14     Subdivision 1.  [ADDITIONAL BENEFITS; WHEN AVAILABLE.] 
 73.15  Additional reemployment insurance benefits are authorized ~~under~~ 
 73.16  ~~this section only~~ if ~~the commissioner determines that~~: 
 73.17     (1) ~~an employer has reduced operations~~ at a facility 
 73.18  ~~employing~~ that had 100 or more ~~individuals~~ employees for at 
 73.19  least six months during the ~~preceding year~~ prior 12 months, the 
 73.20  employer reduced operations, resulting within a one-month period 
 73.21  in the ~~reduction~~ layoff of ~~at least~~ 50 percent or more of 
 73.22  the ~~employer's~~ facility's work force ~~and the layoff of at~~ 
 73.23  ~~least~~ amounting to 50 or more employees ~~at that facility~~, 
 73.24  including reductions caused as a result of a major natural 
 73.25  disaster declared by the President; 
 73.26     (2) the employer has no expressed plan to resume operations 
 73.27  ~~which~~ that would lead to the reemployment of those employees at 
 73.28  any time in the immediate future; and 
 73.29     (3) the seasonally adjusted unemployment rate ~~for~~ in the 
 73.30  county ~~in which~~ that the facility is located was ten percent or 
 73.31  more during the month of the reduction or any of the three 
 73.32  months ~~preceding~~ before or ~~succeeding~~ after the month of the 
 73.33  reduction. 
 73.34     Subd. 2.  [PAYMENT OF BENEFITS.] ~~All~~ Additional benefits 
 73.35  ~~payable under this section~~ are payable from the fund.  
 73.36     Subd. 3.  [ELIGIBILITY CONDITIONS.] A claimant is eligible 
 74.1   to receive additional benefits ~~under this section~~ for any week 
 74.2   during the claimant's benefit year if ~~the commissioner finds~~ 
 74.3   ~~that~~: 
 74.4      (1) the ~~claimant's unemployment is the~~ claimant was laid 
 74.5   off from employment as a result of a reduction ~~in operations as~~ 
 74.6   ~~provided~~ under subdivision 1 or was laid off due to lack of work 
 74.7   from that employer during the three-month period before, or the 
 74.8   three-month period after the month of the reduction under 
 74.9   subdivision 1; 
 74.10     (2) the claimant ~~is unemployed and~~ meets the eligibility 
 74.11  requirements ~~for the receipt of unemployment benefits~~ under 
 74.12  section ~~268.08~~ 268.085; 
 74.13     (3) the claimant is not subject to a disqualification ~~for~~ 
 74.14  ~~benefits~~ under section ~~268.09~~ 268.095; for the purpose of this 
 74.15  subdivision, the disqualifying conditions ~~set forth~~ in section 
 74.16  ~~268.09~~ 268.095, and the requalifying requirements ~~thereunder~~, 
 74.17  apply to the receipt of additional benefits ~~under this section~~; 
 74.18     (4) the claimant has exhausted ~~all rights to~~ regular 
 74.19  benefits ~~payable~~ under section 268.07, is not entitled to 
 74.20  receive extended benefits under section 268.115, and is not 
 74.21  entitled to receive ~~reemployment insurance~~ benefits under any 
 74.22  other state or federal law for ~~the~~ that week ~~in which the~~ 
 74.23  ~~claimant is claiming additional benefits~~; 
 74.24     (5) ~~the claimant has made a claim for additional benefits~~ 
 74.25  ~~with respect to any week the claimant is claiming benefits in~~ 
 74.26  ~~accordance with the regulations as the commissioner may~~ 
 74.27  ~~prescribe with respect to claims for regular benefits; and~~ 
 74.28     ~~(6)~~ a majority of the claimant's wage credits were ~~earned~~ 
 74.29  ~~with an~~ from the employer ~~for whom the commissioner has~~ 
 74.30  ~~determined there was~~ that had a reduction in operations under 
 74.31  subdivision 1. 
 74.32     Subd. 4.  [WEEKLY BENEFIT AMOUNT.] A claimant's weekly 
 74.33  benefit amount ~~under this section~~ shall be the same as the 
 74.34  ~~individual's~~ claimant's weekly benefit amount ~~payable~~ during the 
 74.35  ~~individual's~~ current benefit year under section 268.07. 
 74.36     Subd. 5.  [MAXIMUM BENEFITS PAYABLE.] ~~A claimant's~~ The 
 75.1   maximum amount of additional benefits payable in the 
 75.2   ~~individual's~~ claimant's benefit year shall be 13 times the 
 75.3   ~~individual's~~ claimant's weekly benefit amount.  ~~Reemployment~~ 
 75.4   ~~insurance~~ Benefits paid to ~~an individual~~ a claimant under any 
 75.5   state or federal law other than regular benefits ~~payable~~ under 
 75.6   section 268.07 shall be deducted from ~~that individual's~~ the 
 75.7   maximum amount of additional benefits. 
 75.8      Sec. 33.  Minnesota Statutes 1997 Supplement, section 
 75.9   268.13, subdivision 1, is amended to read: 
 75.10     Subdivision 1.  [AUTHORIZATION.] (a) The commissioner is 
 75.11  ~~hereby~~ authorized to enter into reciprocal arrangements with ~~the~~ 
 75.12  ~~appropriate and duly authorized agencies of~~ other states and ~~of~~ 
 75.13  the federal government, or both, whereby~~:~~ 
 75.14     ~~(1) Service performed~~ employment by an ~~individual~~ employee 
 75.15  or ~~individuals~~ employees for a single ~~employing unit for which~~ 
 75.16  ~~service~~ employer that is customarily performed in more than one 
 75.17  state shall be ~~deemed to be service~~ considered performed 
 75.18  entirely within any one of the states: 
 75.19     ~~(a) in which~~ (1) where any part of ~~any such individual's~~ 
 75.20  ~~service~~ the employee's employment is performed, or 
 75.21     ~~(b) in which any such individual~~ (2) where the employee has 
 75.22  a residence, or 
 75.23     ~~(c) in which~~ (3) where the ~~employing unit~~ employer 
 75.24  maintains a place of business; provided, there is in effect, as 
 75.25  to ~~such service~~ the employment, an election, approved by 
 75.26  the ~~agency charged with the administration of such state's~~ 
 75.27  ~~employment security law~~ state, pursuant to which all the ~~service~~ 
 75.28  ~~performed~~ employment by ~~such individual~~ the employee or 
 75.29  ~~individuals~~ employees for ~~such employing unit~~ the employer is 
 75.30  ~~deemed~~ considered to be performed entirely within ~~such~~ that 
 75.31  state~~;~~. 
 75.32     ~~(2)~~ (b) The commissioner shall participate in ~~any~~ 
 75.33  reciprocal arrangements with other states and the federal 
 75.34  government, or both, for the payment of ~~compensation~~ benefits on 
 75.35  the basis of combining ~~an individual's~~ a claimant's wages and 
 75.36  employment covered under this law with wages and employment 
 76.1   covered under the ~~unemployment compensation~~ reemployment 
 76.2   insurance laws of other states ~~which are approved by the United~~ 
 76.3   ~~States Secretary of Labor in consultation with the state~~ 
 76.4   ~~unemployment compensation agencies as reasonably calculated to~~ 
 76.5   ~~assure the prompt and full payment of compensation in such~~ 
 76.6   ~~situations and which~~ or the federal government that include 
 76.7   provisions for applying the base period of a single state law to 
 76.8   ~~a claim~~ an account involving the combining of ~~an individual's~~ a 
 76.9   claimant's wages and employment ~~covered under two or more state~~ 
 76.10  ~~unemployment compensation laws,~~ and avoiding the duplicate use 
 76.11  of wages ~~and employment~~ by reason of such combining~~;~~.  No 
 76.12  reciprocal arrangement shall be entered into unless it contains 
 76.13  provisions for reimbursements to the fund, by the other state or 
 76.14  the federal government, for benefits paid from the fund to 
 76.15  claimants based upon wages and employment covered under the laws 
 76.16  of the other state or the federal government. 
 76.17     ~~(3)~~ (c) On any reciprocal arrangement, the wages ~~or~~ 
 76.18  ~~services, upon the basis of which an individual may become~~ 
 76.19  ~~entitled to benefits~~ paid a claimant from employment covered 
 76.20  under ~~an employment security~~ a reemployment insurance law of 
 76.21  another state or of the federal government, shall be ~~deemed to~~ 
 76.22  ~~be~~ considered wages ~~for insured work~~ from covered employment for 
 76.23  the purpose of determining the ~~individual's~~ claimant's rights to 
 76.24  benefits under sections 268.03 to 268.23.~~, and wages for insured~~ 
 76.25  ~~work, on the basis of which an individual may become entitled to~~ 
 76.26  ~~benefits thereunder shall be deemed to be wages or services on~~ 
 76.27  ~~the basis of which unemployment compensation under such law of~~ 
 76.28  ~~another state or of the federal government is payable, but no~~ 
 76.29  ~~such arrangement shall be entered into unless it contains~~ 
 76.30  ~~provisions for reimbursements to the fund for such of the~~ 
 76.31  ~~benefits paid thereunder upon the basis of such wages or~~ 
 76.32  ~~service, and provisions for reimbursements from the fund for~~ 
 76.33  ~~such of the compensation paid under such other law upon the~~ 
 76.34  ~~basis of wages for insured work;~~ 
 76.35     ~~(4) Contributions due thereunder with respect to wages for~~ 
 76.36  ~~insured work shall for the purpose of section 268.057 be deemed~~ 
 77.1   ~~to have been paid to the fund as of the date payment was made as~~ 
 77.2   ~~contributions therefor under another state or federal employment~~ 
 77.3   ~~security law, but no such arrangement shall be entered into~~ 
 77.4   ~~unless it contains provisions for such reimbursement to the fund~~ 
 77.5   ~~of such contributions and the actual earnings thereon.~~  
 77.6      Sec. 34.  Minnesota Statutes 1997 Supplement, section 
 77.7   268.13, subdivision 2, is amended to read: 
 77.8      Subd. 2.  [REIMBURSEMENTS.] ~~Reimbursements paid from the~~ 
 77.9   ~~fund pursuant to subdivision 1 shall be deemed to be benefits~~ 
 77.10  ~~for the purposes of sections 268.045 to 268.194.~~  The 
 77.11  commissioner is authorized to make to other state or federal 
 77.12  agencies and to receive from ~~such~~ other state or federal 
 77.13  agencies, reimbursements from or to the fund, in accordance with 
 77.14  reciprocal arrangements entered into pursuant to ~~subdivision 1~~ 
 77.15  section 268.131. 
 77.16     Sec. 35.  Minnesota Statutes 1996, section 268.13, 
 77.17  subdivision 4, is amended to read: 
 77.18     Subd. 4.  [~~UTILIZATION OF FEDERAL BENEFITS~~ COOPERATION WITH 
 77.19  FOREIGN GOVERNMENTS.] ~~To the extent permissible under the laws~~ 
 77.20  ~~and Constitution of the United States,~~ The commissioner is 
 77.21  authorized to enter into or cooperate in arrangements whereby 
 77.22  facilities and services provided under sections 268.03 to 268.23 
 77.23  and facilities and services provided under the ~~employment~~ 
 77.24  ~~security~~ reemployment insurance law of any foreign government, 
 77.25  may be ~~utilized~~ used for the taking of applications for benefits 
 77.26  and continued claims and the payment of benefits under ~~the~~ 
 77.27  ~~employment security~~ this law ~~of this state~~ or under a similar 
 77.28  law of ~~such~~ a foreign government.  
 77.29     Sec. 36.  Minnesota Statutes 1996, section 268.18, as 
 77.30  amended by Laws 1997, chapter 66, sections 71, 72, 73, 74, 75, 
 77.31  76, and 81, is amended to read: 
 77.32     268.18 [RETURN OF BENEFITS; OFFENSES.] 
 77.33     Subdivision 1.  [ERRONEOUS PAYMENTS.] (a) Any claimant who, 
 77.34  by reason of the claimant's own mistake or through the error of 
 77.35  any individual engaged in the administration of this chapter or 
 77.36  because of a determination, redetermination, or amended 
 78.1   determination issued pursuant to section 268.07 or 268.101, has 
 78.2   received any benefits that the claimant was not entitled to, 
 78.3   shall promptly repay the benefits to the department.  If the 
 78.4   claimant fails to repay the benefits, the 
 78.5   ~~department~~ commissioner shall, as soon as the erroneous payment 
 78.6   is discovered, determine the amount due and notify the claimant 
 78.7   in writing to repay the benefits. 
 78.8      (b) Unless the claimant files an appeal within ~~15~~ 30 
 78.9   calendar days after the mailing of the determination of 
 78.10  overpayment to the claimant's last known address, the 
 78.11  determination shall become final.  Proceedings on the appeal 
 78.12  shall be conducted in accordance with section 268.105.  A 
 78.13  claimant may not collaterally attack, by way of an appeal to an 
 78.14  overpayment determination, any prior determination issued 
 78.15  pursuant to section 268.07 or 268.101, or decision issued 
 78.16  pursuant to section 268.105, that has become final. 
 78.17     (c) If the claimant fails to repay the benefits, the 
 78.18  commissioner may deduct from any future benefits payable to the 
 78.19  claimant in ~~either~~ the current or any subsequent benefit year ~~an~~ 
 78.20  the amount ~~equivalent to~~ of the overpayment ~~determined~~, except 
 78.21  that no single deduction under this subdivision shall exceed 50 
 78.22  percent of the amount of the payment from which the deduction is 
 78.23  made, or the overpayment may be collected the same as delinquent 
 78.24  ~~contributions~~ taxes.  A determination of overpayment shall state 
 78.25  the methods of collection the commissioner ~~will~~ may use to 
 78.26  recover the overpayment.  
 78.27     (d) If a claimant has been overpaid benefits under the law 
 78.28  of another state because of an error and that state certifies to 
 78.29  the ~~department~~ commissioner that the claimant is liable under 
 78.30  its law to repay the benefits and requests the ~~department~~ 
 78.31  commissioner to recover the overpayment, the commissioner may 
 78.32  deduct from future benefits payable to the claimant in ~~either~~ 
 78.33  the current or any subsequent benefit year ~~an amount equivalent~~ 
 78.34  ~~to~~ the amount of overpayment ~~determined by that state~~, except 
 78.35  that no single deduction under this subdivision shall exceed 50 
 78.36  percent of the amount of the payment from which the deduction is 
 79.1   made.  
 79.2      ~~(d)~~ (e) Benefits paid for weeks more than three years prior 
 79.3   to the discovery of error are not erroneous payments. 
 79.4      ~~(e) Notwithstanding paragraph (a), the commissioner shall~~ 
 79.5   ~~waive recovery of an overpayment if the commissioner's~~ 
 79.6   ~~authorized representative under section 268.105, subdivision 3,~~ 
 79.7   ~~determines the overpayment resulted from an administrative~~ 
 79.8   ~~failure to identify that a claimant's wage credits were not~~ 
 79.9   ~~earned in covered employment.  This paragraph shall not apply to~~ 
 79.10  ~~misidentification of an employee-employer relationship.~~ 
 79.11     Subd. 2.  [FRAUD.] (a) Any claimant who receives benefits 
 79.12  by knowingly and willfully misrepresenting, misstating, or 
 79.13  failing to disclose any material fact that would have made the 
 79.14  claimant not entitled to those benefits has committed fraud. 
 79.15  After the discovery of facts indicating fraud, the commissioner 
 79.16  shall make a written determination that the claimant was not 
 79.17  entitled to benefits that were obtained by fraud and that the 
 79.18  claimant must promptly repay the benefits to the department.  In 
 79.19  addition, the commissioner ~~may deny benefits to a claimant for~~ 
 79.20  ~~one to 52 weeks for which the claimant is otherwise entitled to~~ 
 79.21  ~~benefits following the week in which the fraud was determined.~~  
 79.22  ~~A denial imposed for fraud shall not apply to any week more than~~ 
 79.23  ~~104 weeks after the week in which the fraud was determined~~ shall 
 79.24  assess a penalty equal to 25 percent of the amount fraudulently 
 79.25  obtained.  If the claimant had a prior overpayment due to fraud, 
 79.26  the commissioner shall, on the present overpayment, assess a 
 79.27  penalty equal to 50 percent of the amount fraudulently obtained. 
 79.28     (b) Unless the claimant files an appeal within ~~15~~ 30 
 79.29  calendar days after the mailing of the determination of 
 79.30  overpayment by fraud to the claimant's last known address, the 
 79.31  determination shall become final.  Proceedings on the appeal 
 79.32  shall be conducted in accordance with section 268.105.  
 79.33     (c) If the claimant fails to repay the benefits, penalty, 
 79.34  and any interest assessed under subdivision 2b, the commissioner 
 79.35  ~~may~~ shall deduct from future benefits payable to the claimant in 
 79.36  ~~either~~ the current or any subsequent benefit year ~~an amount~~ 
 80.1   ~~equivalent to~~ the amount of overpayment ~~determined~~ or the 
 80.2   ~~overpayment~~ total due may be collected the same as delinquent 
 80.3   ~~contributions~~ taxes.  A determination of overpayment by fraud 
 80.4   shall state the methods of collection the commissioner may use 
 80.5   to recover the overpayment.  Money received in repayment of 
 80.6   fraudulently obtained benefits, penalties, and interest shall 
 80.7   first be applied to the benefits overpaid, then to the penalty 
 80.8   amount due, then to any interest due.  Payments made toward 
 80.9   penalty and interest shall be credited to the contingent account.
 80.10     (d) If a claimant has been overpaid benefits under the law 
 80.11  of another state because of fraud and that state certifies to 
 80.12  the ~~department~~ commissioner that the claimant is liable to repay 
 80.13  the benefits and requests the ~~department~~ commissioner to recover 
 80.14  the overpayment, the commissioner may deduct from future 
 80.15  benefits payable to the claimant in ~~either~~ the current or any 
 80.16  subsequent benefit year ~~an amount equivalent to~~ the amount of 
 80.17  overpayment ~~determined by that state~~.  
 80.18     ~~(d)~~ (e) A determination of overpayment by fraud may be made 
 80.19  at any time.  
 80.20     Subd. 2a.  [OFFSET OF ~~STATE AND~~ FEDERAL ~~UNEMPLOYMENT~~ 
 80.21  BENEFITS.] ~~To the extent permissible under the laws and~~ 
 80.22  ~~constitution of the United States,~~ The commissioner is 
 80.23  authorized to enter into ~~or cooperate in arrangements or~~ 
 80.24  reciprocal agreements with the United States Secretary of Labor, 
 80.25  whereby, overpayments of ~~unemployment~~ benefits as determined 
 80.26  under ~~applicable~~ federal law, with respect to benefits ~~or~~ 
 80.27  ~~allowances for unemployment provided~~ under a federal program 
 80.28  administered by ~~this state under an agreement with the United~~ 
 80.29  ~~States Secretary of Labor~~ Minnesota, may be recovered by offset 
 80.30  from ~~unemployment~~ benefits otherwise payable under this chapter 
 80.31  or any ~~such~~ federal program.  As provided by reciprocal 
 80.32  agreement, benefit overpayments ~~as determined~~ under subdivisions 
 80.33  1 and 2 may be recovered by offset from benefits ~~or allowances~~ 
 80.34  ~~for unemployment~~ otherwise payable under a federal program 
 80.35  ~~administered by this state~~. 
 80.36     Subd. 2b.  [INTEREST.] (a) On any benefits fraudulently 
 81.1   obtained, as determined under subdivision 2, the commissioner 
 81.2   shall have the discretion to assess interest at the rate of 
 81.3   1-1/2 percent per month on any overpaid amount ~~which~~ that 
 81.4   remains unpaid 30 calendar days after the date of the 
 81.5   determination of overpayment by fraud.  A determination of 
 81.6   overpayment by fraud shall state that interest may be assessed. 
 81.7      ~~(b) Any money received in repayment of fraudulently~~ 
 81.8   ~~obtained benefits and interest thereon shall be first applied to~~ 
 81.9   ~~the overpayment balance.~~ 
 81.10     ~~(c) Unpaid interest may be collected the same as delinquent~~ 
 81.11  ~~contributions.~~ 
 81.12     (b) If this subdivision became effective after the date of 
 81.13  the determination of overpayment by fraud, or the determination 
 81.14  did not state that interest may be assessed, interest pursuant 
 81.15  to this subdivision may be assessed beginning 30 calendar days 
 81.16  after written notification to the claimant. 
 81.17     Subd. 4.  [CANCELLATION OF BENEFITS PAID THROUGH ERROR OR 
 81.18  FRAUD.] (a) If benefits paid through error are not repaid or 
 81.19  deducted from subsequent ~~benefit amounts~~ benefits as provided 
 81.20  for in subdivision 1 within six years after the date of the 
 81.21  determination of overpayment, the commissioner shall cancel the 
 81.22  overpayment balance, and no administrative or legal proceedings 
 81.23  shall be used to enforce collection of those amounts.  
 81.24     (b) If benefits paid as a result of fraud including 
 81.25  penalties and interest are not repaid or deducted from 
 81.26  subsequent benefits as provided for in subdivision 2 within ten 
 81.27  years after the date of the determination of overpayment by 
 81.28  fraud, the commissioner shall cancel the overpayment balance and 
 81.29  any penalties and interest due, and no administrative or legal 
 81.30  proceeding shall be used to enforce collection of those amounts. 
 81.31     (c) The commissioner may cancel at any time benefits paid 
 81.32  through error or fraud including penalties and interest that the 
 81.33  commissioner determines are uncollectible due to death or 
 81.34  bankruptcy. 
 81.35     Subd. 4a.  [COURT FEES.] (a) If the commissioner is 
 81.36  required to pay any court fees in an attempt to enforce 
 82.1   collection of overpaid benefits, penalties, or interest, the 
 82.2   commissioner may add the amount of the court fees to the total 
 82.3   amount due. 
 82.4      (b) If a claimant who has been determined overpaid benefits 
 82.5   because of fraud seeks to have any portion of the debt 
 82.6   discharged under the federal bankruptcy code, and the 
 82.7   commissioner files an objection in bankruptcy court to the 
 82.8   discharge, the commissioner may add the commissioner's cost of 
 82.9   any court fees to the debt if the bankruptcy court does not 
 82.10  discharge the debt. 
 82.11     Sec. 37.  Minnesota Statutes 1997 Supplement, section 
 82.12  268.182, is amended to read: 
 82.13     268.182 [FALSE REPRESENTATIONS; CONCEALMENT OF FACTS; 
 82.14  PENALTY.] 
 82.15     (a) Whoever obtains, or attempts to obtain, or aids or 
 82.16  abets any ~~person~~ individual to obtain by means of an intentional 
 82.17  false statement or representation, by intentional concealment of 
 82.18  a material fact, or by impersonation or other fraudulent means, 
 82.19  benefits that the ~~person~~ individual is not entitled or benefits 
 82.20  greater than the ~~person~~ individual is entitled under this 
 82.21  chapter, or under the law of any state or of the federal 
 82.22  government, either personally or for any other ~~person~~ 
 82.23  individual, is guilty of theft and shall be sentenced pursuant 
 82.24  to section 609.52.  ~~The amount of the benefits incorrectly paid~~ 
 82.25  ~~shall be the difference between the amount of benefits paid and~~ 
 82.26  ~~the amount that the claimant would have been entitled under~~ 
 82.27  ~~state and federal law had the department been informed of all~~ 
 82.28  ~~material facts.~~ 
 82.29     (b) Any individual who violates paragraph (a) may be 
 82.30  assessed an administrative penalty of denial of benefits for one 
 82.31  to 52 weeks that the individual would otherwise be entitled to 
 82.32  benefits.  A denial shall not apply to any week more than 2 
 82.33  years after the week that the violation of paragraph (a) was 
 82.34  determined.  A written determination of denial shall be mailed 
 82.35  to the individual's last known address.  Unless an appeal is 
 82.36  filed within 30 calendar days of mailing, the determination 
 83.1   shall be final.  Proceeding on the appeal shall be conducted in 
 83.2   accordance with section 268.105.  This paragraph shall not apply 
 83.3   if prosecution is commenced under paragraph (a) or a penalty is 
 83.4   imposed under section 268.18, subdivision 2. 
 83.5      ~~(b)~~ (c) Any ~~employing unit~~ employer or any officer or agent 
 83.6   of an ~~employing unit~~ employer or any other person who makes a 
 83.7   false statement or representation knowing it to be false, or who 
 83.8   knowingly fails to disclose a material fact, to prevent or 
 83.9   reduce the payment of benefits to any claimant, is guilty of a 
 83.10  gross misdemeanor unless the benefit underpayment exceeds $500, 
 83.11  in that case the person is guilty of a felony.  
 83.12     Sec. 38.  Minnesota Statutes 1997 Supplement, section 
 83.13  268.184, is amended to read: 
 83.14     268.184 [EMPLOYER MISCONDUCT; PENALTY.] 
 83.15     (a) If the commissioner finds that any ~~employing unit~~ 
 83.16  employer or any employee, officer, or agent of any ~~employing~~ 
 83.17  ~~unit~~ employer, is in collusion with any claimant for the purpose 
 83.18  of assisting the claimant to receive benefits illegally, 
 83.19  the ~~employing unit~~ employer shall be penalized $500 or ~~an amount~~ 
 83.20  ~~equal to~~ the amount of benefits determined to be overpaid, 
 83.21  whichever is greater. 
 83.22     (b) If the commissioner finds that any employer or any 
 83.23  employee, officer, or agent of an employer has made (1) a false 
 83.24  statement or representation knowing it to be false, or (2) has 
 83.25  made a false statement or representation without a good faith 
 83.26  belief as to correctness of the statement or representation, or 
 83.27  (3) who knowingly fails to disclose a material fact, to prevent 
 83.28  or reduce the payment of benefits to any claimant or to reduce 
 83.29  or prevent a charge of benefits to its account, the employer 
 83.30  shall be penalized $500. 
 83.31     (c) Penalties ~~assessed~~ under this section shall be in 
 83.32  addition to any other penalties ~~provided for~~ and ~~be~~ subject to 
 83.33  the same collection procedures that apply to past 
 83.34  due ~~contributions under this chapter~~ taxes.  Penalties ~~under~~ 
 83.35  ~~this section~~ shall be paid to the department within 30 calendar 
 83.36  days of assessment and credited to the contingent ~~fund~~ account. 
 84.1      (d) The assessment of the penalty shall be final unless the 
 84.2   ~~employing unit~~ employer files ~~a written~~ an appeal within 30 
 84.3   calendar days after the ~~mailing~~ sending of ~~the~~ notice of the 
 84.4   penalty to the ~~employer's last known address~~ employer by mail or 
 84.5   electronic transmission.  Proceedings on the appeal shall be 
 84.6   conducted in accordance with section 268.105. 
 84.7      Sec. 39.  Minnesota Statutes 1997 Supplement, section 
 84.8   268.192, subdivision 1, is amended to read: 
 84.9      Subdivision 1.  [WAIVER OF RIGHTS VOID.] Any agreement by 
 84.10  an individual to waive, release, or commute rights to benefits 
 84.11  or any other rights under sections 268.03 to 268.23 shall be 
 84.12  void.  Any agreement by ~~any individual in the employ of any~~ 
 84.13  ~~person or concern~~ an employee to pay all or any portion of an 
 84.14  employer's ~~contributions, required under these sections from~~ 
 84.15  ~~such employer~~ taxes, shall be void.  No employer shall directly 
 84.16  or indirectly make or require or accept any deduction from wages 
 84.17  to ~~finance~~ pay the employer's ~~contributions~~ taxes, require or 
 84.18  accept any waiver of any right ~~hereunder by any employed~~ 
 84.19  ~~individual~~ or in any manner obstruct or impede ~~the filing of~~ 
 84.20  ~~claims~~ an application or continued claim for benefits.  Any 
 84.21  employer or officer or agent of any employer who violates any 
 84.22  ~~provision~~ portion of this subdivision shall, for each offense, 
 84.23  be guilty of a misdemeanor.  
 84.24     Sec. 40.  Minnesota Statutes 1997 Supplement, section 
 84.25  268.194, subdivision 2, is amended to read: 
 84.26     Subd. 2.  [COMMISSIONER OF FINANCE TO BE CUSTODIAN; 
 84.27  SEPARATE ACCOUNTS~~; BONDS~~.] The commissioner of finance shall 
 84.28  be ~~ex officio~~ the treasurer and custodian of the fund, 
 84.29  administer the fund in accordance with the directions of the 
 84.30  commissioner, and issue warrants upon it ~~in accordance with such~~ 
 84.31  ~~rules as the commissioner shall prescribe~~.  The commissioner of 
 84.32  finance shall maintain within the fund three separate accounts: 
 84.33     (1) a clearing account; 
 84.34     (2) an unemployment trust fund account; and 
 84.35     (3) a benefit account.  
 84.36     All money payable to the fund, upon receipt ~~thereof~~ by the 
 85.1   commissioner, shall be forwarded to the commissioner of finance 
 85.2   who shall immediately deposit ~~them~~ the money in the clearing 
 85.3   account.  All money in the clearing account, after 
 85.4   clearance ~~thereof~~, shall, except as ~~herein~~ otherwise provided, 
 85.5   be immediately deposited ~~with the secretary of the treasury of~~ 
 85.6   ~~the United States~~ to the credit of the account of ~~this state~~ 
 85.7   Minnesota in the federal unemployment trust fund ~~established and~~ 
 85.8   ~~maintained pursuant to section 904 of the Social Security Act,~~ 
 85.9   ~~as amended, any provisions of law in this state relating to the~~ 
 85.10  ~~deposit, administration, release, or disbursement of money in~~ 
 85.11  ~~the possession or custody of this state to the contrary~~ 
 85.12  ~~notwithstanding~~.  Refunds payable pursuant to ~~sections~~ section 
 85.13  ~~268.04, subdivision 12, clause (8) (f), and~~ 268.057~~, subdivision~~ 
 85.14  ~~7,~~ may be paid from the clearing account or the benefit 
 85.15  account.  The benefit account shall consist of all money 
 85.16  requisitioned from ~~this state's~~ Minnesota's account in the 
 85.17  federal unemployment trust fund ~~in the United States Treasury~~ 
 85.18  for the payment of benefits.  ~~Except as herein otherwise~~ 
 85.19  ~~provided,~~ Money in the clearing and benefit accounts may be 
 85.20  deposited by the commissioner of finance, under the direction of 
 85.21  the commissioner, in any depository bank ~~in which~~ that general 
 85.22  funds of ~~the state~~ Minnesota may be deposited, but no public 
 85.23  deposit insurance charge or premium shall be paid out of the 
 85.24  fund.  Money in the clearing and benefit accounts shall not be 
 85.25  commingled with other state funds, but shall be maintained in 
 85.26  separate accounts on the books of the depository bank.  ~~Such~~ 
 85.27  This money shall be secured by the depository bank to the same 
 85.28  extent and in the same manner as required by the general 
 85.29  depository law of ~~this state~~ Minnesota; and collateral pledged 
 85.30  for this purpose shall be kept separate and distinct from any 
 85.31  collateral pledged to secure other funds of ~~the~~ 
 85.32  ~~state~~ Minnesota.  All sums recovered for losses sustained by the 
 85.33  fund shall be deposited ~~therein~~ in the fund.  
 85.34     Sec. 41.  Minnesota Statutes 1997 Supplement, section 
 85.35  268.194, subdivision 3, is amended to read: 
 85.36     Subd. 3.  [WITHDRAWALS.] (1) ~~Moneys~~ Money requisitioned 
 86.1   from ~~this state's~~ Minnesota's account in the federal 
 86.2   unemployment trust fund shall be used exclusively for the 
 86.3   payment of benefits and for refunds pursuant to ~~sections 268.04,~~ 
 86.4   ~~subdivision 12, clause (8) (f), and~~ section 268.057, ~~subdivision~~ 
 86.5   ~~7,~~ except that money credited to ~~this state's~~ Minnesota's 
 86.6   account pursuant to United States Code, title 42, section ~~903~~ 
 86.7   1103 of the Social Security Act~~, as amended,~~ shall be used 
 86.8   exclusively ~~as provided in subdivision 5 of this section~~ for the 
 86.9   payment of expenses of administration.  The commissioner ~~or a~~ 
 86.10  ~~duly authorized agent for that purpose,~~ shall from time to time 
 86.11  requisition from the federal unemployment trust fund ~~such~~ the 
 86.12  amounts, not exceeding the amount ~~standing to this state's~~ in 
 86.13  Minnesota's account ~~therein~~, ~~as~~ the commissioner ~~deems~~ 
 86.14  considers necessary for the payment of ~~such~~ benefits and refunds 
 86.15  for a reasonable future period.  Upon receipt ~~thereof~~ the 
 86.16  ~~treasurer~~ commissioner of finance shall deposit ~~such moneys~~ the 
 86.17  money in the benefit account and issue warrants for the payment 
 86.18  of benefits solely from ~~such~~ the benefit account.  Expenditures 
 86.19  of ~~such moneys~~ money in the benefit account and refunds from the 
 86.20  clearing account shall not be subject to any provisions of law 
 86.21  requiring specific appropriations or other formal release by 
 86.22  state officers ~~of money in their custody~~.  All warrants 
 86.23  issued ~~by the treasurer~~ for the payment of benefits and refunds 
 86.24  shall bear the signature of the ~~treasurer~~ commissioner of 
 86.25  finance and the counter signature of the commissioner ~~or a duly~~ 
 86.26  ~~authorized agent for that purpose~~.  
 86.27     (2) Any balance of ~~moneys~~ money requisitioned from the 
 86.28  unemployment trust fund ~~which~~ that remains unclaimed or unpaid 
 86.29  in the benefit account after the expiration of the period for 
 86.30  which ~~such~~ the sums were requisitioned shall either be deducted 
 86.31  from estimates for, and may be utilized for the payment of, 
 86.32  benefits and refunds during ~~succeeding~~ following periods or, in 
 86.33  the discretion of the commissioner, shall be redeposited ~~with~~ 
 86.34  ~~the secretary of the treasury of the United States, to the~~ 
 86.35  ~~credit of this state's account~~ in the federal unemployment trust 
 86.36  fund, as provided in subdivision 2. 
 87.1      Sec. 42.  Minnesota Statutes 1997 Supplement, section 
 87.2   268.194, subdivision 6, is amended to read: 
 87.3      Subd. 6.  [ADVANCE ON FEDERAL FUNDS.] ~~(1)~~ (a) The governor 
 87.4   is hereby authorized to make application as may be necessary to 
 87.5   secure ~~any~~ an advance of funds ~~by the secretary of the treasury~~ 
 87.6   ~~of the United States in accordance with the authority extended~~ 
 87.7   ~~under section 1201~~ from the federal unemployment trust fund in 
 87.8   accordance with United States Code, title 42, section 1321, of 
 87.9   the Social Security Act~~, as amended~~. 
 87.10     ~~(2)~~ (b) Any amount transferred to the ~~Minnesota~~ 
 87.11  ~~reemployment insurance~~ fund ~~by the secretary of the treasury of~~ 
 87.12  ~~the United States~~ under the terms of any application ~~made~~ 
 87.13  ~~pursuant to this subdivision~~ shall be repayable ~~in the manner~~ as 
 87.14  provided in United States Code, title 42, sections ~~901(d) 1,~~ 
 87.15  ~~903(b) 2 and 1202~~ 1101(d)(1), 1103(b)(2), and 1322, of the 
 87.16  Social Security Act~~, as amended~~. 
 87.17     (c) Interest payable on any advance shall be paid in 
 87.18  accordance with section 268.051, subdivision 8, paragraph (b). 
 87.19     Sec. 43.  Minnesota Statutes 1997 Supplement, section 
 87.20  268.196, subdivision 2, is amended to read: 
 87.21     Subd. 2.  [STATE TO REPLACE ~~MONEYS~~ MONEY WRONGFULLY USED.] 
 87.22  If any ~~moneys~~ money received ~~after June 30, 1941,~~ under ~~Title~~ 
 87.23  ~~III~~ United States Code, title 42, section 501, of the ~~Federal~~ 
 87.24  Social Security Act~~, or any unencumbered balances in the~~ 
 87.25  ~~economic security administration fund as of that date,~~ or ~~any~~ 
 87.26  ~~moneys granted after that date to the state pursuant to the~~ 
 87.27  ~~provisions of~~ the Wagner-Peyser Act, are found by the United 
 87.28  States Secretary of Labor, because of any action or contingency, 
 87.29  to have been lost or been expended for purposes other than, or 
 87.30  in amounts in excess of, those found necessary by the secretary 
 87.31  of labor for the proper administration of these sections, the 
 87.32  commissioner may, with the approval of the commissioner of 
 87.33  administration, replace ~~such moneys~~ the money from the ~~economic~~ 
 87.34  ~~security~~ contingent ~~fund hereinafter established~~ account.  
 87.35  If ~~such moneys are~~ the money is not ~~thus~~ replaced from the 
 87.36  contingent account, it is the policy of this state that ~~such~~ 
 88.1   ~~moneys shall~~ the money be replaced by ~~moneys~~ money appropriated 
 88.2   for ~~such~~ that purpose from the general funds of this state ~~to~~ 
 88.3   ~~the economic security administration fund for expenditure as~~ 
 88.4   ~~provided in subdivision 1~~.  Upon receipt of ~~notice of such~~ a 
 88.5   finding by the secretary of labor, the commissioner shall 
 88.6   promptly report the amount required for ~~such~~ replacement to the 
 88.7   governor and the governor shall, at the earliest opportunity, 
 88.8   submit to the legislature a request for the appropriation 
 88.9   of ~~such~~ that amount.  ~~This subdivision shall not be construed to~~ 
 88.10  ~~relieve this state of its obligation with respect to funds~~ 
 88.11  ~~received prior to July 1, 1941, pursuant to the provisions of~~ 
 88.12  ~~Title III of the Social Security Act.~~  
 88.13     Sec. 44.  [INSTRUCTION TO REVISOR.] 
 88.14     The revisor of statutes shall change the words "employing 
 88.15  unit" to "employer" wherever it occurs in Minnesota Statutes, 
 88.16  sections 268.03 to 268.23. 
 88.17     The revisor of statutes shall change the words "employing 
 88.18  units" to "employers" wherever it occurs in Minnesota Statutes, 
 88.19  sections 268.03 to 268.23. 
 88.20     The revisor of statutes shall change the words 
 88.21  "agricultural labor" to "agricultural employment" wherever it 
 88.22  occurs in Minnesota Statutes, sections 268.03 to 268.23. 
 88.23     The revisor of statutes shall change the word 
 88.24  "remuneration" to "compensation" wherever it occurs in Minnesota 
 88.25  Statutes, sections 268.03 to 268.23. 
 88.26     The revisor of statutes shall change the words "department 
 88.27  of economic security" to "department" wherever it occurs in 
 88.28  Minnesota Statutes, sections 268.03 to 268.23. 
 88.29     The revisor of statutes shall change the word "deemed" to 
 88.30  "considered" wherever it occurs in Minnesota Statutes, sections 
 88.31  268.03 to 268.23. 
 88.32     Sec. 45.  [INSTRUCTION TO REVISOR.] 
 88.33     The revisor of statutes shall renumber each section of 
 88.34  Minnesota Statutes specified in column A with the number set 
 88.35  forth in column B.  The revisor shall also make necessary 
 88.36  cross-reference changes consistent with the renumbering. 
 89.1      Column A                        Column B
 89.2      268.08                          268.085
 89.3      268.08, subd. 1                 268.085, subd. 1
 89.4      268.08, subd. 1a                268.087
 89.5      268.08, subd. 2                 268.085, subd. 2
 89.6      268.08, subd. 2a                268.085, subd. 13
 89.7      268.08, subd. 3                 268.085, subd. 3
 89.8      268.08, subd. 3a                268.085, subd. 5
 89.9      268.08, subd. 3b                268.085, subd. 6
 89.10     268.08, subd. 4                 268.085, subd. 4
 89.11     268.08, subd. 6                 268.085, subd. 7
 89.12     268.08, subd. 7                 268.085, subd. 11
 89.13     268.08, subd. 8                 268.085, subd. 12
 89.14     268.08, subd. 9                 268.085, subd. 8
 89.15     268.08, subd. 10                268.085, subd. 10
 89.16     268.08, subd. 11                268.085, subd. 9
 89.17     268.09                          268.095
 89.18     268.09, subd. 1a                268.095, subd. 1
 89.19     268.09, subd. 2a                268.095, subd. 2
 89.20     268.09, subd. 9                 268.095, subd. 3
 89.21     268.09, subd. 10                268.095, subd. 4
 89.22     268.09, subd. 11                268.095, subd. 5
 89.23     268.09, subd. 12                268.095, subd. 6
 89.24     268.09, subd. 13                268.095, subd. 7
 89.25     268.09, subd. 14                268.095, subd. 8
 89.26     268.09, subd. 15                268.095, subd. 9
 89.27     268.09, subd. 16                268.095, subd. 10
 89.28     268.09, subd. 17                268.095, subd. 11
 89.29     268.09, subd. 18                268.095, subd. 12
 89.30     268.13                          268.131
 89.31     268.13, subd. 1, para. (a)      268.042, subd. 4
 89.32     268.13, subd. 1, para. (b)      268.131, subd. 1, para. (a)
 89.33     268.13, subd. 1, para. (c)      268.131, subd. 1, para. (b)
 89.34     268.13, subd. 2                 268.194, subd. 3a
 89.35     268.13, subd. 4                 268.131, subd. 2
 89.36     268.18, subd. 2a                268.18, subd. 3a
 90.1      Sec. 46.  [REPEALER.] 
 90.2      Minnesota Statutes 1996, sections 268.04, as amended by 
 90.3   Laws 1997, chapter 66, sections 3 to 9; 268.13, subdivisions 3 
 90.4   and 5; and 268.25; and Minnesota Statutes 1997 Supplement, 
 90.5   sections 268.042, subdivision 2; and 268.054, are repealed.  
 90.6   Minnesota Statutes 1996, Section 268.08, subdivision 5a, is 
 90.7   repealed effective December 31, 1998. 
 90.8      Sec. 47.  [EFFECTIVE DATE.] 
 90.9      Section 1 is effective the day following final enactment.  
 90.10  Section 4, subdivision 23, is effective the day following final 
 90.11  enactment.  Section 24, subdivision 6, is effective the day 
 90.12  following final enactment.  Section 31 is effective the day 
 90.13  following final enactment.  Section 36, subdivision 2, paragraph 
 90.14  (a), is effective for determinations issued on or after July 1, 
 90.15  1999.