CHAPTER 268. Department of economic security

     268.001 Citation; Economic Security Law. 

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

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

  268.01 Repealed, 1965 c 45 s 73 

  268.011 Repealed, 1Sp1985 c 14 art 9 s 78 subd 1 

     268.0111 Definitions. 

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

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

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 Repealed, 1987 c 403 art 2 s 164 

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

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

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

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

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

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

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

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

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

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

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

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

    Subd. 7.    Public assistance.  "Public assistance" 
 means aid to families with dependent children, Minnesota family 
 investment program-statewide, and general assistance.  

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

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

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

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

     268.0121 Creation. 

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

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

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

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

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

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

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

     268.0122 Powers and duties. 

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

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

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

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

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

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

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

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

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

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

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

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

    (1) administer the reemployment insurance benefits laws and 
 related programs; 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

     268.0124 Plain language in written materials. 

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

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

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

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

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

     268.0125 Annual report to legislature. 

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

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

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

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

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

    HIST: 1996 c 339 s 5 

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

     268.014 Cooperation with other state agencies. 

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

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

  268.02 Repealed, 1965 c 45 s 73 

     268.021 Rules. 

    The commissioner of the department of economic security is 
 authorized to adopt rules in accordance with chapter 14, with 
 respect to programs the commissioner administers under this 
 chapter and other programs for which the commissioner is 
 responsible under federal or state law.  

    HIST: 1983 c 268 s 1; 1984 c 640 s 32; 1Sp1985 c 14 art 9 s 
 75; 1994 c 483 s 1; 1995 c 233 art 2 s 56 

     268.022 Workforce investment fund. 

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

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

    (c) Notwithstanding any provision to the contrary, if on 
 June 30 of any year the unobligated balance of the special 
 assessment fund under this section is greater than $30,000,000, 
 the special assessment for the following year only shall be 
 levied at a rate of 1/20th of one percent on all taxable wages. 

    Subd. 2.    Disbursement of special assessment funds.  
 (a) The money collected under this section shall be deposited in 
 the state treasury and credited to a dedicated fund to provide 
 for the employment and training programs established under 
 sections 268.975 to 268.98; including vocational guidance, 
 training, placement, and job development. 

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

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

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

    (e) The dedicated funds, less amounts under paragraphs (c) 
 and (d) shall be allocated as follows:  

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

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

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

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

  268.025 Repealed, 1965 c 45 s 73 

  268.026 Repealed, 1997 c 66 s 81 

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

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

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

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

     268.03 Declaration of public policy. 

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

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

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

     268.035 Definitions. 

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

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

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

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

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

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

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

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

    Subd. 3.    Back pay.  "Back pay" means a retroactive 
 payment of money by an employer to an employee or former 
 employee for lost wages because of the employer's noncompliance 
 with a state or federal law or a collective bargaining agreement 
 as determined by an arbitration award, administrative or 
 judicial decision, or negotiated settlement.  The payment shall 
 be applied to the period immediately following the last day of 
 employment or as specified in the award, decision, or settlement.

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

    (1) the first four of the last five completed calendar 
 quarters immediately prior to the effective date of a claimant's 
 reemployment insurance account; 

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

    (i) if a claimant was compensated for a loss of work of 
 seven to 13 weeks, the original base period shall be extended to 
 include the one calendar quarter prior to the original base 
 period; 

    (ii) if a claimant was compensated for a loss of work of 14 
 to 26 weeks, the original base period shall be extended to 
 include the two calendar quarters prior to the original base 
 period; 

    (iii) if a claimant was compensated for a loss of work of 
 27 to 39 weeks, the original base period shall be extended to 
 include the three calendar quarters prior to the original base 
 period; and 

    (iv) if a claimant was compensated for a loss of work of 40 
 to 52 weeks, the original base period shall be extended to 
 include the four quarters prior to the original base period; 

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

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

    Subd. 5.    Benefits.  "Benefits" means the money 
 payments payable to a claimant, as provided in sections 268.03 
 to 268.23, with respect to the claimant's unemployment. 

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

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

    Subd. 8.    Claimant.  "Claimant" means an individual 
 who has made an application for a reemployment insurance account 
 and has established or is actively pursuing the establishment of 
 a reemployment insurance account. 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    (1) an employee's entire employment if: 

    (i) the employment is performed entirely in Minnesota; 

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

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

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

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

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

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

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

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

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

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

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

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

    (5) for the purposes of satisfying disqualifications under 
 section 268.095, subdivision 10, "covered employment" shall 
 include covered employment under a similar law of any other 
 state or employment covered under a reemployment insurance 
 system established by an act of Congress; and 

    (6) periods for which an individual receives back pay are 
 periods of "covered employment," except for the satisfying of 
 disqualifications under section 268.095, subdivision 10. 

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

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

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

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

    (3) any organization or person that is considered an 
 employer under United States Code, title 26, section 3306(a) of 
 the Federal Unemployment Tax Act; 

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

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

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

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

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

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

    (2) an officer of a corporation; 

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

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

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

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

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

    (5) an individual whose service is considered employment 
 under United States Code, title 26, section 3306(c), of the 
 Federal Unemployment Tax Act. 

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

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

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

    Subd. 18.    Fund.  "Fund" means the Minnesota 
 reemployment insurance fund established by section 268.194. 

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

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

    (1) employment for the United States government or an 
 instrumentality thereof; 

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

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

    (4) employment for a foreign government; 

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

    (6) employment with respect to which reemployment insurance 
 benefits are payable under a system established by an act of 
 Congress; 

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

    (8) employment for a religious, charitable, education, or 
 other organization described in United States Code, title 26, 
 section 501(c)(3) of the federal Internal Revenue Code and 
 exempt from income tax under section 501(a), but only if the 
 organization did not have one or more individuals in employment 
 for some portion of a day in each of 20 different weeks, whether 
 or not such weeks were consecutive, within either the current or 
 the prior calendar year, regardless of whether they were 
 employed at the same time; 

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

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

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

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

    (13) employment in any calendar quarter for any 
 organization exempt from income tax under United States Code, 
 title 26, section 501(a) or 521 of the federal Internal Revenue 
 Code except a trust described in section 401(a), if the 
 compensation for the employment is less than $50; 

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

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

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

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

    (18) employment for Minnesota that is a major nontenured 
 policy making or advisory position in the unclassified service; 

    (19) employment in a policy making position for Minnesota 
 or a political subdivision, the performance of the duties that 
 ordinarily does not require more than eight hours per week; 

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

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

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

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

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

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

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

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

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

    (28) employment as a student nurse for a hospital or a 
 nurses' training school by an individual who is enrolled and is 
 regularly attending classes in a nurses' training school 
 chartered and approved pursuant to state law; 

    (29) employment as an intern for a hospital by an 
 individual who has completed a four-year course in a medical 
 school chartered and approved pursuant to state law; 

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

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

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

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

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

    (35) casual labor not in the course of the employer's trade 
 or business; 

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

    (37) if the employment during one-half or more of any pay 
 period constitutes covered employment, all the employment for 
 the period shall be considered covered employment; but if the 
 employment performed during more than one-half of any pay period 
 does not constitute covered employment, then none of the 
 employment for the period shall be considered covered 
 employment.  "Pay period" means a period of not more than a 
 calendar month for which a payment or compensation is ordinarily 
 made to the employee by the employer. 

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

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

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

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

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

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

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

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

    Subd. 24.    Taxable wages.  (a) "Taxable wages" means 
 those wages paid to an employee in covered employment each 
 calendar year up to an amount equal to 60 percent of the state's 
 average annual wage, rounded to the nearest $100. 

    (b) Taxable wages includes the amount of wages paid for 
 covered employment by the employer's predecessor in this state 
 or under the reemployment insurance law of any other state.  Any 
 credit given for amounts reported under the reemployment 
 insurance law of another state shall be limited to that state's 
 taxable wage base. 

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

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

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

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

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

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

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

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

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

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

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

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

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

    Subd. 30.    Wages paid.  "Wages paid" means the amount 
 of wages which have been actually paid or which have been 
 credited to or set apart for the employee so that payment and 
 disposition is under the control of the employee.  Wage payments 
 delayed beyond their regularly scheduled pay date are considered 
 "actually paid" on the missed pay date.  Any wages earned but 
 not paid with no scheduled date of payment shall be considered 
 "actually paid" on the last day services are performed in 
 employment before separation. 

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

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

    Subd. 32.    Weekly benefit amount.  "Weekly benefit 
 amount" means the amount of benefits computed under section 
 268.07, that a claimant would be entitled to receive for a week, 
 if totally unemployed and eligible. 

    HIST: 1998 c 265 s 4 

  268.04 Repealed, 1998 c 265 s 46 

  268.041 Renumbered 268.043 

     268.042 Employers coverage. 

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

    Subd. 2. Repealed, 1998 c 265 s 46 

    Subd. 3.    Election agreements; termination powers of 
 commissioner.  (a) An organization or person, not defined as 
 an employer, that files with the commissioner a written election 
 to become an employer, shall, with the written approval of the 
 commissioner, become an employer for not less than two calendar 
 years to the same extent as all other employers, as of the date 
 stated in the approval.  The organization or person shall cease 
 to be an employer as of the first day of January of any calendar 
 year, only, if at least 30 calendar days prior to the first day 
 of January, the organization or person has filed with the 
 commissioner a written notice to that effect. 

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

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

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

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

    (2) where the employee has a residence, or 

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

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

     268.043 Determinations of coverage. 

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

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

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

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

     268.044 Wage reporting. 

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

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

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

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

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

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

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

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

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

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

     268.045 Employer accounts. 

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

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

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

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

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

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

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

     268.047 Benefits charged to employer. 

    Subdivision 1.    General rule.  Benefits paid to a 
 claimant pursuant to a reemployment insurance account, including 
 extended, additional, and shared work benefits, shall be charged 
 to the account of the claimant's base period employer as and 
 when paid except as provided in subdivisions 2 and 3.  The 
 amount of benefits chargeable to each base period employer's 
 account shall bear the same ratio to the total benefits paid to 
 a claimant as the wage credits the claimant was paid by the 
 employer bear to the total amount of wage credits the claimant 
 was paid by all the claimant's base period employers. 

    In making computations under this subdivision, the amount 
 of wage credits, if not a multiple of $1, shall be computed to 
 the nearest multiple of $1. 

    Subd. 2.    Exceptions to charges for all employers.  
 Benefits paid to a claimant shall not be charged to the account 
 of a taxpaying base period employer or to the account of a base 
 period employer that is liable for payments in lieu of taxes 
 under the following conditions: 

    (1) the claimant was discharged from the employment because 
 of gross misconduct as determined under section 268.095.  This 
 clause shall apply only to benefits paid for weeks after the 
 claimant's discharge from employment; or 

    (2) a claimant's discharge from that employment was 
 required by a law mandating a background check, or the 
 claimant's discharge from that employment was required by law 
 because of a criminal conviction; or 

    (3) the employer: 

    (i) provided regularly scheduled part-time employment to 
 the claimant during the claimant's base period; 

    (ii) during the claimant's benefit year, continues to 
 provide the claimant with regularly scheduled employment 
 approximating 90 percent of the employment provided the claimant 
 by that employer in the base period, or, for a fire department 
 or firefighting corporation or operator of a life-support 
 transportation service, continues to provide employment for a 
 volunteer firefighter or a volunteer ambulance service personnel 
 on the same basis that employment was provided in the base 
 period; and 

    (iii) is an involved employer because of the claimant's 
 loss of other employment.  The exception to charges shall 
 terminate effective the first week in the claimant's benefit 
 year that the employer fails to meet the provisions of subclause 
 (ii); 

    This clause shall apply to educational institution 
 employers without consideration of the period between academic 
 years or terms; or 

    (4) the claimant's unemployment from this employer was 
 directly caused by a major natural disaster declared by the 
 president, if the claimant would have been eligible for federal 
 disaster unemployment assistance with respect to that 
 unemployment but for the claimant's receipt of reemployment 
 insurance benefits; or 

    (5) the claimant's unemployment from this employer was 
 directly caused by the condemnation of property by a 
 governmental agency, a fire, flood, or act of God where 70 
 percent or more of the employees employed in the affected 
 location became unemployed as a result and the employer 
 substantially reopens its operations in that same area within 18 
 months.  Benefits shall be charged to the employer where the 
 unemployment is caused by the willful act of the employer or a 
 person acting on behalf of the employer; or 

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

    (7) on a second reemployment insurance account established 
 pursuant to section 268.07, subdivision 3, where the employer 
 provided 90 percent or more of the wage credits in the 
 claimant's prior base period and the claimant did not perform 
 services for the employer during the second base period; or 

    (8) the claimant left or partially or totally lost 
 employment because of a strike or other labor dispute at the 
 claimant's primary place of employment if the employer was not a 
 party to the strike or labor dispute; or 

    (9) the benefits were determined overpaid benefits under 
 section 268.18. 

    Subd. 3.    Exceptions to charges for taxpaying employers. 
  Benefits paid to a claimant shall not be charged to the 
 account of a taxpaying base period employer under the following 
 conditions: 

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

    (2) the claimant quit the employment, unless it was 
 determined under section 268.095, to have been because of a good 
 reason caused by the employer.  This clause shall apply only to 
 benefits paid for periods after the claimant's quitting the 
 employment; 

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

    (4) the employer discharged the claimant from employment 
 because of reasons resulting directly from the claimant's 
 serious illness, that was determined not misconduct under 
 section 268.095, provided the employer made a reasonable effort 
 to retain the claimant in employment in spite of the claimant's 
 serious illness; or 

    (5) the claimant avoided or failed to accept an offer from 
 the employer of suitable reemployment, as determined under 
 section 268.095, or avoided or failed to accept an offer of 
 reemployment with substantially the same or better hourly wages 
 and conditions of employment as were previously provided by that 
 employer.  This clause shall only apply to benefits paid for 
 periods after the claimant's refusal or avoidance. 

    (6) the claimant was held not disqualified from benefits 
 under section 268.095 solely because of the application of 
 section 268.105, subdivision 3a, paragraph (d). 

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

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

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

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

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

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

    HIST: 1997 c 66 s 10,16,79; 1998 c 265 s 10-12 

     268.048 Benefits not charged in welfare-to-work. 

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

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

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

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

    (b) This section shall only apply to benefit charges 
 accruing after July 1, 1997. 

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

    HIST: 1997 c 66 s 79,80; 1997 c 80 s 1 

*   NOTE:  This section, as added by Laws 1997, chapter 80, 
*section 1, expires July 1, 1999.  Laws 1997, chapter 80, section 
*3.

  268.05 Renumbered 268.194 

     268.051 Employers taxes. 

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

    (1) nonprofit corporations as provided in section 268.053; 
 and 

    (2) the state of Minnesota and political subdivisions as 
 provided in section 268.052.  

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

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

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

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

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

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

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

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

    (c) For the purposes of this subdivision the fund shall not 
 include any money advanced from the federal unemployment trust 
 fund. 

    Subd. 3.    Computation of an employer's experience 
 rating.  (a) For each calendar year, the commissioner shall 
 compute an experience rating for an employer who has been 
 subject to this chapter for at least the 12 calendar months 
 prior to July 1 of the prior calendar year.  The experience 
 rating shall be the ratio obtained by dividing 1-1/4 times the 
 total benefits charged to the employer's account during the 
 period the employer has been subject to this chapter but not 
 less than the 12 or more than the 60 calendar months ending on 
 June 30 of the prior calendar year by the employer's total 
 taxable payroll for the same period. 

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

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

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

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

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

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

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

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

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

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

    (i) If the commissioner finds that a transaction was done, 
 in whole or in part, to avoid an experience rating record or the 
 transfer of an experience rating record, the commissioner may 
 transfer the experience rating record to an employer 
 notwithstanding the requirements of paragraph (a). 

    Subd. 5.    Tax rate for new employers.  (a) Each 
 employer that does not qualify for an experience rating, except 
 employers in the construction industry, shall be assigned a tax 
 rate the higher of (1) one percent, or (2) the state's average 
 cost rate; to a maximum of 5-4/10 percent.  For purposes of this 
 paragraph, the state's average cost rate shall be computed 
 annually and shall be derived by dividing the total amount of 
 benefits paid during the 60 consecutive calendar months prior to 
 July 1 of each year by the total taxable wages of all taxpaying 
 employers during the same period.  This rate shall be applicable 
 for the calendar year following the computation date.  

    (b) Each employer in the construction industry that does 
 not qualify for an experience rating shall be assigned a tax 
 rate, the higher of (1) one percent, or (2) the state's average 
 cost rate for construction employers to a maximum of 8.9 
 percent, plus the applicable minimum tax rate.  For purposes of 
 this paragraph, the state's average cost rate shall be computed 
 annually and shall be derived by dividing the total amount of 
 benefits paid to claimants of construction industry employers 
 during the 60 consecutive calendar months prior to July 1 of 
 each year by the total taxable wages of construction industry 
 employers during the same period.  This rate shall be applicable 
 for the calendar year following the computation date.  

    An employer is considered in the construction industry if 
 the employer is within division C of the Standard Industrial 
 Classification Manual issued by the United States Office of 
 Management and Budget, except as excluded by rules adopted by 
 the commissioner. 

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

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

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

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

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

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

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

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

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

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

     268.0511 Annual payment of small liabilities. 

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

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

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

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

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

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

     268.052 Payment to fund by state and political 
  subdivisions. 

    Subdivision 1.    Payments to fund by state and political 
 subdivisions.  In lieu of taxes, the state of Minnesota or its 
 political subdivisions shall pay into the reemployment insurance 
 fund the amount of benefits charged to its account.  Payments in 
 the amount of benefits charged to the account during a calendar 
 quarter shall be made on or before the last day of the month 
 next following the month in which the notice of benefits charged 
 is mailed to the employer.  Past due payments shall be subject 
 to the same interest charges and collection procedures that 
 apply to past due taxes. 

    Subd. 2.    Election by state or political subdivision to 
 be a taxpaying employer.  (a) The state or political 
 subdivision may elect to be a taxpaying employer for any 
 calendar year if a written notice of election is filed with the 
 commissioner within 30 calendar days following January 1 of that 
 calendar year. 

    An election shall be for a minimum period of two calendar 
 years immediately following the effective date of the election 
 and continue unless a written notice terminating the election is 
 filed with the commissioner not later than 30 calendar days 
 prior to the beginning of the calendar year.  The termination 
 shall be effective at the beginning of the next calendar year. 

    (b) The method of payments to the reemployment insurance 
 fund shall apply to all contributions paid by or due from the 
 state or political subdivision that elects to be taxpaying 
 employers under this subdivision. 

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

    (a) Every self-sustaining department, institution and 
 wholly owned instrumentality of the state shall pay into the 
 fund the amounts the commissioner shall certify has been paid 
 from the fund that were charged to its account.  For the 
 purposes of this clause a "self-sustaining department, 
 institution or wholly owned instrumentality" is one in which the 
 dedicated income and revenue substantially offsets its cost of 
 operation. 

    (b) Every partially self-sustaining department, institution 
 and wholly owned instrumentality of the state shall pay into the 
 fund the proportion of the sum that the commissioner certifies 
 has been paid from the fund as the total of its income and 
 revenue bears to its annual cost of operation. 

    (c) Every department, institution or wholly owned 
 instrumentality of the state which is not self-sustaining shall 
 pay to the fund the amount the commissioner certifies has been 
 paid from the fund which were charged to their accounts to the 
 extent funds are available from appropriated funds. 

    (d) The departments, institutions and wholly owned 
 instrumentalities of the state, including the University of 
 Minnesota, which have money available shall immediately pay the 
 fund for benefits paid which were charged to their accounts upon 
 receiving notification from the commissioner of the charges.  If 
 a claimant was paid by a department, institution or wholly owned 
 instrumentality during the claimant's base period from a special 
 or administrative account or fund provided by law, the payment 
 into the fund shall be made from the special or administrative 
 account or fund with the approval of the department of 
 administration and the amounts are hereby appropriated. 

    (e) For those departments, institutions and wholly owned 
 instrumentalities of the state which cannot immediately pay the 
 fund for benefits that were charged to their accounts, the 
 commissioner shall certify on November 1 of each calendar year 
 to the department of finance the unpaid balances due and owing.  
 Upon receipt of the certification the commissioner of the 
 department of finance shall include the unpaid balances in the 
 biennial budget submitted to the legislature. 

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

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

     268.053 Payment to fund by nonprofit corporations. 

    (a) Any nonprofit organization that is determined to be an 
 employer shall pay taxes unless it elects to make payments in 
 lieu of taxes to the reemployment insurance fund the amount of 
 benefits charged to the employer's account. 

    (1) Any nonprofit organization may elect to become liable 
 for payments in lieu of taxes for a period of not less than two 
 calendar years beginning with the date that the organization was 
 determined to be an employer by filing a written notice of 
 election with the commissioner not later than 30 calendar days 
 immediately following the date of the determination. 

    (2) Any nonprofit organization that makes an election will 
 continue to be liable for payments in lieu of taxes until it 
 files with the commissioner a written notice terminating its 
 election not later than 30 calendar days prior to the beginning 
 of the calendar year for which the termination shall first be 
 effective.  

    (3) Any nonprofit organization that has been paying taxes 
 may change to making payments in lieu of taxes by filing with 
 the commissioner not later than 30 calendar days prior to 
 January 1 of any calendar year a written notice of election to 
 become liable for payments in lieu of taxes.  The election shall 
 not be terminable by the organization for that and the next 
 calendar year. 

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

    (5) The commissioner shall notify each nonprofit 
 organization of any determination of its status as an employer 
 and of the effective date of any election or termination of 
 election.  The determinations shall be final unless a written 
 appeal is filed within 30 calendar days after mailing of the 
 determination.  Proceedings on the appeal shall be conducted in 
 accordance with section 268.105. 

    (b) Payments in lieu of taxes, in the amount of benefits 
 charged to the employer's account, during a calendar quarter, 
 shall be made on or before the last day of the month next 
 following the month in which the notice of benefits charged is 
 mailed to the employer.  

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

    (d) If any nonprofit organization is delinquent in making 
 payments in lieu of taxes, the commissioner may terminate the 
 organization's election to make payments in lieu of taxes as of 
 the beginning of the next calendar year, and the termination 
 shall be effective for that and the following calendar year. 

    (e) For purposes of this subdivision, a nonprofit 
 organization is an organization, or group of organizations, 
 described in section 501(c)(3) of the Internal Revenue Code that 
 is exempt from income tax under section 501(a) of the code. 

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

  268.054 Repealed, 1998 c 265 s 46 

     268.057 Collection of taxes. 

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

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

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

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

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

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

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

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

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

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

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

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

    Subd. 4.    Costs.  Any employer which fails to make and 
 submit reports or pay any taxes or payment in lieu of taxes when 
 due is liable to the department for any recording fees, sheriff 
 fees, costs incurred by referral to any public or private agency 
 outside the department, or litigation costs incurred in the 
 collection of the amounts due or obtaining the reports.  

    If any check or money order, in payment of any amount due 
 under this chapter, is not honored when presented for payment, 
 the employer will be assessed a fee of $20 which is in addition 
 to any other fees provided by this chapter.  The fee shall be 
 assessed regardless of the amount of the check or money order or 
 the reason for nonpayment with the exception of processing 
 errors made by a financial institution. 

    Costs due under this subdivision shall be paid to the 
 department and credited to the administration fund. 

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

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

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

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

    Subd. 8.    Limitation.  Nothing in sections 268.03 to 
 268.23, or any part thereof, shall be construed to authorize any 
 refund of moneys due and payable under the law and rules in 
 effect at the time such moneys were paid. 

    Subd. 9.    Prior decisions.  In the event a final 
 decision on an appeal under section 268.105 determines the 
 amount of taxes due under sections 268.03 to 268.23, then, if 
 the amount, together with interest and penalties, is not paid 
 within 30 days after the decision, the provisions of section 
 268.058 apply.  The commissioner shall proceed thereunder, 
 substituting a certified copy of the final decision in place of 
 the tax report.  A final decision on an appeal under section 
 268.105 is conclusive for all the purposes of sections 268.03 to 
 268.23 except as otherwise provided, and, together with the 
 records therein made, shall be admissible in any subsequent 
 judicial proceeding involving liability for taxes. 

    Subd. 10.    Priorities under legal dissolutions or 
 distributions.  In the event of any distribution of an 
 employer's assets pursuant to an order of any court under the 
 laws of this state, including any receivership, assignment for 
 benefit of creditors, adjudicated insolvency, composition, or 
 similar proceeding, taxes then or thereafter due shall be paid 
 in full prior to all other claims except claims for wages of not 
 more than $250 to each claimant, earned within six months of the 
 commencement of the proceedings.  In the event of an employer's 
 adjudication in bankruptcy, judicially confirmed extension 
 proposal, or composition, under the federal Bankruptcy Act of 
 1898, as amended, taxes then or thereafter due shall be entitled 
 to such priority as is provided in that act for taxes due any 
 state of the United States. 

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

     268.058 Tax and payment in lieu of taxes lien. 

    Subdivision 1.    Lien.  (a) Any taxes, benefit 
 overpayments, or payments in lieu of taxes due under this 
 chapter and interest and penalties imposed with respect thereto, 
 shall become a lien upon all the property, within this state, 
 both real and personal, of the person liable therefor, from the 
 date of assessment of the tax, benefit overpayment, or payment 
 in lieu of taxes.  The term "date of assessment" means the date 
 a report was due or the payment due date of the notice of 
 benefits charged to a payment in lieu of taxes account. 

    (b)(1) The lien imposed by this section is not enforceable 
 against any purchaser, mortgagee, pledgee, holder of a Uniform 
 Commercial Code security interest, mechanic's lien, or judgment 
 lien creditor, until a notice of lien has been filed by the 
 commissioner in the office of the county recorder of the county 
 in which the property is situated, or in the case of personal 
 property belonging to an individual who is not a resident of the 
 state, or which is a corporation, partnership, or other 
 organization, in the office of the secretary of state.  When the 
 filing of the notice of lien is made in the office of the county 
 recorder, the fee for filing and indexing shall be as prescribed 
 in sections 272.483 and 272.484.  

    (2) Notices of liens, lien renewals, and lien releases, in 
 a form prescribed by the commissioner of economic security, may 
 be filed with the county recorder or the secretary of state by 
 mail, personal delivery, or by electronic transmission by the 
 commissioner or a delegate into the computerized filing system 
 of the secretary of state authorized under section 336.9-411.  
 The secretary of state shall transmit the notice electronically 
 to the office of the county recorder, if that is the place of 
 filing, in the county or counties shown on the computer entry.  
 The filing officer, whether the county recorder or the secretary 
 of state, shall endorse and index a printout of the notice in 
 the same manner as if the notice had been mailed or delivered.  

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

    (c) The lien imposed on personal property by this section, 
 even though properly filed, is not enforceable against a 
 purchaser with respect to tangible personal property purchased 
 at retail or as against the personal property listed as exempt 
 in sections 550.37, 550.38 and 550.39. 

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

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

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

    (e) The lien imposed by this section shall be enforceable 
 from the time the lien arises and for ten years from the date of 
 filing the notice of lien.  A notice of lien may be renewed by 
 the commissioner before the expiration of the ten-year period 
 for an additional ten years.  The delinquent employer must 
 receive notice of the renewal. 

    (f) The lien imposed by this section shall be enforceable 
 by levy as authorized in subdivision 8 or by judgment lien 
 foreclosure as authorized in chapter 550.  

    Subd. 2.    Limitation for homestead property.  The lien 
 imposed by this section is a lien upon property defined as 
 homestead property in chapter 510.  The lien may be enforced 
 only upon the sale, transfer, or conveyance of the homestead 
 property. 

    Subd. 3.    Levy.  (a) If any tax or payment in lieu of 
 taxes payable to the department is not paid when due, the amount 
 may be collected by the commissioner, a duly authorized 
 representative, or by the sheriff of any county to whom the 
 commissioner has issued a warrant, who may levy upon all 
 property and rights of property of the person liable for the tax 
 or payment in lieu of taxes, (except that which is exempt from 
 execution pursuant to section 550.37), or property on which 
 there is a lien provided by subdivision 1.  The terms "tax or 
 payment in lieu of taxes" shall include any penalty, interest, 
 and costs.  The term "levy" includes the power of distraint and 
 seizure by any means.  Before a levy is made or warrant issued, 
 notice and demand for payment of the amount due shall be given 
 to the person liable for the tax or payment in lieu of taxes at 
 least ten days prior to the levy or issuing of a warrant.  

    (b) Upon the commissioner issuing a warrant, the sheriff 
 shall proceed within 60 days to levy upon the rights to property 
 of the employer within the employer's county, except the 
 homestead and household goods of the employer and property of 
 the employer not liable to attachment, garnishment, or sale on 
 any final process issued from any court under the provisions of 
 section 550.37, and shall sell so much thereof as is required to 
 satisfy the tax, payment in lieu of taxes, interest, and 
 penalties, together with the commissioner's costs.  The sales 
 shall, as to their manner, be governed by the law applicable to 
 sales of like property on execution issued against property upon 
 a judgment of a court of record.  The proceeds of the sales, 
 less the sheriff's costs, shall be turned over to the 
 commissioner, who shall retain a part thereof as is required to 
 satisfy the tax, payment in lieu of taxes, interest, penalties, 
 and costs, and pay over any balance to the employer.  

    (c) If the commissioner has reason to believe that 
 collection of the tax or payment in lieu of taxes is in 
 jeopardy, notice and demand for immediate payment of the amount 
 may be made by the commissioner.  If the tax or payment in lieu 
 of taxes is not paid, the commissioner may proceed to collect by 
 levy or issue a warrant without regard to the ten-day period 
 provided herein.  

    (d) In making the execution of the levy and in collecting 
 the tax or payment in lieu of taxes due, the commissioner shall 
 have all of the powers provided in chapter 550 and in any other 
 law for purposes of effecting an execution against property in 
 this state.  The sale of property levied upon and the time and 
 manner of redemption therefrom shall be as provided in chapter 
 550.  The seal of the court, subscribed by the court 
 administrator, as provided in section 550.04, shall not be 
 required.  The levy for collection of taxes or payments in lieu 
 of taxes may be made whether or not the commissioner has 
 commenced a legal action for collection of the amount. 

    (e) Where a jeopardy assessment or any other assessment has 
 been made by the commissioner, the property seized for 
 collection of the tax or payment in lieu of taxes shall not be 
 sold until any determination of liability, rate, or benefit 
 charges has become final.  No sale shall be made unless the tax 
 or payment in lieu of taxes remain unpaid for a period of more 
 than 30 days after the determination becomes final.  Seized 
 property may be sold at any time if:  

    (1) the employer consents in writing to the sale; or 

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

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

    (g) The property seized shall be returned by the 
 commissioner if the owner gives a surety bond equal to the 
 appraised value of the owner's interest in the property, as 
 determined by the commissioner, or deposits with the 
 commissioner security in a form and amount as the commissioner 
 deems necessary to insure payment of the liability, but not more 
 than twice the liability. 

    (h) Notwithstanding any other law to the contrary, if a 
 levy or sale pursuant to this section would irreparably injure 
 rights in property which the court determines to be superior to 
 rights of the state in the property, the district court may 
 grant an injunction to prohibit the enforcement of the levy or 
 to prohibit the sale. 

    (i) Any person who fails or refuses to surrender without 
 reasonable cause any property or rights to property subject to 
 levy upon demand by the commissioner shall be personally liable 
 to the department in an amount equal to the value of the 
 property or rights not so surrendered, but not exceeding the 
 amount of tax or payment in lieu of taxes for the collection of 
 which the levy has been made.  Any amount recovered under this 
 subdivision shall be credited against the tax or payment in lieu 
 of taxes liability for the collection of which the levy was 
 made.  The term "person" includes an officer or employee of a 
 corporation or a member or employee of a partnership who, as an 
 officer, employee, or member is under a duty to surrender the 
 property or rights to property or to discharge the obligation.  

    (j) Any action taken by the commissioner pursuant to this 
 subdivision shall not constitute an election by the department 
 to pursue a remedy to the exclusion of any other remedy.  

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

    (l) Any person in possession of (or obligated with respect 
 to) property or rights to property subject to levy upon which a 
 levy has been made who, upon demand by the commissioner, 
 surrenders the property or rights to property or who pays a 
 liability under this subdivision shall be discharged from any 
 obligation or liability to the person liable for the payment of 
 the delinquent tax or payment in lieu of taxes with respect to 
 the property or rights to property so surrendered or paid.  

    (m) Notwithstanding any other provisions of law to the 
 contrary, the notice of any levy authorized by this section may 
 be served by mail or by delivery by an employee or agent of the 
 department. 

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

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

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

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

    Subd. 4.    Right of setoff.  Upon certification by the 
 commissioner to the commissioner of finance or to any state 
 agency which disburses its own funds, that an employer has an 
 uncontested delinquent tax or payment in lieu of taxes liability 
 owed to the department, and that the state has purchased 
 personal services, supplies, contract services, or property from 
 said employer, the commissioner of finance or the state agency 
 shall apply to the delinquent tax or payment in lieu of taxes 
 liability funds sufficient to satisfy the unpaid liability from 
 funds appropriated for payment of said obligation of the state 
 or any of its agencies that are due and owing the employer.  The 
 credit shall not be made against any funds exempt under section 
 550.37 or those funds owed an individual employer who receives 
 assistance under chapter 256. 

    All funds, whether general or dedicated, shall be subject 
 to setoff in the manner provided in this subdivision.  Transfer 
 of funds in payment of the obligations of the state or any of 
 its agencies to an employer and any actions for the funds shall 
 be had against the commissioner on the issue of the tax or 
 payment in lieu of taxes liability.  Nothing in this section 
 shall be construed to limit the previously existing right of the 
 state or any of its agencies to setoff.  

    Notwithstanding any law to the contrary, the commissioner 
 shall have first priority to setoff funds owed by the department 
 to a delinquent employer. 

    Subd. 5.    Collection by civil action.  (a) In addition 
 to all other collection methods authorized, if any employer is 
 delinquent on any payment of taxes or interest due thereon or 
 penalties for failure to file a tax report and other reports as 
 required by this chapter or by any rule of the commissioner, the 
 amount due may be collected by civil action in the name of the 
 state of Minnesota, and any money recovered shall be credited to 
 the funds provided for under those sections.  Any employer 
 adjudged delinquent shall pay the costs of the action.  Civil 
 actions brought under this subdivision shall be heard as 
 provided under section 16D.14.  No action for the collection of 
 taxes, interest thereon, or penalties shall be commenced more 
 than six years after the taxes have been reported by the 
 employer or determined by the commissioner to be due and 
 payable.  In any action, judgment shall be entered against any 
 employer in default for the relief demanded in the complaint 
 without proof, together with costs and disbursements, upon the 
 filing of an affidavit of default. 

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

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

    Subd. 6.    Injunction forbidden.  No suit shall lie to 
 enjoin the assessment or collection of any tax or payment in 
 lieu of taxes imposed by this chapter, or the interest and 
 penalties imposed thereby.  

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

     268.059 Garnishment for delinquent taxes and benefit 
  overpayments. 

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

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

    (2) demand for immediate payment; and 

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

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

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

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

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

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

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

    (f) An employer that fails or refuses to comply with this 
 section shall be liable as provided in section 268.058, 
 subdivision 3, paragraph (i). 

    HIST: 1996 c 417 s 28; 1997 c 66 s 70,79; 1998 c 265 s 18 

    268.06 Subdivision 1. Renumbered 268.051, subd 1 

    Subd. 2. Repealed, 1997 c 66 s 81 

    Subd. 3.  Repealed, 1969 c 854 s 14 

    Subd. 3. Repealed, 1969 c 854 s 14 

    Subd. 3a. Renumbered 268.051, subd 5 

    Subd. 4. Repealed, 1997 c 66 s 81 

    Subd. 5. Repealed, 1997 c 66 s 81 

    Subd. 6. Renumbered 268.051, subd 3 

    Subd. 7.  Repealed, 1949 c 605 s 15 

    Subd. 7. Repealed, 1949 c 605 s 15 

    Subd. 8. Renumbered 268.051, subd 2 

    Subd. 8a. Renumbered 268.051, subd 8 

    Subd. 9.  Repealed, 1949 c 605 s 15 

    Subd. 9. Repealed, 1949 c 605 s 15 

    Subd. 10.  Repealed, 1949 c 605 s 15 

    Subd. 10. Repealed, 1949 c 605 s 15 

    Subd. 11.  Repealed, 1953 c 97 s 7 

    Subd. 11. Repealed, 1953 c 97 s 7 

    Subd. 12.  Repealed, 1953 c 97 s 7 

    Subd. 12. Repealed, 1953 c 97 s 7 

    Subd. 13.  Repealed, 1953 c 97 s 7 

    Subd. 13. Repealed, 1953 c 97 s 7 

    Subd. 14.  Repealed, 1953 c 97 s 7 

    Subd. 14. Repealed, 1953 c 97 s 7 

    Subd. 15.  Repealed, 1953 c 97 s 7 

    Subd. 15. Repealed, 1953 c 97 s 7 

    Subd. 16.  Repealed, 1953 c 97 s 7 

    Subd. 16. Repealed, 1953 c 97 s 7 

    Subd. 17.  Repealed, 1949 c 605 s 15 

    Subd. 17. Repealed, 1949 c 605 s 15 

    Subd. 18. Renumbered 268.047, subd 5 

    Subd. 19. Renumbered 268.051, subd 6 

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

    Subd. 21. Renumbered 268.045 

    Subd. 22. Renumbered 268.051, subd 4 

    Subd. 23.  Repealed, 1955 c 380 s 5 

    Subd. 23. Repealed, 1955 c 380 s 5 

    Subd. 24. Renumbered 268.051, subd 7 

    Subd. 25. Renumbered 268.052, subd 1 

    Subd. 26. Renumbered 268.052, subd 3 

    Subd. 27. Renumbered 268.052, subd 4 

    Subd. 28. Renumbered 268.053 

    Subd. 29. Renumbered 268.045, paragraph (d) 

    Subd. 30. Repealed, 1997 c 66 s 81 

    Subd. 31. Renumbered 268.052, subd 2 

    Subd. 32. Repealed, 1983 c 372 s 48 

    Subd. 32. Repealed, 1983 c 372 s 48 

    Subd. 33. Repealed, 1997 c 66 s 81 

    Subd. 34. Renumbered 268.054 

  268.061 Repealed, 1988 c 689 art 2 s 269 

  268.062 Renumbered 268.068 

     268.0625 Reemployment insurance tax clearances; issuances 
  of licenses. 

    Subdivision 1.    Reemployment insurance clearance 
 required.  The state or a political subdivision of the state 
 may not issue, transfer, or renew, and must revoke a license for 
 the conduct of any profession, trade, or business, if the 
 commissioner notifies the licensing authority that the applicant 
 owes the state delinquent taxes, payments in lieu of taxes, or 
 benefit overpayments.  The commissioner may not notify the 
 licensing authority unless the applicant owes $500 or more to 
 the reemployment insurance fund.  A licensing authority that has 
 received a notice from the commissioner may issue, transfer, 
 renew, or not revoke the applicant's license only if (a) the 
 commissioner issues a reemployment insurance tax clearance 
 certificate; and (b) the commissioner or the applicant forwards 
 a copy of the clearance to the licensing authority. 

    Subd. 2.    Issuance of clearance.  The commissioner may 
 issue a reemployment insurance tax clearance certificate only if 
 (a) the applicant does not owe the state any delinquent taxes, 
 payments in lieu of taxes, or benefit overpayments; or (b) the 
 applicant has entered into a payment agreement to liquidate the 
 delinquent taxes, payments in lieu of taxes, or benefit 
 overpayments and is current with all the terms of that payment 
 agreement. 

    For the purposes of this section, "applicant" means:  (a) 
 an individual if the license is issued to or in the name of an 
 individual, or the corporation, limited liability company, or 
 partnership if the license is issued to or in the name of a 
 corporation, limited liability company, or partnership; or (b) 
 an officer of a corporation, manager of a limited liability 
 company, or a member of a partnership, or an individual who is 
 liable for the delinquent taxes, payments in lieu of taxes, or 
 benefit overpayments, either for the entity for which the 
 license is at issue or for another entity for which the 
 liability was incurred, or personally as a licensee.  In the 
 case of a license transfer, "applicant" means both the 
 transferor and the transferee of the license.  "Applicant" also 
 means any holder of a license. 

    Subd. 3.    Notice and right to hearing.  At least 30 
 days before the commissioner notifies a licensing authority 
 pursuant to subdivision 1, a notice and demand for payment of 
 the amount due shall be given to the applicant.  If the 
 applicant disputes the amount due, the applicant must request a 
 hearing in writing within 30 days after the mailing of the 
 notice and demand for payment to the applicant's last known 
 address.  Proceedings on the appeal of the amount due shall be 
 conducted in accordance with section 268.105. 

    Subd. 4.    Licensing authority; duties.  Upon request 
 of the commissioner, the licensing authority must provide the 
 commissioner with a list of all applicants, including the name, 
 address, business name and address, social security number, and 
 business identification number of each applicant.  The 
 commissioner may request from a licensing authority a list of 
 the applicants no more than once each calendar year.  
 Notwithstanding section 268.19, the commissioner may release 
 information necessary to accomplish the purpose of this section. 

    Subd. 5.    Other remedies.  Any action taken by the 
 commissioner pursuant to this section is not an election by the 
 commissioner to pursue a remedy to the exclusion of any other 
 remedy.  

    HIST: 1987 c 385 s 37; 1994 c 488 s 8; 1995 c 54 s 20; 1996 c 
 417 s 26,27; 1997 c 66 s 79,80 

     268.063 Personal liability. 

    (a) Any officer, director, or employee of a corporation or 
 any manager, governor, member, or employee of a limited 
 liability company who 

    (1) either individually or jointly with others, have or 
 should have had control of, supervision over, or responsibility 
 for the filing of the tax reports or paying the amounts due 
 under this chapter, and 

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

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

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

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

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

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

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

     268.064 Liability of successor. 

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

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

    Subd. 3.    Statement of amount due.  Prior to the date 
 of acquisition, the commissioner shall furnish the potential 
 successor with a written statement of the predecessor's taxes 
 due and unpaid, on record as of the date of issuance, only upon 
 the written request of the potential successor and the written 
 release of the predecessor.  No release is required after the 
 date of acquisition. 

    Subd. 4.    Additional remedy.  The remedy provided by 
 this section is in addition to all other existing remedies 
 against the employer or a successor and is not an election by 
 the department to pursue this remedy to the exclusion of any 
 other remedy. 

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

     268.065 Liability of third parties to assure payment of 
  amounts due from contractors, subcontractors, and employee 
  leasing firms. 

    Subdivision 1.    Contractors.  A contractor, who is or 
 becomes an employer under this chapter, who contracts with any 
 subcontractor, who is or becomes an employer under this chapter, 
 shall guarantee the payment of all the taxes, interest, 
 penalties, and collection costs which are due or become due from 
 the subcontractor with respect to wages paid for employment on 
 the contract by: 

    (a) withholding sufficient money on the contract; or 

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

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

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

    Subd. 2.    Employee leasing firms.  A person whose work 
 force consists of 50 percent or more of workers provided by 
 employee leasing firms, is directly liable for the payment of 
 all the taxes, penalties, interest, and collection costs which 
 are due or become due from wages paid for employment on the 
 contract, unless the contract requires the employee leasing firm 
 to provide a good and sufficient bond guaranteeing the payment 
 of all taxes, penalties, interest, and collection costs which 
 may become due.  "Employee leasing firm" means an employer that 
 provides its employees to other firms, persons, and employers 
 without severing its employer-employee relationship with the 
 worker for the services performed for the lessee. 

    Subd. 3.    Determination of liability.  An official 
 designated by the commissioner shall make an initial 
 determination as to the liability under this section.  The 
 determination shall be final unless the contractor or person 
 found to be liable files a written appeal within 30 days after 
 mailing of notice of determination to the person's last known 
 address.  Proceedings on the appeal shall be conducted in 
 accordance with section 268.105. 

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

     268.066 Cancellation of delinquent taxes. 

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

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

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

     268.067 Compromise agreements. 

    (a) The commissioner may compromise in whole or in part any 
 action, determination, or decision that affects an employer and 
 that has become final during the prior 24 months. 

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

    (c) Any compromise under paragraphs (a) and (b) shall be by 
 written agreement signed by the employer and the commissioner. 

    The commissioner shall enter into a compromise agreement 
 only if it is in the best interest of the state of Minnesota.  
 The agreement must set forth the reason and all the terms.  The 
 agreement must be approved by an attorney who is a regularly 
 salaried employee of the department and who has been designated 
 by the commissioner for that purpose. 

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

     268.068 Notice to workers. 

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

    HIST: 1996 c 417 s 8; 1997 c 66 s 79 

     268.069 Payment of benefits. 

    (a) The commissioner shall pay reemployment insurance 
 benefits from the Minnesota reemployment insurance fund to a 
 claimant who has met each of the following requirements: 

    (1) the claimant has established a reemployment insurance 
 account in accordance with section 268.07; 

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

    (3) the claimant has met all of the eligibility 
 requirements under section 268.08; and 

    (4) the claimant does not have an outstanding overpayment 
 of benefits under section 268.18. 

    (b) Benefits shall not be considered as paid by an employer.
 The commissioner shall determine a claimant's entitlement to 
 benefits based upon that information available and any agreement 
 between a claimant and an employer shall not be binding on the 
 commissioner in determining a claimant's entitlement.  Any 
 obligation on an employer as a result of benefits charged to the 
 employer is to the fund only. 

    HIST: 1997 c 66 s 28; 1998 c 265 s 45 

     268.07 Reemployment insurance account. 

    Subdivision 1.    Application; determination.  (a) An 
 application for reemployment insurance benefits may be made in 
 person, by mail, by telephone, or by electronic transmission as 
 the commissioner shall require.  The commissioner may by rule 
 adopt other requirements for an application. 

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

    (c) If a base period employer failed to provide wage 
 information for the claimant as required in section 268.044, the 
 commissioner shall accept a claimant certification as to wage 
 credits, based upon the claimant's records, and issue a 
 determination of reemployment insurance account. 

    (d)(1) The commissioner may, at any time within 24 months 
 from the establishment of a reemployment insurance account, 
 reconsider any determination of reemployment insurance account 
 and make a redetermination if the commissioner finds that the 
 determination was incorrect for any reason.  A redetermination 
 of reemployment insurance account shall be promptly sent to the 
 claimant and all base period employers, by mail or electronic 
 transmission. 

    (2) If a redetermination of reemployment insurance account 
 reduces the weekly benefit amount or maximum amount of benefits 
 payable, any benefits paid greater than the claimant was 
 entitled is an overpayment subject to section 268.18. 

    Subd. 2.    Weekly benefit amount and maximum amount of 
 benefits.  (a) To establish a reemployment insurance account, 
 a claimant must have: 

    (1) wage credits in two or more calendar quarters of the 
 claimant's base period; 

    (2) minimum total wage credits equal to or greater than the 
 high quarter wage credits multiplied by 1.25; 

    (3) high quarter wage credits of not less than $1,000.  

    (b) If the commissioner finds that a claimant has 
 established a reemployment insurance account, the weekly benefit 
 amount payable during the claimant's benefit year shall be the 
 higher of: 

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

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

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

    (c) The state's maximum weekly benefit amount and the 
 claimant's weekly benefit amount shall be computed to the 
 nearest whole dollar.  

    (d) The maximum amount of benefits payable on any 
 reemployment insurance account shall equal one-third of the 
 claimant's total wage credits rounded to the next lower dollar, 
 not to exceed 26 times the claimant's weekly benefit amount. 

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

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

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

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

    Subd. 3b.    Limitations.  (a) A reemployment insurance 
 account shall be established the Sunday of the calendar week 
 that the application for reemployment insurance benefits was 
 made.  If an individual attempted to make an application for a 
 reemployment insurance account, but was prevented from making an 
 application by the department, the reemployment insurance 
 account shall be established the Sunday of the calendar week the 
 individual first attempted to make an application. 

    (b) A reemployment insurance account, once established, may 
 be withdrawn and a new account established only if the claimant 
 has not been credited with a waiting week under section 268.085, 
 subdivision 1, clause (3).  A determination or amended 
 determination pursuant to section 268.101, that was issued 
 before the withdrawal of the reemployment insurance account, 
 shall remain in effect and shall not be voided by the withdrawal 
 of the reemployment insurance account.  A determination of 
 disqualification requiring subsequent earnings to satisfy the 
 disqualification shall apply to the weekly benefit amount on the 
 new account. 

    (c) A reemployment insurance account shall not be 
 established prior to the Sunday following the expiration of the 
 benefit year on a prior reemployment insurance account. 

    (d) All benefits shall be payable from the fund only for 
 weeks occurring during the benefit year. 

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

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

    Subd. 5.  Repealed, 1975 c 336 s 25 

    Subd. 6.  Repealed, 1947 c 32 s 9 

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

  268.071 Renumbered 268.115 

  268.072 Renumbered 268.155 

    268.073 Subdivision 1. Renumbered 268.125, subd 1 

    Subd. 2. Renumbered 268.125, subd 2 

    Subd. 3. Renumbered 268.125, subd 3 

    Subd. 4. Renumbered 268.125, subd 4 

    Subd. 5. Renumbered 268.125, subd 5 

    Subd. 6. Repealed, 1994 c 503 s 7 

    Subd. 6. Repealed, 1994 c 503 s 7 

    Subd. 7. Repealed, 1997 c 66 s 81 

  268.074 Renumbered 268.135 

  268.075 Renumbered 268.145 

    268.08 Subdivision 1.  Renumbered 268.085 subd 1 

    Subd. 1a.  Renumbered 268.087 

    Subd. 2.  Renumbered 268.085 subd 2 

    Subd. 2a.  Renumbered 268.085 subd 13 

    Subd. 3.  Renumbered 268.085 subd 3 

    Subd. 3a.  Renumbered 268.085 subd 5 

    Subd. 3b.  Renumbered 268.085 subd 6 

    Subd. 4.  Renumbered 268.085 subd 4 

    Subd. 5.  Repealed, 1977 c 297 s 22 

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

    Subd. 6.  Renumbered 268.085 subd 7 

    Subd. 7.  Renumbered 268.085 subd 11 

    Subd. 8.  Renumbered 268.085 subd 12 

    Subd. 9.  Renumbered 268.085 subd 8 

    Subd. 10.  Renumbered 268.085 subd 10 

    Subd. 11.  Renumbered 268.085 subd 9 

  268.081 Repealed, 1993 c 4 s 34 

     268.085 Eligibility requirements. 

    Subdivision 1.    Eligibility conditions.  A claimant 
 shall be eligible to receive benefits for any week in the 
 claimant's benefit year only if: 

    (1) the claimant has made a continued claim for benefits in 
 person, by mail, by telephone, or by electronic transmission as 
 the commissioner shall require.  The commissioner may by rule 
 adopt other requirements for a continued claim; 

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

    Benefits shall not be denied by application of this clause 
 to a claimant who is in training with the approval of the 
 commissioner. 

    A claimant serving as a juror shall be considered as 
 available for employment and actively seeking employment on each 
 day the claimant is on jury duty; 

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

    (4) the claimant has been participating in reemployment 
 services, such as job search assistance services, if the 
 claimant has been determined likely to exhaust benefits and in 
 need of reemployment services pursuant to a profiling system 
 established by the commissioner, unless there is justifiable 
 cause for the claimant's failure to participate. 

    Subd. 2.    Not eligible.  A claimant shall not be 
 eligible to receive benefits for any week: 

    (1) that occurs before the establishment of a reemployment 
 insurance account; 

    (2) that occurs in a period when the claimant is a student 
 in attendance at, or on vacation from a secondary school; 

    (3) that the claimant is incarcerated.  The claimant's 
 weekly benefit amount shall be reduced by one-fifth for each day 
 the claimant is incarcerated; 

    (4) that the claimant is on a voluntary leave of absence.  
 A claimant unemployed as a result of a uniform vacation shutdown 
 shall not be considered on a voluntary leave of absence; 

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

    (6) with respect to which the claimant is receiving, has 
 received, or has filed a claim for reemployment insurance 
 benefits under any law of any other state, or the federal 
 government, but not including any federal or state benefits that 
 are merely supplementary to those provided for under this 
 chapter; provided that if the appropriate agency finally 
 determines that the claimant is not entitled to the benefits, 
 this clause shall not apply. 

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

    (1) termination, severance, or dismissal payment or wages 
 in lieu of notice whether legally required or not.  This clause 
 shall apply to the first four weeks of payment and to one-half 
 of the total number of any additional weeks of payment.  This 
 clause shall be applied to the period immediately following the 
 last day of employment.  The number of weeks of payment shall be 
 determined as follows: 

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

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

    (2) vacation allowance paid directly by the employer for a 
 period of requested vacation, including vacation periods 
 assigned by the employer under a collective bargaining 
 agreement, or uniform vacation shutdown; or 

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

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

    If the payment under this subdivision is less than the 
 claimant's weekly benefit amount, the claimant shall be entitled 
 to receive for that week, if otherwise eligible, benefits 
 reduced by the amount of the payment; provided, further, that if 
 the appropriate agency of this state or any other state or the 
 federal government finally determines that the claimant is not 
 entitled to payments, this subdivision shall not apply.  If the 
 computation of reduced benefits is not a whole dollar, it shall 
 be rounded down to the next lower dollar. 

    Subd. 4.    Social security benefits.  (a) Any claimant 
 aged 62 or over shall be required to state at the time of making 
 an application for a reemployment insurance account and when 
 making continued claims whether the claimant is receiving, has 
 filed for, or intends to file for, primary social security old 
 age or disability benefits for any week during the benefit year, 
 and if so there shall be deducted from the claimant's weekly 
 benefit amount otherwise payable for that week, 50 percent of 
 the weekly equivalent of the social security benefit. 

    (b) In addition to paragraph (a), a claimant shall be 
 ineligible for benefits for any week with respect to which the 
 claimant is receiving, has received, or has filed a claim for 
 primary social security disability benefits, unless the social 
 security administration has approved the payment of disability 
 benefits while the claimant was employed. 

    (c) Any claimant who receives social security benefits, 
 that would cause the claimant to be ineligible under this 
 subdivision, for weeks that the claimant received reemployment 
 insurance benefits shall be considered overpaid reemployment 
 insurance benefits under section 268.18. 

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

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

    (1) that amount in excess of $50 if the claimant's earnings 
 were $200 or less, and that amount in excess of 25 percent of 
 the claimant's earnings if those earnings were more than $200; 
 and 

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

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

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

    (d) The claimant may report deductible earnings on 
 continued claims for benefits at the nearest whole dollar amount.

    Subd. 6.    Receipt of back pay.  Back pay received by a 
 claimant with respect to any weeks occurring in the 104 weeks 
 prior to the payment of the back pay shall be deducted from 
 benefits paid for those weeks.  

    The amount deducted shall not reduce the benefits that the 
 claimant is otherwise eligible for that week below zero.  If the 
 amount of benefits after the deduction of back pay is not a 
 whole dollar amount, it shall be rounded to the next lower 
 dollar.  

    If the back pay awarded the claimant is reduced by benefits 
 paid, the amounts withheld shall be:  (a) paid by the employer 
 into the fund within 30 days of the award and are subject to the 
 same collection procedures that apply to past due taxes under 
 this chapter; (b) applied to benefit overpayments resulting from 
 the payment of the back pay; (c) credited to the claimant's 
 maximum amount of benefits payable in a benefit year that 
 includes the weeks for which back pay was deducted.  Benefit 
 charges for those weeks shall be removed from the employer's 
 account as of the calendar quarter that the fund receives 
 payment.  

    Payments to the fund under this subdivision shall be 
 considered as made by the claimant.  

    Subd. 7.    School employees.  (a) No wage credits in 
 any amount from any employment with any educational institution 
 or institutions earned while in an instructional, research, or 
 principal administrative capacity may be used for benefit 
 purposes for any week beginning during a period between two 
 successive academic years or terms, or during a period between 
 two regular but not successive terms, if: 

    (1) the claimant had employment in any instructional, 
 research, or principal administrative capacity for any 
 educational institution or institutions in the first of the 
 academic years or terms; and 

    (2) there is a contract or a reasonable assurance that the 
 claimant will have employment in any instructional, research, or 
 principal administrative capacity for any educational 
 institution or institutions in the second of the academic years 
 or terms, that is substantially similar to the employment of the 
 first academic years or terms; 

    (b) With respect to employment in any capacity other than 
 those described in paragraph (a), including educational 
 assistants, benefits shall not be paid based upon wage credits 
 from any educational institution or institutions for any week 
 beginning during a period between two successive academic years 
 or terms if the claimant was employed in the first academic year 
 or term by any educational institution or institutions and there 
 is reasonable assurance that the claimant will be employed under 
 similar terms and conditions by any educational institution or 
 institutions in the second academic year or term.  A claimant 
 who has an agreement for a definite period of employment between 
 academic years or terms shall be eligible for any weeks within 
 that period the educational institution or institutions fail to 
 provide employment.  If benefits are denied to any claimant 
 under this paragraph and the claimant was not offered an 
 opportunity to perform the employment in the second of the 
 academic years or term, the claimant shall be entitled to 
 retroactive benefits for each week that the claimant filed a 
 timely continued claim for benefits, but benefits were denied 
 solely because of this paragraph; 

    (c) With respect to employment described in paragraph (a) 
 or (b), benefits based upon wage credits from any educational 
 institution or institutions shall not be paid for any week 
 beginning during an established and customary vacation period or 
 holiday recess if the claimant was employed in the period 
 immediately before the vacation period or holiday recess, and 
 there is a reasonable assurance that the claimant will be 
 employed in the period immediately following the vacation period 
 or holiday recess; 

    (d) Paragraphs (a), (b), and (c) shall apply to employment 
 with an educational service agency if the claimant performed the 
 services at an educational institution or institutions.  For 
 purposes of this paragraph, "educational service agency" means a 
 governmental agency or entity established and operated 
 exclusively for the purpose of providing services to one or more 
 educational institutions; 

    (e) Paragraphs (a) to (d) shall apply to employment with 
 Minnesota or a political subdivision, or a nonprofit 
 organization, if the services are provided to or on behalf of an 
 educational institution or institutions. 

    (f) Paragraphs (a), (b), and (c) shall apply beginning the 
 Sunday of the week that there is a contract or reasonable 
 assurance of employment. 

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

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

    Subd. 8.    Services for school contractors.  Wage 
 credits from an employer are subject to subdivision 7, 
 paragraphs (b) and (c), if:  

    (1) the employment was provided pursuant to a contract 
 between the employer and an educational institution; 

    (2) the contract was for services that the educational 
 institution could have had performed by its employees; and 

    (3) the claimant was notified in writing of the provisions 
 of this subdivision prior to or at the time of beginning the 
 employment.  

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

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

    (2) is not permanently separated from employment. 

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

    Subd. 10.    Seasonal employment.  (a) If a claimant has 
 wage credits from seasonal employment, benefits shall be payable 
 only if the claimant can establish a reemployment insurance 
 account under section 268.07, subdivision 2, excluding the wage 
 credits from seasonal employment.  For purposes of this 
 subdivision, "seasonal employment" means employment with a 
 single employer in the recreation or tourist industry that is 
 available with the employer for 15 consecutive weeks or less 
 each calendar year. 

    (b) Wage credits from seasonal employment may not be used 
 for benefit purposes during weeks outside the normal season. 

    Subd. 11.    Professional athletes.  Benefits shall not 
 be paid to a claimant on the basis of any wage credits from 
 employment that substantially consists of participating in 
 sports or athletic events or training or preparing to 
 participate for any week that begins during the period between 
 two successive sport seasons (or similar periods) if the 
 claimant was so employed in the first season (or similar period) 
 and there is a reasonable assurance that the claimant will be so 
 employed in the following season (or similar periods). 

    Subd. 12.    Aliens.  (a) An alien shall be ineligible 
 for benefits for any week the alien is not authorized to work in 
 the United States under federal law. 

    (b) Benefits shall not be paid on the basis of wage credits 
 earned by an alien unless the alien (1) was lawfully admitted 
 for permanent residence at the time of the employment, (2) was 
 lawfully present for the purposes of the employment, or (3) was 
 permanently residing in the United States under color of law at 
 the time of the employment including section 212(d)(5) of the 
 Immigration and Nationality Act. 

    (c) Any data or information required of claimants applying 
 for benefits to determine eligibility because of their alien 
 status shall be uniformly required from all claimants. 

    Subd. 13.    Suspension from employment.  (a) A claimant 
 who has been suspended from employment for 30 calendar days or 
 less, as a result of misconduct as defined under section 
 268.095, subdivision 6, shall be ineligible for benefits 
 beginning the Sunday of the week that the claimant was suspended 
 and continuing for the duration of the suspension. 

    (b) A suspension from employment for more than 30 calendar 
 days shall be considered a discharge from employment under 
 section 268.095, subdivision 5. 

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

     268.087 Benefits due deceased persons.  

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

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

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

    268.09 Subdivision 1. Repealed, 1997 c 66 s 81 

    Subd. 1a.  Renumbered 268.095 subd 1 

    Subd. 2. Repealed, 1997 c 66 s 81 

    Subd. 2a.  Renumbered 268.095 subd 2 

    Subd. 3. Renumbered subd 18 

    Subd. 4. Repealed, 1997 c 66 s 81 

    Subd. 5. Repealed, 1997 c 66 s 81 

    Subd. 6. Repealed, 1997 c 66 s 81 

    Subd. 7. Repealed, 1997 c 66 s 81 

    Subd. 8. Repealed, 1997 c 66 s 81 

    Subd. 9.  Renumbered 268.095 subd 3 

    Subd. 10.  Renumbered 268.095 subd 4 

    Subd. 11.  Renumbered 268.095 subd 5 

    Subd. 12.  Renumbered 268.095 subd 6 

    Subd. 13.  Renumbered 268.095 subd 7 

    Subd. 14.  Renumbered 268.095 subd 8 

    Subd. 15.  Renumbered 268.095 subd 9 

    Subd. 16.  Renumbered 268.095 subd 10 

    Subd. 17.  Renumbered 268.095 subd 11 

    Subd. 18.  Renumbered 268.095 subd 12 

     268.095 Disqualification provisions. 

    Subdivision 1.    Quit.  A claimant who quits employment 
 shall be disqualified from benefits: 

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

    (2) unless the claimant quit the employment to accept other 
 covered employment that provided substantially higher wages or 
 substantially better conditions of employment or both, but the 
 claimant did not work long enough at the other employment to 
 have sufficient subsequent earnings to satisfy the 
 disqualification that would otherwise be imposed; 

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

    (4) unless the employment was unsuitable for the claimant 
 and the claimant quit to enter approved training; 

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

    (6) unless the claimant quit the employment because the 
 claimant's serious illness made it medically necessary that the 
 claimant quit, provided that the claimant made reasonable 
 efforts to remain in that employment in spite of the serious 
 illness. 

    Reasonable efforts to remain in that employment require 
 that the claimant inform the employer of the serious illness and 
 request accommodation.  

    A claimant who quit employment because of the claimant's 
 serious illness of chemical dependency, has not made reasonable 
 efforts to remain in that employment if the claimant has 
 previously been professionally diagnosed as chemically 
 dependent, or has previously voluntarily submitted to treatment 
 for chemical dependency, and has failed to make consistent 
 efforts to control the chemical dependency. 

    Subd. 2.    Quit defined.  A quit from employment occurs 
 when the decision to end the employment was, at the time the 
 employment ended, the employee's.  An employee who seeks to 
 withdraw a previously submitted notice of quitting shall be 
 considered to have quit the employment if the employer does not 
 agree that the notice may be withdrawn. 

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

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

    (2) that is significant and would compel an average, 
 reasonable worker to quit. 

    (b) A claimant has a good reason caused by the employer for 
 quitting if it results from sexual harassment.  Sexual 
 harassment means unwelcome sexual advances, requests for sexual 
 favors, sexually motivated physical contact or other conduct or 
 communication of a sexual nature when:  

    (1) the claimant's submission to the conduct or 
 communication is made a term or condition of the employment; 

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

    (3) the conduct or communication has the purpose or effect 
 of substantially interfering with a claimant's work performance 
 or creating an intimidating, hostile, or offensive working 
 environment and the employer knows or should know of the 
 existence of the harassment and fails to take timely and 
 appropriate action. 

    Subd. 4.    Discharge.  A claimant who is discharged 
 from employment by an employer shall not be disqualified from 
 benefits: 

    (1) unless the claimant was discharged because of 
 misconduct that interfered with and adversely affected that 
 employment.  This clause shall not apply if: 

    (i) the misconduct was a direct result of the claimant's 
 serious illness provided that the claimant made reasonable 
 efforts to remain in that employment in spite of the serious 
 illness.  

    Reasonable efforts to remain in that employment require 
 that the claimant inform the employer of the serious illness and 
 request accommodation. 

    If the misconduct was a direct result of the claimant's 
 serious illness of chemical dependency, the claimant has not 
 made reasonable efforts to remain in that employment if the 
 claimant has previously been professionally diagnosed chemically 
 dependent or the claimant has previously voluntarily submitted 
 to treatment for chemical dependency and has failed to make 
 consistent efforts to control the chemical dependency. 

    This subclause shall not apply if the misconduct was a 
 violation of section 169.121, 169.1211, or 169.123; or 

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

    (2) unless the claimant was discharged because of gross 
 misconduct that interfered with and adversely affected that 
 employment.  For the purpose of this clause, "gross misconduct" 
 means: 

    (i) the commission of any act that amounts to a gross 
 misdemeanor or felony; or 

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

    If a claimant is convicted of a gross misdemeanor or felony 
 for the same act or acts for which the claimant was discharged, 
 it is gross misconduct; or 

    (3) if the claimant was discharged because the claimant 
 gave notice of intention to quit the employment within 30 
 calendar days.  This clause shall be effective only through the 
 end of the calendar week that includes the intended date of 
 quitting.  Thereafter the separation from employment shall be 
 considered a quit of employment by the claimant, and a 
 disqualification, if any, shall begin with the Sunday of the 
 week following the week that includes the intended date of 
 quitting. 

    Subd. 5.    Discharge defined.  A discharge from 
 employment occurs when any words or actions by an employer would 
 lead a reasonable employee to believe that the employee's 
 services are no longer desired by the employer.  A layoff due to 
 lack of work shall be considered a discharge.  A suspension from 
 employment of more than 30 calendar days shall be considered a 
 discharge. 

    Subd. 6.    Misconduct defined.  Misconduct is 
 intentional conduct showing a disregard of: 

    (1) the employer's interest; 

    (2) the standards of behavior that an employer has the 
 right to expect of the employee; or 

    (3) the employee's duties and obligations to the employer.  
 Misconduct also includes negligent conduct by an employee 
 demonstrating a substantial lack of concern for the employment.  
 Inefficiency, inadvertence, simple unsatisfactory conduct, or 
 poor performance as a result of inability or incapacity are not 
 misconduct. 

    Subd. 7.    Act or omissions after separation.  Except 
 as provided for under subdivision 8, a claimant shall not be 
 disqualified from benefits for any acts or omissions occurring 
 after the claimant's separation from employment with the 
 employer. 

    Subd. 8.    Offers of employment.  (a) A claimant shall 
 be disqualified from benefits if the claimant, without good 
 cause: 

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

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

    (3) avoided an offer of suitable employment. 

    (b) The claimant shall not be disqualified from benefits 
 under paragraph (a) if the claimant: 

    (1) was in approved training; or 

    (2) formerly worked for the employer and the claimant's 
 last separation from employment with the employer occurred prior 
 to the commencement of a strike or other labor dispute, was 
 permanent or for an indefinite period, and the claimant failed 
 to apply for or accept reemployment because a strike or other 
 labor dispute was in progress at the establishment where the 
 claimant was previously employed by that employer. 

    Subd. 9.    Suitable employment defined.  (a) Suitable 
 employment is employment in the claimant's labor market area 
 that is reasonably related to the claimant's qualifications.  In 
 determining whether any employment is suitable for a claimant, 
 the degree of risk involved to the health and safety, physical 
 fitness, prior training, experience, length of unemployment, 
 prospects for securing local employment in the claimant's 
 customary occupation, and the distance of the employment from 
 the claimant's residence shall be considered. 

    (b) No employment shall be considered suitable if: 

    (1) the position offered is vacant due directly to a 
 strike, lockout, or other labor dispute; 

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

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

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

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

    (c) Notwithstanding paragraph (a), if the claimant was 
 discharged from employment because of gross misconduct, the 
 disqualification shall be for the duration of the claimant's 
 unemployment and until the end of the calendar week that the 
 claimant had total earnings in subsequent covered employment of 
 12 times the claimant's weekly benefit amount.  In addition, 
 wage credits from that employment shall be canceled. 

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

    (1) all covered employment, full time or part time, 
 temporary or limited duration, permanent or indefinite duration, 
 that occurred during the base period, the period between the end 
 of the base period and the effective date of the reemployment 
 insurance account, or the benefit year, except as provided for 
 in subdivisions 1, clause (5); and 4, clause (1)(ii); or 

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

    Subd. 12.    Labor dispute.  (a) A claimant who has left 
 or partially or totally lost employment with an employer because 
 of a strike or other labor dispute at the establishment where 
 the claimant is or was employed shall be disqualified from 
 benefits: 

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

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

    Participation includes the failure or refusal by a claimant 
 to accept and perform available and customary work at the 
 establishment.  

    (b) A claimant who has left or partially or totally lost 
 employment with an employer because of a jurisdictional 
 controversy between two or more labor organizations at the 
 establishment where the claimant is or was employed shall be 
 disqualified for benefits until the end of the calendar week 
 that the jurisdictional controversy was in progress. 

    (c) A claimant shall not be disqualified from benefits 
 under this subdivision if: 

    (1) the claimant becomes unemployed because of a strike 
 caused by an employer's willful failure to observe the terms of 
 the safety and health section of a union contract or failure to 
 comply with an official citation for a violation of federal and 
 state laws involving occupational safety and health; 

    (2) the claimant becomes unemployed because of a lockout; 
 or 

    (3) the claimant is discharged during the period of 
 negotiation and prior to the commencement of a strike or other 
 labor dispute.  

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

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

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

  268.10 Repealed, 1996 c 417 s 32 

     268.101 Determinations on disqualification and 
  eligibility. 

    Subdivision 1.    Notification.  (a) Upon application 
 for a reemployment insurance account, each claimant shall report 
 the names of all employers and the reasons for no longer working 
 for all employers during the claimant's last 30 days of 
 employment. 

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

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

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

    Subd. 2.    Disqualification determination.  (a) The 
 commissioner shall promptly determine any issue of 
 disqualification raised by a timely protest made by an employer, 
 and mail to the claimant and that employer at the last known 
 address a determination of disqualification or a determination 
 of nondisqualification, as is appropriate.  The determination 
 shall set forth the effect on employer charges. 

    (b) The commissioner shall promptly determine any issue of 
 disqualification raised by information obtained from a claimant 
 pursuant to subdivision 1, paragraph (a) or (c), and mail to the 
 claimant and employer at the last known address a determination 
 of disqualification or a determination of nondisqualification, 
 as is appropriate.  The determination shall set forth the effect 
 on employer charges. 

    (c) The commissioner shall promptly determine any issue of 
 disqualification raised by an untimely protest made by an 
 employer and mail to the claimant and that employer at the last 
 known address a determination of disqualification or a 
 determination of nondisqualification as is appropriate.  The 
 determination shall set forth the effect on employer charges.  
 Notwithstanding section 268.095, any disqualification imposed as 
 a result of determination issued pursuant to this paragraph 
 shall begin the Sunday two weeks following the week that the 
 untimely protest was made.  Notwithstanding any provisions to 
 the contrary, any relief of employer charges as a result of a 
 determination issued pursuant to this paragraph shall begin the 
 Sunday two weeks following the week that the untimely protest 
 was made. 

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

    This paragraph shall not apply if the involved employer was 
 notified and given the opportunity to protest pursuant to 
 subdivision 1, paragraph (b) or (c). 

    (e) A determination of disqualification or a determination 
 of nondisqualification shall be final unless an appeal is filed 
 by the claimant or notified employer within 30 calendar days 
 after mailing.  The determination shall contain a prominent 
 statement indicating in clear language the method of appealing, 
 the time within which an appeal must be made, and the 
 consequences of not appealing.  Proceedings on the appeal shall 
 be conducted in accordance with section 268.105. 

    (f) An issue of disqualification for purposes of this 
 section shall include any reason for no longer working for an 
 employer other than a layoff due to lack of work, any question 
 of a disqualification from benefits under section 268.095, any 
 question of an exception to disqualification under section 
 268.095, any question of benefit charge to an employer under 
 section 268.047, and any question of an otherwise imposed 
 disqualification that a claimant has had subsequent earnings 
 sufficient to satisfy the disqualification.  

    (g) Notwithstanding the requirements of this subdivision, 
 the commissioner is not required to mail to a claimant a 
 determination of nondisqualification where the claimant has had 
 subsequent earnings sufficient to satisfy any otherwise 
 potential disqualification.  

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

    (b) The commissioner shall promptly determine any issue of 
 eligibility raised by information obtained from a claimant and 
 mail to the claimant and any involved employer at the last known 
 address a determination of eligibility or a determination of 
 ineligibility, as is appropriate. 

    (c) The commissioner shall promptly determine any issue of 
 eligibility raised by an untimely protest made by an employer 
 and mail to the claimant and that employer at the last known 
 address a determination of eligibility or a determination of 
 ineligibility, as is appropriate.  Any denial of benefits 
 imposed as a result of determination issued pursuant to this 
 paragraph shall begin the Sunday two weeks following the week 
 that the untimely protest was made. 

    (d) If any time within 24 months from the establishment of 
 a reemployment insurance account the commissioner finds the 
 claimant failed to provide requested information regarding the 
 claimant's eligibility for benefits, the commissioner shall 
 determine the issue of eligibility and mail to the claimant and 
 any involved employer at the last known address a determination 
 of eligibility or a determination of ineligibility, as is 
 appropriate. 

    This paragraph shall not apply if the involved employer was 
 notified, was aware, or should have been aware of the issue of 
 eligibility at the time of notification, and was given the 
 opportunity to protest pursuant to subdivision 1, paragraph (b) 
 or (c). 

    (e) A determination of eligibility or determination of 
 ineligibility shall be final unless an appeal is filed by the 
 claimant or notified employer within 30 calendar days after 
 mailing.  The determination shall contain a prominent statement 
 indicating in clear language the method of appealing, the time 
 within which an appeal must be made, and the consequences of not 
 appealing.  Proceedings on the appeal shall be conducted in 
 accordance with section 268.105. 

    (f) An issue of eligibility for purposes of this section 
 shall include any question of denial of benefits under sections 
 268.085, 268.115, 268.125, 268.135, and 268.155. 

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

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

    Subd. 5.    Prompt payment.  If a determination or 
 amended determination awards benefits to a claimant, the 
 benefits shall be promptly paid regardless of any appeal period 
 or any appeal having been filed. 

    Subd. 6.    Overpayment.  A determination or amended 
 determination that holds a claimant disqualified or ineligible 
 for benefits for periods a claimant has been paid benefits is an 
 overpayment of those benefits subject to section 268.18. 

    HIST: 1996 c 417 s 21; 1997 c 66 s 55-58,79; 1998 c 265 s 30 

     268.103 Appeals by telephone; electronic transmission. 

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

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

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

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

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

    HIST: 1997 c 66 s 59 

     268.105 Reemployment insurance hearings; appeals. 

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

    (b) The commissioner shall by rule adopt a procedure by 
 which reemployment insurance judges hear and decide appeals, 
 subject to further appeal to the commissioner.  The rules need 
 not conform to common law or statutory rules of evidence and 
 other technical rules of procedure.  The written report of any 
 employee of the department, except a determination, made in the 
 regular course of the performance of the employee's duties, 
 shall be competent evidence of the facts contained in it. 

    (c) After the conclusion of the hearing, upon the evidence 
 presented, the reemployment insurance judge shall mail findings 
 of fact and decision to all involved parties.  The reemployment 
 insurance judge's decision is final unless a further appeal is 
 filed pursuant to subdivision 3. 

    Subd. 2.    Reemployment insurance judges.  The 
 commissioner shall designate regular salaried employees of the 
 department as impartial reemployment insurance judges to conduct 
 hearings on appeals.  The commissioner or authorized 
 representative may personally hear or transfer to another 
 reemployment insurance judge any proceedings pending before a 
 reemployment insurance judge.  Any proceedings removed to the 
 commissioner or authorized representative shall be heard in 
 accordance with subdivision 1. 

    Subd. 3.    Commissioner review.  (a) Within 30 calendar 
 days after mailing of the reemployment insurance judge's 
 decision, any involved party may appeal and obtain a review by 
 the commissioner or an authorized representative.  The 
 commissioner within the same period of time may on the 
 commissioner's own motion order a review of a decision.  

    (b) Upon review, the commissioner shall, on the basis of 
 the evidence submitted at the hearing before the reemployment 
 insurance judge, make findings of fact and decision, or remand 
 the matter back to a reemployment insurance judge for the taking 
 of additional evidence and new findings and decision based on 
 all the evidence.  The commissioner may disregard the findings 
 of fact of the reemployment insurance judge and examine the 
 evidence and make any findings of fact as the evidence may, in 
 the judgment of the commissioner require, and make any decision 
 as the facts found by the commissioner require.  

    (c) The commissioner shall mail to any involved party the 
 findings of fact and decision.  The decision of the commissioner 
 is final unless judicial review is sought as provided by 
 subdivision 7. 

    Subd. 3a.    Decisions.  (a) If a reemployment insurance 
 judge's decision or the commissioner's decision awards benefits 
 to a claimant, the benefits shall be promptly paid regardless of 
 any appeal period or any appeal having been filed. 

    (b) If a reemployment insurance judge's decision modifies 
 or reverses a determination awarding benefits to a claimant, any 
 benefits paid pursuant to the determination is an overpayment of 
 those benefits subject to section 268.18. 

    (c) If a commissioner's decision modifies or reverses a 
 reemployment insurance judge's decision awarding benefits to a 
 claimant, any benefits paid pursuant to the reemployment 
 insurance judge's decision is an overpayment of those benefits 
 subject to section 268.18. 

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

    (e) If the commissioner, pursuant to subdivision 3, remands 
 a matter to a reemployment insurance judge for the taking of 
 additional evidence, the prior reemployment insurance judge's 
 decision shall continue to be enforced until new findings of 
 fact and decision are made by a reemployment insurance judge. 

    Subd. 4.    Testimonial powers.  In the discharge of the 
 duties imposed by this section, the reemployment insurance 
 judge, the commissioner, or authorized representative, may 
 administer oaths and affirmations, take depositions, certify to 
 official acts, and issue subpoenas to compel the attendance of 
 witnesses and the production of books, papers, correspondence, 
 memoranda, and other records considered necessary as evidence in 
 connection with the subject matter of the hearing.  The 
 subpoenas shall be enforceable through the district court in the 
 district in which the subpoena is issued.  Witnesses, other than 
 an involved claimant or involved employer or officers and 
 employees of an involved employer, subpoenaed pursuant to this 
 section shall be allowed fees the same as witness fees in a 
 civil action in district court.  These fees shall be considered 
 a part of the expense of administering this chapter. 

    Subd. 5.    Use of information.  (a) All testimony at 
 any hearing conducted pursuant to subdivision 1 shall be 
 recorded.  A copy of any recorded testimony and exhibits 
 received into evidence at the hearing shall, upon request, or 
 upon directive of the commissioner, be furnished to a party at 
 no cost.  If requested, the representative of a commissioner 
 shall make available a device for listening to the recording. 

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

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

    Subd. 6.    Representation; fees.  In any proceeding 
 under these sections, a party may be represented by any agent.  
 Except for services provided by an attorney-at-law, a claimant 
 shall not be charged fees or costs of any kind in a proceeding 
 before a reemployment insurance judge, the commissioner, or by 
 any court or any of its officers. 

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

    (b) Any involved employer, upon the service of the writ 
 shall furnish a cost bond to the commissioner in accordance with 
 the rules of civil appellate procedure.  Upon review before the 
 court of appeals, the commissioner shall, if requested, furnish 
 to the claimant at no cost a written transcript of the testimony 
 received at the hearing conducted pursuant to subdivision 1.  

    (c) The commissioner shall be considered to be a party to 
 any judicial action involving any decision and shall be 
 represented by any qualified attorney who is a regular salaried 
 employee of the department and has been designated by the 
 commissioner for that purpose or, at the commissioner's request, 
 by the attorney general. 

    HIST: 1995 c 54 s 11; 1996 c 417 s 22,31; 1997 c 66 s 60; 1998 
 c 265 s 31,44 

  268.11 Renumbered 268.042 

   268.115 Extended benefits. 

    Subdivision 1.    Definitions.  As used in this section, 
 unless the context clearly requires otherwise: 

    (1)    Extended benefit period.  "Extended benefit 
 period" means a period which 

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

    (b) Ends with either of the following weeks, whichever 
 occurs later:  The third week after the first week for which 
 there is a state "off" indicator; or the 13th consecutive week 
 of the period; 

    Provided, that no extended benefit period may begin before 
 the 14th week following the end of a prior extended benefit 
 period which was in effect with respect to this state. 

    (2)    State "on" indicator.  There is a "state 'on' 
 indicator" for this state for a week if the commissioner 
 determines, in accordance with the regulations of the United 
 States Secretary of Labor, that for the period consisting of 
 such week and the immediately preceding 12 weeks, the rate of 
 insured unemployment (not seasonally adjusted) under this law 

    (a) equaled or exceeded 120 percent of the average of such 
 rates for the corresponding 13-week period ending in each of the 
 preceding two calendar years, and 

    (b) equaled or exceeded five percent. 

    The determination of whether there has been a state "on" 
 indicator beginning any extended benefit period may be made as 
 provided in clauses (a) and (b) above or a "state 'on' 
 indicator" shall exist if the rate described in clause (b) 
 equaled or exceeded six percent irrespective of whether the 
 percentage requirement provided by clause (a) is met or exceeded.

    (3)    State "off" indicator.  There is a "state 'off' 
 indicator" for this state for a week if, for the period 
 consisting of such week and the immediately preceding 12 weeks, 
 the rate of insured unemployment is less than six percent and 
 the requirements for a "state 'on' indicator" under clause (2) 
 are not satisfied. 

    (4)    Rate of insured unemployment.  "Rate of insured 
 unemployment," for purposes of clauses (2) and (3), means the 
 percentage derived by dividing the average weekly number of 
 individuals filing claims for regular benefits in this state for 
 weeks of unemployment with respect to the most recent 13 
 consecutive week period, as determined by the commissioner on 
 the basis of the commissioner's reports to the United States 
 Secretary of Labor, by the average monthly employment covered 
 under this law for the first four of the most recent six 
 completed calendar quarters ending before the end of such 
 13-week period. 

    (5)    Regular benefits.  "Regular benefits" means 
 benefits payable to an individual under this law or under any 
 other state law (including benefits payable to federal civilian 
 employees and to ex-servicemen pursuant to United States Code, 
 title 5, chapter 85) other than extended benefits and additional 
 benefits. 

    (6)    Extended benefits.  "Extended benefits" means 
 benefits (including benefits payable to federal civilian 
 employees and to ex-servicemen pursuant to United States Code, 
 title 5, chapter 85) payable to an individual under the 
 provisions of this section for weeks of unemployment in the 
 individual's eligibility period. 

    (7)    Additional benefits.  "Additional benefits" means 
 benefits payable to exhaustees by reason of conditions of high 
 unemployment or by reason of other special factors under the 
 provisions of any state law. 

    (8)    Eligibility period.  "Eligibility period" of an 
 individual means the period consisting of the weeks in the 
 individual's benefit year which begin in an extended benefit 
 period and, if the benefit year ends within such extended 
 benefit period, any weeks thereafter which begin in such period. 

    (9)    Exhaustee.  "Exhaustee" means an individual who, 
 with respect to any week of unemployment in the individual's 
 eligibility period: 

    (a) Has received, prior to such week, all of the regular 
 benefits that were available under this law or any other state 
 law (including dependents' allowances and benefits payable to 
 federal civilian employees and ex-servicemen under United States 
 Code, title 5, chapter 85) in the individual's current benefit 
 year that includes such week; 

    Provided, that, for the purposes of this paragraph, an 
 individual shall be considered to have received all of the 
 regular benefits that were available to the individual although 
 as a result of a pending appeal with respect to wage credits 
 that were not considered in the original monetary determination 
 in the individual's benefit year, the individual may 
 subsequently be determined to be entitled to added regular 
 benefits; or 

    (b) The individual's benefit year having expired prior to 
 such week, has no, or insufficient, wages and/or employment on 
 the basis of which the individual could establish a new benefit 
 year that would include such week or having established a 
 benefit year that includes such week, the individual is 
 precluded from receiving regular compensation by reason of:  (i) 
 a state law provision which meets the requirements of section 
 3304 (a) (7) of the Internal Revenue Code of 1954, or (ii) a 
 disqualification determination which canceled wage credits or 
 totally reduced benefit rights, or (iii) benefits are not 
 payable by reason of a seasonal limitation in a state 
 reemployment insurance benefits law; and 

    (c) Has no right to reemployment insurance benefits or 
 allowances, as the case may be, under the Railroad Unemployment 
 Insurance Act, the Trade Expansion Act of 1962, the Automotive 
 Products Act of 1965 and such other federal laws as are 
 specified in regulations issued by the United States Secretary 
 of Labor; and has not received and is not seeking reemployment 
 insurance benefits under the unemployment compensation law of 
 Canada; but if the individual is seeking such benefits and the 
 appropriate agency finally determines that the individual is not 
 entitled to benefits under such law the individual is considered 
 an exhaustee. 

    (10)    State law.  "State law" means the reemployment 
 insurance benefits law of any state, approved by the United 
 States Secretary of Labor under section 3304 of the Internal 
 Revenue Code of 1954. 

    Subd. 2.    Effect of state law provisions relating to 
 regular benefits on claims for, and the payment of, extended 
 benefits.  Except when the result would be inconsistent with 
 the other provisions of this section, as provided in the rules 
 of the commissioner, the provisions of this chapter which apply 
 to claims for, or the payment of, regular benefits shall apply 
 to claims for, and the payment of, extended benefits. 

    Subd. 3.    Eligibility requirements for extended 
 benefits.  A claimant shall be eligible to receive extended 
 benefits with respect to any week in the claimant's eligibility 
 period only if with respect to that week the claimant: 

    (1) is an "exhaustee" as defined in subdivision 1, 
 paragraph (9); 

    (2) has satisfied the requirements of this law for the 
 receipt of regular benefits that are applicable to claimants 
 claiming extended benefits, including not being subject to a 
 disqualification for the receipt of benefits; and 

    (3) has, during the claimant's base period earned wage 
 credits available for benefit purposes of not less than 40 times 
 the claimant's weekly benefit amount as determined pursuant to 
 section 268.07, subdivision 2. 

    Subd. 4.    Weekly extended benefit amount.  The weekly 
 extended benefit amount payable to an individual for a week of 
 total unemployment in the individual's eligibility period shall 
 be an amount equal to the weekly benefit amount payable during 
 the individual's applicable benefit year. 

    Subd. 5.    Total extended benefit amount.  The total 
 extended benefit amount payable to any eligible individual with 
 respect to the individual's applicable benefit year shall be 50 
 percent of the total amount of regular benefits which were 
 payable under this law in the applicable benefit year, provided 
 that at the expiration of the benefit year, the individual's 
 remaining balance of extended benefits shall be reduced, but not 
 below zero, by the product arrived at by multiplying the 
 individual's weekly extended benefit amount by the number of 
 weeks in the individual's expired benefit year for which any 
 trade readjustment allowance was paid pursuant to sections 231 
 to 234 of the Trade Act of 1974, as amended.  

    Subd. 6.    Beginning and termination of extended benefit 
 period.  (a) Whenever an extended benefit period is to become 
 effective in this state as a result of a state "on" indicator, 
 or an extended benefit period is to be terminated in this state 
 as a result of a state "off" indicator the commissioner shall 
 make an appropriate public announcement. 

    (b) Computations required by the provisions of subdivision 
 1, paragraph (4), shall be made by the commissioner, in 
 accordance with regulations prescribed by the United States 
 Secretary of Labor. 

    Subd. 7.    Effect of federal law.  If the Federal-State 
 Extended Unemployment Compensation Act of 1970 is amended so as 
 to authorize this state to pay benefits for an extended benefit 
 period in a manner other than that currently provided by this 
 section, then, and in such case, all the terms and conditions 
 contained in the amended provisions of such federal law shall 
 become a part of this section to the extent necessary to 
 authorize the payment of benefits to eligible individuals as 
 permitted under such amended provision, provided that the 
 federal share continues to be at least 50 percent of the 
 extended benefits paid to individuals under the extended benefit 
 program.  The commissioner shall also pay benefits at the 
 earliest possible date in the manner allowed by the 
 Federal-State Unemployment Compensation Act of 1970, as amended 
 through January 1, 1975, the provisions of which shall become a 
 part of this section to the extent necessary to authorize the 
 payment of benefits to eligible individuals. 

    Subd. 8.    Interstate claims.  An individual shall not 
 be eligible for extended benefits for any week if:  

    (a) Extended benefits are payable for that week pursuant to 
 an interstate claim filed in any state under the interstate 
 benefit payment plan; and 

    (b) No extended benefit period is in effect for the week in 
 that state.  This subdivision shall not apply to the first two 
 weeks for which extended benefits are payable pursuant to an 
 interstate claim filed under the interstate benefit payment plan 
 to the individual from the extended benefit account established 
 for the individual with respect to the benefit year.  

    Subd. 9.    Eligibility requirements.  Notwithstanding 
 the provisions of subdivision 2, a claimant shall be ineligible 
 for the payment of extended benefits for any week in the 
 claimant's eligibility period if during that week the claimant 
 failed to accept any offer of suitable employment, failed to 
 apply for any suitable employment to which referred by the 
 commissioner or failed to actively seek employment.  

    Any claimant who has been found ineligible for extended 
 benefits for any week by reason of this subdivision shall also 
 be denied benefits until the claimant has been employed in each 
 of four subsequent weeks, whether or not consecutive, and has 
 earned remuneration of not less than four times the claimant's 
 extended weekly benefit amount. 

    For the purpose of this subdivision "suitable employment" 
 means any employment which is within the claimant's capabilities 
 and which has a gross average weekly remuneration payable which 
 exceeds the sum of the claimant's weekly benefit amount as 
 determined under subdivision 4 plus the amount, if any, of 
 supplemental reemployment insurance benefits, as defined in 
 section 501(c) (17) (D) of the Internal Revenue Code of 1954, as 
 amended, payable to the claimant for that week.  The employment 
 must pay wages not less than the higher of the federal minimum 
 wage without regard to any exemption, or the applicable state 
 minimum wage.  

    No claimant shall be denied extended benefits for failure 
 to accept an offer of or apply for any suitable employment if:  

    (a) the position was not offered to the claimant in writing 
 or was not listed with employment service; 

    (b) the failure could not result in a denial of benefits 
 under the definition of suitable employment for regular benefit 
 claimants in section 268.095 to the extent that the criteria of 
 suitability is not inconsistent with this subdivision; or 

    (c) the claimant furnishes satisfactory evidence to the 
 commissioner that prospects for obtaining employment in the 
 claimant's customary occupation within a reasonably short period 
 are good.  

 If the evidence furnished is found to be satisfactory for this 
 purpose, the determination of whether any employment is suitable 
 for the claimant shall be made in accordance with the definition 
 of suitable employment in section 268.095, subdivision 9, 
 paragraph (a), without regard to the definition or special 
 disqualification specified in this subdivision.  

    No employment shall be found to be suitable employment for 
 a claimant which would not be suitable employment under section 
 268.095, subdivision 9, paragraph (b).  

    For the purpose of this subdivision a claimant is "actively 
 seeking employment" during any week if the claimant has engaged 
 in a systematic and sustained effort to obtain employment during 
 the week, and the claimant furnishes tangible evidence of 
 engaging in that effort during the week.  

    The employment service shall refer any claimant entitled to 
 extended benefits under this section to any employment which is 
 suitable employment for that claimant under this subdivision. 

    HIST: 1971 c 61 s 1; 1974 c 355 s 58; 1975 c 1 s 1; 1975 c 336 
 s 12; 1977 c 297 s 13,14; 1Sp1982 c 1 s 16-21; 1983 c 372 s 19; 
 1985 c 248 s 70; 1986 c 444; 1987 c 362 s 16; 1992 c 484 s 9; 
 1993 c 13 art 1 s 33; 1997 c 66 s 33-35,79,80; 1998 c 265 s 
 44,45 

    268.12 Subdivision 1. Repealed, 1Sp1985 c 14 art 9 s 
 78 subd 1 

    Subd. 1a. Repealed, 1Sp1985 c 14 art 9 s 78 subd 1 

    Subd. 2. Repealed, 1997 c 66 s 81 

    Subd. 3. Repealed, 1983 c 268 s 2 

    Subd. 4. Repealed, 1997 c 66 s 81 

    Subd. 5. Repealed, 1997 c 66 s 81 

    Subd. 6. Repealed, 1989 c 343 s 7 

    Subd. 7. Repealed, 1997 c 66 s 81 

    Subd. 8. Renumbered 268.186 

    Subd. 9. Repealed, 1995 c 54 s 29 

    Subd. 9a. Renumbered 268.188 

    Subd. 10. Repealed, 1995 c 54 s 29 

    Subd. 11. Repealed, 1997 c 66 s 81 

    Subd. 12. Renumbered 268.19 

    Subd. 13. Repealed, 1995 c 54 s 29 

    Subd. 14.  Repealed, 1949 c 605 s 15 

  268.121 Renumbered 268.044 

     268.125 Additional reemployment insurance benefits. 

    Subdivision 1.    Additional benefits; when available.  
 Additional reemployment insurance benefits are authorized if: 

    (1) at a facility that had 100 or more employees for at 
 least six months during the prior 12 months, the employer 
 reduced operations, resulting within a one-month period in the 
 layoff of 50 percent or more of the facility's work force 
 amounting to 50 or more employees, including reductions caused 
 as a result of a major natural disaster declared by the 
 president; 

    (2) the employer has no expressed plan to resume operations 
 that would lead to the reemployment of those employees at any 
 time in the immediate future; and 

    (3) the seasonally adjusted unemployment rate in the county 
 that the facility is located was ten percent or more during the 
 month of the reduction or any of the three months before or 
 after the month of the reduction. 

    Subd. 2.    Payment of benefits.  Additional benefits 
 are payable from the fund.  

    Subd. 3.    Eligibility conditions.  A claimant is 
 eligible to receive additional benefits for any week during the 
 claimant's benefit year if: 

    (1) the claimant was laid off from employment as a result 
 of a reduction under subdivision 1 or was laid off due to lack 
 of work from that employer during the three-month period before, 
 or the three-month period after, the month of the reduction 
 under subdivision 1; 

    (2) the claimant meets the eligibility requirements under 
 section 268.085; 

    (3) the claimant is not subject to a disqualification under 
 section 268.095; for the purpose of this subdivision, the 
 disqualifying conditions in section 268.095, and the 
 requalifying requirements, apply to the receipt of additional 
 benefits; 

    (4) the claimant has exhausted regular benefits under 
 section 268.07, is not entitled to receive extended benefits 
 under section 268.115, and is not entitled to receive benefits 
 under any other state or federal law for that week; 

    (5) a majority of the claimant's wage credits were from the 
 employer that had a reduction in operations under subdivision 1. 

    Subd. 4.    Weekly benefit amount.  A claimant's weekly 
 benefit amount shall be the same as the claimant's weekly 
 benefit amount during the current benefit year under section 
 268.07. 

    Subd. 5.    Maximum benefits payable.  The maximum 
 amount of additional benefits payable in the claimant's benefit 
 year shall be 13 times the claimant's weekly benefit amount.  
 Benefits paid to a claimant under any state or federal law other 
 than regular benefits under section 268.07 shall be deducted 
 from the maximum amount of additional benefits. 

    HIST: 1987 c 362 s 17; 1994 c 488 s 8; 1994 c 503 s 1-3; 1996 
 c 417 s 13-15; 1997 c 66 s 79; 2Sp1997 c 2 s 18,19; 1998 c 265 s 
 32 

    268.13 Subdivision 1.  (a) Renumbered 268.042 subd 4 

    (b) Renumbered 268.131 subd 1 paragraph (a) 

    (c) Renumbered 268.131 subd 1 paragraph (b) 

    Subd. 2.  Renumbered 268.194 subd 3a 

    Subd. 3. Repealed, 1998 c 265 s 46 

    Subd. 4.  Renumbered 268.131 subd 2 

    Subd. 5. Repealed, 1998 c 265 s 46 

     268.131 Reciprocal benefit arrangements. 

    Subdivision 1.  (a) The commissioner shall participate in 
 reciprocal arrangements with other states and the federal 
 government, or both, for the payment of benefits on the basis of 
 combining a claimant's wages and employment covered under this 
 law with wages and employment covered under the reemployment 
 insurance laws of other states or the federal government that 
 include provisions for applying the base period of a single 
 state law to an account involving the combining of a claimant's 
 wages and employment and avoiding the duplicate use of wages by 
 reason of such combining.  No reciprocal arrangement shall be 
 entered into unless it contains provisions for reimbursements to 
 the fund, by the other state or the federal government, for 
 benefits paid from the fund to claimants based upon wages and 
 employment covered under the laws of the other state or the 
 federal government. 

    (b) On any reciprocal arrangement, the wages paid a 
 claimant from employment covered under a reemployment insurance 
 law of another state or of the federal government, shall be 
 considered wages from covered employment for the purpose of 
 determining the claimant's rights to benefits under sections 
 268.03 to 268.23. 

    Subd. 2.    Cooperation with foreign governments.  The 
 commissioner is authorized to enter into or cooperate in 
 arrangements whereby facilities and services provided under 
 sections 268.03 to 268.23 and facilities and services provided 
 under the reemployment insurance law of any foreign government, 
 may be used for the taking of applications for benefits and 
 continued claims and the payment of benefits under this law or 
 under a similar law of a foreign government.  

    HIST: (4337-31) Ex1936 c 2 s 11; 1937 c 306 s 8; 1939 c 443 s 
 9; 1941 c 554 s 10; 1943 c 650 s 8; 1945 c 376 s 10; 1947 c 432 
 s 8-10; 1965 c 45 s 45; 1969 c 9 s 64; 1971 c 942 s 13; 1979 c 
 181 s 16; 1986 c 444; 1989 c 209 art 2 s 1; 1996 c 417 s 31; 
 1997 c 66 s 79; 1998 c 265 s 33-35,45 

     268.135 Shared work plan. 

    Subdivision 1.    Shared work plan; definitions.  For 
 purposes of this section, the following terms have the meanings 
 given: 

    (a) "Affected employee" means an individual who was 
 continuously employed as a member of the affected group, by the 
 shared work employer, for at least six months prior to 
 application, on a full-time basis. 

    (b) "Affected group" means five or more employees 
 designated by the employer to participate in a shared work plan. 

    (c) "Shared work employer" means an employer with a shared 
 work plan in effect. 

    (d) "Shared work plan" or "plan" means an employer's 
 voluntary, written plan for reducing unemployment, under which a 
 specified group of employees shares the work remaining after 
 their normal weekly hours of work are reduced. 

    (e) "Approved shared work plan" or "approved plan" means an 
 employer's shared work plan which meets the requirement of this 
 section. 

    (f) "Normal weekly hours of work" means the number of hours 
 in a week that the employee normally would work for the shared 
 work employer or 40 hours, whichever is less. 

    Subd. 2.    Participation.  (a) An employer wishing to 
 participate in the shared work unemployment benefit program 
 shall submit a signed, written shared work plan to the 
 commissioner for approval.  The commissioner may give written 
 approval of a shared work plan only if it: 

    (1) specifies the employees in the affected group; 

    (2) applies to only one affected group; 

    (3) includes a certified statement by the employer that 
 each individual specified in the affected group is an affected 
 employee; 

    (4) includes a certified statement by the employer that for 
 the duration of the plan the reduction in normal weekly hours of 
 work of the employees in the affected group is instead of 
 layoffs which otherwise would result in at least at large a 
 reduction in the total normal weekly hours of work; 

    (5) specifies an expiration date which is no more than one 
 year from the date the employer submits the plan for approval; 

    (6) specifies that fringe benefits, such as health and 
 retirement, available to the employees in the affected group are 
 not reduced beyond the percentage of reduction in hours of work; 
 and 

    (7) is approved in writing by the collective bargaining 
 agent for each collective bargaining agreement which covers any 
 employee in the affected group. 

    (b) The commissioner shall establish the beginning and 
 ending dates of an approved shared work plan. 

    (c) The commissioner shall approve or disapprove the plan 
 within 15 days of its receipt.  The commissioner shall notify 
 the employer of the reasons for disapproval of a shared work 
 plan within ten days of the determination.  Determinations of 
 the commissioner are final. 

    (d) Disapproval of a plan may be reconsidered upon 
 application of the employer or at the discretion of the 
 commissioner.  Approval of a shared work plan may be revoked by 
 the commissioner when it is established that the approval was 
 based, in whole or in part, upon information in the plan which 
 is either false or substantially misleading. 

    Subd. 3.    Eligibility.  (a) Notwithstanding any other 
 provision of this chapter, an individual is unemployed and 
 eligible to receive shared work benefits with respect to any 
 week if the commissioner finds that: 

    (1) during the week the individual is employed as a member 
 of an affected group in an approved plan which was approved 
 prior to the week and is in effect for the week; and 

    (2) during the week the individual's normal weekly hours of 
 work were reduced, in accordance with an approved plan, at least 
 20 percent but not more than 40 percent, with a corresponding 
 reduction in wages. 

    (b) Shared work benefits shall not be paid to an eligible 
 individual beyond one benefit year under an approved plan or 
 modification of an approved plan. 

    (c) The total amount of regular benefits and shared work 
 benefits paid to an individual in a benefit year shall not 
 exceed the maximum benefit amount established. 

    (d) An otherwise eligible individual shall not be denied 
 benefits under this section because of the application of any 
 provision of this chapter relating to availability for work, 
 active search for work, or refusal to apply for or accept work 
 from other than the individual's shared work employer. 

    Subd. 4.    Weekly benefit amount.  (a) An individual 
 who is eligible for shared work benefits under this section 
 shall be paid, with respect to any week of unemployment, a 
 weekly shared work reemployment insurance benefits amount.  The 
 amount shall be equal to the individual's regular weekly benefit 
 amount multiplied by the nearest full percentage of reduction of 
 the individual's regular weekly hours of work as set forth in 
 the employer's plan.  The benefit payment, if not a multiple of 
 $1 shall be rounded to the next lower dollar. 

    (b) The provisions of section 268.085, subdivision 5, shall 
 not apply to earnings from the shared work employer of an 
 individual eligible for payments under this section unless the 
 resulting payment would be less than the regular benefit payment 
 for which the individual would otherwise be eligible without 
 regard to shared work reemployment insurance benefits. 

    (c) An individual shall not be eligible for benefits 
 payable under this section for any week in which paid work is 
 performed for the shared work employer in excess of the reduced 
 hours set forth in the approved plan. 

    HIST: 1994 c 503 s 4; 1996 c 417 s 16; 1997 c 66 s 79,80; 1998 
 c 265 s 45 

    268.14 Subdivision 1. Renumbered 268.198, subd 1 

    Subd. 2. Renumbered 268.198, subd 2 

    Subd. 3. Repealed, 1997 c 66 s 81 

    Subd. 4. Repealed, 1997 c 66 s 81 

    Subd. 5. Renumbered 268.198, subd 3 

    Subd. 6.  MS 1980 Expired 

    Subd. 6. Expired 

     268.145 Income tax withholding. 

    Subdivision 1.    Notification.  (a) Upon application 
 for a reemployment insurance account, the claimant shall be 
 informed that: 

    (1) reemployment insurance benefits are subject to federal 
 and state income tax; 

    (2) there are requirements for filing estimated tax 
 payments; 

    (3) the claimant may elect to have federal income tax 
 withheld from benefits; 

    (4) if the claimant elects to have federal income tax 
 withheld, the claimant may, in addition, elect to have Minnesota 
 state income tax withheld; and 

    (5) at any time during the benefit year the claimant may 
 change a prior election. 

    (b) If a claimant elects to have federal income tax 
 withheld, the commissioner shall deduct that percentage required 
 by the Internal Revenue Code.  If a claimant, in addition to 
 federal income tax withholding, elects to have Minnesota state 
 income tax withheld, the commissioner shall make an additional 
 five percent deduction for Minnesota state income tax.  Any 
 amounts deducted pursuant to sections 268.155, 268.18, 268.182, 
 and 268.184 have priority over any amounts deducted under this 
 section.  Federal income tax withholding has priority over 
 Minnesota state income tax withholding. 

    (c) An election to have federal income tax, or federal and 
 Minnesota state income tax, withheld shall not be retroactive 
 and shall only apply to benefits paid after the election. 

    Subd. 2.    Transfer of funds.  The amount of any 
 benefits deducted under this section shall remain in the 
 Minnesota reemployment insurance fund until transferred to the 
 federal Internal Revenue Service, or the Minnesota department of 
 revenue, as an income tax payment on behalf of the claimant. 

    Subd. 3.    Correction of errors.  Any error which 
 resulted in underwithholding under this section shall not be 
 corrected retroactively. 

    Subd. 4.    Federal requirement.  The commissioner shall 
 follow all federal requirements for the deduction and 
 withholding of federal and Minnesota state income tax from 
 reemployment insurance benefits. 

    Subd. 5.    Application.  This section applies to any 
 payments under federal or state law as compensation, assistance, 
 or allowance with respect to unemployment. 

    HIST: 1996 c 417 s 17; 1997 c 66 s 79; 1998 c 254 art 1 s 73 

    268.15 Subdivision 1. Renumbered 268.196, subd 1 

    Subd. 2. Renumbered 268.196, subd 2 

    Subd. 3. Renumbered 268.196, subd 3 

    Subd. 4. Repealed, 2Sp1981 c 1 s 8 

     268.155 Child support intercept of reemployment 
  insurance benefits. 

    Subdivision 1.    Definitions.  As used in this section 
 unless the context clearly requires otherwise:  

    (a) "Reemployment insurance" means any compensation payable 
 under this chapter including amounts payable by the commissioner 
 pursuant to an agreement under any federal law providing for 
 compensation, assistance, or allowance with respect to 
 unemployment; 

    (b) "Child support obligations" means obligations which are 
 being enforced by the public agency responsible for child 
 support enforcement pursuant to a plan described in section 454 
 of the Social Security Act which has been approved by the 
 secretary of health and human services under part D of title IV 
 of the Social Security Act; 

    (c) "Child support agency" means the public agency 
 responsible for child support enforcement pursuant to a plan 
 described in section 454 of the Social Security Act.  

    Subd. 2.    Notice of claim.  Upon application for a 
 reemployment insurance account, the claimant shall disclose 
 whether or not the claimant owes child support obligations.  If 
 the claimant discloses that the claimant owes child support 
 obligations, and establishes a reemployment insurance account, 
 the commissioner shall notify the child support agency that the 
 claimant has established a reemployment insurance account. 

    Subd. 3.    Withholding of benefits.  The commissioner 
 shall deduct and withhold from any reemployment insurance 
 payable to a claimant that owes child support obligations: 

    (a) The amount specified by the claimant to the 
 commissioner to be deducted and withheld under this section, if 
 neither clause (b) or (c) is applicable; or 

    (b) The amount determined pursuant to an agreement 
 submitted to the commissioner under section 454 (20) (B) (i) of 
 the Social Security Act by the child support agency, unless (c) 
 is applicable; or 

    (c) Any amount otherwise required to be so deducted and 
 withheld from the unemployment compensation pursuant to "legal 
 process" as defined in section 462(e) of the Social Security 
 Act, properly served upon the commissioner.  

    Subd. 4.    Payment by the commissioner.  Any amount 
 deducted and withheld under subdivision 3 shall be paid by the 
 commissioner to the public agency responsible for child support 
 enforcement.  

    Subd. 5.    Effect of payments.  Any amount deducted and 
 withheld under subdivision 3 shall for all purposes be treated 
 as if it were paid to the claimant as reemployment insurance and 
 paid by the claimant to the public agency responsible for child 
 support enforcement in satisfaction of the claimant's child 
 support obligations.  

    Subd. 6.    Reimbursement of costs.  Appropriate 
 arrangements shall be made for reimbursement by the child 
 support agency for the administrative costs incurred by the 
 commissioner under this subdivision and sections 518.551 and 
 518.6111 which are attributable to child support obligations 
 being enforced by the public agency responsible for child 
 support enforcement. 

    HIST: 1Sp1982 c 1 s 22; 1986 c 444; 1987 c 384 art 2 s 67; 
 1994 c 488 s 8; 1996 c 417 s 10-12; 1997 c 66 s 79,80; 1997 c 
 203 art 6 s 92 

    268.16 Subdivision 1. Renumbered 268.057 subd 5 

    Subd. 1a. Renumbered 268.057 subd 6 

    Subd. 2. Renumbered 268.057 subd 1 

    Subd. 3. Repealed, 1Sp1982 c 1 s 43 

    Subd. 3a. Renumbered 268.057 subd 4 

    Subd. 4. Renumbered 268.067 

    Subd. 5. Renumbered 268.057 subd 10 

    Subd. 6. Renumbered 268.057 subd 7 

    Subd. 7. Renumbered 268.057 subd 8 

    Subd. 8. Repealed, 1997 c 66 s 81 

    Subd. 9. Renumbered 268.057 subd 9 

    268.161 Subdivision 1. Renumbered 268.058, subd 1 

    Subd. 1a. Renumbered 268.058, subd 2 

    Subd. 2. Renumbered 268.058 subd 6 

    Subd. 3. Repealed, 1997 c 66 s 81 

    Subd. 4. Renumbered 268.058, subd 5 

    Subd. 5. Renumbered 268.058, subd 4 

    Subd. 6. Renumbered 268.507, subd 2 

    Subd. 7. Renumbered 268.057, subd 3 

    Subd. 8. Renumbered 268.058, subd 3 

    Subd. 9. Renumbered 268.063 

  268.162 Renumbered 268.064 

  268.163 Renumbered 268.065 

  268.164 Renumbered 268.0625 

  268.165 Repealed, 1997 c 66 s 81 

  268.166 Renumbered 268.066 

  268.167 Renumbered 268.059 

  268.17 Renumbered 268.192 

     268.18 Benefit overpayments. 

    Subdivision 1.    Erroneous payments.  (a) Any claimant 
 who, by reason of the claimant's own mistake or through the 
 error of any individual engaged in the administration of this 
 chapter or because of a determination, redetermination, or 
 amended determination issued pursuant to section 268.07 or 
 268.101, has received any benefits that the claimant was not 
 entitled to, shall promptly repay the benefits to the 
 department.  If the claimant fails to repay the benefits, the 
 commissioner shall, as soon as the erroneous payment is 
 discovered, determine the amount due and notify the claimant in 
 writing to repay the benefits. 

    (b) Unless the claimant files an appeal within 30 calendar 
 days after the mailing of the determination of overpayment to 
 the claimant's last known address, the determination shall 
 become final.  Proceedings on the appeal shall be conducted in 
 accordance with section 268.105.  A claimant may not 
 collaterally attack, by way of an appeal to an overpayment 
 determination, any prior determination issued pursuant to 
 section 268.07 or 268.101, or decision issued pursuant to 
 section 268.105, that has become final. 

    (c) If the claimant fails to repay the benefits, the 
 commissioner may deduct from any future benefits payable to the 
 claimant in the current or any subsequent benefit year the 
 amount of the overpayment, except that no single deduction under 
 this subdivision shall exceed 50 percent of the amount of the 
 payment from which the deduction is made, or the overpayment may 
 be collected the same as delinquent taxes.  A determination of 
 overpayment shall state the methods of collection the 
 commissioner may use to recover the overpayment.  

    (d) If a claimant has been overpaid benefits under the law 
 of another state because of an error and that state certifies to 
 the commissioner that the claimant is liable under its law to 
 repay the benefits and requests the commissioner to recover the 
 overpayment, the commissioner may deduct from future benefits 
 payable to the claimant in the current or any subsequent benefit 
 year the amount of overpayment, except that no single deduction 
 under this subdivision shall exceed 50 percent of the amount of 
 the payment from which the deduction is made.  

    (e) Benefits paid for weeks more than three years prior to 
 the discovery of error are not erroneous payments. 

    Subd. 2.    Fraud.  (a) Any claimant who receives 
 benefits by knowingly and willfully misrepresenting, misstating, 
 or failing to disclose any material fact that would have made 
 the claimant not entitled to those benefits has committed fraud. 
 After the discovery of facts indicating fraud, the commissioner 
 shall make a written determination that the claimant was not 
 entitled to benefits that were obtained by fraud and that the 
 claimant must promptly repay the benefits to the department.  In 
 addition, the commissioner shall assess a penalty equal to 25 
 percent of the amount fraudulently obtained.  If the claimant 
 had a prior overpayment due to fraud, the commissioner shall, on 
 the present overpayment, assess a penalty equal to 50 percent of 
 the amount fraudulently obtained. 

    (b) Unless the claimant files an appeal within 30 calendar 
 days after the mailing of the determination of overpayment by 
 fraud to the claimant's last known address, the determination 
 shall become final.  Proceedings on the appeal shall be 
 conducted in accordance with section 268.105.  

    (c) If the claimant fails to repay the benefits, penalty, 
 and any interest assessed under subdivision 2b, the commissioner 
 shall deduct from future benefits payable to the claimant in the 
 current or any subsequent benefit year the amount of overpayment 
 or the total due may be collected the same as delinquent taxes.  
 A determination of overpayment by fraud shall state the methods 
 of collection the commissioner may use to recover the 
 overpayment.  Money received in repayment of fraudulently 
 obtained benefits, penalties, and interest shall first be 
 applied to the benefits overpaid, then to the penalty amount 
 due, then to any interest due.  Payments made toward penalty and 
 interest shall be credited to the contingent account. 

    (d) If a claimant has been overpaid benefits under the law 
 of another state because of fraud and that state certifies to 
 the commissioner that the claimant is liable to repay the 
 benefits and requests the commissioner to recover the 
 overpayment, the commissioner may deduct from future benefits 
 payable to the claimant in the current or any subsequent benefit 
 year the amount of overpayment.  

    (e) A determination of overpayment by fraud may be made at 
 any time.  

    Subd. 2a.  Renumbered subd 3a 

    Subd. 2b.    Interest.  (a) On any benefits fraudulently 
 obtained, as determined under subdivision 2, the commissioner 
 shall have the discretion to assess interest at the rate of 
 1-1/2 percent per month on any overpaid amount that remains 
 unpaid 30 calendar days after the date of the determination of 
 overpayment by fraud.  A determination of overpayment by fraud 
 shall state that interest may be assessed. 

    (b) If this subdivision became effective after the date of 
 the determination of overpayment by fraud, or the determination 
 did not state that interest may be assessed, interest pursuant 
 to this subdivision may be assessed beginning 30 calendar days 
 after written notification to the claimant. 

    Subd. 3. Renumbered 268.182 

    Subd. 3a.    Offset of federal benefits.  The 
 commissioner is authorized to enter into reciprocal agreements 
 with the United States Secretary of Labor, whereby, overpayments 
 of benefits as determined under federal law, with respect to 
 benefits under a federal program administered by Minnesota, may 
 be recovered by offset from benefits otherwise payable under 
 this chapter or any federal program.  As provided by reciprocal 
 agreement, benefit overpayments under subdivisions 1 and 2 may 
 be recovered by offset from benefits otherwise payable under a 
 federal program. 

    Subd. 4.    Cancellation of benefits paid through error or 
 fraud.  (a) If benefits paid through error are not repaid or 
 deducted from subsequent benefits as provided for in subdivision 
 1 within six years after the date of the determination of 
 overpayment, the commissioner shall cancel the overpayment 
 balance, and no administrative or legal proceedings shall be 
 used to enforce collection of those amounts.  

    (b) If benefits paid as a result of fraud including 
 penalties and interest are not repaid or deducted from 
 subsequent benefits as provided for in subdivision 2 within ten 
 years after the date of the determination of overpayment by 
 fraud, the commissioner shall cancel the overpayment balance and 
 any penalties and interest due, and no administrative or legal 
 proceeding shall be used to enforce collection of those amounts. 

    (c) The commissioner may cancel at any time benefits paid 
 through error or fraud including penalties and interest that the 
 commissioner determines are uncollectible due to death or 
 bankruptcy. 

    Subd. 4a.    Court fees.  (a) If the commissioner is 
 required to pay any court fees in an attempt to enforce 
 collection of overpaid benefits, penalties, or interest, the 
 commissioner may add the amount of the court fees to the total 
 amount due. 

    (b) If a claimant who has been determined overpaid benefits 
 because of fraud seeks to have any portion of the debt 
 discharged under the federal bankruptcy code, and the 
 commissioner files an objection in bankruptcy court to the 
 discharge, the commissioner may add the commissioner's cost of 
 any court fees to the debt if the bankruptcy court does not 
 discharge the debt. 

    Subd. 5. Repealed, 1997 c 66 s 81 

    Subd. 6. Renumbered 268.184 

    HIST: (4337-36) Ex1936 c 2 s 16; 1941 c 554 s 15; 1951 c 442 s 
 11; 1953 c 97 s 18; 1969 c 567 s 3; 1973 c 254 s 3; 1975 c 336 s 
 24; 1977 c 4 s 10; 1977 c 430 s 25 subd 1; 1979 c 181 s 17,18; 
 1Sp1982 c 1 s 37-40; 1983 c 216 art 1 s 42,87; 1983 c 372 s 
 45,46; 1985 c 248 s 70; 1Sp1985 c 14 art 9 s 75; 1986 c 444; 
 1987 c 385 s 40-45; 1988 c 712 s 3; 1989 c 209 art 2 s 1; 1990 c 
 566 s 8; 1992 c 484 s 15; 1994 c 483 s 1; 1995 c 54 s 21-24; 
 1996 c 417 s 29,31; 1997 c 66 s 71-73,79; 1998 c 265 s 36,45 

*   NOTE:  The amendment to subdivision 2, paragraph (a), by 
*Laws 1998, chapter 265, section 36, is effective for 
*determinations issued on or after July 1, 1999.  Laws 1998, 
*chapter 265, section 47.

     268.182 False representations; concealment of facts; 
  penalty. 

    (a) Whoever obtains, or attempts to obtain, or aids or 
 abets any individual to obtain by means of an intentional false 
 statement or representation, by intentional concealment of a 
 material fact, or by impersonation or other fraudulent means, 
 benefits that the individual is not entitled or benefits greater 
 than the individual is entitled under this chapter, or under the 
 law of any state or of the federal government, either personally 
 or for any other individual, is guilty of theft and shall be 
 sentenced pursuant to section 609.52.  

    (b) Any individual who violates paragraph (a) may be 
 assessed an administrative penalty of denial of benefits for one 
 to 52 weeks that the individual would otherwise be entitled to 
 benefits.  A denial shall not apply to any week more than two 
 years after the week that the violation of paragraph (a) was 
 determined.  A written determination of denial shall be mailed 
 to the individual's last known address.  Unless an appeal is 
 filed within 30 calendar days of mailing, the determination 
 shall be final.  Proceeding on the appeal shall be conducted in 
 accordance with section 268.105.  This paragraph shall not apply 
 if prosecution is commenced under paragraph (a) or a penalty is 
 imposed under section 268.18, subdivision 2. 

    (c) Any employer or any officer or agent of an employer or 
 any other person who makes a false statement or representation 
 knowing it to be false, or who knowingly fails to disclose a 
 material fact, to prevent or reduce the payment of benefits to 
 any claimant, is guilty of a gross misdemeanor unless the 
 benefit underpayment exceeds $500, in that case the person is 
 guilty of a felony.  

    HIST: Ex1936 c 2 s 16; 1941 c 554 s 15; 1951 c 442 s 11; 1953 
 c 97 s 18; 1969 c 567 s 3; 1973 c 254 s 3; 1975 c 336 s 24; 1977 
 c 4 s 10; 1977 c 430 s 25 subd 1; 1979 c 181 s 17,18; 1Sp1982 c 
 1 s 37-40; 1983 c 216 art 1 s 42,87; 1983 c 372 s 45,46; 1985 c 
 248 s 70; 1Sp1985 c 14 art 9 s 75; 1986 c 444; 1987 c 385 s 
 40-45; 1988 c 712 s 3; 1989 c 209 art 2 s 1; 1990 c 566 s 8; 
 1992 c 484 s 15; 1994 c 483 s 1; 1995 c 54 s 21-24; 1996 c 417 s 
 29,31; 1997 c 66 s 74,79; 1998 c 265 s 37 

     268.184 Employer misconduct; penalty. 

    (a) If the commissioner finds that any employer or any 
 employee, officer, or agent of any employer, is in collusion 
 with any claimant for the purpose of assisting the claimant to 
 receive benefits illegally, the employer shall be penalized $500 
 or the amount of benefits determined to be overpaid, whichever 
 is greater. 

    (b) If the commissioner finds that any employer or any 
 employee, officer, or agent of an employer has made (1) a false 
 statement or representation knowing it to be false, or (2) has 
 made a false statement or representation without a good faith 
 belief as to correctness of the statement or representation, or 
 (3) who knowingly fails to disclose a material fact, to prevent 
 or reduce the payment of benefits to any claimant or to reduce 
 or prevent a charge of benefits to its account, the employer 
 shall be penalized $500. 

    (c) Penalties under this section shall be in addition to 
 any other penalties and subject to the same collection 
 procedures that apply to past due taxes.  Penalties shall be 
 paid to the department within 30 calendar days of assessment and 
 credited to the contingent account. 

    (d) The assessment of the penalty shall be final unless the 
 employer files an appeal within 30 calendar days after the 
 sending of notice of the penalty to the employer by mail or 
 electronic transmission.  Proceedings on the appeal shall be 
 conducted in accordance with section 268.105. 

    HIST: Ex1936 c 2 s 16; 1941 c 554 s 15; 1951 c 442 s 11; 1953 
 c 97 s 18; 1969 c 567 s 3; 1973 c 254 s 3; 1975 c 336 s 24; 1977 
 c 4 s 10; 1977 c 430 s 25 subd 1; 1979 c 181 s 17,18; 1Sp1982 c 
 1 s 37-40; 1983 c 216 art 1 s 42,87; 1983 c 372 s 45,46; 1985 c 
 248 s 70; 1Sp1985 c 14 art 9 s 75; 1986 c 444; 1987 c 385 s 
 40-45; 1988 c 712 s 3; 1989 c 209 art 2 s 1; 1990 c 566 s 8; 
 1992 c 484 s 15; 1994 c 483 s 1; 1995 c 54 s 21-24; 1996 c 417 s 
 29,31; 1997 c 66 s 76,79; 1998 c 265 s 38 

     268.186 Records. 

    (a) Each employer shall keep true and accurate records for 
 the periods of time and containing the information the 
 commissioner may require.  For the purpose of determining 
 compliance with this chapter, or for the purpose of collection 
 of any amounts due under this chapter, the commissioner or any 
 delegated representative has the power to examine, or cause to 
 be examined or copied, any books, correspondence, papers, 
 records, or memoranda which are relevant to making these 
 determinations, whether the books, correspondence, papers, 
 records, or memoranda are the property of or in the possession 
 of the employer or any other person or corporation at any 
 reasonable time and as often as may be necessary. 

    (b) The commissioner or any delegated representative may 
 make summaries, compilations, photographs, duplications, or 
 reproductions of any records, or reports that the commissioner 
 considers advisable for the effective and economical 
 preservation of the information contained therein, and any 
 summaries, compilations, photographs, duplications, or 
 reproductions shall be admissible in any proceeding under this 
 chapter, if the original record or records would have been 
 admissible.  Notwithstanding any restrictions contained in 
 section 16B.50, the commissioner is hereby authorized to 
 duplicate records, reports, summaries, compilations, 
 instructions, determinations, or any other written matter 
 pertaining to the administration of the Minnesota Economic 
 Security Law. 

    (c) Notwithstanding any inconsistent provisions elsewhere, 
 the commissioner may provide for the destruction or disposition 
 of any records, reports, or reproductions thereof, or other 
 papers in the commissioner's custody, that are more than two 
 years old, the preservation of which is no longer necessary for 
 determining employer liability or a claimant's benefit rights or 
 for any purpose necessary to the proper administration of this 
 chapter, including any required audit, provided that the 
 commissioner may provide for the destruction or disposition of 
 any record, report, or other paper in the commissioner's custody 
 which has been photographed, duplicated, or reproduced. 

    HIST: Ex1936 c 2 s 10; 1937 c 306 s 7; 1939 c 441 s 42; 1939 c 
 443 s 8,10; 1941 c 554 s 9; 1943 c 650 s 7; 1945 c 376 s 9; 1947 
 c 600 s 3-6; 1949 c 605 s 15; 1949 c 739 s 8; 1951 c 442 s 6-10; 
 1951 c 713 s 29; 1953 c 97 s 15; 1953 c 603 s 1; 1953 c 612 s 1; 
 1955 c 847 s 22; 1957 c 883 s 7; 1965 c 45 s 42-44; 1965 c 741 s 
 18; 1967 c 770 s 1; 1969 c 9 s 63; 1969 c 310 s 2; 1969 c 567 s 
 1,3; 1969 c 854 s 11,12; 1969 c 1129 art 8 s 7; 1971 c 942 s 12; 
 1973 c 254 s 1,3; 1973 c 492 s 14; 1974 c 241 s 1; 1975 c 315 s 
 19; 1975 c 336 s 20,21; 1977 c 172 s 2; 1977 c 237 s 1; 1977 c 
 297 s 20; 1977 c 305 s 31; 1977 c 430 s 25 subd 1; 1978 c 674 s 
 60; 1979 c 181 s 15; 1980 c 615 s 37; 1981 c 311 s 39; 1982 c 
 424 s 130; 1982 c 545 s 23,24; 1Sp1982 c 1 s 31,32; 1983 c 216 
 art 1 s 87; 1983 c 247 s 114; 1983 c 260 s 58; 1983 c 312 art 8 
 s 2; 1983 c 372 s 37,38; 1984 c 544 s 89; 1985 c 248 s 70; 
 1Sp1985 c 14 art 9 s 75; 1986 c 444; 1987 c 165 s 1; 1987 c 312 
 art 1 s 26 subd 2; 1987 c 362 s 23; 1987 c 385 s 25; 1989 c 65 s 
 11; 1989 c 209 art 2 s 1; 1990 c 516 s 6,7; 1991 c 202 s 16; 
 1993 c 67 s 10; 1994 c 483 s 1; 1994 c 488 s 8; 1995 c 54 s 12; 
 1996 c 417 s 23,31; 1996 c 440 art 1 s 47; 1997 c 66 s 62,79; 
 1998 c 265 s 44 

     268.188 Subpoenas; oaths. 

    (a) In the discharge of the duties imposed by sections 
 268.03 to 268.23, the commissioner or any delegated 
 representative, shall have power to administer oaths and 
 affirmations, take depositions, certify to official acts, and 
 issue subpoenas to compel the attendance of persons and the 
 production of books, papers, correspondence, memoranda, and 
 other records necessary in connection with the administration of 
 these sections. 

    (b) Persons, other than claimants or officers and employees 
 of an employer that is the subject of the inquiry, subpoenaed 
 pursuant to this subdivision, shall be allowed fees the same as 
 witness fees in civil actions in district court.  The fees need 
 not be paid in advance. 

    (c) The subpoena shall be enforceable through the district 
 court in the district in which the subpoena is issued. 

    HIST: Ex1936 c 2 s 10; 1937 c 306 s 7; 1939 c 441 s 42; 1939 c 
 443 s 8,10; 1941 c 554 s 9; 1943 c 650 s 7; 1945 c 376 s 9; 1947 
 c 600 s 3-6; 1949 c 605 s 15; 1949 c 739 s 8; 1951 c 442 s 6-10; 
 1951 c 713 s 29; 1953 c 97 s 15; 1953 c 603 s 1; 1953 c 612 s 1; 
 1955 c 847 s 22; 1957 c 883 s 7; 1965 c 45 s 42-44; 1965 c 741 s 
 18; 1967 c 770 s 1; 1969 c 9 s 63; 1969 c 310 s 2; 1969 c 567 s 
 1,3; 1969 c 854 s 11,12; 1969 c 1129 art 8 s 7; 1971 c 942 s 12; 
 1973 c 254 s 1,3; 1973 c 492 s 14; 1974 c 241 s 1; 1975 c 315 s 
 19; 1975 c 336 s 20,21; 1977 c 172 s 2; 1977 c 237 s 1; 1977 c 
 297 s 20; 1977 c 305 s 31; 1977 c 430 s 25 subd 1; 1978 c 674 s 
 60; 1979 c 181 s 15; 1980 c 615 s 37; 1981 c 311 s 39; 1982 c 
 424 s 130; 1982 c 545 s 23,24; 1Sp1982 c 1 s 31,32; 1983 c 216 
 art 1 s 87; 1983 c 247 s 114; 1983 c 260 s 58; 1983 c 312 art 8 
 s 2; 1983 c 372 s 37,38; 1984 c 544 s 89; 1985 c 248 s 70; 
 1Sp1985 c 14 art 9 s 75; 1986 c 444; 1987 c 165 s 1; 1987 c 312 
 art 1 s 26 subd 2; 1987 c 362 s 23; 1987 c 385 s 25; 1989 c 65 s 
 11; 1989 c 209 art 2 s 1; 1990 c 516 s 6,7; 1991 c 202 s 16; 
 1993 c 67 s 10; 1994 c 483 s 1; 1994 c 488 s 8; 1995 c 54 s 12; 
 1996 c 417 s 23,31; 1996 c 440 art 1 s 47; 1997 c 66 s 63,79; 
 1998 c 265 s 44 

     268.19 Information. 

    (a) Except as otherwise provided by this section, data 
 gathered from any employer or individual pursuant to the 
 administration of sections 268.03 to 268.23 are private data on 
 individuals or nonpublic data not on individuals as defined in 
 section 13.02, subdivisions 9 and 12, and may not be disclosed 
 except pursuant to a court order or section 13.05.  These data 
 may be disseminated to and used by the following agencies 
 without the consent of the subject of the data:  

    (1) state and federal agencies specifically authorized 
 access to the data by state or federal law; 

    (2) any agency of Minnesota or any other state; or any 
 federal agency charged with the administration of an employment 
 security law or the maintenance of a system of public employment 
 offices; 

    (3) human rights agencies within Minnesota that have 
 enforcement powers; 

    (4) the department of revenue must have access to 
 department private data on individuals and nonpublic data not on 
 individuals only to the extent necessary for enforcement of 
 Minnesota tax laws; 

    (5) public and private agencies responsible for 
 administering publicly financed assistance programs for the 
 purpose of monitoring the eligibility of the program's 
 recipients; 

    (6) the department of labor and industry on an 
 interchangeable basis with the department subject to the 
 following limitations and notwithstanding any law to the 
 contrary:  

    (i) the department must have access to private data on 
 individuals and nonpublic data not on individuals for uses 
 consistent with the administration of its duties under sections 
 268.03 to 268.23; and 

    (ii) the department of labor and industry must have access 
 to private data on individuals and nonpublic data not on 
 individuals for uses consistent with the administration of its 
 duties under Minnesota law; 

    (7) the department of trade and economic development may 
 have access to private data on individual employers and 
 nonpublic data not on individual employers for its internal use 
 only; when received by the department of trade and economic 
 development, the data remain private data on individuals or 
 nonpublic data; 

    (8) local and state welfare agencies for monitoring the 
 eligibility of the data subject for assistance programs, or for 
 any employment or training program administered by those 
 agencies, whether alone, in combination with another welfare 
 agency, or in conjunction with the department or to monitor and 
 evaluate the statewide Minnesota family investment program by 
 providing data on recipients and former recipients of food 
 stamps, cash assistance under chapter 256, 256D, 256J, or 256K, 
 child care assistance under chapter 119B, or medical programs 
 under chapter 256B, 256D, or 256L; 

    (9) local, state, and federal law enforcement agencies for 
 the sole purpose of ascertaining the last known address and 
 employment location of the data subject, provided the data 
 subject is the subject of a criminal investigation; and 

    (10) the department of health may have access to private 
 data on individuals and nonpublic data not on individuals solely 
 for the purposes of epidemiologic investigations.  

    (b) Data on individuals and employers that are collected, 
 maintained, or used by the department in an investigation 
 pursuant to section 268.182 are confidential as to data on 
 individuals and protected nonpublic data not on individuals as 
 defined in section 13.02, subdivisions 3 and 13, and must not be 
 disclosed except pursuant to statute or court order or to a 
 party named in a criminal proceeding, administrative or 
 judicial, for preparation of a defense.  

    (c) Tape recordings and transcripts of recordings of 
 proceedings conducted in accordance with section 268.105 and 
 exhibits received into evidence at those proceedings are private 
 data on individuals and nonpublic data not on individuals and 
 must be disclosed only pursuant to the administration of section 
 268.105, or pursuant to a court order.  

    (d) The department may disseminate an employer's name, 
 address, industry code, occupations employed, and the number of 
 employees by ranges of not less than 100 for the purpose of 
 assisting individuals using the Minnesota workforce center 
 system in obtaining employment. 

    (e) The general aptitude test battery and the nonverbal 
 aptitude test battery as administered by the department are 
 private data on individuals or nonpublic data.  

    (f) Data gathered by the department pursuant to the 
 administration of sections 268.03 to 268.23 must not be made the 
 subject or the basis for any suit in any civil proceedings, 
 administrative or judicial, unless the action is initiated by 
 the department. 

    HIST: Ex1936 c 2 s 10; 1937 c 306 s 7; 1939 c 441 s 42; 1939 c 
 443 s 8,10; 1941 c 554 s 9; 1943 c 650 s 7; 1945 c 376 s 9; 1947 
 c 600 s 3-6; 1949 c 605 s 15; 1949 c 739 s 8; 1951 c 442 s 6-10; 
 1951 c 713 s 29; 1953 c 97 s 15; 1953 c 603 s 1; 1953 c 612 s 1; 
 1955 c 847 s 22; 1957 c 883 s 7; 1965 c 45 s 42-44; 1965 c 741 s 
 18; 1967 c 770 s 1; 1969 c 9 s 63; 1969 c 310 s 2; 1969 c 567 s 
 1,3; 1969 c 854 s 11,12; 1969 c 1129 art 8 s 7; 1971 c 942 s 12; 
 1973 c 254 s 1,3; 1973 c 492 s 14; 1974 c 241 s 1; 1975 c 315 s 
 19; 1975 c 336 s 20,21; 1977 c 172 s 2; 1977 c 237 s 1; 1977 c 
 297 s 20; 1977 c 305 s 31; 1977 c 430 s 25 subd 1; 1978 c 674 s 
 60; 1979 c 181 s 15; 1980 c 615 s 37; 1981 c 311 s 39; 1982 c 
 424 s 130; 1982 c 545 s 23,24; 1Sp1982 c 1 s 31,32; 1983 c 216 
 art 1 s 87; 1983 c 247 s 114; 1983 c 260 s 58; 1983 c 312 art 8 
 s 2; 1983 c 372 s 37,38; 1984 c 544 s 89; 1985 c 248 s 70; 
 1Sp1985 c 14 art 9 s 75; 1986 c 444; 1987 c 165 s 1; 1987 c 312 
 art 1 s 26 subd 2; 1987 c 362 s 23; 1987 c 385 s 25; 1989 c 65 s 
 11; 1989 c 209 art 2 s 1; 1990 c 516 s 6,7; 1991 c 202 s 16; 
 1993 c 67 s 10; 1994 c 483 s 1; 1994 c 488 s 8; 1995 c 54 s 12; 
 1996 c 417 s 23,31; 1996 c 440 art 1 s 47; 1997 c 66 s 79; 1998 
 c 273 s 13; 1998 c 371 s 11 

     268.192 Protection of rights and benefits. 

    Subdivision 1.    Waiver of rights void.  Any agreement 
 by an individual to waive, release, or commute rights to 
 benefits or any other rights under sections 268.03 to 268.23 
 shall be void.  Any agreement by an employee to pay all or any 
 portion of an employer's taxes, shall be void.  No employer 
 shall directly or indirectly make or require or accept any 
 deduction from wages to pay the employer's taxes, require or 
 accept any waiver of any right or in any manner obstruct or 
 impede an application or continued claim for benefits.  Any 
 employer or officer or agent of any employer who violates any 
 portion of this subdivision shall, for each offense, be guilty 
 of a misdemeanor.  

    Subd. 2.    No assignment of benefits; exemptions.  Any 
 assignment, pledge, or encumbrance of any right to benefits 
 which are or may become due or payable under sections 268.03 to 
 268.23 shall be void; and such rights to benefits shall be 
 exempt from levy, execution, attachment, or any other remedy 
 provided for the collection of debt; and benefits received by 
 any individual so long as they are not mingled with other funds 
 of the recipient shall be exempt from any remedy for the 
 collection of all debts, except debts incurred for necessaries 
 furnished to such individual or a spouse or dependents during 
 the time when such individual was unemployed.  Any waiver of any 
 exemption provided for in this subdivision shall be void. 

    HIST: Ex1936 c 2 s 15; 1941 c 554 s 14; 1986 c 444; 1989 c 209 
 art 2 s 1; 1996 c 417 s 31; 1997 c 66 s 79; 1998 c 265 s 39 

     268.194 Reemployment insurance fund. 

    Subdivision 1.    Establishment; how constituted.  There 
 is hereby established as a special fund, separate and apart from 
 all public money or funds of this state, a reemployment 
 insurance fund, which shall be administered by the commissioner 
 exclusively for the purpose of sections 268.03 to 268.23.  This 
 fund shall consist of: 

    (1) All taxes collected under those sections; 

    (2) Interest earned upon any money in the fund; 

    (3) Any property or securities acquired through the use of 
 money belonging to the fund; 

    (4) All earnings of such property or securities; 

    (5) Any money received from the Federal Unemployment 
 Account in the unemployment trust fund in accordance with Title 
 XII of the Social Security Act, as amended, and any other money 
 made available to the fund and received pursuant to an 
 agreement, between this state and any agency of the federal 
 government or any other state, for the payment of reemployment 
 insurance benefits; 

    (6) All money recovered on losses sustained by the fund; 

    (7) All money credited to the account of this state in the 
 unemployment trust fund pursuant to section 903 of the Social 
 Security Act, as amended; and 

    (8) All money received for the fund from any other source.  

    All money in the fund shall be mingled and undivided.  

    Subd. 2.    Commissioner of finance to be custodian; 
 separate accounts.  The commissioner of finance shall be the 
 treasurer and custodian of the fund, administer the fund in 
 accordance with the directions of the commissioner, and issue 
 warrants upon it.  The commissioner of finance shall maintain 
 within the fund three separate accounts: 

    (1) a clearing account; 

    (2) an unemployment trust fund account; and 

    (3) a benefit account.  

    All money payable to the fund, upon receipt by the 
 commissioner, shall be forwarded to the commissioner of finance 
 who shall immediately deposit the money in the clearing 
 account.  All money in the clearing account, after clearance, 
 shall, except as otherwise provided, be immediately deposited to 
 the credit of the account of Minnesota in the federal 
 unemployment trust fund.  Refunds payable pursuant to section 
 268.057 may be paid from the clearing account or the benefit 
 account.  The benefit account shall consist of all money 
 requisitioned from Minnesota's account in the federal 
 unemployment trust fund for the payment of benefits.  Money in 
 the clearing and benefit accounts may be deposited by the 
 commissioner of finance, under the direction of the 
 commissioner, in any depository bank that general funds of 
 Minnesota may be deposited, but no public deposit insurance 
 charge or premium shall be paid out of the fund.  Money in the 
 clearing and benefit accounts shall not be commingled with other 
 state funds, but shall be maintained in separate accounts on the 
 books of the depository bank.  This money shall be secured by 
 the depository bank to the same extent and in the same manner as 
 required by the general depository law of Minnesota; and 
 collateral pledged for this purpose shall be kept separate and 
 distinct from any collateral pledged to secure other funds of 
 Minnesota.  All sums recovered for losses sustained by the fund 
 shall be deposited in the fund.  

    Subd. 3.    Withdrawals.  (1) Money requisitioned from 
 Minnesota's account in the federal unemployment trust fund shall 
 be used exclusively for the payment of benefits and for refunds 
 pursuant to section 268.057, except that money credited to 
 Minnesota's account pursuant to United States Code, title 42, 
 section 1103 of the Social Security Act, shall be used 
 exclusively for the payment of expenses of administration.  The 
 commissioner shall from time to time requisition from the 
 federal unemployment trust fund the amounts, not exceeding the 
 amount in Minnesota's account, the commissioner considers 
 necessary for the payment of benefits and refunds for a 
 reasonable future period.  Upon receipt the commissioner of 
 finance shall deposit the money in the benefit account and issue 
 warrants for the payment of benefits solely from the benefit 
 account.  Expenditures of money in the benefit account and 
 refunds from the clearing account shall not be subject to any 
 provisions of law requiring specific appropriations or other 
 formal release by state officers.  All warrants issued for the 
 payment of benefits and refunds shall bear the signature of the 
 commissioner of finance and the counter signature of the 
 commissioner.  

    (2) Any balance of money requisitioned from the 
 unemployment trust fund that remains unclaimed or unpaid in the 
 benefit account after the expiration of the period for which the 
 sums were requisitioned shall either be deducted from estimates 
 for, and may be utilized for the payment of, benefits and 
 refunds during following periods or, in the discretion of the 
 commissioner, shall be redeposited in the federal unemployment 
 trust fund, as provided in subdivision 2. 

    Subd. 3a.    Reimbursements.  The commissioner is 
 authorized to make to other state or federal agencies and to 
 receive from other state or federal agencies, reimbursements 
 from or to the fund, in accordance with reciprocal arrangements 
 entered into pursuant to section 268.131. 

    Subd. 4.    Disposal of certain money.  Any money made 
 available to the reemployment insurance fund and received 
 pursuant to an agreement between this state and any agency of 
 the federal government or any other state for the payment of 
 reemployment insurance benefits shall be placed directly in the 
 benefit account of the unemployment trust fund.  

    Subd. 5.    Payment of expenses of administration.  (1) 
 Money credited to the account of this state in the unemployment 
 trust fund by the secretary of the treasury of the United States 
 of America pursuant to section 903 of the Social Security Act, 
 as amended, may be requisitioned and used for the payment of 
 expenses incurred for the administration of Laws 1957, chapter 
 883 pursuant to a specific appropriation by the legislature, 
 provided that the expenses are incurred and the money is 
 requisitioned after the enactment of an appropriation law which: 

    (a) Specifies the purposes for which such money is 
 appropriated and the amounts appropriated therefor.  

    (b) Limits the period within which such money may be 
 obligated to a period ending not more than two years after the 
 date of the enactment of the appropriation law, and 

    (c) Limits the amount which may be obligated during any 
 12-month period beginning on July 1 and ending on the next June 
 30 to an amount which does not exceed the amount by which (i) 
 the aggregate of the amounts credited to the account of this 
 state pursuant to section 903 of the Social Security Act, as 
 amended, during the same 12-month period and the 34 preceding 
 12-month periods, exceeds (ii) the aggregate of the amounts used 
 pursuant to this subdivision and charged against the amounts 
 credited to the account of this state during any of such 35 
 12-month periods.  For the purposes of this subdivision, amounts 
 used during any such 12-month period shall be charged against 
 equivalent amounts which were first credited and which are not 
 already so charged; except that no amount obligated for 
 administration during any such 12-month period may be charged 
 against any amount credited during such a 12-month period 
 earlier than the 24th preceding such period.  

    (2) Money credited to the account of this state pursuant to 
 section 903 of the Social Security Act, as amended, may not be 
 withdrawn or used except for the payment of benefits and for the 
 payment of expenses for the administration of Laws 1957, chapter 
 883 and of public employment offices pursuant to this 
 subdivision.  Any moneys used for the payment of benefits may be 
 restored for appropriation and use for administrative expenses 
 upon request of the governor, under section 903(c) of the Social 
 Security Act.  

    (3) Money requisitioned for the payment of expenses of 
 administration pursuant to this subdivision shall be deposited 
 in the economic security administration fund, but, until 
 expended, shall remain a part of the reemployment insurance 
 fund.  The commissioner shall maintain a separate record of the 
 deposit, obligation, expenditure, and return of funds so 
 deposited.  If any money so deposited is, for any reason, not to 
 be expended for the purpose for which it was appropriated, or, 
 if it remains unexpended at the end of the period specified by 
 the law appropriating such money, it shall be withdrawn and 
 returned to the secretary of the treasury of the United States 
 for credit to this state's account in the unemployment trust 
 fund.  

    Subd. 6.    Advance on federal funds.  (a) The governor 
 is hereby authorized to make application as may be necessary to 
 secure an advance of funds from the federal unemployment trust 
 fund in accordance with United States Code, title 42, section 
 1321 of the Social Security Act. 

    (b) Any amount transferred to the fund under the terms of 
 any application shall be repayable as provided in United States 
 Code, title 42, sections 1101(d)(1), 1103(b)(2), and 1322 of the 
 Social Security Act. 

    (c) Interest payable on any advance shall be paid in 
 accordance with section 268.051, subdivision 8, paragraph (b). 

    HIST: Ex1936 c 2 s 3,11; 1937 c 306 s 8; 1937 c 452 s 1; 1939 
 c 443 s 2,9; 1941 c 554 s 2,10; 1943 c 650 s 8; 1945 c 376 s 
 2,10; 1947 c 432 s 8-10; 1949 c 605 s 2; 1953 c 97 s 3,4; 1957 c 
 883 s 2-5; 1961 c 517 s 1; 1965 c 45 s 45; 1969 c 9 s 64; 1969 c 
 310 s 1; 1969 c 567 s 3; 1971 c 942 s 13; 1975 c 302 s 1; 1979 c 
 181 s 16; 1Sp1982 c 1 s 4; 1983 c 216 art 1 s 87; 1983 c 372 s 
 8; 1985 c 248 s 70; 1Sp1985 c 13 s 300; 1986 c 444; 1989 c 209 
 art 2 s 1; 1994 c 488 s 8; 1996 c 417 s 31; 1997 c 66 s 79,80; 
 1998 c 265 s 33-35,40-42,45 

     268.196 Economic security administration fund. 

    Subdivision 1.    Administration fund.  There is hereby 
 created in the state treasury a special fund to be known as the 
 economic security administration fund.  All moneys which are 
 deposited or paid into this fund shall be continuously available 
 to the commissioner for expenditure in accordance with the 
 provisions of sections 268.03 to 268.23, and shall not lapse at 
 any time.  The fund shall consist of all moneys received from 
 the United States or any agency thereof, including the United 
 States department of labor, and include any moneys received from 
 any agency of the United States or any other state as 
 compensation for services or facilities supplied to such agency, 
 any amounts received pursuant to any surety bond or insurance 
 policy or from other sources for losses sustained by the 
 economic security administration fund or by reason of damage to 
 equipment or supplies purchased from moneys in such fund, and 
 any proceeds realized from the sale or disposition of any such 
 equipment or supplies which may no longer be necessary for the 
 proper administration of those sections.  Notwithstanding any 
 provision of this section, all money requisitioned and deposited 
 in this fund pursuant to section 268.194, subdivision 5, shall 
 remain part of the reemployment insurance fund and shall be used 
 only in accordance with the conditions specified in section 
 268.194, subdivision 5.  All moneys in this fund shall be 
 deposited, administered, and disbursed in the same manner and 
 under the same conditions and requirements as are provided by 
 law for the other special funds in the state treasury.  The 
 state treasurer shall be liable on the treasurer's official bond 
 for the faithful performance of duties in connection with the 
 economic security administration fund provided for under these 
 sections.  Such liability on the official bond shall be 
 effective immediately upon the enactment of this provision, and 
 such liability shall exist in addition to any liability upon any 
 separate bond existent on April 29, 1941, or which may be given 
 in the future.  All sums recovered on any surety bond for losses 
 sustained by the economic security administration fund shall be 
 deposited in this fund.  All money in this fund, except money 
 received pursuant to section 268.194, subdivision 5, clause (3), 
 shall be expended solely for the purposes and in the amounts 
 found necessary by the secretary of labor for the proper and 
 efficient administration of the economic security program.  

    Subd. 2.    State to replace money wrongfully used.  If 
 any money received under United States Code, title 42, section 
 501 of the Social Security Act or the Wagner-Peyser Act, are 
 found by the United States Secretary of Labor, because of any 
 action or contingency, to have been lost or been expended for 
 purposes other than, or in amounts in excess of, those found 
 necessary by the secretary of labor for the proper 
 administration of these sections, the commissioner may, with the 
 approval of the commissioner of administration, replace the 
 money from the contingent account.  If the money is not replaced 
 from the contingent account, it is the policy of this state that 
 the money be replaced by money appropriated for that purpose 
 from the general funds of this state.  Upon receipt of a finding 
 by the secretary of labor, the commissioner shall promptly 
 report the amount required for replacement to the governor and 
 the governor shall, at the earliest opportunity, submit to the 
 legislature a request for the appropriation of that amount.  

    Subd. 3.    Contingent account.  There is hereby created 
 in the state treasury a special account, to be known as the 
 economic security contingent account, which shall not lapse nor 
 revert to any other fund.  Such account shall consist of all 
 money appropriated therefor by the legislature, all money in the 
 form of interest and penalties collected pursuant to sections 
 268.057 and 268.18, and all money received in the form of 
 voluntary contributions to this account and interest thereon.  
 All money in such account shall be supplemental to all federal 
 money that would be available to the commissioner but for the 
 existence of this account.  Moneys in this account are hereby 
 appropriated to the commissioner and shall be available to the 
 commissioner for such expenditures as the commissioner may deem 
 necessary in connection with the administration of sections 
 268.04 to 268.23.  Whenever the commissioner expends money from 
 said contingent account for the proper and efficient 
 administration of the Minnesota Economic Security Law for which 
 funds have not yet been made available by the federal 
 government, such money so withdrawn from the contingent account 
 shall be replaced as hereinafter provided.  Upon the deposit in 
 the economic security administration fund of moneys which are 
 received in reimbursement of payments made as above provided for 
 said contingent account, the commissioner shall certify to the 
 state treasurer the amount of such reimbursement and thereupon 
 the state treasurer shall transfer such amount from the economic 
 security administration fund to said contingent account.  All 
 money in this account shall be deposited, administered, and 
 disbursed in the same manner and under the same conditions and 
 requirements as is provided by law for the other special 
 accounts in the state treasury.  The state treasurer shall be 
 liable on the treasurer's official bond for the faithful 
 performance of duties in connection with the economic security 
 contingent account provided for herein.  Notwithstanding 
 anything to the contrary contained herein, on June 30 of each 
 year, except 1982, all amounts in excess of $300,000 in this 
 account shall be paid over to the reemployment insurance fund 
 established under section 268.194 and administered in accordance 
 with the provisions set forth therein. 

    HIST: Ex1936 c 2 s 13; 1941 c 554 s 12; 1945 c 376 s 12; 1953 
 c 97 s 16; 1957 c 883 s 8-10; 1963 c 721 s 1; 1965 c 45 s 46; 
 1969 c 399 s 1; 1969 c 567 s 3; 1973 c 254 s 3; 1973 c 492 s 14; 
 1973 c 720 s 73 subd 1; 1974 c 497 s 1; 1975 c 302 s 2; 1Sp1982 
 c 1 s 33; 1983 c 216 art 1 s 87; 1986 c 444; 1987 c 362 s 25; 
 1987 c 385 s 27; 1989 c 209 art 2 s 1; 1994 c 488 s 8; 1996 c 
 417 s 31; 1997 c 7 art 1 s 106; 1997 c 66 s 79,80; 1998 c 265 s 
 43 

     268.198 Free employment offices. 

    Subdivision 1.    Acceptance of federal act.  A state 
 employment service is hereby established in the department.  The 
 commissioner shall establish and maintain free public employment 
 offices, in that number and in those places as may be necessary 
 for the purpose of performing the functions within the purview 
 of the Wagner-Peyser Act, United States Code, title 29, chapter 
 4B. 

    Subd. 2.    Financing.  All moneys received by this 
 state under such act of Congress referred to in subdivision 1 
 shall be paid into the economic security administration fund, 
 and expended solely for the maintenance of state public 
 employment offices.  For the purpose of establishing and 
 maintaining free public employment offices and promoting the use 
 of their facilities, the commissioner is authorized to enter 
 into agreements with the railroad retirement board or any other 
 agency of the United States or of this or any other state 
 charged with the administration of any law whose purposes are 
 reasonably related to the purposes of sections 268.03 to 268.23. 

    Subd. 3.    Veterans representatives.  As may be 
 determined by the commissioner, based on a demonstrated need for 
 the service, there shall be assigned by the commissioner to the 
 staff of each full functioning employment service office a 
 veterans employment representative whose activities shall be 
 devoted to discharging the duties prescribed of a veterans 
 employment representative.  The position of veterans employment 
 representative shall be filled by one or more employees of the 
 department who are veterans as defined in section 197.447. 

    HIST: Ex1936 c 2 s 12; 1937 c 306 s 9; 1939 c 443 s 11; 1941 c 
 554 s 11; 1945 c 376 s 11; 1949 c 605 s 11; 1969 c 567 s 3; 1973 
 c 254 s 3; 1977 c 151 s 1; 1977 c 430 s 25 subd 1; 1980 c 350 s 
 1; 1983 c 216 art 1 s 87; 1Sp1985 c 14 art 9 s 75; 1989 c 209 
 art 2 s 1; 1994 c 483 s 1; 1996 c 417 s 31; 1997 c 66 s 65,79; 
 1998 c 265 s 44 

     268.20 Representation in court.  

    In any civil action to enforce the provisions of sections 
 268.03 to 268.23, the commissioner shall be represented by the 
 attorney general.  

    HIST: (4337-37) Ex1936 c 2 s 17; 1941 c 554 s 16; 1989 c 209 
 art 2 s 1; 1996 c 417 s 31 

     268.21 Nonliability of state. 

    (a) Benefits shall be considered to be due and payable only 
 to the extent provided in this chapter and to the extent that 
 money is available in the reemployment insurance fund and 
 neither the state nor the commissioner shall be liable for any 
 amount in excess of such sums.  

    (b) No person shall make any demand, bring any suit, or 
 other proceeding to recover from the state any sum alleged to be 
 due on a reemployment insurance account after the expiration of 
 two years from the effective date of the reemployment insurance 
 account. 

    HIST: (4337-38) Ex1936 c 2 s 18; 1941 c 554 s 17; 1989 c 209 
 art 2 s 1; 1994 c 488 s 8; 1996 c 417 s 31; 1997 c 66 s 77; 1998 
 c 265 s 44 

     268.22 Saving clause.  

    The legislature reserves the right to amend or repeal all 
 or any part of sections 268.03 to 268.23 at any time; and there 
 shall be no vested private right of any kind against such 
 amendment or repeal.  All the rights, privileges, or immunities 
 conferred thereby, or by acts done pursuant thereto, shall exist 
 subject to the power of the legislature to amend or repeal these 
 sections at any time.  

    HIST: (4337-39) Ex1936 c 2 s 19; 1941 c 554 s 18; 1991 c 199 
 art 2 s 1; 1996 c 417 s 31 

     268.23 Severable. 

    In the event that the United States Department of Labor 
 shall determine that any provision of sections 268.03 to 268.23, 
 or any other provision of Minnesota Statutes relating to 
 reemployment insurance, is not in conformity with various 
 provisions of the Federal Internal Revenue Code or the Social 
 Security Act then such provision shall have no force or effect 
 for any purpose but if any such provision, or the application 
 thereof to any person or circumstances, is held invalid, the 
 remainder of said sections and the application of such provision 
 to other persons or circumstances shall not be affected thereby. 

    HIST: (4337-40) Ex1936 c 2 s 20; 1941 c 554 s 19; 1949 c 605 s 
 14; 1965 c 45 s 47; 1991 c 199 art 2 s 1; 1996 c 417 s 30,31 

  268.231 Repealed, 1996 c 417 s 32 

  268.24 Repealed, 1987 c 385 s 50 

  268.25 Repealed, 1998 c 265 s 46 

     268.29 Juvenile justice program. 

    The governor shall designate the department of economic 
 security as the sole agency responsible for supervising the 
 preparation and administration of the state plan for juvenile 
 justice required by the Juvenile Justice and Delinquency 
 Prevention Act of 1974, as amended. 

    The governor shall designate the juvenile justice advisory 
 committee as the supervisory board for the department of 
 economic security with respect to preparation and administration 
 of the state plan and award of grants.  

    The governor shall appoint members to the juvenile justice 
 advisory committee in accordance with the membership 
 requirements of the Juvenile Justice and Delinquency Prevention 
 Act of 1974, as amended. 

    HIST: 1987 c 312 art 1 s 22; 1994 c 483 s 1 

*   NOTE:  See section 15.059, subdivision 5a, for expiration 
*of juvenile justice advisory committee.

     268.30 Grants-in-aid to youth intervention programs. 

    Subdivision 1.    Grants.  The commissioner may make 
 grants to nonprofit agencies administering youth intervention 
 programs in communities where the programs are or may be 
 established. 

    "Youth intervention program" means a nonresidential 
 community-based program providing advocacy, education, 
 counseling, and referral services to youth and their families 
 experiencing personal, familial, school, legal, or chemical 
 problems with the goal of resolving the present problems and 
 preventing the occurrence of the problems in the future. 

    Subd. 2.    Applications.  Applications for a 
 grant-in-aid shall be made by the administering agency to the 
 commissioner.  The grant-in-aid is contingent upon the agency 
 having obtained from the community in which the youth 
 intervention program is established local matching money two 
 times the amount of the grant that is sought. 

    The commissioner shall provide by rule the application 
 form, procedures for making application form, criteria for 
 review of the application, and kinds of contributions in 
 addition to cash that qualify as local matching money.  No grant 
 to any agency may exceed $50,000. 

    HIST: 1987 c 312 art 1 s 23; 1996 c 408 art 2 s 2 

  268.31 Repealed, 1994 c 632 art 4 s 84 

  268.315 Repealed, 1994 c 632 art 4 s 84 

  268.32 Repealed, 1994 c 632 art 4 s 84 

  268.33 Repealed, 1994 c 632 art 4 s 84 

  268.34 Repealed, 1994 c 632 art 4 s 84 

  268.35 Repealed, 1994 c 632 art 4 s 84 

  268.36 Repealed, 1994 c 632 art 4 s 84 

     268.361 Definitions. 

    Subdivision 1.    Terms.  For the purposes of sections 
 268.361 to 268.366, the following terms have the meanings given 
 them. 

    Subd. 2.    Advisory committee.  "Advisory committee" 
 means the committee established in section 268.363.  

    Subd. 3.    Commissioner.  "Commissioner" means the 
 commissioner of economic security. 

    Subd. 4.    Eligible organization.  "Eligible 
 organization" means a public agency or a nonprofit organization 
 that can demonstrate an ability to implement a program for 
 education and training services provided to targeted youth.  
 Eligible organizations may include local jurisdictions, public 
 school districts, private nonsectarian schools, post-secondary 
 educational institutes, alternative schools, community groups, 
 and labor organizations. 

    Subd. 4a.    Program.  "Program" means the services and 
 activities performed or contracted for by an eligible 
 organization for which a grant has been received or for which a 
 grant application has been submitted to the commissioner. 

    Subd. 5.    Homeless individual.  "Homeless individual" 
 or "homeless person" means: 

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

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

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

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

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

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

    Subd. 6.    Targeted youth.  "Targeted youth" means 
 at-risk persons who are at least 16 years of age but not older 
 than 24 years of age, are eligible for the high school 
 graduation incentive program under section 124D.68, subdivision 
 2, or are economically disadvantaged as defined in United States 
 Code, title 29, section 1503, and are part of one of the 
 following groups: 

    (1) persons who are not attending any school and have not 
 received a secondary school diploma or its equivalent; or 

    (2) persons currently enrolled in a traditional or 
 alternative school setting or a GED program and who, in the 
 opinion of an official of the school, are in danger of dropping 
 out of the school. 

    Subd. 7.    Very low income.  "Very low income" means 
 incomes that are at or less than 50 percent of the area median 
 income, adjusted for family size, as estimated by the department 
 of housing and urban development. 

    HIST: 1988 c 686 art 3 s 1; 1989 c 328 art 7 s 1,2; 1991 c 345 
 art 2 s 47; 1993 c 369 s 80,81; 1994 c 483 s 1; 1997 c 7 art 1 s 
 107; 1998 c 397 art 11 s 3 

     268.362 Grants. 

    Subdivision 1.    Generally.  (a) The commissioner shall 
 make grants to eligible organizations for programs to provide 
 education and training services to targeted youth.  The purpose 
 of these programs is to provide specialized training and work 
 experience for targeted youth who have not been served 
 effectively by the current educational system.  The programs are 
 to include a work experience component with work projects that 
 result in the rehabilitation, improvement, or construction of 
 (1) residential units for the homeless, or (2) education, social 
 service, or health facilities which are owned by a public agency 
 or a private nonprofit organization.  

    (b) Eligible facilities must principally provide services 
 to homeless or very low income individuals and families, and 
 include the following: 

    (1) Head Start or day care centers; 

    (2) homeless, battered women, or other shelters; 

    (3) transitional housing; 

    (4) youth or senior citizen centers; and 

    (5) community health centers. 

    Two or more eligible organizations may jointly apply for a 
 grant.  The commissioner shall administer the grant program. 

    Subd. 2.    Grant applications; awards.  Interested 
 eligible organizations must apply to the commissioner for the 
 grants.  The advisory committee must review the applications and 
 provide to the commissioner a list of recommended eligible 
 organizations that the advisory committee determines meet the 
 requirements for receiving a grant.  The total grant award for 
 any program may not exceed $80,000 per year.  In awarding 
 grants, the advisory committee and the commissioner must give 
 priority to: 

    (1) continuing and expanding effective programs by 
 providing grant money to organizations that are operating or 
 have operated a successful program that meets the program 
 purposes under section 268.364; and 

    (2) distributing programs throughout the state through 
 start-up grants for programs in areas that are not served by an 
 existing program. 

    To receive a grant under this section, the eligible 
 organization must match the grant money with at least an equal 
 amount of nonstate money.  The commissioner must verify that the 
 eligible organization has matched the grant money.  Nothing in 
 this subdivision shall prevent an eligible organization from 
 applying for and receiving grants for more than one program.  A 
 grant received by an eligible organization from the federal 
 Youthbuild Project under United States Code, title 42, section 
 5091, is nonstate money and may be used to meet the state match 
 requirement.  State grant money awarded under this section may 
 be used by grantee organizations for match requirements of a 
 federal Youthbuild Project. 

    HIST: 1988 c 686 art 3 s 2; 1989 c 328 art 7 s 3; 1992 c 376 
 art 5 s 1; 1993 c 369 s 82 

     268.3625 Administrative costs. 

    The commissioner may use up to five percent of the biennial 
 appropriation for Youthbuild from the general fund to pay costs 
 incurred by the department in administering Youthbuild during 
 the biennium. 

    HIST: 1997 c 200 art 1 s 65 

     268.363 Advisory committee. 

    A 13-member advisory committee is established as provided 
 under section 15.059 to assist the commissioner in selecting 
 eligible organizations to receive program grants and evaluating 
 the final reports of each organization.  Notwithstanding section 
 15.059, the advisory committee shall not expire before June 30, 
 1995.  Members of the committee may be reimbursed for expenses 
 but may not receive any other compensation for service on the 
 committee.  The advisory committee consists of representatives 
 of the commissioners of children, families, and learning, human 
 services, and economic security; a representative of the 
 chancellor of the Minnesota state colleges and universities; a 
 representative of the commissioner of the housing finance 
 agency; the director of the office of jobs policy; and seven 
 public members appointed by the governor.  Each of the following 
 groups must be represented by a public member experienced in 
 working with targeted youth:  labor organizations, local 
 educators, community groups, consumers, local housing 
 developers, youth between the ages of 16 and 24 who have a 
 period of homelessness, and other homeless persons.  At least 
 three of the public members must be from outside of the 
 metropolitan area as defined in section 473.121, subdivision 2.  
 The commissioner may provide staff to the advisory committee to 
 assist it in carrying out its purpose. 

    HIST: 1988 c 686 art 3 s 3; 1990 c 375 s 3; 1993 c 132 s 5; 
 1993 c 369 s 83; 1994 c 483 s 1; 1Sp1995 c 3 art 16 s 13; 1996 c 
 339 s 6; 1996 c 395 s 18 

     268.364 Program purpose and design. 

    Subdivision 1.    Program purpose.  The grants awarded 
 under section 268.362 are for a youth employment and training 
 program directed at targeted youth who are likely to be at risk 
 of not completing their high school education.  Each program 
 must include education, work experience, job skills, and 
 leadership training and peer support components.  Each 
 participant must be offered counseling and other services to 
 identify and overcome problems that might interfere with 
 successfully completing the program. 

    Subd. 2.    Education component.  A program must contain 
 an education component that requires program participants to 
 complete their secondary education in a traditional public or 
 private secondary school, a suitable alternative school setting, 
 or a GED program.  Program participants must be working toward 
 the completion of their secondary education or literacy 
 advancement. 

    Subd. 3.    Work experience component.  A work 
 experience component must be included in each program.  The work 
 experience component must provide vocational skills training in 
 an industry where there is a viable expectation of job 
 opportunities.  A training subsidy, living allowance, or 
 stipend, not to exceed an amount equal to 100 percent of the 
 poverty line for a family of two as defined in United States 
 Code, title 42, section 673, paragraph (2), may be provided to 
 program participants.  The wage or stipend must be provided to 
 participants who are recipients of public assistance in a manner 
 or amount which will not reduce public assistance benefits.  The 
 work experience component must be designed so that work projects 
 result in (1) the expansion or improvement of residential units 
 for homeless persons and very low income families, or (2) 
 rehabilitation, improvement, or construction of eligible 
 education, social service, or health facilities that principally 
 serve homeless or very low income individuals and families.  Any 
 work project must include direct supervision by individuals 
 skilled in each specific vocation.  Program participants may 
 earn credits toward the completion of their secondary education 
 from their participation in the work experience component. 

    Subd. 4.    Job readiness skills component.  A job 
 readiness skills component must comprise at least 20 percent of 
 each program.  The component must provide program participants 
 with job search skills, placement assistance, and other job 
 readiness skills to ensure that participants will have an 
 understanding of the building trades, unions, self-employment, 
 and other employment opportunities and be able to compete in the 
 employment market. 

    Subd 5. Repealed by amendment, 1989 c 328 art 7 s 4 

    Subd. 6.    Leadership training and peer support 
 component.  Each program must provide participants with 
 meaningful opportunities to develop leadership skills such as 
 decision making, problem solving, and negotiating.  The program 
 must encourage participants to develop strong peer group ties 
 that support their mutual pursuit of skills and values. 

    HIST: 1988 c 686 art 3 s 4; 1989 c 328 art 7 s 4; 1992 c 376 
 art 5 s 2; 1993 c 369 s 84-86 

     268.365 Housing for homeless. 

    Subd. 1. Repealed, 1993 c 369 s 146 

    Subd. 2.    Priority for housing.  Any residential or 
 transitional housing units that become available through a work 
 project that is part of the program described in section 268.364 
 must be allocated in the following order: 

    (1) homeless targeted youth who have participated in 
 constructing, rehabilitating, or improving the unit; 

    (2) homeless families with at least one dependent; 

    (3) other homeless individuals; 

    (4) other very low income families and individuals; and 

    (5) families or individuals that receive public assistance 
 and that do not qualify in any other priority group. 

    Subd. 3.    Acquisition of housing units.  The eligible 
 organization receiving a grant under section 268.362 shall 
 acquire property or buildings for the construction or 
 rehabilitation of residential units at the lowest possible 
 cost.  Possible sources of property and funding include the 
 federal Department of Housing and Urban Development, Farmers 
 Home Administration, Minnesota housing finance agency, and the 
 local housing authority. 

    Subd. 4.    Management of residential units.  The 
 program must address how to manage these residential units, 
 including the source of financing for the maintenance costs of 
 the buildings.  Any management plan must include the 
 participation of the residents and local established 
 neighborhood groups. 

    HIST: 1988 c 686 art 3 s 5; 1989 c 328 art 7 s 5; 1992 c 376 
 art 5 s 3; 1993 c 369 s 87 

     268.366 Requirements of organizations receiving grants. 

    An organization that is awarded a grant shall prepare and 
 submit an annual report to the commissioner by September 1 of 
 each year.  The report must include a discussion of the 
 following: 

    (1) the process used for encouraging the participation of 
 the targeted youth in the geographic area surrounding the 
 organization receiving the grant; 

    (2) the support services and social services that targeted 
 youth received under the program.  Services may include client 
 needs assessment, preemployment skills such as basic job skills 
 and behavior, and intermediate needs such as education and 
 chemical dependency treatment; 

    (3) the type and degree of work experience that program 
 participants received, including real work experience in both 
 vocational and nonvocational settings; 

    (4) the amount of training subsidy or stipend that each 
 participant received while participating in the work experience 
 component.  The subsidy or stipend must reflect prevailing wage 
 and benefits standards appropriate for preapprenticeship 
 training unless a participant's receipt of public assistance is 
 affected.  The subsidy or stipend should be structured to 
 include incentives for progress toward increasing job skills and 
 completing secondary education; 

    (5) the means of providing the necessary job readiness 
 skills to program participants who have completed the work 
 experience and educational components of the program so they 
 have the ability to compete in the job market.  These job search 
 skills may include skills assessment, job search and selection, 
 application preparation and assistance in preparing for job 
 interviews; 

    (6) the methods used to assist in placing program 
 participants in suitable employment.  The methods should include 
 means of involving state government, businesses, labor 
 organizations, community groups, and local jurisdictions in 
 assisting in the placement; 

    (7) the process used for evaluating the program, including 
 the necessary data elements collected from program participants 
 after they have completed the program for monitoring the success 
 of the program; 

    (8) the method used to maximize parental involvement in the 
 program; 

    (9) the existing public and private programs that were 
 utilized by the program to avoid duplication of services; 

    (10) the regional characteristics that affected the 
 operation of the program in the specific region where the 
 organization is located; 

    (11) the means of addressing the special needs of priority 
 groups of targeted youth, including: 

    (i) persons who are responsible for at least one dependent; 

    (ii) persons who are pregnant; 

    (iii) persons who are or have been subject to any stage of 
 the criminal justice system and who may benefit from receiving 
 employment and training services in overcoming barriers to 
 employment resulting from a record of arrest or conviction; 

    (iv) persons receiving income maintenance services and 
 social services, including chemical dependency treatment, 
 vocational rehabilitation services, and protection services; 

    (v) persons who reside on a farm who personally derive or 
 whose family derives a substantial portion of their income from 
 farming, lack nonfarm work skills, or have limited access to 
 vocational education or work experience opportunities; 

    (vi) homeless youth; and 

    (vii) minors who that are not financially dependent on a 
 parent or a guardian; 

    (12) costs for each of the components of the program; and 

    (13) the identification of the funding sources other than 
 state appropriations that were used to support the program. 

    HIST: 1988 c 686 art 3 s 6; 1989 c 328 art 7 s 6 

  268.367 Repealed, 1996 c 339 s 10 

  268.37 Repealed, 1998 c 273 s 15 

  268.371 Repealed, 1998 c 273 s 15 

    268.38 Subdivision 1. Repealed, 1998 c 273 s 15 

    Subd. 2. Repealed, 1998 c 273 s 15 

    Subd. 3. Repealed, 1998 c 273 s 15 

    Subd. 4. Repealed, 1998 c 273 s 15 

    Subd. 5. Repealed, 1998 c 273 s 15 

    Subd. 6. Repealed, 1998 c 273 s 15 

    Subd. 7. Repealed, 1998 c 273 s 15 

    Subd. 8. Repealed, 1998 c 273 s 15 

    Subd. 9. Repealed, 1998 c 273 s 15 

    Subd. 10.  Deleted, 1995 c 233 art 2 s 56 

    Subd. 11. Repealed, 1996 c 339 s 10 

    Subd. 12. Repealed, 1998 c 273 s 15 

    Subd. 13.  Renumbered 119A.43 subd 11 

  268.39 Repealed, 1997 c 200 art 4 s 23 

  268.40 Expired 

  268.41 Expired 

  268.42 Expired 

  268.43 Expired 

  268.52 Renumbered 119A.374 

    268.53 Subdivision 1.  Renumbered 119A.375 subd 1 

    Subd. 1a.  Renumbered 119A.375 subd 2 

    Subd. 2.  Renumbered 119A.375 subd 3 

    Subd. 3.  Renumbered 119A.375 subd 4 

    Subd. 4.  Renumbered 119A.375 subd 5 

    Subd. 5.  Renumbered 119A.375 subd 6 

    Subd. 6.  Renumbered 119A.375 subd 7 

    Subd. 7.  Renumbered 119A.375 subd 8 

  268.54 Renumbered 119A.376 

  268.55 Repealed, 1998 c 273 s 15 

     268.551 Definitions. 

    Subdivision 1.    Terms.  For the purposes of this 
 section and section 268.552, the terms defined in this section 
 have the meanings given them. 

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

    Subd. 3.    Eligible applicant.  "Eligible applicant" 
 means a person who: 

    (1) has been a resident of this state for at least one 
 month; 

    (2) is unemployed; 

    (3) is not receiving and is not eligible to receive 
 reemployment insurance; and 

    (4) is a targeted young person as defined in Laws 1990, 
 chapter 562, article 4, section 12, between the ages of 14 and 
 21, who, because of a lack of personal resources and skills, 
 needs assistance in setting and realizing education goals and in 
 becoming a contributing member of the community. 

    Subd. 4.    Employer.  "Employer" means a private or 
 public employer. 

    HIST: 1991 c 345 art 1 s 81; 1994 c 483 s 1; 1994 c 488 s 8 

     268.552 Wage subsidy program. 

    Subdivision 1.    Creation.  A grant program is 
 established to provide adolescents with opportunities for 
 gaining a high school diploma, exploring occupations, evaluating 
 vocational options, receiving career and life skills counseling, 
 developing and pursuing personal goals, and participating in 
 community-based projects and summer youth employment. 

    Subd. 2.    Amount and duration of subsidy.  The maximum 
 subsidy is $4 per hour for wages and $1 per hour for fringe 
 benefits.  The subsidy for an eligible applicant may be paid for 
 a maximum of 1,040 hours over a period of 26 weeks.  Employers 
 are encouraged to use money from other sources to provide 
 increased wages to applicants they employ. 

    Subd. 3.    Contracts to administer.  The commissioner 
 may contract with local service units or certified local service 
 providers to deliver the wage subsidies.  The contract must 
 require that no more than five percent of the contract amount be 
 expended for administration. 

    Subd. 4.    Area allocation of subsidies.  Wage subsidy 
 money must be allocated to local service units based on the 
 number of eligible applicants in that area compared to the state 
 total of eligible applicants.  Money may be reallocated if it 
 otherwise would not be used. 

    Subd. 5.    Allocation to applicants.  Priority for 
 subsidies shall be in the following order: 

    (1) applicants living in households with no other income 
 source; 

    (2) applicants whose incomes and resources are less than 
 the standard for eligibility for general assistance; and 

    (3) applicants who are eligible for aid to families with 
 dependent children or Minnesota family investment 
 program-statewide. 

    Subd. 6.    Outreach.  A local service unit shall 
 publicize the availability of wage subsidies within its area. 

    Subd. 7.    Reports.  Each entity delivering wage 
 subsidies shall report to the commissioner on a quarterly basis: 

    (1) the number of persons placed in private sector jobs, in 
 temporary public sector jobs, or in other services; 

    (2) the outcome for each participant placed; 

    (3) the number and type of employers employing persons 
 under the program; 

    (4) the amount of money spent in each local service unit 
 for wages for each type of employment and each type of other 
 expense; 

    (5) the age, educational experience, family status, gender, 
 priority group status, race, and work experience of each person 
 in the program; 

    (6) the amount of wages received by persons while in the 
 program and 60 days after completing the program; 

    (7) for each classification of persons described in clause 
 (5), the outcome of the wage subsidy placement, including length 
 of time employed; nature of employment, whether private sector, 
 temporary public sector, or other service; and the hourly wages; 
 and 

    (8) any other information requested by the commissioner.  
 Each report must include cumulative information, as well as 
 information for each quarter. 

    Data collected on individuals under this subdivision are 
 private data on individuals as defined in section 13.02, 
 subdivision 12, except that summary data may be provided under 
 section 13.05, subdivision 7. 

    Subd. 8.    Part-time employment.  Subsidies under this 
 section may be paid for part-time jobs. 

    Subd. 9.    Layoffs; work reductions.  An employer may 
 not lay off, terminate, or reduce the working hours of an 
 employee for the purpose of hiring an individual with funds 
 provided by this section.  An employer may not hire an 
 individual with funds available under this section if any other 
 person is on layoff from the same or a substantially equivalent 
 job.  

    Subd. 10.    Rules.  The commissioner may adopt rules to 
 implement this section. 

    HIST: 1991 c 345 art 1 s 82; 1997 c 85 art 4 s 27 

     268.56 Minnesota youth program; definitions. 

    Subdivision 1.    Scope.  For the purposes of this 
 section and section 268.561, the terms defined in this section 
 have the meanings given them. 

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

    Subd. 3.    Eligible applicant.  "Eligible applicant" 
 means an individual who is between the ages of 14 and 21 and 
 economically disadvantaged. 

    An at-risk youth who is classified as a family of one is 
 deemed economically disadvantaged.  For purposes of eligibility 
 determination the following individuals are considered at risk: 

    (1) a pregnant or parenting youth; 

    (2) a youth with limited English proficiency; 

    (3) a potential or actual school dropout; 

    (4) a youth in an offender or diversion program; 

    (5) a public assistance recipient or a recipient of group 
 home services; 

    (6) a youth with disabilities including learning 
 disabilities; 

    (7) a chemically dependent youth or child of drug or 
 alcohol abusers; 

    (8) a homeless or runaway youth; 

    (9) a youth with basic skills deficiency; 

    (10) a youth with an educational attainment of one or more 
 levels below grade level appropriate to age; or 

    (11) a foster child. 

    Subd. 4.    Employer.  "Employer" means a private or 
 public employer. 

    HIST: 1994 c 483 s 1; 1994 c 632 art 4 s 66 

     268.561 Minnesota youth program. 

    Subdivision 1.    Purpose.  The Minnesota youth program 
 is established to: 

    (1) improve the employability of eligible applicants 
 through exposure to public or private sector work; 

    (2) enhance the basic educational skills of eligible 
 applicants; 

    (3) encourage the completion of high school or equivalency; 

    (4) assist eligible applicants to enter employment, 
 school-to-work transition programs, the military, or 
 post-secondary education or training; 

    (5) enhance the citizenship skills of eligible applicants 
 through community service and service-learning; and 

    (6) provide educational, career, and life skills counseling.

    Subd. 2.    Wage rate.  The rate of pay for Minnesota 
 youth program positions with public, private nonprofit, and 
 private for-profit employers is the minimum wage.  Employers may 
 use their own funds to increase the participants' hourly wage 
 rates.  Youths designated as supervisors may be paid at a higher 
 level to be determined by the local contractor. 

    Subd. 3.    Employment contracts.  The commissioner may 
 enter into arrangements with existing public and private 
 nonprofit organizations and agencies with experience in 
 administering youth employment programs for the purpose of 
 providing employment opportunities for eligible applicants in 
 furtherance of this section and section 268.56.  The department 
 of economic security shall retain ultimate responsibility for 
 the administration of this employment program. 

    Subd. 4.    Contract administration.  Preference shall 
 be given to local contractors with experience in administering 
 youth employment and training programs and those who have 
 demonstrated efforts to coordinate state and federal youth 
 programs locally. 

    Subd. 5.    Allocation formula.  Seventy percent of 
 Minnesota youth program funds must be allocated based on the 
 county's share of economically disadvantaged youth.  The 
 remaining 30 percent must be allocated based on the county's 
 share of population ages 14 to 21. 

    Subd. 6.    Allowable cost categories.  Of the total 
 allocation, up to 15 percent may be used for administrative 
 purposes and the remainder may be used for a combination of 
 training and participant support activities. 

    Subd. 7.    Reports.  Each contractor shall report to 
 the commissioner on a quarterly basis in a format to be 
 determined by the commissioner. 

    Data collected on individuals under this subdivision are 
 private data on individuals as defined in section 13.02, 
 subdivision 12, except that summary data may be provided under 
 section 13.05, subdivision 7. 

    Subd. 8.    Part-time employment.  Wages and subsidies 
 under this section may be paid for part-time employment. 

    Subd. 9.    Layoffs; worker reductions.  An employer may 
 not lay off, terminate, or reduce the working hours of an 
 employee for the purpose of hiring an individual with funds 
 provided by this section.  An employer may not hire an 
 individual with funds available under this section if any other 
 individual is laid off from the same or a substantially 
 equivalent job. 

    Subd. 10.    Rules.  The commissioner may adopt rules to 
 implement this section. 

    HIST: 1994 c 483 s 1; 1994 c 632 art 4 s 67; 1Sp1995 c 3 art 4 
 s 30 

     268.60 Purpose. 

    It is the purpose of sections 268.60 to 268.64 to provide 
 financial assistance for comprehensive job training and related 
 services for economically disadvantaged, unemployed, and 
 underemployed individuals through opportunities 
 industrialization centers.  

    HIST: 1983 c 312 art 6 s 1 

     268.61 Definitions. 

    Subdivision 1.    Scope.  When used in sections 268.60 
 to 268.64 the terms in this section have the meanings given them.

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

    Subd. 3.    Council.  "Council" means the Minnesota 
 state council of the opportunities industrialization centers of 
 America.  

    Subd. 4.    Economically disadvantaged.  "Economically 
 disadvantaged" means an individual who meets the criteria for an 
 economically disadvantaged person established by rule by the 
 commissioner.  

    Subd. 5.    Underemployed.  "Underemployed" means an 
 individual:  

    (a) Working part time but seeking full-time work; or 

    (b) Working full time but receiving wages below the greater 
 of:  

    (1) the poverty level determined in accordance with 
 criteria established by the department of economic security; or 

    (2) 70 percent of the lower living standard income level as 
 determined by the United States Bureau of Labor Statistics.  

    Subd. 6.    Unemployed.  "Unemployed" means an 
 individual who is without a job, and who wants and is available 
 for work.  

    HIST: 1983 c 312 art 6 s 2; 1Sp1985 c 14 art 9 s 75; 1994 c 
 483 s 1 

     268.62 Distribution and use of state money. 

    The commissioner shall distribute the money appropriated 
 for:  

    (a) comprehensive job training and related services or job 
 opportunities programs for economically disadvantaged, 
 unemployed, and underemployed individuals, including persons of 
 limited English speaking ability, through opportunities 
 industrialization centers; and 

    (b) the establishment and operation in Minnesota of these 
 centers.  

    Comprehensive job training and related services include: 
 recruitment, counseling, remediation, motivational prejob 
 training, vocational training, job development, job placement, 
 and other appropriate services enabling individuals to secure 
 and retain employment at their maximum capacity.  

    HIST: 1983 c 312 art 6 s 3 

     268.63 Criteria for distribution of money. 

    The commissioner, with the advice of the council, shall 
 establish criteria for the distribution of state money for the 
 purpose of section 268.62.  The criteria shall include 
 requirements that:  

    (a) the program receiving state assistance:  

    (1) involve residents in the area to be served by the 
 program in the planning and operation of the program; and 

    (2) involve the business community in the area to be served 
 by the program in its development and operation; 

    (b) the distribution of assistance among areas within the 
 state be equitable, with priority being given to areas with high 
 unemployment or underemployment; 

    (c) financial assistance under sections 268.60 to 268.64 to 
 any program may not exceed 25 percent of the cost of the program 
 including costs of administration; and 

    (d) a program receiving financial assistance has adequate 
 internal administrative controls, accounting procedures, 
 personnel standards, evaluation procedures, availability of 
 in-service training and technical assistance programs, and other 
 policies necessary to promote the effective use of state money.  

    The commissioner may make a distribution in excess of the 
 limit prescribed in clause (c) if the commissioner determines 
 that the excess distribution is necessary to further the 
 objectives of sections 268.60 and 268.62.  

    HIST: 1983 c 312 art 6 s 4 

     268.64 Money distribution. 

    The commissioner may make a distribution of money directly 
 to a program, or make a distribution subject to conditions that 
 ensure use consistent with the distribution and utilization of 
 money under federal legislation regarding job training and 
 related services. 

    HIST: 1983 c 312 art 6 s 5 

     268.65 Approved training. 

    Subdivision 1.    Creation.  The commissioner of 
 economic security shall establish a training program for 
 structurally unemployed workers under which individuals may be 
 enrolled in an on-the-job training program, and an additional 
 1,000 individuals may be enrolled in classroom training, in 
 accordance with this section.  Nothing in this section limits or 
 adversely affects the approved training provisions applicable to 
 an individual under section 268.085, subdivision 1, clause (3).  
 An individual approved under this section is eligible for 
 tuition aid under the provisions of chapter 136A.  

    Subd. 2.    Approval of training.  An individual's 
 enrollment in a training course must be approved for the 
 purposes of this subdivision if the commissioner finds that: 

    (1) the individual is not unemployed due to the seasonal 
 nature of the work or a temporary work shortage; 

    (2) the individual's separation or notice of layoff from 
 most recent employment was caused by job obsolescence, plant 
 shutdown, regional decline in the individual's customary 
 occupation, or industry slowdown, and the individual is unlikely 
 to return to work for that employer or in that occupation within 
 12 months following separation from employment; 

    (3) reasonable and suitable work opportunities for which 
 the individual is fitted by training, experience, and physical 
 capabilities do not exist within the local labor market; 

    (4) the training course is designed to provide preparation 
 for available employment within the local labor market or in an 
 area to which the individual is willing to relocate; 

    (5) the training is conducted by an agency, educational 
 institution, or employing unit that is approved by the 
 commissioner of children, families, and learning or the board of 
 trustees of the Minnesota state colleges and universities or 
 higher education services office to conduct training programs; 
 except that an agency, educational institution, or employing 
 unit that is not subject to regulation and approval by one of 
 the agencies in this clause may be approved by the commissioner 
 if it is determined that the institution's curriculum, 
 facilities, staff, and other essentials are adequate to achieve 
 the training objective; and 

    (6) the training consists of a full course load, as defined 
 by the training provider, necessary to achieve the approved 
 training objective, and the individual is making satisfactory 
 progress in the course.  The department may require the training 
 provider to periodically certify to the individual's attendance 
 and progress. 

    Subd. 3.    On-the-job training.  An individual who 
 meets the criteria in subdivision 2 is eligible for 
 participation in a full-time on-the-job training program if: 

    (1) the on-the-job training position is in an occupation 
 for which the commissioner has determined a demand exists or 
 will exist; in making this determination, the commissioner shall 
 consider labor market information as contained in state and 
 national occupational outlook publications, as well as other 
 generally accepted authoritative sources with verifiable 
 validity; 

    (2) the employer pays an hourly wage during training of at 
 least the state minimum wage; 

    (3) the employer guarantees to provide at least 12 
 consecutive months of employment to the trainee after the 
 completion of training at the prevailing area labor market wage 
 for a trained individual in that occupation; 

    (4) the employer will not terminate the trainee during the 
 period of training or guaranteed employment except for 
 misconduct or demonstrated substandard performance; and 

    (5) the employer will not terminate, lay off, or reduce the 
 hours of any employee for the purpose of hiring an individual 
 with money available, and will not hire an individual if another 
 person is on layoff from the same or a substantially equivalent 
 job. 

    Subd. 4.    Training allowance.  During participation in 
 an approved on-the-job training program, the trainee shall 
 maintain satisfactory progress and attendance.  During the 
 period of training specified in the agreement between the 
 commissioner and the employer, individuals participating in an 
 approved on-the-job training program must be paid a training 
 allowance for each week claimed during the benefit year, until 
 benefits are exhausted, equal to the weekly benefit amount 
 calculated under section 268.07, subdivision 2, less the part of 
 the earnings, including holiday pay, in excess of $100.  The 
 training allowance is computed by rounding down to the nearest 
 dollar amount.  Notwithstanding any other provision, an 
 individual participating in on-the-job training on a full-time 
 basis is not employed for purposes of benefit eligibility. 

    Subd. 5.    Employer penalty.  An employer who enters 
 into an on-the-job training agreement with the commissioner and 
 who terminates the trainee in a manner other than provided in 
 this subdivision shall repay 70 percent of the amount of 
 reemployment insurance benefits paid to the individual while in 
 the training program with that employer if the termination 
 occurs during the training period.  If the termination occurs 
 during the 12-month period of guaranteed employment, the 
 employer receives a proportional reduction in the amount it must 
 repay.  Penalties assessed under this subdivision are in 
 addition to any other penalties provided for by this chapter and 
 are subject to the same collection procedures that apply to past 
 due contributions under this chapter.  Penalties under this 
 subdivision shall be paid to the commissioner and credited to 
 the job search and relocation fund.  When it is determined to be 
 in the best interest of the state, the commissioner may waive 
 all or part of the employer penalty.  The commissioner shall use 
 any money collected under this paragraph for job search and 
 relocation expenses of structurally unemployed workers 
 participating in the training program. 

    HIST: 1Sp1985 c 14 art 9 s 46; 1987 c 385 s 46; 1994 c 483 s 
 1; 1995 c 212 art 3 s 59; 1Sp1995 c 3 art 16 s 13; 1996 c 339 s 
 7; 1996 c 395 s 18; 1997 c 66 s 80; 1998 c 265 s 45 

     268.66 First source agreements. 

    Subdivision 1.    List of vacancies.  A business or 
 private enterprise receiving grants or loans from the state in 
 amounts over $200,000 a year shall as part of the grant or loan 
 agree to list any vacant or new positions with the job services 
 of the commissioner of economic security or the local service 
 units. 

    Subd. 2.    Grant and loan agreements.  The commissioner 
 of trade and economic development shall incorporate the 
 provisions of this section into grant and loan agreements and 
 assist the commissioner of economic security and the local 
 service units to promote private sector listings with job 
 services and to evaluate their effect on employers and 
 individuals who are referred. 

    HIST: 1Sp1985 c 14 art 9 s 47; 1987 c 312 art 1 s 26 subd 2; 
 1994 c 483 s 1 

     268.665 Workforce development council. 

    Subdivision 1.    Creation.  The governor's workforce 
 development council is created under the authority of the Job 
 Training Partnership Act, United States Code, title 29, section 
 1501, et seq.  Local workforce development councils are 
 authorized under the Job Training Partnership Act, United States 
 Code, title 29, section 1501 and the one stop career center 
 system. 

    Subd. 2.    Membership.  The governor's workforce 
 development council is composed of 33 members appointed by the 
 governor.  The members may be removed pursuant to section 
 15.059.  In selecting the representatives of the council, the 
 governor shall ensure that 50 percent of the members come from 
 nominations provided by local workforce councils.  Local 
 education representatives shall come from nominations provided 
 by local education to employment partnerships.  The 33 members 
 shall represent the following sectors:  

    (a) State agencies:  the following individuals shall serve 
 on the council:  

    (1) commissioner of the Minnesota department of economic 
 security; 

    (2) commissioner of the Minnesota department of children, 
 families, and learning; 

    (3) commissioner of the Minnesota department of human 
 services; and 

    (4) commissioner of the Minnesota department of trade and 
 economic development. 

    (b) Business and industry:  six individuals shall represent 
 the business and industry sectors of Minnesota. 

    (c) Organized labor:  six individuals shall represent labor 
 organizations of Minnesota. 

    (d) Community-based organizations:  four individuals shall 
 represent community-based organizations of Minnesota.  
 Community-based organizations are defined by the Job Training 
 Partnership Act as private nonprofit organizations that are 
 representative of communities or significant segments of 
 communities and that provide job training services, agencies 
 serving youth, agencies serving individuals with disabilities, 
 agencies serving displaced homemakers, union-related 
 organizations, and employer-related nonprofit organizations and 
 organizations serving nonreservation Indians and tribal 
 governments. 

    (e) Education:  six individuals shall represent the 
 education sector of Minnesota as follows:  

    (1) one individual shall represent local public secondary 
 education; 

    (2) one individual shall have expertise in design and 
 implementation of school-based service-learning; 

    (3) one individual shall represent post-secondary 
 education; 

    (4) one individual shall represent secondary/post-secondary 
 vocational institutions; 

    (5) the chancellor of the board of trustees of the 
 Minnesota state colleges and universities; and 

    (6) one individual shall have expertise in agricultural 
 education. 

    (f) Other:  two individuals shall represent other 
 constituencies including: 

    (1) units of local government; and 

    (2) applicable state or local programs. 

    The speaker and the minority leader of the house of 
 representatives shall each appoint a representative to serve as 
 an ex officio member of the council.  The majority and minority 
 leaders of the senate shall each appoint a senator to serve as 
 an ex officio member of the council.  After January 1, 1997, the 
 Minnesota director of the corporation for national service shall 
 also serve as an ex officio member.  

    (g) Appointment:  each member shall be appointed for a term 
 of three years from the first day of January or July immediately 
 following their appointment.  Elected officials shall forfeit 
 their appointment if they cease to serve in elected office.  

    (h) Members of the council are compensated as provided in 
 section 15.059, subdivision 3. 

    Subd. 3.    Purpose; duties.  The governor's workforce 
 development council shall replace the governor's job training 
 council and assume all of its requirements, duties, and 
 responsibilities, under the Job Training Partnership Act, United 
 States Code, title 29, section 1501, et seq.  Additionally, the 
 workforce development council shall assume the following duties 
 and responsibilities:  

    (a) Coordinate the development, implementation, and 
 evaluation of the statewide education and employment transitions 
 system under section 124D.46.  Beginning January 1, 1997, the 
 council shall also coordinate the development, implementation, 
 and evaluation of the Minnesota youth services programs under 
 sections 124D.39 to 124D.44, and the National and Community 
 Services Act of 1993, United States Code, title 42, section 
 12501, et seq.  

    (b) Review the provision of services and the use of funds 
 and resources under applicable federal human resource programs 
 and advise the governor on methods of coordinating the provision 
 of services and the use of funds and resources consistent with 
 the laws and regulations governing the programs.  For purposes 
 of this section, applicable federal and state human resource 
 programs mean the: 

    (1) Job Training Partnership Act, United States Code, title 
 29, section 1501, et seq.; 

    (2) Carl D. Perkins Vocational and Applied Technology 
 Education Act, United States Code, title 20, section 2301, et 
 seq.; 

    (3) National and Community Service Act of 1993, United 
 States Code, title 42, section 12501, et seq.; 

    (4) Adult Education Act, United States Code, title 20, 
 section 1201, et seq.; 

    (5) Wagner-Peyser Act, United States Code, title 29, 
 section 49; 

    (6) Social Security Act, title IV, part F, (JOBS), United 
 States Code, title 42, section 681, et seq.; 

    (7) Food Stamp Act of 1977, United States Code, title 7, 
 section 6(d)(4), Food Stamp Employment and Training Program, 
 United States Code, title 7, section 2015(d)(4); 

    (8) programs defined in section 268.0111, subdivisions 4 
 and 5; and 

    (9) School to Work Opportunity Act of 1994, Public Law 
 Number 103-239.  

    Additional federal and state programs and resources can be 
 included within the scope of the council's duties if recommended 
 by the governor after consultation with the council. 

    (c) Review federal, state, and local education, 
 post-secondary, job skills training, and youth employment 
 programs, and make recommendations to the governor and the 
 legislature for establishing an integrated seamless system for 
 providing education, service-learning, and work skills 
 development services to learners and workers of all ages. 

    (d) Advise the governor on the development and 
 implementation of statewide and local performance standards and 
 measures relating to applicable federal human resource programs 
 and the coordination of performance standards and measures among 
 programs.  

    (e) Develop program guidelines and recommend grant approval 
 procedures to the department of children, families, and learning 
 for grants to local education and employment transition 
 partnerships, including implementation grants under section 
 124D.46, grants for youth apprenticeship programs under section 
 124D.47, and youth employer grants; and 

    (1) coordinate implementation of the education and 
 employment transitions system under section 124D.46; 

    (2) promote education and employment transitions programs 
 and knowledge and skills of entrepreneurship among employers, 
 workers, youth, and educators, and encourage employers to 
 provide meaningful work-based learning opportunities; 

    (3) evaluate and identify exemplary education and 
 employment transitions programs and provide technical assistance 
 to local partnerships to replicate the programs throughout the 
 state; 

    (4) establish a performance-based quality assurance system 
 for consistent statewide evaluation of the performance of the 
 education and employment transitions system at both the state 
 and local level; 

    (5) conduct an annual review of each local education and 
 employment transitions partnership to ensure it adequately meets 
 the quality assurance standards established as part of the state 
 quality assurance system; 

    (6) develop the methods to assess local partnership 
 effectiveness; 

    (7) annually publish a report on the findings of the 
 evaluations of each local education transitions partnership; 

    (8) promote knowledge and skills of entrepreneurship among 
 students in kindergarten through grade 12 by sharing information 
 about the ways new business development contributes to a strong 
 economy. 

    (f) Advise the governor on methods to evaluate applicable 
 federal human resource programs.  

    (g) Sponsor appropriate studies to identify human 
 investment needs in Minnesota and recommend to the governor 
 goals and methods for meeting those needs.  

    (h) Recommend to the governor goals and methods for the 
 development and coordination of a human resource system in 
 Minnesota.  

    (i) Examine federal and state laws, rules, and regulations 
 to assess whether they present barriers to achieving the 
 development of a coordinated human resource system. 

    (j) Recommend to the governor and to the federal government 
 changes in state or federal laws, rules, or regulations 
 concerning employment and training programs that present 
 barriers to achieving the development of a coordinated human 
 resource system. 

    (k) Recommend to the governor and to the federal government 
 waivers of laws and regulations to promote coordinated service 
 delivery. 

    (l) Sponsor appropriate studies and prepare and recommend 
 to the governor a strategic plan which details methods for 
 meeting Minnesota's human investment needs and for developing 
 and coordinating a state human resource system.  

    Subd. 4.    Subcommittees.  The governor's workforce 
 development council shall appoint an advisory subcommittee the 
 majority of whose members shall represent business and industry 
 to advise the council on the establishment of the statewide 
 education and employment transitions system.  The chair of the 
 workforce development council may establish subcommittees in 
 order to carry out the duties and responsibilities of the 
 council.  

    Subd. 5.    Staffing.  The department of economic 
 security must provide staff support to the Minnesota workforce 
 development council.  The department of economic security and 
 the department of children, families, and learning shall jointly 
 staff the education and employment transitions subcommittee and 
 its activity with the full council.  The support includes 
 professional, technical, and clerical staff necessary to perform 
 the duties assigned to the workforce development council.  The 
 council may ask for assistance from other units of state 
 government as it requires in order to fulfill its duties and 
 responsibilities.  

    Subd. 6.    Expiration.  The council expires immediately 
 if it is no longer required by federal law as a condition of 
 receiving federal funding, or if there is no federal funding for 
 the human resource programs within the scope of the council's 
 duties. 

    HIST: 1995 c 131 s 1; 1Sp1995 c 3 art 16 s 13; 1996 c 395 s 
 18; 1Sp1997 c 4 art 3 s 19; 1998 c 397 art 11 s 3; 1998 c 398 
 art 3 s 9,10 

     268.666 Workforce service areas. 

    Subdivision 1.    Designation of workforce service areas. 
  For the purpose of administering federal, state, and local 
 employment and training services, the commissioner shall 
 designate the geographic boundaries for workforce service areas 
 in Minnesota. 

    The commissioner shall approve a request to be a workforce 
 service area from: 

    (1) a home rule charter or statutory city with a population 
 of 200,000 or more or a county with a population of 200,000 or 
 more; or 

    (2) a consortium of contiguous home rule charter or 
 statutory cities or counties with an aggregate population of 
 200,000 or more that serves a substantial part of one or more 
 labor markets. 

    The commissioner may approve a request to be a workforce 
 service area from a home rule charter or statutory city or a 
 county or a consortium of contiguous home rule charter or 
 statutory cities or counties, without regard to population, that 
 serves a substantial portion of a labor market area. 

    The commissioner shall make a final designation of 
 workforce service areas within the state after consulting with 
 local elected officials and the governor's workforce development 
 council.  Existing service delivery areas designated under the 
 federal Job Training Partnership Act shall be initially 
 designated as workforce service areas providing that no other 
 petitions are submitted by local elected officials. 

    The commissioner may redesignate workforce service areas no 
 more frequently than every two years.  These redesignations must 
 be made not later than four months before the beginning of a 
 program year. 

    Subd. 2.    Creation of local workforce councils.  A 
 local workforce council must be established in each workforce 
 service area, designated according to subdivision 1. 

    Subd. 3.    Membership on local workforce councils.  In 
 workforce service areas representing only one home rule charter 
 or statutory city or a county, the chief elected official must 
 appoint members to the council.  In workforce service areas 
 representing two or more home rule charter or statutory cities 
 or counties, the chief elected officials of the home rule 
 charter or statutory cities or counties must appoint members to 
 the council, in accordance with an agreement entered into by 
 such units of general local government. 

    A council shall include as members: 

    (1) representatives of the private sector, who must 
 constitute a majority of the membership of the council and who 
 are owners of business concerns, chief executives or chief 
 operating officers of nongovernmental employers, or other 
 private sector executives who have substantial management or 
 policy responsibility; 

    (2) at least two representatives of organized labor; 

    (3) representatives of the area workforce and 
 community-based organizations, who shall constitute not less 
 than 15 percent of the membership of the council; and 

    (4) representatives of each of the following: 

    (i) educational agencies that are representative of all 
 educational agencies within the workforce service area; 

    (ii) vocational rehabilitation agencies; 

    (iii) public assistance agencies; 

    (iv) economic development agencies; and 

    (v) public employment service agencies. 

    The chair of each local workforce council shall be selected 
 from among the members of the council who are representatives of 
 the private sector.  

    Private sector representatives on the local workforce 
 council shall be selected from among individuals nominated by 
 general purpose business organizations, such as local chambers 
 of commerce, in the workforce service area. 

    Education representatives on the local workforce council 
 shall be selected from among individuals nominated by secondary 
 and post-secondary educational institutions within the workforce 
 service area. 

    Organized labor representatives on the local workforce 
 council shall be selected from individuals recommended by 
 recognized state and local labor federations, organizations, or 
 councils.  If the state or local labor federations, 
 organizations, or councils fail to nominate a sufficient number 
 of individuals to meet the labor representation requirements, 
 individual workers may be included on the local workforce 
 council to complete the labor representation. 

    The commissioner must certify a local workforce council if 
 the commissioner determines that its composition and 
 appointments are consistent with this subdivision. 

    Subd. 4.    Purpose; duties of local workforce council.  
 The local workforce council is responsible for providing policy 
 guidance for, and exercising oversight with respect to, 
 activities conducted by local workforce centers in partnership 
 with the local unit or units of general local government within 
 the workforce service area and with the commissioner.  

    A local workforce center is a location where federal, 
 state, and local employment and training services are provided 
 to job seekers and employers. 

    A local workforce council, in accordance with an agreement 
 or agreements with the appropriate chief elected official or 
 officials and the commissioner, shall: 

    (1) determine procedures for the development of the local 
 workforce service area plan.  The procedures may provide for the 
 preparation of all or any part of the plan: 

    (i) by the council; 

    (ii) by any unit of general local or state government in 
 the workforce service area, or by an agency of that unit; or 

    (iii) by any other methods or institutions as may be 
 provided in the agreement; 

    (2) select the recipients for local grants and an 
 administrator of the local workforce service area plan.  These 
 may be the same entity or separate entities and must be chosen 
 from among the following: 

    (i) the council; 

    (ii) a unit of general local or state government in its 
 workforce service area, or an agency of that unit; 

    (iii) a nonprofit organization or corporation; or 

    (iv) any other agreed upon entity; 

    (3) jointly plan for local collaborative activities 
 including the transition of public assistance recipients to 
 employment in the public or private sectors; 

    (4) provide on-site review and oversight of program 
 performance; 

    (5) establish local priorities for service and target 
 populations; 

    (6) ensure nonduplication of services and a unified service 
 delivery system within the workforce service area; and 

    (7) nominate individuals to the governor to consider for 
 membership on the governor's workforce development council. 

    HIST: 1997 c 118 s 1 

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

     268.6715 1997 Minnesota employment and economic 
  development program. 

    The 1997 Minnesota employment and economic development 
 program is established to assist businesses and communities to 
 create jobs that provide the wages, benefits, and on-the-job 
 training opportunities necessary to help low-wage workers and 
 people transitioning from public assistance to get and retain 
 jobs, and to help their families to move out of poverty.  
 Employment obtained under this program is not excluded from the 
 definition of "employment" by section 268.04, subdivision 12, 
 clause (10), paragraph (d). 

    HIST: 1997 c 200 art 3 s 1 

     268.672 Definitions. 

    Subdivision 1.    Terms.  For the purposes of sections 
 268.672 to 268.682, the following terms have the meanings given 
 them.  

    Subd. 2. Repealed, 1Sp1985 c 14 art 9 s 78 subd 2 

    Subd. 3.    Eligible business.  "Eligible business" 
 means a for-profit business.  

    Subd. 4. Repealed, 1997 c 200 art 3 s 19 

    Subd. 5.    Eligible government agency.  "Eligible 
 government agency" means a county, municipality, school 
 district, or other local governmental subdivision, a state 
 agency, or a federal agency office in Minnesota.  

    Subd. 6.    Eligible job applicant.  "Eligible job 
 applicant" means a person who:  

    (1) has attempted to secure a nonsubsidized job by 
 completing comprehensive job readiness and is: 

    (i) a temporary assistance for needy families (TANF) 
 recipient who is making good faith efforts to comply with the 
 family support agreement as defined under section 256.032, 
 subdivision 7a, but has failed to find suitable employment; or 

    (ii) a family general assistance recipient; 

    (2) is a member of a household supported only by: 

    (i) a low-income worker; or 

    (ii) a person who is underemployed as that term is defined 
 in section 268.61, subdivision 5; or 

    (3) is a member of a family that is eligible for, but not 
 receiving public assistance. 

    Subd. 7.    Eligible nonprofit agency.  "Eligible 
 nonprofit agency" means an organization exempt from taxation 
 under the Internal Revenue Code of 1954, section 501(c)(3), as 
 amended through December 31, 1982.  

    Subd. 8. Repealed, 1Sp1985 c 14 art 9 s 78 subd 2 

    Subd. 9.    Household.  "Household" means a group of 
 persons living at the same residence consisting of, at a 
 maximum, spouses and the minor children of each.  

    Subd. 10. Repealed, 1Sp1985 c 14 art 9 s 78 subd 2 

    Subd. 11. Repealed, 1Sp1985 c 14 art 9 s 78 subd 2 

    Subd. 12. Repealed, 1990 c 568 art 4 s 85 

    Subd. 13.    Comprehensive job readiness.  
 "Comprehensive job readiness" means a job search program 
 administered by a county, its designee, or workforce service 
 area that teaches self-esteem, marketable work habits, 
 job-seeking skills, and life-management skills, and may include 
 job retention services. 

    Subd. 14.    Eligible program participant.  "Eligible 
 program participant" means an eligible job applicant who is 
 participating in comprehensive job readiness, subsidized 
 employment, or job retention services.  An individual who has 
 been dismissed for cause or quit subsidized employment without 
 good cause is not eligible for subsidized employment under the 
 program. 

    Subd. 15.    Employer.  "Employer" means a private or 
 public employer that: 

    (1) agrees to create a job that is long term and full time, 
 except a private nonprofit or public employer may provide a 
 temporary job; 

    (2) pays a wage of at least $2 per hour higher than the 
 minimum wage; and 

    (3) agrees to retain a participant at the same wage and 
 benefit level of the wage subsidy period after satisfactory 
 completion of the subsidy period. 

    Subd. 16.    Full time.  "Full time" means 40 hours of 
 work per week or any other schedule considered full time by the 
 employer.  In the case of a temporary assistance to needy 
 families recipient, "full time" means 40 hours comprised of the 
 number of hours of work needed to meet the recipient's work 
 requirement plus the number of hours spent in a training or 
 education program.  The employer is required to pay and is 
 eligible to receive the subsidy only for hours worked by the 
 participant for the employer.  

    Subd. 17.    Job retention services.  "Job retention 
 services" means assistance that would not otherwise be provided 
 to an eligible job applicant with child care, transportation, 
 job coaching, employer-employee mediation, and other forms of 
 support services to help an applicant to transition to 
 employment and retain a job. 

    Subd. 18.    Low-income worker.  "Low-income worker" 
 means a worker who earns no more than $1 per hour more than the 
 minimum wage. 

    Subd. 19.    Minimum wage.  "Minimum wage" means the 
 greater of (1) the federal minimum wage in effect on or after 
 September 1, 1997, and (2) the state minimum wage under section 
 177.24. 

    Subd. 20.    Program.  "Program" means the 1997 
 Minnesota employment and economic development program. 

    Subd. 21.    Workforce service area.  "Workforce service 
 area" means a service delivery area designated by the governor 
 under the Job Training Partnership Act, United States Code, 
 title 29, section 1501, et seq. 

    HIST: 1983 c 312 art 7 s 2; 1984 c 654 art 5 s 43; 1Sp1985 c 9 
 art 2 s 78,79,105; 1Sp1985 c 14 art 9 s 48,49; 1987 c 384 art 2 
 s 1; 1991 c 199 art 2 s 1; 1994 c 488 s 8; 1997 c 200 art 3 s 
 2-11 

     268.673 Emergency jobs program; commissioner's duties. 

    Subdivision 1. Repealed, 1Sp1985 c 14 art 9 s 78 subd 2 

    Subd. 2. Repealed, 1Sp1985 c 14 art 9 s 78 subd 2 

    Subd. 3.    Department of economic security.  The 
 commissioner shall supervise wage subsidies, comprehensive job 
 readiness, and job retention services and shall provide 
 technical assistance to counties in their delivery.  

    Subd. 4.    Enforcement.  (a) The commissioner shall 
 ensure compliance with sections 268.672 to 268.682.  

    (b) The commissioner may:  

    (1) make public or private investigations within or without 
 this state necessary to determine whether any person has 
 violated or is about to violate sections 268.672 to 268.682, a 
 contract entered into under them, or any rule or order adopted 
 under them, or to aid in the enforcement of sections 268.672 to 
 268.682 or in rules and forms adopted under them; 

    (2) require or permit any person to file a written 
 statement under oath or otherwise, as the commissioner 
 determines, as to all the facts and circumstances concerning the 
 matter being investigated; and 

    (3) hold hearings, upon reasonable notice, on any matter 
 arising out of the administration of sections 268.672 to 268.682.

    (c) The attorney general shall assign one or more assistant 
 attorneys general to the commissioner and shall conduct all 
 proceedings involving the violation of sections 268.672 to 
 268.682 and all other enforcement proceedings.  

    (d) Whenever it appears to the commissioner that any person 
 has violated a provision of sections 268.672 to 268.682, a 
 contract entered into under them, or a rule or order adopted 
 under them:  

    (1)  The commissioner may issue and cause to be served upon 
 the person an order requiring the person to cease and desist 
 from the violation.  The order must be calculated to give 
 reasonable notice of the right of the person to request a 
 hearing on it and must state the reasons for the entry of the 
 order.  A hearing must be held not later than seven days after a 
 request for the hearing is received by the commissioner, after 
 which and within 20 days of the date of the hearing the 
 commissioner shall issue a further order vacating the cease and 
 desist order or making it permanent as the facts require.  If no 
 hearing is requested within 30 days of service of the order, the 
 order becomes final and remains in effect until it is modified 
 or vacated by the commissioner.  If the person to whom a cease 
 and desist order is issued fails to appear at the hearing after 
 being duly notified, the person shall be deemed in default, and 
 the proceeding may be determined upon consideration of the cease 
 and desist order, the allegations of which may be deemed to be 
 true; 

    (2)  The commissioner may bring an action in the district 
 court of the appropriate county to enjoin the violation and to 
 enforce compliance with the provisions of sections 268.672 to 
 268.682, a contract entered into under them, or any rule or 
 order adopted under them, and the commissioner may refer the 
 matter to the attorney general.  Upon a proper showing, a 
 permanent or temporary injunction, restraining order, or writ of 
 mandamus shall be granted.  The court may not require the 
 commissioner to post a bond.  

    Any injunction proceeding under the provisions of sections 
 268.672 to 268.682 may be brought on for hearing and disposition 
 upon an order to show cause returnable upon not more than eight 
 days' notice to the defendant.  The case has precedence over 
 other cases upon the court calendar and may not be continued 
 without the consent of the state, except upon good cause shown 
 to the court, and then only for a reasonable length of time 
 necessary in the opinion of the court to protect the rights of 
 the defendant.  

    Subd. 4a.    Contracts with counties.  The commissioner 
 shall contract directly with counties, their designees, or 
 workforce service areas to deliver wage subsidies, comprehensive 
 job readiness, and job retention services if (1) each county 
 served by the designee or workforce service area agrees to the 
 contract and knows the amount of wage subsidy money, 
 comprehensive job readiness money, and job retention services 
 money allocated to the county under section 268.6751, and (2) 
 the designee or workforce service area agrees to meet regularly 
 with each county being served.  The contracts must require that 
 no more than ten percent of the contract amount be expended for 
 administration. 

    Counties and workforce service areas are encouraged to 
 designate community-based providers of comprehensive job 
 readiness and job retention services. 

    Subd. 5.    Report.  Each county delivering wage 
 subsidies, comprehensive job readiness, and job retention 
 services shall report to the commissioner on a quarterly basis: 

    (1) the number of persons placed in private sector jobs, in 
 temporary public sector jobs, or in other services; 

    (2) the outcome for each participant placed; 

    (3) the number and type of employers employing persons 
 under the program; 

    (4) the amount of money spent in each county for wages, 
 comprehensive job readiness, and job retention services for each 
 type of employment and each type of other expense; 

    (5) the age, educational experience, family status, gender, 
 priority group status, race, and work experience of each person 
 in the program; 

    (6) the amount of wages received by persons while in the 
 program and 60 days after completing the program; and 

    (7) for each classification of persons described in clause 
 (5), the outcome of the wage subsidy placement, the 
 comprehensive job readiness, and the job retention services, 
 including length of time employed; nature of employment, whether 
 private sector, temporary public sector, or other service; and 
 the hourly wages. 

    Data collected on individuals under this subdivision are 
 private data on individuals as defined in section 13.02, 
 subdivision 12, except that summary data may be provided under 
 section 13.05, subdivision 7. 

    Subd. 6. Repealed, 1997 c 200 art 3 s 19 

    HIST: 1983 c 312 art 7 s 3; 1984 c 654 art 5 s 44; 1Sp1985 c 9 
 art 2 s 80,103,105; 1Sp1985 c 14 art 9 s 50-53; 1986 c 444; 1987 
 c 403 art 2 s 134,135; 1990 c 568 art 4 s 62,63; 1994 c 483 s 1; 
 1997 c 200 art 3 s 12-14 

  268.674 Repealed, 1Sp1985 c 14 art 9 s 78 subd 2 

  268.675 Repealed, 1Sp1985 c 14 art 9 s 78 subd 2 

     268.6751 Allocation of wage subsidy money. 

    Subdivision 1.    Allocation.  Wage subsidy money, 
 comprehensive job readiness money, and job retention services 
 money must be allocated to counties in proportion to the number 
 of persons living at or below the federal poverty threshold in 
 each county.  By December 31 of each fiscal year, counties, 
 designees, and workforce service areas receiving wage subsidy 
 money, comprehensive job readiness money, and job retention 
 services money shall report to the commissioner on the use of 
 allocated funds.  The commissioner shall reallocate uncommitted 
 funds for each fiscal year according to the formula in this 
 subdivision. 

    Subd. 2.    Emergency wage subsidies.  (a) The 
 commissioner shall monitor local and statewide unemployment 
 rates.  Upon determining that an economic emergency exists in 
 one or more local service units, the commissioner may implement 
 an emergency wage subsidy program and recommend to the governor 
 to pursue ways to increase the wage subsidy money available to 
 local service units in the affected area or areas from sources 
 other than the appropriation allocated under subdivision 1.  

    (b) When the unemployment rate for the state of Minnesota 
 equals or exceeds nine percent, the commissioner shall implement 
 a statewide emergency wage subsidy program and shall recommend 
 to the governor to pursue ways to increase money available for 
 wage subsidies. 

    HIST: 1Sp1985 c 14 art 9 s 54; 1987 c 403 art 2 s 136; 1990 c 
 568 art 4 s 64; 1997 c 200 art 3 s 15 

*   NOTE:  Subdivision 1 was also amended by Laws 1997, chapter 
*85, article 4, section 28, to read as follows: 

*   "Subdivision 1.    Wage subsidies.  Wage subsidy money 
*must be allocated to local service units in the following manner:

*   (a) The commissioner shall allocate 87.5 percent of the 
*funds available for allocation to local service units for wage 
*subsidy programs as follows:  the proportion of the wage subsidy 
*money available to each local service unit must be based on the 
*number of unemployed persons in the local service unit for the 
*most recent six-month period and the number of aid to families 
*with dependent children and Minnesota family investment 
*program-statewide cases in the local service unit for the most 
*recent six-month period. 

*   (b) Five percent of the money available for wage subsidy 
*programs must be allocated at the discretion of the commissioner.

*   (c) Seven and one-half percent of the money available for 
*wage subsidy programs must be allocated at the discretion of the 
*commissioner to provide jobs for residents of federally 
*recognized Indian reservations.  

*   (d) By December 31 of each fiscal year, providers and local 
*service units receiving wage subsidy money shall report to the 
*commissioner on the use of allocated funds.  The commissioner 
*shall reallocate uncommitted funds for each fiscal year 
*according to the formula in paragraph (a)."

   268.676 Repealed, 1997 c 200 art 3 s 19 

*   NOTE:  Subdivision 1 was also amended by Laws 1997, chapter 
*85, article 4, section 29, to read as follows: 

*   "Subdivision 1.    Among job applicants.  At least 80 
*percent of funds allocated among eligible job applicants 
*statewide must be allocated to: 

*   (1) applicants living in households with no other income 
*source; 

*   (2) applicants whose incomes and resources are less than 
*the standards for eligibility for general assistance; 

*   (3) applicants who are eligible for aid to families with 
*dependent children or Minnesota family investment 
*program-statewide; and 

*   (4) applicants who live in a farm household who demonstrate 
*severe household financial need."

     268.677 Use of funds. 

    Subdivision 1.    Wage subsidy, comprehensive job 
 readiness, and job retention services money.  To the extent 
 allowable under federal and state law, wage subsidy money, 
 comprehensive job readiness money, and job retention services 
 money must be pooled and used in combination with money from 
 other employment and training services or income maintenance and 
 support services.  

    (a) The wage subsidy is $2.50 per hour for wages and up to 
 $1 per hour for reimbursement of employer-paid benefits for 
 health care, child care, or transportation expenses for 
 employers paying an eligible program participant an hourly wage 
 that is $2 to $2.99 per hour higher than the minimum wage. 

    (b) The wage subsidy is $4 per hour for wages and up to $1 
 per hour for reimbursement of employer paid benefits for health 
 care, child care, or transportation expenses for employers 
 paying an eligible program participant an hourly wage that is $3 
 or more per hour higher than the minimum wage. 

    (c) The wage subsidy for an eligible job applicant may be 
 paid for a maximum of 1,040 hours over a period of 26 weeks.  
 Employers are encouraged to use money from other sources to 
 provide increased wages to applicants they employ.  Job 
 retention services may be provided to an eligible program 
 participant over a period of 78 weeks.  

    (d) An employer of more than four full-time employees shall 
 receive wage subsidies for no more than 25 percent of the 
 employer's full-time workforce. 

    Subd. 2. Repealed, 1997 c 200 art 3 s 19 

    Subd. 3. Repealed, 1997 c 200 art 3 s 19 

    HIST: 1983 c 312 art 7 s 7; 1984 c 654 art 5 s 48; 1Sp1985 c 9 
 art 2 s 85,105; 1Sp1985 c 14 art 9 s 56; 1987 c 403 art 2 s 138; 
 1990 c 568 art 4 s 66,67; 1990 c 594 art 3 s 10; 1997 c 200 art 
 3 s 16 

  268.678 Repealed, 1997 c 200 art 3 s 19 

    268.679 Subdivision 1. Repealed, 1Sp1985 c 14 art 9 s 
 78 subd 2 

    Subd. 2. Repealed, 1Sp1985 c 14 art 9 s 78 subd 2 

    Subd. 3. Repealed, 1997 c 200 art 3 s 19 

  268.68 Repealed, 1Sp1985 c 14 art 9 s 78 subd 2 

     268.681 Business employment. 

    Subdivision 1.    Eligible businesses.  A business 
 employer is an eligible employer if it enters into a written 
 contract, signed and subscribed to under oath, with a county or 
 its designee, containing assurances that: 

    (a) funds received by a business shall be used only as 
 permitted under sections 268.672 to 268.682; 

    (b) the business has submitted information to the county, 
 its designee, or workforce service area (1) describing the 
 duties and proposed compensation of each employee proposed to be 
 hired under the program; and (2) demonstrating that, with the 
 funds provided under sections 268.672 to 268.682, the business 
 is likely to succeed and continue to employ persons hired using 
 wage subsidies; 

    (c) the business will use funds exclusively for 
 compensation and benefits of eligible job applicants and will 
 provide employees hired with these funds with benefits and other 
 terms and conditions of employment comparable to those provided 
 to other employees of the business who do comparable work; 

    (d) the funds are necessary to allow the business to begin, 
 expand, or to fill other open positions but not to fill 
 positions which would be filled in the absence of wage 
 subsidies; 

    (e) the business will cooperate with the county and the 
 commissioner in collecting data to assess the result of wage 
 subsidies and the effectiveness of comprehensive job readiness 
 and job retention services; and 

    (f) the business is in compliance with all applicable 
 affirmative action, fair labor, health, safety, and 
 environmental standards.  

    Subd. 1a.    Ineligible businesses.  A business employer 
 is ineligible to participate in the program and is ineligible to 
 receive wage subsidy money if:  

    (1) the business is a temporary employment agency; or 

    (2) the business is a restaurant.  

    For purposes of this subdivision, "temporary employment 
 agency" means a business that hires people to work in temporary 
 positions for employers who are clients of that business.  

    For purposes of this subdivision, "restaurant" includes, 
 but is not limited to, fast food restaurants. 

    Subd. 1b.    Discharge of program participant.  A 
 program participant discharged from employment may challenge the 
 discharge as a violation of subdivision 1. 

    Subd. 2.    Priorities.  (a) In allocating funds among 
 eligible businesses, the county or its designee shall give 
 priority to: 

    (1) businesses that will provide applicants with on-the-job 
 training and marketable job skills; 

    (2) businesses engaged in manufacturing; 

    (3) nonretail businesses that are small businesses as 
 defined in section 645.445; and 

    (4) businesses that export products outside the state. 

    (b) In addition to paragraph (a), a county must give 
 priority to businesses that: 

    (1) have a high potential for growth and long-term job 
 creation; 

    (2) are labor intensive; 

    (3) make high use of local and Minnesota resources; 

    (4) are under ownership of women and minorities; 

    (5) make high use of new technology; 

    (6) produce energy conserving materials or services or are 
 involved in development of renewable sources of energy; and 

    (7) have their primary place of business in Minnesota.  

    Subd. 3.    Payback.  (a) A business receiving wage 
 subsidies shall repay 70 percent of the amount initially 
 received for each eligible job applicant employed, if the 
 employee does not continue in the employment of the business 
 beyond the six-month subsidized period.  If the employee 
 continues in the employment of the business for one year or 
 longer after the six-month subsidized period, the business need 
 not repay any of the funds received for that employee's wages.  
 If the employee continues in the employment of the business for 
 a period of less than one year after the expiration of the 
 six-month subsidized period, the business shall receive a 
 proportional reduction in the amount it must repay. 

    (b) If an employer dismisses an employee for good cause and 
 works in good faith with the local service unit or its 
 contractor to employ and train another person referred by the 
 county, its designee, or workforce service area, the payback 
 formula shall apply as if the original person had continued in 
 employment.  

    (c) If a business receiving funds under the program reduces 
 the hourly wage after the six-month subsidy, the business must 
 repay a portion of the subsidy in direct proportion to the 
 amount that the hourly wage is reduced. 

    (d) A repayment schedule shall be negotiated and agreed to 
 by the county and the business prior to the disbursement of the 
 funds and is subject to renegotiation.  The county shall retain 
 payments received under this subdivision for any administrative 
 costs associated with the collection of the funds under this 
 subdivision and for entering into new wage subsidy agreements.  

    (e) If an employer is more than 60 days late in repaying a 
 subsidy as required in this subdivision, the county may engage a 
 licensed collection agency or refer the matter to the department 
 for collection under chapter 16D. 

    Subd. 4.  Repealed, 1990 c 594 art 3 s 15 

    Subd. 4.    Successorship.  A contract entered into by 
 an owner, employer, or manager under the wage subsidy program is 
 legally binding on any successor owner, employer, or manager. 

    HIST: 1983 c 312 art 7 s 11; 1Sp1985 c 14 art 9 s 63; 1987 c 
 403 art 2 s 141,142; 1990 c 568 art 4 s 69-71; 1990 c 594 art 3 
 s 11; 1997 c 200 art 3 s 17 

     268.6811 Fund combinations. 

    To the extent allowable under federal law, money for job 
 training under Title II-A of the Job Training Partnership Act, 
 United States Code, title 29, section 1501 et seq., and money 
 from other employment and training services or income 
 maintenance and support services, except services administered 
 under chapter 116L, may be pooled and used in combination with 
 money to provide subsidized employment, comprehensive job 
 readiness and job retention services under sections 268.6715 to 
 268.682. 

    HIST: 1997 c 200 art 3 s 18 

     268.682 Worker displacement prohibited. 

    Subdivision 1.    Layoffs; work reductions.  An eligible 
 employer may not terminate, lay off, or reduce the working hours 
 of an employee for the purpose of hiring an individual with 
 funds available under sections 268.672 to 268.682.  

    Subd. 2.    Hiring during layoffs.  An eligible employer 
 may not hire an individual with funds available under sections 
 268.672 to 268.682 if any other person is on layoff from the 
 same or a substantially equivalent job. 

    Subd. 3.    Employer certification.  In order to qualify 
 as an eligible employer, a government or nonprofit agency or 
 business must certify to the eligible local service unit that 
 each job created and funded under sections 268.672 to 268.682:  

    (a) will result in an increase in employment opportunities 
 over those which would otherwise be available; 

    (b) will not result in the displacement of currently 
 employed workers, including partial displacement such as 
 reduction in hours of nonovertime work, wages, or employment 
 benefits; and 

    (c) will not impair existing contracts for service or 
 result in the substitution of wage subsidy funds for other funds 
 in connection with work that would otherwise be performed.  

    HIST: 1983 c 312 art 7 s 12; 1Sp1985 c 14 art 9 s 64 

  268.683 Repealed, 1Sp1985 c 14 art 9 s 78 subd 2 

  268.684 Repealed, 1Sp1985 c 14 art 9 s 78 subd 2 

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

   268.686 Repealed, 1Sp1985 c 9 art 2 s 104; 1Sp1985 c 14 
  art 9 s 78 subd 2 

   268.80 Repealed, 1983 c 312 art 8 s 18; 1Sp1985 c 14 art 9 
  s 78 subd 1 

   268.81 Repealed, 1983 c 312 art 8 s 18; 1Sp1985 c 14 art 9 
  s 78 subd 1 

   268.82 Repealed, 1983 c 312 art 8 s 18; 1Sp1985 c 14 art 9 
  s 78 subd 1 

   268.83 Repealed, 1983 c 312 art 8 s 18; 1Sp1985 c 14 art 9 
  s 78 subd 1 

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

     268.85 Service priorities. 

    Subdivision 1.    Groups with severe disadvantages.  To 
 the extent that the state has the authority to establish 
 priority groups to be served through employment and training 
 services, greatest consideration must be given to client groups 
 identified as experiencing the most severe disadvantages to 
 employment.  Individuals volunteering for employment, regardless 
 of whether they are required to register, must also be given 
 preference to avoid the effects of long-term unemployment or 
 dependence on public assistance. 

    Subd. 2.    Order of priority.  (a) The priority for 
 services to be provided is: 

    (1) permanent, unsubsidized, full-time private or nonprofit 
 sector employment and, where possible, in conjunction with 
 targeted jobs tax credits as defined at United States Code, 
 title 26, section 44B, as amended by Public Law Number 98-369, 
 with highest priority to employment with paid medical benefits; 

    (2) permanent, subsidized, full-time private sector 
 employment; 

    (3) permanent, subsidized, full-time nonprofit sector 
 employment; 

    (4) training; 

    (5) relocation, except that relocation is considered only 
 when a client can find affordable housing near the new location; 
 and 

    (6) part-time, subsidized, nonprofit, or public employment 
 with continued employment assistance. 

    (b) Individuals receiving any of the priority services in 
 paragraph (a) must be provided with child care, transportation, 
 or other support services as necessary and in relation to their 
 eligibility and the availability of funds. 

    (c) In delivering employment and training services, local 
 service units shall distribute their available resources in a 
 manner that provides greater incentives to clients in permanent 
 private or nonprofit sector employment than in public sector 
 jobs. 

    HIST: 1Sp1985 c 14 art 9 s 65; 1987 c 403 art 3 s 51 

     268.86 Employment and training programs. 

    Subdivision 1. Repealed, 1987 c 403 art 3 s 98 

    Subd. 2.    Interagency agreements.  By October 1, 1987, 
 the commissioner and the commissioner of human services shall 
 enter into a written contract for the design, delivery, and 
 administration of employment and training services for 
 applicants for or recipients of food stamps, aid to families 
 with dependent children or Minnesota family investment 
 program-statewide, including AFDC and MFIP-S employment and 
 training programs and general assistance.  The contract must 
 address: 

    (1) specific roles and responsibilities of each department; 

    (2) assignment and supervision of staff for interagency 
 activities including any necessary interagency employee mobility 
 agreements under the administrative procedures of the department 
 of employee relations; 

    (3) mechanisms for determining the conditions under which 
 individuals participate in services, their rights and 
 responsibilities while participating, and the standards by which 
 the services must be administered; 

    (4) procedures for providing technical assistance to local 
 service units, Indian tribes, and employment and training 
 service providers; 

    (5) access to appropriate staff for ongoing development and 
 interpretation of policy, rules, and program standards; 

    (6) procedures for reimbursing appropriate agencies for 
 administrative expenses; and 

    (7) procedures for accessing available federal funds. 

    Subd. 3. Repealed, 1987 c 403 art 3 s 98 

    Subd. 4. Repealed, 1987 c 403 art 3 s 98 

    Subd. 5. Repealed, 1987 c 403 art 3 s 98 

    Subd. 6.    Coordination.  In developing employment and 
 training services, the commissioner shall identify and 
 incorporate, to the extent possible, money from both federal and 
 state income maintenance, employment and training, and 
 educational programs. 

    Subd. 7. Repealed, 1989 c 282 art 5 s 133 

    Subd. 8.    Grant diversion.  The commissioner shall 
 develop grant diversion processes for recipients of general 
 assistance and work readiness assistance payments and shall 
 supervise the counties in the administration of the employment 
 and training services to meet the needs and circumstances of 
 these recipients.  A grant diversion program that places general 
 assistance and work readiness recipients in public sector 
 employment must operate as a community investment program under 
 section 268.90.  

    Subd. 9. Repealed, 1990 c 568 art 4 s 85 

    Subd. 10.    Inventory, referral, and intake services.  
 The commissioner of economic security, in cooperation with the 
 commissioner of human services, shall develop an inventory, 
 referral, and intake system.  The system must provide for 
 coordinated delivery of employment and training and income 
 maintenance support services, efficient client referral among 
 programs and services, reduction of duplicate data collection, 
 coordinated program intake by local agencies, and effective 
 evaluation of employment and training services.  The system 
 must, at a minimum, include the following: 

    (1) a listing of all available public and private 
 employment and training services, income maintenance and support 
 services, and vocationally directed education and training 
 programs; 

    (2) the capability to assess client needs and match those 
 needs with employment opportunities, education and training 
 programs, and employment and training and income maintenance and 
 support services, and to refer the client to the appropriate 
 employer, educational institution, or service provider; 

    (3) a coordinated intake procedure for employment and 
 training services, and income maintenance and support services; 

    (4) access to a statewide database for client tracking and 
 program evaluation; and 

    (5) internal security measures to protect private data from 
 unauthorized access. 

    In developing the system, the commissioner shall consult 
 with the public post-secondary educational systems, local 
 agencies, employment and training service providers, and client 
 and employer representatives.  The system must be available in 
 each local agency or service provider delivering programs 
 administered by the commissioner of economic security or the 
 commissioner of human services.  Access by intake workers, state 
 agency personnel, clients, and any other system users to 
 information contained in the system must conform with all 
 applicable federal and state data privacy requirements.  

    HIST: 1Sp1985 c 14 art 9 s 66; 1987 c 403 art 3 s 53; 1988 c 
 689 art 2 s 222; 1989 c 282 art 5 s 125; 1990 c 568 art 4 s 
 72,73; 1994 c 483 s 1; 1997 c 85 art 4 s 30 

     268.871 Local delivery. 

    Subdivision 1.    Responsibility and certification.  (a) 
 Unless prohibited by federal law or otherwise determined by 
 state law, a local service unit is responsible for the delivery 
 of employment and training services.  After February 1, 1988, 
 employment and training services must be delivered by certified 
 employment and training service providers.  

    (b) The local service unit's employment and training 
 service provider must meet the certification standards in this 
 subdivision in order to be certified to deliver any of the 
 following employment and training services and programs:  wage 
 subsidies; general assistance grant diversion; food stamp 
 employment and training programs; community work experience 
 programs; AFDC or MFIP-S job search; AFDC or MFIP-S grant 
 diversion; AFDC or MFIP-S on-the-job training; and AFDC or 
 MFIP-S case management.  

    (c) The commissioner shall certify a local service unit's 
 service provider to provide these employment and training 
 services and programs if the commissioner determines that the 
 provider has:  

    (1) past experience in direct delivery of the programs 
 specified in paragraph (b); 

    (2) staff capabilities and qualifications, including 
 adequate staff to provide timely and effective services to 
 clients, and proven staff experience in providing specific 
 services such as assessments, career planning, job development, 
 job placement, support services, and knowledge of community 
 services and educational resources; 

    (3) demonstrated effectiveness in providing services to 
 public assistance recipients and other economically 
 disadvantaged clients; and 

    (4) demonstrated administrative capabilities, including 
 adequate fiscal and accounting procedures, financial management 
 systems, participant data systems, and record retention 
 procedures. 

    (d) When the only service provider that meets the criterion 
 in paragraph (c), clause (1), has been decertified, according to 
 subdivision 1a, in that local service unit, the following 
 criteria shall be substituted:  past experience in direct 
 delivery of multiple, coordinated, nonduplicative services, 
 including outreach, assessments, identification of client 
 barriers, employability development plans, and provision or 
 referral to support services. 

    (e) The commissioner shall certify providers of the 
 Minnesota family investment plan case management services as 
 defined in section 256.032, subdivision 3.  Providers must meet 
 the standards defined in paragraph (c), except that past 
 experience under paragraph (c), clause (1), must be in services 
 and programs similar to those specified in section 256.032, 
 subdivision 3.  

    Employment and training service providers shall be 
 certified by the commissioner for two fiscal years beginning 
 July 1, 1991, and every second year thereafter. 

    Subd. 1a.    Decertification.  (a) The department, on 
 its own initiative, or at the request of the local service unit, 
 shall begin decertification processes for employment and 
 training service providers who: 

    (1) no longer meet one or more of the certification 
 standards; 

    (2) are delivering services in a manner that does not 
 comply with the Family Support Act of 1988, Public Law Number 
 100-485 or relevant state law after corrective actions have been 
 cited, technical assistance has been provided, and a reasonable 
 period of time for remedial action has been provided; or 

    (3) are not complying with other state and federal laws or 
 policy which are necessary for effective delivery of services. 

    (b) The initiating of decertification processes shall not 
 result in decertification of the service provider unless and 
 until adequate fact-finding and investigation has been performed 
 by the department. 

    Subd. 2.    Contracting responsibility.  A local service 
 unit must contract with certified employment and training 
 service providers that can effectively coordinate federal, 
 state, and local employment and training services; that can 
 maximize use of available federal and other nonstate funds; and 
 that have demonstrated the ability to achieve effective results 
 in serving public assistance clients as well as other unemployed 
 people.  

    Subd. 3.    Enforcement.  The local service units shall 
 provide for the enforcement of employment and training 
 requirements for appropriate recipients of public assistance, 
 and must include provisions for enforcing the requirements in 
 any contracts with providers under subdivisions 1 and 2. 

    Subd. 4.    Location of staff.  (a) In establishing a 
 contract, the county shall agree to colocate, where feasible, 
 income maintenance and social service staff as necessary to 
 accept applications and determine eligibility, monitor ongoing 
 client eligibility, and authorize services and grants available 
 under programs administered by the county or local service unit 
 that are related to employment and training or the client's 
 successful participation in employment and training activities. 

    (b) The commissioner shall colocate, where feasible, 
 sufficient staff to make the services provided through the 
 department of economic security and the programs it administers 
 or supervises available to clients being served by the local 
 service unit or the contract agency. 

    (c) The commissioner has emergency and permanent rulemaking 
 authority to implement this section and shall establish the 
 circumstances under which the requirements for colocation may be 
 waived. 

    Subd. 5.    Reports.  Each employment and training 
 service provider under contract with a local service unit or an 
 Indian tribe to deliver employment and training services must 
 submit an annual report by March 1 to the local service unit or 
 the Indian tribe.  The report must specify: 

    (1) the types of services provided; 

    (2) the number of priority and nonpriority AFDC recipients 
 served, the number of work readiness assistance recipients 
 served, and the number of other clients served; 

    (3) how resources will be prioritized to serve priority and 
 nonpriority public assistance recipients and other clients; and 

    (4) the manner in which state employment and training funds 
 and programs are being coordinated with federal and local 
 employment and training funds and programs.  

    HIST: 1Sp1985 c 9 art 2 s 103; 1Sp1985 c 14 art 9 s 67; 1987 c 
 403 art 3 s 55-57; 1987 c 403 art 2 s 143; 1989 c 282 art 5 s 
 126; 1990 c 568 art 4 s 74-76; 1993 c 306 s 17; 1994 c 483 s 1; 
 1997 c 85 art 4 s 31 

     268.872 State funding of employment and training 
  programs. 

    Subdivision 1.    Available money.  The commissioner and 
 local service units are not required to provide employment and 
 training services that exceed the levels permitted by available 
 federal, state, and local funds subject to the requirements or 
 limitations of each program. 

    Subd. 2.    Maintenance of effort.  A local service unit 
 shall certify to the commissioner that it has not reduced funds 
 from other federal, state, and county sources which would, in 
 the absence of this section, have been available for employment 
 and training services and child care services and related 
 administrative costs. 

    Subd. 3. Repealed, 1990 c 568 art 4 s 85 

    HIST: 1Sp1985 c 14 art 9 s 68 

     268.88 Local service unit plans. 

    (a) By April 15, 1999, and by April 15 of each second year 
 thereafter, local service units shall prepare and submit to the 
 commissioner a plan that covers the next two state fiscal 
 years.  At least 30 days prior to submission of the plan, the 
 local service unit shall solicit comments from the public on the 
 contents of the proposed plan.  The commissioner shall notify 
 each local service unit within 60 days of receipt of its plan 
 that the plan has been approved or disapproved.  The plan must 
 include: 

    (1) a statement of objectives for the employment and 
 training services the local service unit administers; 

    (2) the establishment of job placement and job retention 
 goals, the establishment of public assistance caseload reduction 
 goals, and the strategies and programs that will be used to 
 achieve these goals; 

    (3) a statement of whether the goals from the preceding 
 year were met and an explanation if the local service unit 
 failed to meet the goals; 

    (4) the amount proposed to be allocated to each employment 
 and training service; 

    (5) the proposed types of employment and training services 
 the local service unit plans to utilize; 

    (6) a description of how the local service unit will use 
 funds provided under chapter 256J to meet the requirements of 
 that chapter.  The description must include what services will 
 be provided, per service expenditures, an estimate of how many 
 employment and training slots the local service unit will 
 provide, how many dollars the local service unit will provide 
 per slot per provider, how many participants per slot, an 
 estimate of the ratio of participants per job counselor, and 
 proposed uses for any residual funds not included in slot 
 allocations to providers; 

    (7) a report on the use of wage subsidies, grant 
 diversions, community investment programs, and other services 
 administered under this chapter; 

    (8) a performance review of the employment and training 
 service providers delivering employment and training services 
 for the local service unit; 

    (9) a copy of any contract between the local service unit 
 and an employment and training service provider including 
 expected outcomes and service levels for public assistance 
 clients; 

    (10) a copy of any other agreements between educational 
 institutions, family support services, and child care providers; 
 and 

    (11) a description of how the local service unit ensures 
 compliance with section 256J.06, requiring community involvement 
 in the administration of MFIP-S. 

    (b) In counties with a city of the first class, the county 
 and the city shall develop and submit a joint plan.  The plan 
 may not be submitted until agreed to by both the city and the 
 county.  The plan must provide for the direct allocation of 
 employment and training money to the city and the county unless 
 waived by either.  If the county and the city cannot concur on a 
 plan, the commissioner shall resolve their dispute.  In counties 
 in which a federally recognized Indian tribe is operating an 
 employment and training program under an agreement with the 
 commissioner of human services, the plan must provide that the 
 county will coordinate its employment and training programs, 
 including developing a system for referrals, sanctions, and the 
 provision of supporting services such as access to child care 
 funds and transportation with programs operated by the Indian 
 tribe.  The plan may not be given final approval by the 
 commissioner until the tribal unit and county have submitted 
 written agreement on these provisions in the plan.  If the 
 county and Indian tribe cannot agree on these provisions, the 
 local service unit shall notify the commissioner of economic 
 security and the commissioners of economic security and human 
 services shall resolve the dispute.  

    (c) The commissioner may withhold the distribution of 
 employment and training money from a local service unit that 
 does not submit a plan to the commissioner by the date set by 
 this section, and shall withhold the distribution of employment 
 and training money from a local service unit whose plan has been 
 disapproved by the commissioner until an acceptable amended plan 
 has been submitted.  

    (d) Beginning April 15, 1992, and by April 15 of each 
 second year thereafter, local service units must prepare and 
 submit to the commissioner an interim year plan update that 
 deals with performance in that state fiscal year and changes 
 anticipated for the second year of the biennium.  The update 
 must include information about employment and training programs 
 addressed in the local service unit's two-year plan and shall be 
 completed in accordance with criteria established by the 
 commissioner. 

    HIST: 1Sp1985 c 14 art 9 s 69; 1987 c 403 art 2 s 144; art 3 s 
 58; 1989 c 282 art 5 s 127; 1990 c 568 art 4 s 77; 1994 c 483 s 
 1; 1998 c 407 art 6 s 110 

     268.881 Indian tribe plans. 

    (a) The commissioner, in consultation with the commissioner 
 of human services, shall review and comment on Indian tribe 
 plans submitted to the commissioner for provision of employment 
 and training services.  Beginning April 15, 1991, and by April 
 15 of each second year thereafter, the Indian tribe shall 
 prepare and submit to the commissioner a plan that covers the 
 next two state fiscal years.  Beginning April 15, 1992, and by 
 April 15 of each second year thereafter, the Indian tribe shall 
 prepare and submit to the commissioner an interim year plan 
 update that deals with performance during the past state fiscal 
 year and that covers changes anticipated for the second year of 
 the biennium.  The commissioner shall notify the Indian tribe of 
 approval or disapproval of the plans and updates for existing 
 programs within 60 days of submission. 

    (b) A plan for a new tribal program must be submitted at 
 least 45 days before the program is to commence.  The 
 commissioner shall approve or disapprove the plan for new 
 programs within 30 days of receipt. 

    (c) The tribal plan and update must contain information 
 that has been established by the commissioner and the 
 commissioner of human services for the tribal employment and 
 training service program. 

    (d) The commissioner may recommend to the commissioner of 
 human services withholding the distribution of employment and 
 training money from a tribe whose plan or update is disapproved 
 by the commissioner or a tribe that does not submit a plan or 
 update by the date established in this section. 

    HIST: 1989 c 282 art 5 s 128; 1990 c 568 art 4 s 78 

     268.89 Jobs Training Partnership Act; administration. 

    Subdivision 1.    Coordination of state and federal 
 programs.  The commissioner shall act as the governor's agent 
 in administering the federal Jobs Training Partnership Act.  To 
 the extent permitted under federal regulation, this program must 
 be administered in conjunction with a comprehensive state 
 employment and training strategy and its resources used in 
 coordination with state programs and to further state objectives.

    Subd. 2.    Biennial plan.  The commissioner shall 
 recommend to the governor the priorities, performance standards, 
 and special projects. 

    Subd. 3.    Other plans.  Strong consideration for 
 income maintenance recipients must be included in the goals, 
 objectives, and criteria of the governor's coordination and 
 special services plan under section 121 of the Jobs Training 
 Partnership Act, United States Code, title 29, section 1531.  
 Local service delivery area plans and job service plans must 
 describe methods of complying with the coordination criteria 
 under the governor's coordination and special services plan as 
 required under United States Code, title 29, sections 49g and 
 1514.  

    HIST: 1Sp1985 c 14 art 9 s 70; 1987 c 403 art 2 s 145 

     268.90 Community investment programs. 

    Subdivision 1.    Purpose; requirements.  Community 
 investment programs provide temporary employment to people who 
 are experiencing prolonged unemployment and economic hardship.  
 Community investment programs consist of one or more projects.  
 Community investment programs must be beneficial to the state 
 and the communities in which they are located and must provide 
 program participants with training and work experience that will 
 enhance their employability.  The projects must include 
 activities that: 

    (1) expand or improve services, including education, 
 health, social services, recreation, and safety; 

    (2) improve or maintain natural resources, including 
 rivers, streams and lakes, forest lands and roads, and soil 
 conservation; 

    (3) make permanent improvements to lands and buildings; or 

    (4) weatherize public buildings and private residential 
 dwellings. 

    Community investment programs may not include job 
 placements that replace work that was part or all of the duties 
 or responsibilities of an authorized public employee position 
 established as of January 1, 1985. 

    Community investment programs that include other sources of 
 money or authorized programs may provide employment for the 
 groups eligible for the included programs under the terms and 
 conditions of those programs.  These programs include the 
 Minnesota conservation corps, Minnesota summer youth program, 
 county emergency jobs program, and the jobs training partnership 
 act. 

    Subd. 2.    Employment conditions.  (a) An eligible 
 nonprofit or public employer may not terminate, lay off, or 
 reduce the regular working hours of an employee for the purpose 
 of hiring an individual with money available under this 
 program.  An eligible employer may not hire an individual with 
 money available through this program if any other person is on 
 layoff from the same or a substantially equivalent job. 

    (b) Community investment program participants are employees 
 of the project employer within the meaning of workers' 
 compensation laws, personal income tax, and the Federal 
 Insurance Contribution Act, but not retirement or civil service 
 laws. 

    (c) Each project and job must comply with all applicable 
 affirmative action, fair labor, health, safety, and 
 environmental standards. 

    (d) Individuals employed under the community investment 
 program must be paid a wage at the same wage rates as work site 
 or employees doing comparable work in that locality, unless 
 otherwise specified in law. 

    (e) Recipients of aid to families with dependent children 
 or Minnesota family investment program-statewide who are 
 eligible on the basis of an unemployed parent may not have 
 available more than 100 hours a month.  All employees are 
 limited to 32 hours or four days a week, so that they can 
 continue to seek full-time private sector employment, unless 
 otherwise specified in law. 

    (f) The commissioner shall establish, by rule, the terms 
 and conditions governing the participation of appropriate public 
 assistance recipients.  The rules must, at a minimum, establish 
 the procedures by which the minimum and maximum number of work 
 hours and maximum allowable travel distances are determined, the 
 amounts and methods by which work expenses will be paid, and the 
 manner in which support services will be provided.  The rules 
 must also provide for periodic reviews of clients continuing 
 employment in community investment programs. 

    (g) Participation in a community investment program by a 
 recipient of aid to families with dependent children, Minnesota 
 family investment program-statewide, or general assistance is 
 voluntary.  

    Subd. 3.    Commissioner of economic security.  The 
 commissioner shall: 

    (1) make rules governing plan content, criteria for 
 approval, and administrative standards; 

    (2) refer community investment program administrators to 
 the appropriate state agency for technical assistance in 
 developing and administering community investment programs; 

    (3) establish the method by which community investment 
 programs will be approved or disapproved through the community 
 investment program plan and the annual update component of the 
 county plan; 

    (4) review and comment on community investment program 
 plans; 

    (5) institute ongoing methods to monitor and evaluate 
 community investment programs; and 

    (6) consult with the commissioner of human services on the 
 approval of county plans for community investment programs 
 relating to the participation of public assistance recipients. 

    Subd. 4.    County boards of commissioners.  The county 
 boards of commissioners shall: 

    (1) be encouraged to establish community investment 
 programs that are administered jointly according to section 
 471.59, or through multicounty human service boards under 
 chapter 402; 

    (2) develop community investment programs in consultation 
 with the exclusive representatives of their employees; 

    (3) plan community investment programs by involving 
 nonprofit organizations and other governmental units, community 
 action agencies, community-based organizations, local union 
 representatives, and representatives of client groups; 

    (4) submit to the commissioner a community investment 
 program plan identifying the program funding source and amount, 
 before the initiation of a community investment program, for 
 approval according to standards established by the commissioner; 

    (5) plan community investment projects that, whenever 
 possible, utilize existing programs that are administered under 
 contract by nonprofit organizations and governmental units, 
 including departments and agencies of cities, counties, towns, 
 school districts, state and federal agencies, park reserve 
 districts, and other special districts; 

    (6) include in their local service unit plans an annual 
 update to their community investment program plans for approval 
 according to standards established by the commissioner; 

    (7) submit reports and meet administrative standards 
 established by the commissioner; 

    (8) monitor the performance of entities under contract to 
 administer individual community investment projects; 

    (9) enter into contracts with other governmental and 
 private bodies to jointly fund or jointly administer approvable 
 projects when agreements expand the resources available, the 
 scope of people employed, or further recognized public purposes; 
 and 

    (10) be encouraged to enter into contracts with businesses 
 or individuals for eligible projects under subdivision 1 and 
 charge a fee for the completion of a project. 

    Subd. 5.    State financial participation.  The 
 statutorily established state rates of financial participation 
 or available state appropriations or grants are not affected by 
 their incorporation into a community investment program. 

    HIST: 1Sp1985 c 14 art 9 s 71; 1990 c 568 art 4 s 79-81; 1994 
 c 483 s 1; 1997 c 7 art 5 s 35; 1997 c 85 art 4 s 32 

    268.91 Subdivision 1. Renumbered 256H.01 

    Subd. 2. Renumbered 256H.02 

    Subd. 3. Renumbered 256H.03 

    Subd. 3a. Renumbered 256H.04 

    Subd. 3b. Renumbered 256H.05 

    Subd. 3c. Renumbered 256H.06 

    Subd. 3d. Renumbered 256H.07 

    Subd. 3e. Renumbered 256H.08 

    Subd. 3f. Renumbered 256H.09 

    Subd. 4. Renumbered 256H.10 

    Subd. 5. Renumbered 256H.11 

    Subd. 6. Renumbered 256H.12 

    Subd. 6a. Renumbered 256H.13 

    Subd. 7. Renumbered 256H.14 

    Subd. 8. Renumbered 256H.15 

    Subd. 9. Renumbered 256H.16 

    Subd. 10. Renumbered 256H.17 

    Subd. 11. Renumbered 256H.18 

    Subd. 12. Renumbered 256H.19 

  268.911 Renumbered 256H.20 

  268.912 Renumbered 119A.50 

    268.913 Subdivision 1.  Renumbered 119A.51 subd 1 

    Subd. 2.  Renumbered 119A.51 subd 2 

    Subd. 3.  Renumbered 119A.51 subd 3 

    Subd. 4.  Renumbered 119A.51 subd 4 

    Subd. 5. Repealed, 1997 c 162 art 1 s 19 

    Subd. 6.  Renumbered 119A.51 subd 5 

    268.914 Subdivision 1.  Renumbered 119A.52 

    Subd. 2. Repealed, 1993 c 369 s 146 

  268.915 Renumbered 119A.53 

  268.916 Renumbered 119A.54 

     268.9165 Authority to waive requirements during disaster 
  periods. 

    The commissioner of children, families, and learning may 
 waive requirements under sections 119A.50 to 119A.54, for up to 
 nine months after the disaster, for Head Start grantees in areas 
 where a federal disaster has been declared under United States 
 Code, title 42, section 5121, et seq., or the governor has 
 exercised authority under chapter 12.  The commissioner shall 
 notify the chairs of the senate family and early childhood 
 education budget division, the senate education finance 
 committee, the house family and early childhood education 
 finance division, the house education committee, and the house 
 ways and means committee ten days before the effective date of 
 any waiver granted under this section. 

    HIST: 1Sp1995 c 3 art 16 s 13; 1997 c 203 art 1 s 15; 1Sp1997 
 c 5 s 46; 1998 c 383 s 37 

   268.917 Repealed, 1998 c 273 s 15 

*   NOTE:  This section was also amended by Laws 1998, chapter 
*404, section 49, to read as follows: 

*   "268.917   Early childhood learning and child protection 
*facilities.  

*   The commissioner may make grants to state agencies and 
*political subdivisions to construct or rehabilitate facilities 
*for Head Start, early childhood and family education programs, 
*other early childhood intervention programs, or demonstration 
*family service centers housing multiagency collaboratives, with 
*priority to centers in counties or municipalities with the 
*highest percentage of children living in poverty.  The 
*commissioner may also make grants to state agencies and 
*political subdivisions to construct or rehabilitate facilities 
*for crisis nurseries or child visitation centers.  The 
*facilities must be owned by the state or a political 
*subdivision, but may be leased under section 16A.695 to 
*organizations that operate the programs.  The commissioner shall 
*prescribe the terms and conditions of the leases.  A grant for 
*an individual facility must not exceed $200,000 for each program 
*that is housed in the facility, up to a maximum of $500,000 for 
*a facility that houses three programs or more.  The commissioner 
*shall give priority to grants that involve collaboration among 
*sponsors of programs under this section and may give priority to 
*projects that collaborate with child care providers, including 
*all-day and school-age child care programs, special needs care, 
*sick child care, and nontraditional hour care.  The commissioner 
*may give priority to grants for programs that will increase 
*their child care workers' wages as a result of the grant.  At 
*least 25 percent of the amounts appropriated for these grants up 
*to $50,000 must utilize youthbuild under sections 268.361 to 
*268.366 or other youth employment and training programs for the 
*labor portion of the construction.  Eligible programs must 
*consult with appropriate labor organizations to deliver 
*education and training.  State appropriations must be matched on 
*a 50 percent basis with nonstate funds.  The matching 
*requirement must apply programwide and not to individual grants."

     268.918 Homeless youth facilities. 

    The commissioner may make grants to state agencies and 
 political subdivisions to construct or rehabilitate facilities 
 to provide services to homeless or at-risk youth.  The 
 facilities must be owned by the state or a political 
 subdivision, but may be leased under section 16A.695 to 
 organizations that operate the programs.  The commissioner shall 
 prescribe the terms and conditions of the leases.  The 
 commissioner shall give priority to grants that involve 
 collaboration among sponsors of programs.  At least 25 percent 
 of the amounts appropriated for these grants must be used in 
 conjunction with the youth employment and training programs 
 operated by the commissioner.  Eligible programs must consult 
 with appropriate labor organizations to deliver education and 
 training. 

    HIST: 1996 c 463 s 44 

   268.92 Repealed, 1998 c 273 s 15 

*   NOTE:  Subdivision 4 was also amended by Laws 1998, chapter 
*407, article 2, section 97, to read as follows: 

*   "Subd. 4.    Lead supervisor or certified firm.  (a) 
*Eligible organizations and lead supervisors or certified firms 
*may participate in the swab team program.  An eligible 
*organization receiving a grant under this section must assure 
*that all participating lead supervisors or certified firms are 
*licensed and that all swab team workers are certified by the 
*department of health under section 144.9505.  Eligible 
*organizations and lead supervisors or certified firms may 
*distinguish between interior and exterior services in assigning 
*duties and may participate in the program by: 

*   (1) providing on-the-job training for swab team workers; 

*   (2) providing swab team services to meet the requirements 
*of sections 144.9503, subdivision 4, and 144.9504, subdivision 
*6; 

*   (3) providing a removal and replacement component using 
*skilled craft workers under subdivision 7; 

*   (4) providing lead testing according to subdivision 7a; 

*   (5) providing lead dust cleaning supplies, as described in 
*section 144.9507, subdivision 4, paragraph (c), to residents; or 

*   (6) having a swab team worker instruct residents and 
*property owners on appropriate lead control techniques, 
*including the lead-safe directives developed by the commissioner 
*of health.  

*   (b) Participating lead supervisors or certified firms must: 

*   (1) demonstrate proof of workers' compensation and general 
*liability insurance coverage; 

*   (2) be knowledgeable about lead abatement requirements 
*established by the Department of Housing and Urban Development 
*and the Occupational Safety and Health Administration and lead 
*hazard reduction requirements and lead-safe directives of the 
*commissioner of health; 

*   (3) demonstrate experience with on-the-job training 
*programs; 

*   (4) demonstrate an ability to recruit employees from areas 
*at high risk for toxic lead exposure; and 

*   (5) demonstrate experience in working with low-income 
*clients."

     268.95 Individual enterprise. 

    Subdivision 1.    Coordination.  The commissioner may 
 coordinate state activities related to self-employment 
 enterprises, including home-based businesses, individual 
 self-employment initiatives, and collective and cooperative 
 efforts involving individual entrepreneurs. 

    Subd. 2.    Marketing.  The commissioner may undertake 
 activities to expand the marketing of goods or services produced 
 by the state's independent entrepreneurs.  

    Subd. 3.    Technical assistance.  The commissioner may 
 provide or arrange for the provision of information, technical 
 assistance, and support as necessary to help individuals 
 determine whether they wish to become self-employed, to obtain 
 needed training, to develop business plans and financing, and to 
 sustain the initiatives. 

    Subd. 4.    Pilot program.  The commissioner shall 
 develop a pilot program, in cooperation with the commissioners 
 of trade and economic development and human services, to enable 
 low-income persons to start or expand self-employment 
 opportunities or home-based businesses that are designed to make 
 the individual entrepreneurs economically independent.  The 
 commissioner of human services shall seek necessary waivers from 
 federal regulations to allow recipients of aid to families with 
 dependent children or Minnesota family investment 
 program-statewide to participate and retain eligibility while 
 establishing a business. 

    Subd. 5.    Study.  The commissioner shall study the 
 needs of individual entrepreneurs and beginning businesses and 
 recommend to the governor how state programs and resources can 
 provide further assistance. 

    HIST: 1Sp1985 c 14 art 9 s 73; 1987 c 312 art 1 s 26 subd 2; 
 1997 c 85 art 4 s 34 

     268.96 Displaced homemaker programs. 

    The commissioner of economic security may enter into 
 arrangements with existing private or nonprofit organizations 
 and agencies with experience in dealing with displaced 
 homemakers to provide counseling and training services.  The 
 commissioner shall assist displaced homemakers in applying for 
 appropriate welfare programs and shall take welfare allowances 
 received into account in setting the stipend level.  Income 
 received as a stipend under these programs shall be totally 
 disregarded for purposes of determining eligibility for and the 
 amount of a general assistance grant. 

    HIST: 1973 c 254; 1977 c 428 s 8; 1977 c 430 s 25; 1Sp1985 c 
 14 art 9 s 75; 1994 c 483 s 1 

     268.971 Hospitality host program. 

    Subdivision 1.    Establishment.  A hospitality host 
 older worker tourism program is established in the department of 
 economic security to assist economically disadvantaged older 
 workers to gain employment in the promotion of the tourism 
 industry in Minnesota and to become self-sufficient.  The 
 objectives of the program are to: 

    (1) assist in the diversification of industry in rural 
 areas by stimulating and promoting tourism; 

    (2) create full-time and part-time employment for 
 low-income persons 55 years old or older; 

    (3) raise the income of older persons living in poverty; 
 and 

    (4) promote tourism in selected local areas throughout the 
 state, thereby improving local economies. 

    Subd. 2.    Definitions.  (a)    Scope.  As used in 
 this section, the terms defined in this section have the 
 meanings given them. 

    (b)    Commissioner.  "Commissioner" means the 
 commissioner of the department of economic security. 

    (c)    Older worker.  "Older worker" means an 
 economically disadvantaged person 55 years or older. 

    (d)    Economically disadvantaged.  "Economically 
 disadvantaged" means a person having an income of 125 percent or 
 less of the federal poverty income guidelines.  In determining 
 income, the federal Job Training Partnership Act definition of 
 family and family income will prevail. 

    (e)    Program.  "Program" means the hospitality host 
 older worker program created in subdivision 1. 

    (f)    Coordinating agency.  "Coordinating agency" means 
 the Arrowhead economic opportunity agency. 

    Subd. 3.    Distribution and use of state money.  Money 
 allocated to the coordinating agency by the commissioner must be 
 used for activities consistent with the objectives of the 
 program including, but not limited to:  outreach, selection of 
 eligible participants, program sites, individual work sites, 
 classroom training, on-the-job training opportunities, and 
 program marketing.  Program funds shall be used to provide 
 training-related costs to enrollees during orientation and 
 classroom training segments.  Program funds shall be used to 
 subsidize up to 50 percent of enrollee wages during contracted 
 on-the-job training periods with the employer being responsible 
 for the remainder.  Salaries upon employment shall be at least 
 the state or federal minimum wage, whichever is higher. 

    Subd. 4.    Responsibilities of coordinating agency.  
 The commissioner shall enter into written agreement with the 
 coordinating agency for the design, delivery, and general 
 administration of the program.  The commissioner shall set 
 program goals and objectives and monitor the program. 

    Subd. 5.    Reports.  The coordinating agency shall 
 submit an annual report to the commissioner one year from the 
 effective date of Laws 1989, chapter 282, and annually 
 thereafter.  In addition, the coordinating agency shall submit 
 to the commissioner such other reports as required to document 
 the status and progress of the program.  The annual report must 
 include:  information on the number and types of jobs created; 
 status of program sites; wages paid program participants; types 
 of services provided by programs; the retention of program 
 participants; and other information to assess the progress and 
 status of the program. 

    HIST: 1989 c 282 art 2 s 176; 1994 c 483 s 1 

     268.975 Definitions. 

    Subdivision 1.    Terms.  For the purposes of sections 
 268.975 to 268.98, the following terms have the meanings given 
 them. 

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

    Subd. 3.    Dislocated worker.  "Dislocated worker" 
 means an individual who is a resident of Minnesota at the time 
 employment ceased or was working in the state at the time 
 employment ceased and: 

    (1) has been terminated or who has received a notice of 
 termination from public or private sector employment, is 
 eligible for or has exhausted entitlement to reemployment 
 insurance, and is unlikely to return to the previous industry or 
 occupation; 

    (2) has been terminated or has received a notice of 
 termination of employment as a result of any plant closing or 
 any substantial layoff at a plant, facility, or enterprise; 

    (3) has been long-term unemployed and has limited 
 opportunities for employment or reemployment in the same or a 
 similar occupation in the area in which the individual resides, 
 including older individuals who may have substantial barriers to 
 employment by reason of age; or 

    (4) has been self-employed, including farmers and ranchers, 
 and is unemployed as a result of general economic conditions in 
 the community in which the individual resides or because of 
 natural disasters, subject to rules to be adopted by the 
 commissioner. 

    Subd. 3a.    Additional dislocated worker.  "Additional 
 dislocated worker" means an individual who was a full-time 
 homemaker for a substantial number of years and derived the 
 substantial share of support from: 

    (1) a spouse and no longer receives such support due to the 
 death, divorce, permanent disability of, or permanent separation 
 from the spouse; or 

    (2) public assistance on account of dependents in the home 
 and no longer receives such support. 

    An additional dislocated worker must have resided in 
 Minnesota at the time the support ceased. 

    Subd. 4.    Eligible organization.  "Eligible 
 organization" means a local government unit, nonprofit 
 organization, community action agency, business organization or 
 association, or labor organization. 

    Subd. 5.    Local government unit.  "Local government 
 unit" means a statutory or home rule charter city, county, or 
 town. 

    Subd. 6.    Plant closing.  "Plant closing" means the 
 announced or actual permanent shutdown of a single site of 
 employment, or one or more facilities or operating units within 
 a single site of employment. 

    Subd. 7.    Prefeasibility study grant.  "Prefeasibility 
 study grant" means the grant awarded under section 268.978. 

    Subd. 8.    Substantial layoff.  "Substantial layoff" 
 means a permanent reduction in the work force, which is not a 
 result of a plant closing, and which results in an employment 
 loss at a single site of employment during any 30-day period for 
 at least 50 employees excluding those employees that work less 
 than 20 hours a week. 

    Subd. 9.    Substate grantee.  "Substate grantee" means 
 the agency or organization designated to administer at the local 
 level federal dislocated worker programs pursuant to the federal 
 Job Training Partnership Act, United States Code, title 29, 
 section 1501, et seq. 

    Subd. 10.    Worker adjustment services.  "Worker 
 adjustment services" means the array of employment and training 
 services designed to assist dislocated workers make the 
 transition to new employment, including basic readjustment 
 assistance, training assistance, and support services. 

    Subd. 11.    Basic readjustment assistance.  "Basic 
 readjustment assistance" means employment transition services 
 that include, but are not limited to:  development of individual 
 readjustment plans for participants; outreach and intake; early 
 readjustment; job or career counseling; testing; orientation; 
 assessment, including evaluation of educational attainment and 
 participant interests and aptitudes; determination of 
 occupational skills; provision of occupational information; job 
 placement assistance; labor market information; job clubs; job 
 search; job development; prelayoff assistance; relocation 
 assistance; and programs conducted in cooperation with employers 
 or labor organizations to provide early intervention in the 
 event of plant closings or substantial layoffs. 

    Subd. 12.    Training assistance.  "Training assistance" 
 means services that will enable a dislocated worker to become 
 reemployed by retraining for a new occupation or industry, 
 enhancing current skills, or relocating to employ existing 
 skills.  Training services include, but are not limited to:  
 classroom training; occupational skill training; on-the-job 
 training; out-of-area job search; relocation; basic and remedial 
 education; literacy and English for training non-English 
 speakers; entrepreneurial training; and other appropriate 
 training activities directly related to appropriate employment 
 opportunities in the local labor market. 

    Subd. 13.    Support services.  "Support services" means 
 assistance provided to dislocated workers to enable their 
 participation in an employment transition and training program.  
 Services include, but are not limited to:  family care 
 assistance, including child care; commuting assistance; housing 
 and rental assistance; counseling assistance, including personal 
 and financial; health care; emergency health assistance; 
 emergency financial assistance; work-related tools and clothing; 
 and other appropriate support services that enable a person to 
 participate in an employment and training program. 

    HIST: 1986 c 444; 1989 c 282 art 2 s 177; 1991 c 292 art 3 s 
 35,36; 1993 c 369 s 91-100; 1994 c 483 s 1; 1994 c 488 s 8 

  268.9755 Repealed, 1995 c 131 s 3 

     268.976 Early warning system. 

    Subdivision 1.    Early warning indicators.  The 
 commissioner, in cooperation with the commissioners of revenue 
 and trade and economic development, shall establish and oversee 
 an early warning system to identify industries and businesses 
 likely to experience large losses in employment including a 
 plant closing or a substantial layoff, by collecting and 
 analyzing information which may include, but not be limited to, 
 products and markets experiencing declining growth rates, 
 companies and industries subject to competition from production 
 in low wage counties, changes in ownership, layoff and 
 employment patterns, payments of reemployment insurance 
 contributions, and state tax payments.  The commissioner may 
 request the assistance of businesses, business organizations, 
 and trade associations in identifying businesses, industries, 
 and specific establishments that are likely to experience large 
 losses in employment.  The commissioner may request information 
 and other assistance from other state agencies for the purposes 
 of this subdivision. 

    Subd. 2.    Notice.  (a) The commissioner shall 
 encourage those business establishments considering a decision 
 to effect a plant closing, substantial layoff, or relocation of 
 operations located in this state to give notice of that decision 
 as early as possible to the commissioner, the employees of the 
 affected establishment, any employee organization representing 
 the employees, and the local government unit in which the 
 affected establishment is located.  This notice shall be in 
 addition to any notice required under the Worker Adjustment and 
 Retraining Notification Act, United States Code, title 29, 
 section 2101. 

    (b) Notwithstanding section 268.975, subdivision 6, for 
 purposes of this section, "plant closing" means the announced or 
 actual permanent or temporary shutdown of a single site of 
 employment, or one or more facilities or operating units within 
 a single site of employment, if the shutdown results in an 
 employment loss at the single site of employment during any 
 30-day period for 50 or more employees excluding employees who 
 work less than 20 hours per week.  

    Subd. 3.    Employer responsibility.  An employer 
 providing notice of a plant closing, substantial layoff, or 
 relocation of operations under the Worker Adjustment and 
 Retraining Notification Act, United States Code, title 29, 
 section 2101, or under subdivision 2 must report to the 
 commissioner the names, addresses, and occupations of the 
 employees who will be or have been terminated. 

    HIST: 1989 c 282 art 2 s 178; 1993 c 369 s 102; 1994 c 488 s 8 

  268.977 Repealed, 1993 c 369 s 146 

     268.9771 Rapid and expeditious response. 

    Subdivision 1.    Responsibility.  The commissioner 
 shall respond quickly and effectively to announced or actual 
 plant closings and substantial layoffs.  Affected workers and 
 employers, as well as appropriate business organizations or 
 associations, labor organizations, substate grantees, state and 
 local government units, and community organizations shall be 
 assisted by the commissioner through either rapid response 
 activities or expeditious response activities as described in 
 this section to respond effectively to a plant closing or mass 
 layoff. 

    Subd. 2.    Coverage.  Rapid response is to be provided 
 by the commissioner where permanent plant closings or 
 substantial layoffs affect at least 50 workers over a 30-day 
 period as evidenced by actual separation from employment or by 
 advance notification of a closing or layoff.  Expeditious 
 response is to be provided by worker adjustment services plan 
 grantees in coordination with rapid response activities or where 
 permanent plant closings and substantial layoffs are not 
 otherwise covered by rapid response. 

    Subd. 3.    Coordination.  The commissioner and 
 expeditious response grantees shall coordinate their respective 
 rapid response and expeditious response activities.  The roles 
 and responsibilities of each shall be detailed in written 
 agreements and address on-site contact with employer and 
 employee representatives when notified of a plant closing or 
 substantial layoff.  The activities include formation of a 
 community task force, collecting and disseminating information 
 related to economic dislocation and available services to 
 dislocated workers, providing basic readjustment assistance 
 services to workers affected by a plant closure or substantial 
 layoff, conducting a needs assessment survey of workers, and 
 developing a plan of action responsive to the worker adjustment 
 services needs of affected workers. 

    Subd. 4.    Rapid response activities.  The commissioner 
 shall be responsible for implementing the following rapid 
 response activities: 

    (1) establishing on-site contact with employer and employee 
 representatives within a short period of time after becoming 
 aware of a current or projected plant closing or substantial 
 layoff in order to: 

    (i) provide information on and facilitate access to 
 available public programs and services; and 

    (ii) provide emergency assistance adapted to the particular 
 closure or layoff; 

    (2) promoting the formation of a labor-management committee 
 by providing: 

    (i) immediate assistance in the establishment of the 
 labor-management committee; 

    (ii) technical advice and information on sources of 
 assistance, and liaison with other public and private services 
 and programs; and 

    (iii) assistance in the selection of worker representatives 
 in the event no union is present; 

    (3) collecting and disseminating information related to 
 economic dislocation, including potential closings or layoffs, 
 and all available resources with the state for dislocated 
 workers; 

    (4) providing or obtaining appropriate financial and 
 technical advice and liaison with economic development agencies 
 and other organizations to assist in effort to avert 
 dislocations; 

    (5) disseminating information throughout the state on the 
 availability of services and activities carried out by the 
 dislocated worker unit; 

    (6) assisting the local community in developing its own 
 coordinated response to a plant closing or substantial layoff 
 and access to state economic development assistance; and 

    (7) promoting the use of prefeasibility study grants under 
 section 268.978. 

    Subd. 5.    Expeditious response activities.  Grantees 
 designated to provide worker adjustment services through worker 
 adjustment services plans shall be responsible for implementing 
 the following expeditious response activities: 

    (1) establishing on-site contact with employer and employee 
 representatives, not otherwise covered under rapid response, 
 within a short period of time after becoming aware of a current 
 or projected plant closing or mass layoff in order to provide 
 information on available public programs and services; 

    (2) obtaining appropriate financial and technical advice 
 and liaison with local economic development agencies and other 
 organizations to assist in efforts to avert dislocations; 

    (3) disseminating information on the availability of 
 services and activities carried out by the grantee through its 
 worker adjustment services plan; 

    (4) providing basic readjustment assistance services for up 
 to 90 days following the initial on-site meeting with the 
 employer and employee representatives; 

    (5) assisting the local community in the development of its 
 own coordinated response to the closure or layoff and access to 
 economic development assistance; 

    (6) facilitating the formation of a community task force, 
 if appropriate, to formulate a service plan to assist affected 
 dislocated workers from plant closings and mass layoffs; 

    (7) conducting surveys of workers, if appropriate, affected 
 by plant closings or layoffs to identify worker characteristics 
 and worker adjustment service needs; and 

    (8) facilitating access to available public or private 
 programs and services, including the development of proposals to 
 provide access to additional resources to assist workers 
 affected by plant closings and substantial layoffs. 

    HIST: 1993 c 369 s 103 

     268.978 Prefeasibility studies. 

    Subdivision 1.    Prefeasibility study grants.  (a) The 
 commissioner may make grants for up to $15,000 to eligible 
 organizations to provide an initial assessment of the 
 feasibility of alternatives to plant closings or substantial 
 layoffs.  The alternatives may include employee ownership, other 
 new ownership, new products or production processes, or public 
 financial or technical assistance to keep a plant open.  Two or 
 more eligible organizations may jointly apply for a grant under 
 this section. 

    (b) Interested organizations shall apply to the 
 commissioner for the grants.  As part of the application 
 process, applicants must provide a statement of need for a 
 grant, information relating to the work force at the plant, the 
 area's unemployment rate, the community's and surrounding area's 
 labor market characteristics, information of efforts to 
 coordinate the community's response to the plant closing or 
 substantial layoff, a timetable of the prefeasibility study, a 
 description of the organization applying for the grant, a 
 description of the qualifications of persons conducting the 
 study, and other information required by the commissioner. 

    (c) The commissioner shall respond to the applicant within 
 five working days of receiving the organization's application.  
 The commissioner shall inform each organization that applied for 
 but did not receive a grant the reasons for the grant not being 
 awarded.  The commissioner may request further information from 
 those organizations that did not receive a grant, and the 
 organization may reapply for the grant. 

    Subd. 2.    Prefeasibility study.  (a) The 
 prefeasibility study must explore the current and potential 
 viability, profitability, and productivity of the plant that may 
 close or experience a substantial layoff and alternative uses 
 for the plant.  The study is not intended to be a major 
 examination of each possible alternative but rather is meant to 
 quickly determine if further action or examination is feasible 
 and should be fully explored. 

    (b) The prefeasibility study must contain: 

    (1) a description of the plant's present products, 
 production techniques, management structure, and history; 

    (2) a brief discussion of the feasibility of the various 
 alternatives for ownership, production technique, and products; 

    (3) an estimate of the financing required to keep the plant 
 open and the potential sources of that financing; 

    (4) a description of the employer's, employees', and 
 community's efforts to maintain the operation of the plant; and 

    (5) other information the commissioner may require. 

    Subd. 3. Repealed, 1993 c 369 s 146 

    HIST: 1989 c 282 art 2 s 180; 1993 c 369 s 104 

     268.9781 Worker adjustment services plans. 

    Subdivision 1.    Worker adjustment services plans.  The 
 commissioner shall establish and fund worker adjustment services 
 plans that are designed to assist dislocated workers in their 
 transition to new employment.  Authorized grantees shall submit 
 a worker adjustment services plan biennially, with an annual 
 update, in a form and manner prescribed by the commissioner.  
 The worker adjustment services plan shall include information 
 required in substate plans established under the federal Job 
 Training Partnership Act, United States Code, title 29, section 
 1501, et seq. and a detailed description of expeditious response 
 activities to be implemented under the plan.  

    Subd. 2.    Grantees.  Entities authorized to submit a 
 worker adjustment services plan include substate grantees and up 
 to six additional eligible organizations.  Criteria for 
 selecting the six authorized nonsubstate grantee eligible 
 organizations shall be established by the commissioner, in 
 consultation with the workforce development council.  The 
 criteria include, but are not limited to: 

    (1) the capacity to deliver worker adjustment services; 

    (2) an identifiable constituency from which eligible 
 dislocated workers may be drawn; 

    (3) a demonstration of a good faith effort to establish 
 coordination agreements with substate grantees in whose 
 geographic area the organization would be operating; 

    (4) the capability to coordinate delivery of worker 
 adjustment services with other appropriate programs and 
 agencies, including educational institutions, employment 
 service, human service agencies, and economic development 
 agencies; and 

    (5) sufficient administrative controls to ensure fiscal 
 accountability. 

    Subd. 3.    Coverage.  (a) Persons eligible to receive 
 worker adjustment services under this section include dislocated 
 workers as defined in section 268.975, subdivision 3. 

    (b) Worker adjustment services available under this section 
 shall also be available to additional dislocated workers as 
 defined in section 268.975, subdivision 3a, when they can be 
 provided without adversely affecting delivery of services to all 
 dislocated workers. 

    Subd. 4.    Substate grantee funding.  (a) Funds 
 allocated to substate grantees under section 268.022 for 
 expeditious response activities and worker adjustment services 
 under this section shall be allocated as follows: 

    (1) one-half of available funds shall be allocated to 
 substate grantees based on an allocation formula prescribed by 
 the commissioner, in consultation with the workforce development 
 council; and 

    (2) one-half of available funds shall be allocated based on 
 need as demonstrated to the commissioner in consultation with 
 the workforce development council. 

    (b) The formula for allocating substate grantee funds must 
 utilize the most appropriate information available to the 
 commissioner to distribute funds in order to address the state's 
 worker adjustment assistance needs.  Information for the formula 
 allocation may include, but is not limited to:  

    (1) insured unemployment data; 

    (2) dislocated worker special assessment receipts data; 

    (3) small plant closing data; 

    (4) declining industries data; 

    (5) farmer-rancher economic hardship data; and 

    (6) long-term unemployment data. 

    (c) The commissioner shall establish a uniform procedure 
 for reallocating substate grantee funds.  The criteria for 
 reallocating funds from substate grantees not expending their 
 allocations consistent with their worker adjustment services 
 plans to other substate grantees shall be developed by the 
 commissioner in consultation with the workforce development 
 council. 

    HIST: 1993 c 369 s 105; 1995 c 131 s 2; 1Sp1995 c 3 art 4 s 30 

     268.9782 Dislocation event services grants. 

    Subdivision 1.    Dislocation event services grants.  
 The commissioner shall establish and fund dislocation event 
 services grants designed to provide worker adjustment services 
 to workers displaced as a result of larger plant closings and 
 substantial layoffs.  Grantees shall apply for a dislocation 
 event services grant by submitting a proposal to the 
 commissioner in a form and manner prescribed by the 
 commissioner.  The application must describe the demonstrated 
 need for intervention, including the need for retraining, the 
 workers to be served, the coordination of available local 
 resources, the services to be provided, and the budget plan. 

    Subd. 2.    Grantees.  (a) Entities authorized to submit 
 dislocation event services grants include substate grantees and 
 other eligible organizations.  Nonsubstate grantees shall 
 demonstrate they meet criteria established by the commissioner, 
 in consultation with the workforce development council.  The 
 criteria include, but are not limited to: 

    (1) the capacity to deliver worker adjustment services; 

    (2) an ability to coordinate its activities with substate 
 grantees in whose geographic area the organization will be 
 operating; 

    (3) the capability to coordinate delivery of worker 
 adjustment services with other appropriate programs and 
 agencies, including educational institutions, employment 
 service, human service agencies, and economic development 
 agencies; and 

    (4) sufficient administrative controls to ensure fiscal 
 accountability. 

    (b) For purposes of this section, the state job service may 
 apply directly to the commissioner for a dislocation event 
 services grant only if the effect of a plant closing or 
 substantial layoff is statewide or results in the termination 
 from employment of employees of the state of Minnesota. 

    Subd. 3.    Coverage.  Persons who may receive worker 
 adjustment services under this section are limited to dislocated 
 workers affected by plant closings and substantial layoffs 
 involving at least 50 workers from a single employer. 

    Subd. 4.    Funding.  The commissioner, in consultation 
 with the workforce development council, may establish an 
 emergency funding process for dislocation event services 
 grants.  No more than 20 percent of the estimated budget of the 
 proposed grant may be awarded through this procedure.  The 
 grantee shall submit a formal dislocation event services grant 
 application within 90 days of the initial award of emergency 
 funding. 

    HIST: 1993 c 369 s 106; 1995 c 131 s 2; 1Sp1995 c 3 art 4 s 30 

     268.9783 Retraining and targeted training grants. 

    Subdivision 1.    Established.  The commissioner may 
 make grants to substate grantees or other eligible organizations 
 designed to provide for the employment of dislocated workers or 
 targeted training assistance to workers at risk of dislocation.  
 The focus of the grants must be on the provision of skill-based 
 training required by the worker's employer or prospective 
 employer.  The grants must be developed to meet the worker 
 training needs of employers individually or together.  Two or 
 more organizations may jointly apply for a grant. 

    Subd. 2.    Retraining grants.  An organization 
 interested in applying for a grant to retrain workers who are at 
 risk of becoming dislocated workers must apply to the 
 commissioner.  As part of the application process, an applicant 
 must provide: 

    (1) a statement of need that identifies the causes 
 contributing to the workers being at risk of dislocation, the 
 prospects for reemployment of the workers in the employer's 
 industry or the worker's occupation, and the employer's past 
 record of permanently laying off workers; 

    (2) a description of the current skill level of the workers 
 targeted for training and the skills needed by the workers to 
 significantly reduce their vulnerability to becoming displaced 
 from employment; 

    (3) a description of the actions and investments made and 
 planned by the employer to avert or minimize worker dislocation, 
 including the adoption of high performance workplace and worker 
 participation systems and practices; 

    (4) a training plan that details who will receive training, 
 the type and scope of training assistance to be provided to 
 workers, the providers of the training, and any impact on worker 
 wages; 

    (5) evidence that the proposal has the support and 
 involvement of labor; and 

    (6) any other relevant information the commissioner 
 requires in the grant application. 

    Subd. 3.    Targeted training grants.  An organization 
 interested in applying for a grant to target training for 
 dislocated workers being hired by an employer must apply to the 
 commissioner.  As part of the application process, applicants 
 must provide: 

    (1) a statement of need; 

    (2) a description of local labor market characteristics, 
 including the area's unemployment rate, types of workers 
 available to be employed in terms of occupation, and the local 
 availability of workers in the industry of the employer or 
 employers; 

    (3) a description of the actions and investments made and 
 planned by the employer or employers to create and retain jobs, 
 including past employment history, wages paid for the same or 
 similar work, and whether high performance workplace and worker 
 participation systems and practices have been adopted; 

    (4) a description of the type of work to be performed, the 
 work-related skills needed, projected wages, and the target 
 group of workers requiring the training assistance; 

    (5) a training plan that details who will receive training, 
 the type and scope of training assistance to be provided 
 workers, and the providers of the training; 

    (6) evidence that the proposal has the support and 
 involvement of labor; and 

    (7) any other relevant information the commissioner 
 requires in the grant application. 

    Subd. 4.    Criteria.  The criteria used to award 
 targeted training grants must include the severity of need, the 
 target group of workers, training assistance, worker wages, 
 utilization of resources, cost-effectiveness, grantee management 
 capability, and other considerations adopted by the commissioner.

    Subd. 5.    Coverage.  Persons eligible to receive 
 retraining assistance under this section include workers at risk 
 of dislocation from employment and dislocated workers as defined 
 in section 268.975, subdivision 3.  Workers are considered to be 
 at risk of dislocation as evidenced by a pattern of worker 
 layoffs from an employer, a pattern of substantial layoffs or 
 plant closures in the same or related industry, or where worker 
 skills needed by the employer have become obsolete due to 
 advances in technology. 

    Subd. 6.    Funding.  The commissioner may award 
 retraining and targeted training grants, if approved by the 
 workforce development council, through a request for proposal 
 process if:  

    (1) employers benefiting from a retraining and targeted 
 training grant provide a match of at least one for one that may 
 be in the form of funding, equipment, staff, instructors, and 
 work release time for workers enrolled in training; 

    (2) employers benefiting from a retraining and targeted 
 training grant to retrain workers at risk of dislocation 
 maintain their past rate of expenditure from other sources for 
 that training during the grant period; and 

    (3) employers benefiting from a retraining and targeted 
 training grant to train new workers do not have workers in 
 layoff status, unless it can be documented the layoff is 
 temporary or seasonal. 

    Subd. 7.    Limitation.  No more than five percent of 
 the amount available under section 268.022, subdivision 2, 
 paragraph (e), may be used for the grants authorized under this 
 section.  The funds must be used from the allocation under 
 section 268.022, subdivision 2, paragraph (e), clause (2). 

    Subd. 8. Repealed, 1996 c 452 s 40; 1996 c 460 art 2 s 3 

    HIST: 1994 c 632 art 4 s 68; 1995 c 131 s 2; 1Sp1995 c 3 art 4 
 s 30 

     268.979 Dislocated worker coordination. 

    The commissioner shall coordinate the actions taken by 
 state agencies and public post-secondary educational 
 institutions to respond to or address the specific needs of 
 dislocated workers and to provide services to dislocated workers 
 including education and retraining.  The commissioner shall also 
 assist local government units, community groups, business 
 associations or organizations, labor organizations, and others 
 in coordinating their efforts in providing services to 
 dislocated workers. 

    HIST: 1989 c 282 art 2 s 181 

     268.98 Performance standards, reporting, cost 
  limitations. 

    Subdivision 1.    Performance standards.  The 
 commissioner shall establish performance standards for the 
 programs and activities administered or funded under sections 
 268.975 to 268.98.  The commissioner may use, when appropriate, 
 existing federal performance standards or, if the commissioner 
 determines that the federal standards are inadequate or not 
 suitable, may formulate new performance standards to ensure that 
 the programs and activities of the dislocated worker program are 
 effectively administered. 

    The commissioner shall, at a minimum, establish performance 
 standards which appropriately gauge the program's effectiveness 
 at achieving the following objectives: 

    (1) placement of dislocated workers in employment; 

    (2) replacing lost income resulting from worker dislocation 
 from employment; 

    (3) early intervention with workers shortly after becoming 
 displaced from employment; and 

    (4) retraining of workers from one occupation or industry 
 to another. 

    The standards shall be applied to plans or grants 
 authorized under sections 268.9781, 268.9782, and 268.9783 and 
 for other activities the commissioner considers appropriate. 

    Subd. 2.    Reports.  (a) Grantees receiving funds under 
 sections 268.9771, 268.978, 268.9781, and 268.9782 shall report 
 to the commissioner information on program participants, 
 activities funded, and utilization of funds in a form and manner 
 prescribed by the commissioner. 

    (b) The commissioner shall report quarterly to the 
 workforce development council information on prefeasibility 
 study grants awarded, rapid response and expeditious response 
 activities, worker adjustment services plans, and dislocation 
 event services grants.  Specific information to be reported 
 shall be by agreement between the commissioner and the workforce 
 development council. 

    Subd. 3.    Cost limitations.  (a) For purposes of 
 sections 268.9781 and 268.9782, funds allocated to a grantee are 
 subject to the following limitations: 

    (1) a maximum of 15 percent for administration in a worker 
 adjustment services plan and ten percent in a dislocation event 
 services grant; 

    (2) a minimum of 50 percent for provision of training 
 assistance; 

    (3) a minimum of ten percent and maximum of 30 percent for 
 provision of support services; and 

    (4) the balance used for provision of basic readjustment 
 assistance. 

    (b) A waiver of the cost limitation on providing training 
 assistance may be requested.  The waiver may not permit less 
 than 30 percent of the funds be spent on training assistance. 

    (c) The commissioner shall prescribe the form and manner 
 for submission of an application for a waiver under paragraph 
 (b).  Criteria for granting a waiver shall be established by the 
 commissioner in consultation with the workforce development 
 council. 

    HIST: 1989 c 282 art 2 s 182; 1991 c 292 art 3 s 38; 1993 c 
 369 s 107; 1994 c 632 art 4 s 69; 1995 c 131 s 2; 1Sp1995 c 3 
 art 4 s 30; 1996 c 339 s 8