52-01-01. Definitions.

In the North Dakota unemployment compensation law, unless the context or subject matter otherwise requires:

1. “Annual payroll” means the total amount of taxable wages for employment paid by an employer during a twelve-month period ending on September thirtieth of any calendar year.
2. “Average annual payroll” means:
   1. The annual payroll for the twelve-month period immediately preceding the computation date for an employer who has been liable for twelve but less than twenty-four months.
   2. The average of the annual payrolls for the last two 12-month periods immediately preceding the computation date for an employer who has been liable for twenty-four but less than thirty-six months.
   3. The average of the annual payrolls for the last three 12-month periods immediately preceding the computation date for an employer who has been liable for thirty-six months or more.
3. “Base period” means the first four of the last five completed calendar quarters immediately preceding the first day of an individual’s benefit year. In a combined-wage claim, the base period must be that of the paying state.
4. “Base-period employers” means the employers by whom an individual was paid the individual’s base-period wages.
5. “Base-period wages” means the wages paid to an individual during the individual’s base period for insured work.
6. “Benefit year” means the fifty-two-week period beginning the first week in which an insured worker first files a request for determination of the worker’s insured status and thereafter the fifty-two-week period beginning the first week in which the individual next files such request after the end of the individual’s last preceding benefit year. The filing of a notice of unemployment must be deemed a request for determination of insured status if a current benefit year has not previously been established. In a combined-wage claim, the benefit year must be that of the paying state. However, if the establishment of a benefit year for a fifty-two-week period under this subsection would result in overlapping any quarter of that base period with the base period of a subsequent valid claim, the benefit year must be fifty-three weeks. A subsequent benefit year cannot be established until the expiration of the current benefit year.
7. “Benefits” means the money payments payable to an individual with respect to the individual’s unemployment as provided in chapter 52-06 and in the event of a disqualification for benefits as provided for in subsection 1, 2, or 3 of section 52-06-02, the payment of benefits must be postponed for the period of time prescribed therein.
8. “Bureau” means job service North Dakota bureau.
9. “Calendar quarter” means the period of three consecutive calendar months ending on March thirty-first, June thirtieth, September thirtieth, or December thirty-first.
10. “Computation date” means September thirtieth of each calendar year with respect to rates of contribution applicable to the calendar year beginning with the following January first.
11. “Contributions” and “payments in lieu of contributions” each mean money payments required to be paid into the unemployment compensation fund, the first being in respect to wages paid for insured work in employment for employers who are on a tax-rated basis and the second being in respect to the reimbursement of benefits paid to employees of employers who are on a reimbursable basis, and, except when the result would be inconsistent with the provisions of unemployment compensation law pertinent to an employer on a reimbursable basis, the provisions of such law applicable to an employer on a tax-rated basis are equally applicable to an employer on a reimbursable basis, and conversely, except when the result would be inconsistent with the provisions of unemployment compensation law pertinent to an employer on a tax-rated basis, the provisions of such law applicable to an employer on a reimbursable basis are equally applicable to an employer on a tax-rated basis.
12. “Domestic service” means all service for a person in the operation and maintenance of a private household, 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.
13. “Educational institution” means an educational institution (including an institution of higher education as defined in section 3304(f) of the Federal Unemployment Tax Act [68A Stat. 439; 26 U.S.C. 3301 et seq.]) in which participants, trainees, or students are offered an organized course of study or training which may be academic, technical, trade, or preparation for gainful employment in a recognized occupation, designed to transfer to them knowledge, skills, information, doctrines, attitudes, or abilities from, by, or under the guidance of instructors or teachers, and is approved, licensed, or issued a permit to operate as a school by the state department of education or other government agency that is authorized within the state to approve, license, or issue a permit for the operation of a school.
14. “Employee” means every individual, whether citizen, alien, or minor, who performs services for an employer in an employment subject to the North Dakota unemployment compensation law and includes an officer of a corporation and a manager of a limited liability company that is treated as a corporation for purposes of federal income taxation or a manager of a limited liability company who is not a member.
15. “Employer” means:
    1. Any employing unit which for some portion of a day, but not necessarily simultaneously, in each of twenty different calendar weeks, whether or not such weeks are or were consecutive, within either the current or the preceding calendar year has or had in employment four or more individuals, irrespective of whether the same individuals are or were employed in each such day. After December 31, 1971, any employing unit which in any calendar quarter in either the current or preceding calendar year paid for services in employment wages of one thousand five hundred dollars or more, or which for some portion of a day in each of twenty different calendar weeks, whether or not such weeks were consecutive, in either the current or the preceding calendar year, had in employment at least one individual, irrespective of whether the same individual was in employment in each such day. For the purpose of this definition, if any week includes both December thirty-first and January first, the days that precede January first must be deemed one calendar week and the days beginning January first another such week.
    2. Any individual who or employing unit which acquired the organization, trade, or business, or substantially all of the assets thereof, of another who or which at the time of such acquisition was an employer subject to the provisions of the North Dakota unemployment compensation law, or who or which acquired a part of the organization, trade, or business of another which at the time of such acquisition was an employer subject to the provisions of the North Dakota unemployment compensation law if such other would have been an employer under subdivision a if such part had constituted its entire organization, trade, or business.
    3. Any individual who or employing unit which acquired the organization, trade, or business, or substantially all the assets thereof, of another employing unit if the employment record of such individual or employing unit subsequent to such acquisition, together with the employment record of the acquired unit prior to such acquisition, both within the same calendar year, would be sufficient to constitute an employing unit an employer subject to the North Dakota unemployment compensation law, under subdivision a. After December 31, 1971, any individual who or employing unit which acquired the organization, trade, or business, or substantially all the assets of another employing unit if such individual or employing unit subsequent to such acquisition, and such acquired unit prior to such acquisition, both within the same calendar quarter, together paid for services in employment wages totaling one thousand five hundred dollars or more.
    4. Repealed by S.L. 1963, ch. 331, § 1.
    5. Any employing unit not an employer by reason of any of the provisions of this subsection for which services in employment are performed with respect to which such employing unit is liable for any federal tax against which credit may be taken for contributions paid into a state unemployment compensation fund or an employing unit which, as a condition for approval of the North Dakota unemployment compensation law for full tax credit against the tax imposed by the Federal Unemployment Tax Act [68A Stat. 439; 26 U.S.C. 3301 et seq.], is required, pursuant to such Act, to be an “employer” under the North Dakota unemployment compensation law.
    6. Any employing unit which, having become an employer under any one of subdivision a, b, c, e, h, i, j, or k has not under chapter 52-05 ceased to be an employer subject to the North Dakota unemployment compensation law.
    7. For the effective period of its election pursuant to sections 52-05-02 and 52-05-03, any other employing unit which has elected to become fully subject to the North Dakota unemployment compensation law.
    8. Any employing unit for which service in employment, as defined in subdivision f of subsection 17, is performed after December 31, 1971.
    9. Any employing unit for which service in employment, as defined in subdivision g of subsection 17, is performed after December 31, 1971.
    10. Any employing unit for which agricultural labor as defined in subdivision m of subsection 17 is performed after December 31, 1977. In determining whether or not an employing unit for which service other than agricultural labor is also performed is an employer under subdivision a, h, i, or k, the wages earned or the employment of an employee performing service in agricultural labor after December 31, 1977, may not be taken into account. However, if an employing unit is determined an employer of agricultural labor, such employing unit must be determined an employer for the purposes of subdivision a.
    11. Any employing unit for which domestic service in employment as defined in subdivision n of subsection 17 is performed after December 31, 1977. In determining whether or not an employing unit for which service other than domestic service is also performed is an employer under subdivision a, h, i, or j, the wages earned or the employment of an employee performing domestic service after December 31, 1977, may not be taken into account.
    12. The term “employer” includes an Indian tribe for which service in employment as defined under the North Dakota unemployment compensation law is performed.
16. “Employing unit” means any individual or type of organization including any partnership, association, trust, estate, joint-stock company, insurance company, corporation, or limited liability company, whether 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, which has or subsequent to January 1, 1936, had one or more individuals performing services for it within this state and:
    1. All individuals performing services within this state for any employing unit which maintains two or more separate establishments within this state must be deemed to be performing services for a single employing unit for all the purposes of the North Dakota unemployment compensation law;
    2. Whenever any employing unit contracts with or has under it any contractor or subcontractor for any work which is part of its usual trade, occupation, profession, or business, unless the employing unit as well as each such contractor or subcontractor is an employer by reason of subsection 15, the employing unit, for all purposes of the North Dakota unemployment compensation law, must be deemed to employ each individual in the service of each such contractor for each day during which such individual is engaged solely in performing such work, except that each such contractor or subcontractor who is an employer by reason of subsection 15 is liable alone for the employer’s contributions measured by wages to individuals in the person’s service; and
    3. Each individual employed to perform or to assist in performing the work of any person in the service of an employing unit must be deemed to be engaged by such employing unit for all the purposes of the North Dakota unemployment compensation law whether such individual was hired or paid directly by such employing unit or by such person, if the employing unit had actual or constructive knowledge of the employment.
17. “Employment” means:
    1. Any service performed prior to January 1, 1972, which was employment as defined in this subsection prior to such date, and subject to the other provisions of this subsection, service performed after December 31, 1971, including service in interstate commerce, by:
       1. Any officer of a corporation. If a corporate officer is employed by a corporation in which one-fourth or more of the ownership interest, however designated, is owned or controlled by the officer or by the officer’s parent, child, or spouse, or by any combination of them, the corporation with the concurrence of the officer may exclude that officer’s service from employment as of the first day of January of any calendar year if, during January of that year, the corporation files a written application to exclude the officer’s service from employment or as of the formation of the corporation if, within sixty days of the formation, the corporation files a written application to exclude the officer’s service from employment.
       2. Certain managers of limited liability companies. If a limited liability company manager is employed by a limited liability company in which one-fourth or more of the ownership interest, however designated, is owned or controlled by the manager or by the manager’s parent, child, spouse, or by any combination of them, the limited liability company with the concurrence of the manager may exclude that manager’s service from employment as of the first day of January of any calendar year if, during January of that year, the limited liability company files a written application to exclude the manager’s service from employment or as of formation of the limited liability company if, within sixty days of the formation, the limited liability company files a written application to exclude the manager’s service from employment. This exclusion from employment does not apply to any limited liability company that is wholly owned by or operates as an Indian tribe, state or local government, or nonprofit organization with respect to services performed for those entities which are required by federal law to be covered under the North Dakota unemployment compensation law.
       3. Any individual who, under the provisions of subdivision e, has the status of an employee.
       4. Any individual other than an individual who is an employee under paragraph 1, 2, or 3 who performs services for remuneration for any person:
          1. As an agent-driver or commission-driver engaged in distributing meat products, vegetable products, fruit products, bakery products, beverages other than milk, or laundry or drycleaning services, for the person’s principal.
          2. As a traveling or city salesman, 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, the person’s 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.
    2. An individual’s entire service, performed within or both within and without this state if the service is localized in this state.
    3. Services covered by an election pursuant to chapter 52-05.
    4. Services covered by an arrangement pursuant to sections 52-02-14 and 52-02-15 between the bureau and the agency charged with the administration of any other state or federal unemployment compensation law, pursuant to which all services performed by an individual for an employing unit are deemed to be performed entirely within this state, must be deemed to be employment if the bureau has approved an election of the employing unit for whom such services are performed, pursuant to which the entire service of such individual during the period covered by such election is deemed to be insured work.
    5. Services performed by an individual for wages or under any contract of hire must be deemed to be employment subject to the North Dakota unemployment compensation law unless it is shown that the individual is an independent contractor as determined by the “common law” test.
    6. Service performed after December 31, 1971, by an individual in the employ of this state or any of its instrumentalities, or in the employ of this state and one or more other states or their instrumentalities, for a hospital or institution of higher education located in this state; provided, that such service is excluded from “employment” as defined in the Federal Unemployment Tax Act [68A Stat. 439; 26 U.S.C. 3301 et seq.] solely by reason of section 3306(c)(7) of that Act and is not excluded from “employment” under subdivision h. Service performed after December 31, 1977, in the employ of this state or any of its instrumentalities or any political subdivision thereof or any of its instrumentalities or any instrumentality of any of the foregoing and one or more other states or political subdivisions; provided, that such service is excluded from “employment” as defined in the Federal Unemployment Tax Act [68A Stat. 439; 26 U.S.C. 3301 et seq.] by section 3306(c)(7) of that Act and is not excluded from “employment” as enumerated under subdivision h.
    7. Service performed after December 31, 1971, by an individual in the employ of a religious, charitable, educational, or other organization but only if the following conditions are met:
       1. The service is excluded from “employment” as defined in the Federal Unemployment Tax Act [68A Stat. 439; 26 U.S.C. 3301 et seq.] solely by reason of section 3306(c)(8) of that Act; and
       2. The organization had four or more individuals in employment for some portion of a day in each of twenty different weeks, whether or not such weeks were consecutive, within either the current or preceding calendar year, regardless of whether they were employed at the same moment of time.
    8. For the purposes of subdivisions f and g, the term “employment” does not apply to service performed:
       1. In the employ of:
          1. A church or convention or association of churches; or
          2. An organization which is operated primarily for religious purposes and which is operated, supervised, controlled, or principally supported by a church or convention or association of churches.
       2. By a duly ordained, commissioned, or licensed minister of a church in the exercise of the person’s ministry or by a member of a religious order in the exercise of duties required by such order.
       3. Prior to January 1, 1978, in the employ of a school which is not an institution of higher education and after December 31, 1977, in the employ of a governmental entity referred to in subdivision f if such service is performed by an individual in the exercise of duties:
          1. As an elected official.
          2. As a member of a legislative body, or a member of the judiciary, of a state or political subdivision.
          3. As a member of the state national guard or air national guard.
          4. As an employee serving on a temporary basis in case of fire, storm, snow, earthquake, flood, or similar emergency.
          5. In a position which, under or pursuant to the laws of this state, is designated as a major nontenured policymaking or advisory position, the performance of the duties of which ordinarily does not require more than eight hours per week.
       4. 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 providing remunerative work for individuals who because of their impaired physical or mental capacity cannot be readily absorbed in the competitive labor market, by an individual receiving such rehabilitation or remunerative work.
       5. As part of an unemployment work-relief or work-training program assisted or financed in whole or in part by any federal agency or an agency of a state or political subdivision thereof, by an individual receiving such work relief or work training.
       6. Prior to January 1, 1978, for a hospital in a state prison or other state correctional institution by an inmate of the prison or correctional institution and after December 31, 1977, by an inmate of a custodial or penal institution.
       7. As an election official or election worker if the amount of remuneration received by the individual during the calendar year for services as an election official or election worker is less than one thousand dollars.
    9. The term “employment” includes the service of an individual who is a citizen of the United States, performed outside the United States (except in Canada), after December 31, 1971, and after December 31, 1976, in the case of the Virgin Islands, in the employ of an American employer (other than service which is deemed “employment” under the provisions of subdivision b and subsection 28 or the parallel provisions of another state’s law), if:
       1. The employer’s principal place of business in the United States is located in this state; or
       2. The employer has no place of business in the United States, but:
          1. The employer is an individual who is a resident of this state;
          2. The employer is a corporation or limited liability company which is organized under the laws of this state; or
          3. The employer is a partnership or a trust and the number of the partners or trustees who are residents of this state is greater than the number who are residents of any one other state; or
       3. None of the criteria of paragraphs 1 and 2 is met but the employer has elected coverage in this state or, the employer having failed to elect coverage in any state, the individual has filed a claim for benefits, based on such service, under the law of this state.
       4. An “American employer”, for purposes of this subdivision, means a person who is:
          1. An individual who is a resident of the United States;
          2. A partnership if two-thirds or more of the partners are residents of the United States;
          3. A trust, if all of the trustees are residents of the United States;
          4. A corporation organized under the laws of the United States or of any state; or
          5. A limited liability company organized under the laws of the United States or of any state.
       5. The term “United States” for purposes of this subdivision includes the states, the District of Columbia, the Commonwealth of Puerto Rico, and the Virgin Islands.
    10. Notwithstanding subdivision b, all service performed after December 31, 1971, by an officer or member of the crew of an American vessel on or in connection with such vessel, if the operating office, from which the operations of such vessel operating on navigable waters within, or within and without, the United States are ordinarily and regularly supervised, managed, directed, and controlled is within this state.
    11. Notwithstanding any other provision of this subsection, service with respect to which a tax is required to be paid under any federal law imposing a tax against which credit may be taken for contributions required to be paid into a state unemployment fund or which as a condition for full tax credit against the tax imposed by the Federal Unemployment Tax Act [68A Stat. 439; 26 U.S.C. 3301 et seq.] is required to be covered under the North Dakota unemployment compensation law.
    12. An individual’s service, wherever performed within the United States, the Virgin Islands, or Canada, if:
        1. Such service is not covered under the unemployment compensation law of any other state, the Virgin Islands, or Canada; and
        2. The place from which the service is directed or controlled is in this state.
    13. Service performed by an individual in agricultural labor as defined in subdivision a of subsection 18 when:
        1. Such service is performed for a person who:
           1. During any calendar quarter in either the current or the preceding calendar year paid remuneration in cash of twenty thousand dollars or more to individuals employed in agricultural labor (not taking into account service in agricultural labor performed by an alien referred to in paragraph 2); or
           2. For some portion of a day in each of twenty different calendar weeks, whether such weeks were consecutive, in either the current or the preceding calendar year, employed in agricultural labor (not taking into account service in agricultural labor by an alien referred to in paragraph 2) ten or more individuals, regardless of whether they were employed at the same moment of time.
        2. Such service is not performed in agricultural labor if performed by an individual who is an alien admitted to the United States to perform service in agricultural labor pursuant to sections 214(c) and 101(a)(15)(H)(ii)(A) of the Immigration and Nationality Act [8 U.S.C. 1101(a)(15)(H)(ii)(A)].
        3. For the purposes of this subdivision, any individual who is a member of a crew furnished by a crew leader to perform service in agricultural labor for any other person shall be treated as an employee of such crew leader:
           1. If such crew leader holds a valid certificate of registration under the Farm Labor Contractor Registration Act of 1963 [Pub. L. 88-582; 78 Stat. 920; 7 U.S.C. 2041 et seq.]; or substantially all the members of such crew operate or maintain tractors, mechanized harvesting or crop-dusting equipment, or any other mechanized equipment, which is provided by such crew leader; and
           2. If such individual is not an employee of such other person within the meaning of subdivision a.
        4. For the purposes of this subdivision, in the case of any individual who is furnished by a crew leader to perform service in agricultural labor for any other person and who is not treated as an employee of such crew leader under paragraph 3:
           1. Such other person and not the crew leader must be treated as the employer of such individual; and
           2. Such other person must be treated as having paid cash remuneration to such individual in an amount equal to the amount of cash remuneration paid to such individual by the crew leader (either on the crew leader’s own behalf or on behalf of such other person) for the service in agricultural labor performed for such other person.
        5. For the purposes of this subdivision, the term “crew leader” means an individual who:
           1. Furnishes individuals to perform service in agricultural labor for any other person;
           2. Pays (either on the crew leader’s own behalf or on behalf of such other person) the individuals so furnished by the crew leader for the service in agricultural labor performed by them; and
           3. Has not entered into a written agreement with such other person under which such individual is designated as an employee of such other person.
    14. The term “employment” includes domestic service after December 31, 1977, in a private home, local college club, or local chapter of a college fraternity or sorority, performed for a person who paid cash remuneration of one thousand dollars or more to individuals employed in such domestic service in any calendar quarter in the current or preceding calendar year.
    15. The term “employment” includes service performed in the employ of an Indian tribe, as defined in section 3306(u) of the Federal Unemployment Tax Act, provided the service is excluded from “employment” as defined in the Federal Unemployment Tax Act solely by reason of section 3306(c)(7) of the Federal Unemployment Tax Act, and is not otherwise excluded from employment under the North Dakota unemployment compensation law. For purposes of this subdivision, the exclusions from employment in subdivision h are applicable to services performed in the employ of an Indian tribe.
18. “Employment” does not include:
    1. Service performed by an individual in agricultural labor. For purposes of this subdivision, the term “agricultural labor” means:
       1. Any service performed prior to January 1, 1972, which was agricultural labor as defined in this subdivision prior to such date; and
       2. Remunerated service performed after December 31, 1971, in agricultural labor as defined in section 3306(k) of the Federal Unemployment Tax Act [68A Stat. 439; 26 U.S.C. 3301 et seq.].
    2. Domestic service in a private home, local college club, or local chapter of a college fraternity or sorority, except as provided in subdivision n of subsection 17.
    3. Repealed by S.L. 1971, ch. 475, § 19.
    4. Service not in the course of the employing unit’s trade or business performed after January 1, 1951, in any calendar quarter by an individual, unless the cash remuneration paid for such service is fifty dollars or more and such service is performed by an individual who is regularly employed by such employing unit to perform such service. For the purposes of the North Dakota unemployment compensation law, an individual must be deemed to be regularly employed to perform service not in the course of an employing unit’s trade or business during a calendar quarter only if on each of some twenty-four days during such quarter or during the immediately preceding quarter, such individual performed such service for some portion of a day.
    5. Service performed by an individual in the employ of the individual’s son, daughter, or spouse, and service performed by a minor in the employ of the minor’s father or mother and dwelling in the household of the minor’s father or mother.
    6. Service performed in the employ of the United States government or an instrumentality of the United States exempt under the Constitution of the United States from the contributions imposed by the North Dakota unemployment compensation law, except that to the extent that the Congress of the United States shall permit states to require any instrumentalities of the United States to make payments into an unemployment fund under a state unemployment compensation law, all of the provisions of the North Dakota unemployment compensation law are applicable to such instrumentalities, and to services performed for such instrumentalities, in the same manner, to the same extent, and on the same terms as to all other employers, employing units, individuals, and services; but if this state is not certified for any year by the social security board under subsection c of section 3304 of the federal Internal Revenue Code, the payments required of such instrumentalities with respect to such year must be refunded by the bureau from the fund in the same manner and within the same period as is provided in section 52-04-14 with respect to contributions erroneously collected.
    7. Service performed in the employ of this state or of any other state, or of any political subdivision thereof, or of any instrumentality of any one or more of the foregoing which is owned wholly by this state or by any one or more states or political subdivisions, and any service performed in the employ of any instrumentality of this state or of one or more states or political subdivisions to the extent that the instrumentality is, with respect to such service, exempt under the Constitution of the United States from the tax imposed by section 3301 of the federal Internal Revenue Code, except that this provision does not apply to coverage pursuant to subsection 17 and section 52-05-03.
    8. Service with respect to which unemployment is payable under an unemployment compensation system established by an act of the Congress of the United States.
    9. Service performed:
       1. In any calendar quarter in the employ of any organization exempt from income tax under section 501(a) (other than an organization described in section 401(a)) or under section 521 of the federal Internal Revenue Code, if the remuneration for such service is less than fifty dollars.
       2. Repealed by S.L. 1973, ch. 391, § 22.
       3. In the employ of a voluntary employee’s beneficiary association providing for the payment of life, sick, accident, or other benefits to the members of such association or their dependents, if:
          1. No part of its net earnings inures, other than through such payments, to the benefit of any private shareholder or individual; and
          2. Eighty-five percent or more of the income consists of amounts collected from members for the sole purpose of making such payments and meeting expenses.
       4. In the employ of a voluntary employees’ beneficiary association providing for the payment of life, sick, accident, or other benefits to the members of such association or their dependents or their designated beneficiaries, if:
          1. Admission to membership in such association is limited to individuals who are officers or employees of the United States government; and
          2. No part of the net earnings of such association inures, other than through such payments, to the benefit of any private shareholder or individual.
       5. In any calendar quarter in the employ of a school, college, or university, if such service is performed by a student who is enrolled and regularly is attending classes at such school, college, or university, or by the spouse of such a student, if such spouse is advised at the time such spouse commences to perform such service, that:
          1. The employment of such spouse to perform such service is provided under a program to provide financial assistance to such student by such school, college, or university; and
          2. Such employment will not be covered by any program of unemployment insurance.
       6. In the employ of a corporation, community chest, fund, or foundation, organized and operated exclusively for religious, charitable, scientific, literary, or educational purposes, or for the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private shareholder or individual, and no substantial part of the activities of which is carrying on propaganda, or otherwise attempting, to influence legislation, except as provided in subdivision g of subsection 17.
       7. As a student nurse in the employ of a hospital or a nurses’ training school by an individual who is enrolled and regularly is attending classes in a nurses’ training school chartered or approved pursuant to state law and service performed as an intern in the employ of a hospital by an individual who has completed a four-year course in a medical school chartered or approved pursuant to a state law.
       8. By an individual for a person as an insurance agent, as an insurance solicitor, as a real estate salesman, or as a securities salesman, if all such services performed by such individual for such persons is performed for remuneration solely by way of commission.
       9. By an individual under the age of eighteen in delivery or distribution of newspapers or shopping news, not including delivery or distribution to any point for subsequent delivery or distribution.
       10. By an individual who is enrolled at a nonprofit or public educational institution which normally maintains a regular faculty and curriculum and normally has a regularly organized body of students in attendance at the place where its educational activities are carried on as a student in a full-time program, taken for credit at such institution, which combines academic instruction with work experience, if such service is an integral part of such program, and such institution has so certified to the employer, except that this paragraph does not apply to service performed in a program established for or on behalf of an employer or group of employees.
       11. In the employ of a hospital, if such service is performed by a patient of the hospital, as defined in subsection 25.
       12. By an individual under the age of eighteen as a golf caddy, except for service described in subdivisions f and g of subsection 17.
    10. Service covered by an arrangement between the bureau and the agency charged with the administration of any other state or federal unemployment compensation law pursuant to which all services performed by an individual for an employing unit during the period covered by such employing unit’s duly approved election are deemed to be performed entirely within such agency’s state.
    11. Service performed for a private for-profit person or entity by an individual as a landman if substantially all remuneration, including payment on the basis of a daily rate, paid in cash or otherwise for the performance of the service is directly related to the completion by the individual of the specific tasks contracted for rather than to the number of hours worked by the individual, and the services are performed under a written contract between the individual and the person for whom the services are performed which provides that the individual is to be treated as an independent contractor and not as an employee with respect to the services provided under the contract. For purposes of this subdivision, “landman” means a land professional who has been engaged primarily in:
        1. Negotiating the acquisition or divestiture of mineral rights;
        2. Negotiating business agreements that provide for the exploration for or development of minerals;
        3. Determining ownership of minerals through research of public and private records;
        4. Reviewing the status of title, curing title defects, and otherwise reducing title risk associated with ownership of minerals;
        5. Managing rights or obligations derived from ownership of interests and minerals; or
        6. Activities to secure the unitization or pooling of interests in minerals.
    12. Service performed by an owner of a general partnership, limited partnership, limited liability partnership, limited liability limited partnership, or a limited liability company, unless the organization is treated as a corporation for purposes of federal income taxation.
    13. Service performed as a participant in an Americorps program authorized and funded by the National and Community Service Act of 1990 [Pub. L. 101-610; 42 U.S.C. 12501 et seq.].
19. “Employment office” means a free public employment office or branch thereof operated by this or any other state as a part of a state-controlled system of public employment offices or by a federal agency charged with the administration of an unemployment compensation program or free public employment offices.
20. “Executive director” means the executive director of job service North Dakota.
21. “Extended benefits” means benefits (including benefits payable to federal civilian employees and to ex-servicemen pursuant to 5 U.S.C. chapter 85) payable to an individual under the provisions of chapter 52-07.1 for weeks of unemployment in the individual’s eligibility period.
22. “Fund” means the unemployment compensation fund established by the North Dakota unemployment compensation law, to which all contributions required and from which all benefits provided under the North Dakota unemployment compensation law must be paid.
23. The term “governmental unit” means the state of North Dakota and all its political subdivisions, and all of its departments and instrumentalities.
24. “Gross misconduct” means misconduct involving assault and battery, or the malicious destruction of property, or the theft of money or property.
25. “Hospital” means an institution which has been licensed as a hospital by the licensing authority of the state of North Dakota.
26. “Included and excluded service”. If the service performed during one-half or more of any pay period by an individual for the person employing the individual constitutes employment, all the services of such individual for such period must be deemed to be employment, but if the service performed during more than one-half of any such pay period by an individual for the person employing the individual does not constitute employment, then none of the services of such individual for such period may be deemed to be employment. As used in this subsection, the term “pay period” means a period, of not more than thirty-one consecutive days, for which a payment of remuneration ordinarily is made to the individual by the person employing the individual. This subsection is not applicable with respect to services performed in a pay period by an individual for the person employing the individual, when any of such service is excepted by subdivision h of subsection 18.
27. “Institution of higher education”, for the purposes of the North Dakota unemployment compensation law, means an educational institution which:
    1. Admits as regular students only individuals having a certificate of graduation from a high school or the recognized equivalent of such a certificate;
    2. Is legally authorized in this state to provide a program of education beyond high school;
    3. Provides an educational program for which it awards a bachelor’s or higher degree, or provides a program which is acceptable for full credit toward such a degree, a program of postgraduate or postdoctoral studies, or a program of training to prepare students for gainful employment in a recognized occupation; and
    4. Is a public or other nonprofit institution.
28. “Localized service”. Service must be deemed to be localized within a state if:
    1. The service is performed entirely within such state; or
    2. The service is performed both within and without such state, but the service performed without such state is incidental to the individual’s service within the state, for example, is temporary or transitory in nature or consists of isolated transactions.
29. “State” includes, in addition to the states of the United States of America, Puerto Rico, the District of Columbia, and the Virgin Islands.
30. “Unemployed”. An individual is “unemployed” with respect to any week during which the individual performs no services and with respect to which no wages are payable to the individual, or with respect to any week during which the individual is substantially unemployed and the wages payable to the individual with respect to such week are less than the individual’s weekly benefit amount. For the purposes of this subsection, wages are payable with respect to the weeks for which they were reasonably intended to be payable, irrespective of whether services were performed in those weeks. The bureau shall prescribe regulations applicable to unemployed individuals making such distinctions in the procedures as to total unemployment, part-total unemployment, partial unemployment of individuals attached to their regular jobs, and other forms of work, as the bureau deems necessary.
31. “Wages” means all remuneration for service from whatever source, including commissions and bonuses and the cash value of all remuneration in any medium other than cash. Gratuities customarily received by an individual in the course of the individual’s service from persons other than the individual’s employing unit must be treated as wages received from the individual’s employing unit. After January 1, 1951, backpay awarded under any statute of this state or of the United States must be treated as wages. The reasonable cash value of remuneration in any medium other than cash, and the reasonable amount of gratuities, must be estimated and determined in accordance with rules as prescribed by the bureau. For the purpose of a determination of insured status only, backpay awards after January 1, 1951, must be allocated to the quarters with respect to which they were paid. If the remuneration of an individual is not based upon a fixed period or duration of time or if the individual’s wages are paid at irregular intervals or in such manner as not to extend regularly over a period of employment, for the purposes of a determination of insured status only, the wages must be allocated to weeks or quarters in accordance with regulations prescribed by the bureau. Such regulations must, so far as possible, produce results reasonably similar to those which would prevail if the individual were paid the individual’s wages at regular intervals. The term “wages” does not include:
    1. The amount of any payment made after January 1, 1951, including any amount paid by an employing unit for insurance or annuities, or into a fund, to provide for any such payment to, or on behalf of, an individual or any of the individual’s dependents under a plan or system established by an employing unit which makes provision generally for individuals performing service for it or for such individuals generally and their dependents or for a class or classes of such individuals, or for a class or classes of such individuals and their dependents, on account of:
       1. Sickness or accident disability but, in the case of payments made to an employee or any of the employee’s dependents, this paragraph excludes from the term “wages” only payments which are received under a workforce safety and insurance law;
       2. Medical and hospitalization expenses in connection with sickness or accident disability; or
       3. Death.
    2. The amount of any payment on account of sickness or accident disability, or medical or hospitalization expenses in connection with sickness or accident disability, made after January 1, 1951, by an employing unit to, or on behalf of, an individual performing services for it after the expiration of six calendar months following the last calendar month in which the individual performed services for such employing unit.
    3. The amount of any payment made after January 1, 1951, by an employing unit to, or on behalf of, an individual performing services for it or the individual’s beneficiary:
       1. From or to a trust described in section 401(a) of the federal Internal Revenue Code which is exempt from tax under section 501(a) of the federal Internal Revenue Code at the time of such payment unless such payment is made to an individual performing services for the trust as remuneration for such services and not as a beneficiary of the trust; or
       2. Under or to an annuity plan which, at the time of such payments, is a plan described in section 403(a) of the federal Internal Revenue Code.
    4. The amount of any payment made by an employing unit, without deduction from the remuneration of the individual in its employ, of the tax imposed upon an individual in its employ under section 3101 of the federal Internal Revenue Code with respect to services performed after January 1, 1951.
    5. Remuneration paid after January 1, 1951, in any medium other than cash to an individual for services not in the course of the employing unit’s trade or business.
    6. Dismissal payments before December 31, 1951, which the employing unit legally is not required to make.
    7. Any payment made to, or on behalf of, an employee or the employee’s beneficiary under or to an annuity contract described in section 403(b) of the federal Internal Revenue Code, other than a payment for the purchase of such contract which is made by reason of a salary reduction agreement whether evidenced by a written instrument or otherwise, under or to an exempt governmental deferred compensation plan as defined in section 3121(v)(3) of the federal Internal Revenue Code, or to supplemental pension benefits under a plan or trust described in any of the foregoing provisions to take into account some portion or all of the increase in the cost of living as determined by the secretary of labor since retirement but only if such supplemental payments are under a plan which is treated as a welfare plan under section 3(2)(B)(ii) of the Employee Retirement Income Security Act of 1974.
    8. Any payment made to, or on behalf of, an employee or the employee’s beneficiary under a simplified employee pension if, at the time of the payment, it is reasonable to believe that the employee will be entitled to a deduction under section 219(b)(2) of the federal Internal Revenue Code for such payment.
    9. The value of any meals or lodging furnished by or on behalf of the employer if at the time of such furnishing it is reasonable to believe that the employee will be able to exclude such items from income under section 119 of the federal Internal Revenue Code.
    10. Nothing in this subsection excludes from the term “wages” any employer contribution under a qualified cash or deferred arrangement as defined in section 401(k) of the federal Internal Revenue Code to the extent not included in gross income by reason of section 402(a)(8) of the federal Internal Revenue Code, or any amount treated as an employer contribution under section 414(h)(2) of the federal Internal Revenue Code.
    11. Any amount deferred under a nonqualified deferred compensation plan must be taken into account for purposes of this chapter as of the later of when the services are performed, or when there is no substantial risk of forfeiture of the rights to such amount. Any amount taken into account as wages by reason of this subdivision and the income attributable thereto may not thereafter be treated as wages for purposes of this chapter. For purposes of this subdivision, the term “nonqualified deferred compensation plan” means any plan or other arrangement for deferral of compensation other than a plan described in subdivisions c, g, and h.
    12. Payments that qualify as supplemental unemployment compensation paid by an employer to former employees if those payments are paid pursuant to a plan that meets the following requirements:
        1. Benefits are paid only to unemployed former employees who are laid off by the employer;
        2. Eligibility for benefits depends on meeting prescribed conditions after termination;
        3. The amount of weekly benefits payable is based upon state unemployment benefits, other compensation allowable under state law, and the amount of regular weekly pay of that former employee;
        4. The duration of the benefits is affected by the fund level and employee seniority;
        5. The right to benefits does not accrue until a prescribed period after termination;
        6. Benefits are not attributable to the performance of particular services;
        7. No employee has any right to the benefits until qualified and eligible to receive benefits; and
        8. Benefits may not be paid in a lump sum.
32. “Week” means such period of seven consecutive days, as the bureau may prescribe by regulation. The bureau by regulation may prescribe that a week must be deemed to be “in”, “within”, or “during” that benefit year which includes the greater part of such week.

For purposes of this paragraph, the term “employment” includes services described in either subparagraph a or b performed after December 31, 1971, only if the contract of service contemplates that substantially all of the services are to be performed personally by such individual; the individual does not have a substantial investment in facilities used in connection with the performance of the services other than in facilities for transportation; and the services are not in the nature of a single transaction that is not part of a continuing relationship with the person for whom the services are performed.

Notwithstanding any of the foregoing provisions of this subsection, all colleges and universities in this state are institutions of higher education for purposes of the North Dakota unemployment compensation law.

52-01-02. Employing unit to keep records — Reports of employing unit — Public inspection prohibited — Exception — Penalty.

All records, including electronic records as defined in section 9-16-01, of the employers doing business in this state showing or reflecting in any way upon the amount of wage expenditure by or upon payments for services performed for those employers are always open for inspection by employees of job service North Dakota who are assigned responsibility to do so for the purpose of ascertaining the correctness of the reports, wage expenditures, the number of employees, and any other information necessary for the agency to administer this title. An employer who refuses to submit the employer’s records, including electronic records as defined in section 9-16-01, for inspection by an identified and assigned employee of job service North Dakota is subject to a civil penalty of five hundred dollars for each offense. The agency shall collect the penalty by civil action in the name of the state and shall deposit any penalty collected under this section to the credit of the fund established by section 52-04-22. Information obtained pursuant to this section may not be published or be open to public inspection, other than to public employees in the performance of their public duties, in any manner revealing the employing unit’s identity, but any claimant or the claimant’s legal representative at a hearing before a hearing officer or the agency must be supplied with information from such records to the extent necessary for the proper presentation of the appeal.

52-01-03. Disclosure of information. [Effective through August 31, 2022]

1. Except as otherwise provided in this section, information obtained from any employing unit or individual pursuant to the administration of the North Dakota unemployment compensation law and determinations as to the benefit rights of any individual must be held confidential and may not be disclosed or be open to public inspection in any manner revealing the individual’s or employing unit’s identity. Any claimant or claimant’s legal representative must be supplied with information from the records of the unemployment insurance division, to the extent necessary for the proper presentation of the claimant’s claim in any proceeding under the North Dakota unemployment compensation law with respect to the claim.
2. Subject to restrictions as the bureau by rule may prescribe, the information may be made available to any agency of this or any other state, or any federal agency, charged with the administration of any unemployment compensation law or the maintenance of a system of public employment offices, or the bureau of internal revenue of the United States department of the treasury, and information obtained in connection with the administration of the employment service may be made available to persons or agencies for purposes appropriate to the operation of a public employment service. Upon a request, the bureau shall furnish to any agency of the United States charged with the administration of public works or assistance through public employment, and may furnish to any state agency similarly charged, the name, address, ordinary occupation, and employment status of each recipient of benefits and the recipient’s rights to further benefits under the North Dakota unemployment compensation law. The bureau may request the comptroller of the currency of the United States to cause an examination of the correctness of any return or report of any national banking association, rendered pursuant to the North Dakota unemployment compensation law, and in connection with the request, may transmit any report or return to the comptroller of the currency of the United States as provided in subsection c of section 3305 of the federal Internal Revenue Code. The bureau shall request and exchange information for purposes of income and eligibility verification to meet the requirements of section 1137 of the Social Security Act. Job service North Dakota may enter into memoranda of understanding with the United States census bureau to furnish unemployment insurance data to the census bureau and for sharing of information with job service North Dakota.
3. Job service North Dakota may provide workforce safety and insurance, the labor commissioner, the driver’s license division of the department of transportation, the department of human services, the department of commerce, the state tax commissioner, and the information technology department for purposes of the statewide longitudinal data system with information obtained pursuant to the administration of the unemployment insurance program, and may enter into interagency agreements with those entities for the exchange of information that will enhance the administration of the unemployment insurance program. Any information furnished pursuant to this subsection or pursuant to interagency agreements authorized by this subsection is to be used only for governmental purposes.
4. The bureau may provide any state agency or a private entity with the names and addresses of employing units for the purpose of jointly publishing or distributing publications or other information as provided in section 54-06-04.3. Any information so provided may only be used for the purpose of jointly publishing or distributing publications or other information as provided in section 54-06-04.3.
5. Whenever the bureau obtains information on the activities of a contractor doing business in this state of which officials of the secretary of state, workforce safety and insurance, or the state tax commissioner may be unaware and that may be relevant to duties of those officials, the bureau shall provide any relevant information to those officials for the purpose of administering their duties.
6. The bureau shall request and exchange information as required of it under federal law with any specified governmental agencies. Any information so provided may be used only for the purpose of administering the duties of such governmental agencies.
7. The bureau shall enter into a data sharing agreement with the attorney general for the purpose of monitoring individuals who are required to register as sexual offenders or offenders against children. Under such agreement, the bureau may furnish unemployment insurance employee or claimant contact information and the names and addresses of the employers for whom the employee or claimant has worked.
8. Job service North Dakota may enter an interagency agreement with the department of commerce for the sharing of information obtained pursuant to the administration of the unemployment insurance program, limited to wage and employment number records of employers identified by the department of commerce as having received North Dakota state economic development assistance. Information provided by job service North Dakota under an agreement may be used only for purposes of evaluation by the department of commerce of the compliance with statutory or contractual performance standards established for employers who received North Dakota state economic development assistance. Information received by the department of commerce under this subsection shall remain confidential and may not be divulged except in an aggregate format that does not permit the identification of information of any individual or employer. Any information furnished pursuant to this subsection or pursuant to interagency agreements authorized by this subsection is to be used for governmental purposes.

52-01-03. Disclosure of information. [Effective September 1, 2022]

1. Except as otherwise provided in this section, information obtained from any employing unit or individual pursuant to the administration of the North Dakota unemployment compensation law and determinations as to the benefit rights of any individual must be held confidential and may not be disclosed or be open to public inspection in any manner revealing the individual’s or employing unit’s identity. Any claimant or claimant’s legal representative must be supplied with information from the records of the unemployment insurance division, to the extent necessary for the proper presentation of the claimant’s claim in any proceeding under the North Dakota unemployment compensation law with respect to the claim.
2. Subject to restrictions as the bureau by rule may prescribe, the information may be made available to any agency of this or any other state, or any federal agency, charged with the administration of any unemployment compensation law or the maintenance of a system of public employment offices, or the bureau of internal revenue of the United States department of the treasury, and information obtained in connection with the administration of the employment service may be made available to persons or agencies for purposes appropriate to the operation of a public employment service. Upon a request, the bureau shall furnish to any agency of the United States charged with the administration of public works or assistance through public employment, and may furnish to any state agency similarly charged, the name, address, ordinary occupation, and employment status of each recipient of benefits and the recipient’s rights to further benefits under the North Dakota unemployment compensation law. The bureau may request the comptroller of the currency of the United States to cause an examination of the correctness of any return or report of any national banking association, rendered pursuant to the North Dakota unemployment compensation law, and in connection with the request, may transmit any report or return to the comptroller of the currency of the United States as provided in subsection c of section 3305 of the federal Internal Revenue Code. The bureau shall request and exchange information for purposes of income and eligibility verification to meet the requirements of section 1137 of the Social Security Act. Job service North Dakota may enter into memoranda of understanding with the United States census bureau to furnish unemployment insurance data to the census bureau and for sharing of information with job service North Dakota.
3. Job service North Dakota may provide workforce safety and insurance, the labor commissioner, the driver’s license division of the department of transportation, the department of health and human services, the department of commerce, the state tax commissioner, and the information technology department for purposes of the statewide longitudinal data system with information obtained pursuant to the administration of the unemployment insurance program, and may enter into interagency agreements with those entities for the exchange of information that will enhance the administration of the unemployment insurance program. Any information furnished pursuant to this subsection or pursuant to interagency agreements authorized by this subsection is to be used only for governmental purposes.
4. The bureau may provide any state agency or a private entity with the names and addresses of employing units for the purpose of jointly publishing or distributing publications or other information as provided in section 54-06-04.3. Any information so provided may only be used for the purpose of jointly publishing or distributing publications or other information as provided in section 54-06-04.3.
5. Whenever the bureau obtains information on the activities of a contractor doing business in this state of which officials of the secretary of state, workforce safety and insurance, or the state tax commissioner may be unaware and that may be relevant to duties of those officials, the bureau shall provide any relevant information to those officials for the purpose of administering their duties.
6. The bureau shall request and exchange information as required of it under federal law with any specified governmental agencies. Any information so provided may be used only for the purpose of administering the duties of such governmental agencies.
7. The bureau shall enter into a data sharing agreement with the attorney general for the purpose of monitoring individuals who are required to register as sexual offenders or offenders against children. Under such agreement, the bureau may furnish unemployment insurance employee or claimant contact information and the names and addresses of the employers for whom the employee or claimant has worked.
8. Job service North Dakota may enter an interagency agreement with the department of commerce for the sharing of information obtained pursuant to the administration of the unemployment insurance program, limited to wage and employment number records of employers identified by the department of commerce as having received North Dakota state economic development assistance. Information provided by job service North Dakota under an agreement may be used only for purposes of evaluation by the department of commerce of the compliance with statutory or contractual performance standards established for employers who received North Dakota state economic development assistance. Information received by the department of commerce under this subsection shall remain confidential and may not be divulged except in an aggregate format that does not permit the identification of information of any individual or employer. Any information furnished pursuant to this subsection or pursuant to interagency agreements authorized by this subsection is to be used for governmental purposes.

52-01-04. Penalty for use of list of names for political purposes.

Any person who has obtained any list of applicants for work, claimants, or recipients of benefits from the bureau under any pretext, who uses or permits the use of such list for any political purpose, is guilty of a class B misdemeanor.

52-01-05. Declaration of public policy.

Involuntary unemployment creates a hardship on the unemployed worker and the unemployed worker’s family and leads to a state of economic insecurity. Relief from problems of involuntary unemployment imposes a statewide burden of serious consequence to the people of the state of North Dakota which can best be met by unemployment insurance for the working person who becomes unemployed through no personal fault. The legislative assembly, therefore, declares that the public good and general welfare of the citizens of the state requires that for laboring people genuinely attached to the labor market there be a systematic and compulsory setting aside of financial reserves to be used as compensation for loss of wages during periods when they become unemployed through no fault of their own.

52-01-06. Saving clause.

The legislative assembly reserves the right to amend or repeal all or any part of the North Dakota unemployment compensation law at any time and there is no vested private right of any kind against such amendment or repeal. All the rights, privileges, or immunities conferred by the North Dakota unemployment compensation law or by acts done pursuant thereto exist subject to the power of the legislative assembly to amend or repeal the North Dakota unemployment compensation law at any time.

52-01-07. Short title.

Chapters 52-01 through 52-07.1 must be known and may be cited as the “North Dakota unemployment compensation law”. Any reference within chapters 52-01, 52-02, 52-03, 52-04, 52-05, and 52-06 by the use of words “this title” are synonymous with and refer only to the North Dakota unemployment compensation law.

52-02-01. Job service North Dakota created.

There is hereby created job service North Dakota which is charged with administering the provisions of the North Dakota unemployment compensation law and the provisions of the North Dakota state employment service, as set forth in chapter 52-08, which must be administered by a full-time salaried executive director, who is subject to the supervision and direction of the governor. The governor is authorized to appoint, fix the compensation of, and prescribe the duties of the executive director, provided that the appointment must be made on a nonpartisan, merit basis. The duties and responsibilities of the executive director extend to and include the power of full administration of the provisions of the North Dakota unemployment compensation law, and the provisions of chapter 52-08 relating to the North Dakota state employment service, including job insurance programs, and the establishment and maintenance of free public employment offices. The executive director may also establish separate divisions and make separate appointments as the executive director deems advisable for efficient administration of the duties and responsibilities imposed hereunder. Any separate appointments must be on a nonpartisan, merit basis.

52-02-02. Powers, duties, organization, and methods of procedure of bureau — Seal.

The bureau may adopt, amend, or rescind such rules and regulations, make such expenditures, require such reports, make such investigations, and take such other action as it deems necessary or suitable in the administration of the North Dakota unemployment compensation law. Such rules and regulations are effective upon publication in the manner, not inconsistent with the provisions of the North Dakota unemployment compensation law, which the bureau shall prescribe. The bureau shall determine its own organization and methods of procedure in accordance with the provisions of the North Dakota unemployment compensation law and shall have an official seal which shall be noticed judicially.

52-02-02.1. Adult education and training — Grants to students. [Repealed]

Repealed by S.L. 2009, ch. 441, § 1.

Effective Date.

The repeal of this section by section 1 of 441, S.L. 2009 became effective August 1, 2009.

52-02-03. Biennial report — Recommendations by bureau.

The bureau shall submit a biennial report to the governor and the secretary of state in accordance with section 54-06-04. Whenever the bureau believes that a change in contribution or benefit rates shall become necessary to protect the solvency of the fund, it shall inform the governor and the legislative assembly promptly and make recommendations with respect thereto.

52-02-04. General and special rules and regulations of the bureau — When effective.

General and special rules may be adopted, amended, or rescinded by the bureau only after public hearing or opportunity to be heard thereon, of which proper notice has been given. General rules become effective ten days after filing with the secretary of state and publication in one or more newspapers of general circulation in this state. Special rules become effective ten days after notification or mailing to the last-known address of the individuals or concerns affected thereby. Regulations may be adopted, amended, or rescinded by the bureau and become effective in the manner and at the time prescribed by the bureau.

52-02-05. Text of chapter and other rules and regulations to be published by bureau for distribution. [Repealed]

Repealed by S.L. 2005, ch. 453, § 1.

52-02-06. Merit system and personnel.

1. In accordance with chapter 54-44.3 and rules adopted thereunder and on the basis of the authority granted under section 52-02-02, the bureau shall select and prescribe the duties and powers of officers, employees, and other persons as may be necessary in the performance of its duties under the chapter; provided, that in cooperation with North Dakota human resource management services the bureau shall take such action as may be necessary to meet the personnel standards adopted by the secretary of labor pursuant to the Social Security Act [42 U.S.C. 301 et seq.] and the Wagner-Peyser Act [48 Stat. 113; 29 U.S.C. 49-49k], both as amended.
2. Notwithstanding any provision of law to the contrary, the bureau shall have authority to dismiss without notice any person employed in the administration of the North Dakota unemployment compensation law upon receipt of notice of a determination by the United States civil service commission that that person has violated the provisions of the Act of the Congress of the United States entitled “An Act to prevent pernicious political activities”, as amended [18 U.S.C. 61(a)] and that the violation warrants the removal of that person from employment.

52-02-07. State unemployment insurance advisory council — Composition — Duties — Compensation.

1. The governor shall appoint an unemployment insurance advisory council consisting of eight members:
   1. Five members must represent employers, two of whom must represent employers employing fewer than twenty-five employees, one of whom must represent employers employing twenty-five or more employees, one of whom must represent an employer from the positive employer rate groups, and one of whom must represent an employer from the negative employer rate groups. Each employer representative must be a principal owner, chief executive officer, or chief financial officer of the employer.
   2. Two members must represent employees, one of whom must represent organized labor and one of whom does not hold a managerial position in employment.
   3. One at-large member who must be a resident of the state.
2. Of the members first appointed, the term of office of three members is three years, the term of office of three members is two years, and the term of office of two members is one year. Thereafter, the term of office of each member is three years. The governor shall fill any vacancy on the council by appointing a member to complete the unexpired term.
3. The council shall select a chairman annually from its members.
4. The unemployment insurance advisory council shall advise job service North Dakota regarding issues relating to the operations, effectiveness, fairness, and efficiency of the unemployment insurance program, and on any related issue or concern brought to the council’s attention by the executive director or the executive director’s designee. The council shall meet at least once each calendar year and may meet at the call of the chairman or at the call of the executive director.
5. The members of the unemployment insurance advisory council must be reimbursed for any necessary expenses and are entitled to receive compensation in the sum of one hundred dollars per day spent in attendance at meetings.

52-02-08. Bureau and advisory councils to take steps to stabilize employment.

The bureau, with the advice and aid of its advisory councils, and through its appropriate divisions, shall take appropriate steps to:

1. Reduce and prevent unemployment.
2. Encourage and assist in the adoption of practical methods of career and technical education training, retraining, and career development counseling.
3. Investigate, recommend, advise, and assist in the establishment and operation, by municipalities, counties, school districts, and the state, of reserves for public works to be used in times of business depression and unemployment.
4. Promote the re-employment of unemployed workers throughout the state in every other way that may be feasible.
5. Carry on and publish the results of investigations and research studies.

52-02-09. Job service administration fund.

The job service administration fund consists of all money received from the United States, or any agency thereof, and all money received from any other source for administrative and program purposes except for the funds created by sections 52-03-01 and 52-04-22. All moneys accruing to this fund in any manner must be maintained in this separate interest-bearing account at the Bank of North Dakota. All money deposited or paid into this fund must be continuously available to the bureau for expenditure in accordance with the provisions of this law and may not lapse at any time or be transferred to any other fund. The fund must consist of any money appropriated by this state in accordance with section 52-02-11; all money received from any other source for the administration of the North Dakota unemployment compensation law; all money received from any agency of the United States or any other state as compensation for services or facilities supplied to such agency; all amounts received pursuant to any surety bond or any insurance policy or from other sources for losses sustained by the job service administration fund or by reason of damage to property, equipment, or supplies purchased from money in such fund; and all proceeds realized from the sale or disposition of any such property, equipment, or supplies which may no longer be necessary for the proper administration of this law. Notwithstanding any provision of this section, all money requisitioned and deposited in this fund pursuant to subsection 4 of section 52-03-07 must remain a part of the unemployment compensation fund and must be used only in accordance with the conditions specified in section 52-03-07.

52-02-10. Expenditure of moneys in fund.

All moneys in the job service administration fund received from the United States or any agency thereof for the administration of the North Dakota unemployment compensation law, or which may be appropriated by the state for any of the purposes described in the North Dakota unemployment compensation law, must be expended solely for the purposes and in the amounts found necessary by the social security board of the United States or any other agency of the United States succeeding thereto, for the proper and efficient administration of the North Dakota unemployment compensation law.

52-02-11. Reimbursement of funds.

The state of North Dakota recognizes its obligation to replace, and hereby pledges the faith of this state that funds will be provided in the future and be applied to the replacement of, any moneys received after July 1, 1941, from the social security board under title III of the Social Security Act [42 U.S.C. 501 et seq.], any unencumbered balances relating to the administration of the North Dakota unemployment compensation law in the job service administration fund as of that date, any moneys thereafter granted to the state pursuant to the provisions of the Wagner-Peyser Act [48 Stat. 113; 29 U.S.C. 49-49k], and any moneys made available by the state or its political subdivisions and matched by such moneys granted to the state pursuant to the provisions of the Wagner-Peyser Act, which the social security board finds have been lost or have been expended because of any action or contingency for purposes other than or in amounts in excess of those found necessary for the proper administration of the North Dakota unemployment compensation law by the social security board. Such moneys must be replaced promptly by moneys appropriated for such purpose from the general funds of this state to the job service administration fund for expenditure as provided in section 52-02-09. The amount of money required for such replacement must be reported promptly by the bureau to the governor and the governor shall report the same to the legislative assembly. This section may not be construed to relieve the state of North Dakota of its obligation with respect to funds received prior to July 1, 1941, pursuant to the provisions of title III of the Social Security Act [42 U.S.C. 501 et seq.].

52-02-12. Attorney to represent bureau in actions under the North Dakota unemployment compensation law.

In any civil action to enforce the provisions of the North Dakota unemployment compensation law, the bureau and the state may be represented by any qualified attorney who is employed by the bureau and is designated by the attorney general.

52-02-13. Cooperation with social security board and other federal agencies — Reports.

In the administration of the North Dakota unemployment compensation law, the bureau shall cooperate to the fullest extent consistent with the provisions of the North Dakota unemployment compensation law, with the social security board, created by the Social Security Act, approved August 14, 1935, [49 Stat. 620; 42 U.S.C. 301 et seq.] as amended. The bureau shall make such reports in such form and containing such information as the social security board may require and shall comply with such provisions as the social security board from time to time may find necessary to assure the correctness and verification of such reports. The bureau shall comply with regulations prescribed by the social security board governing the expenditures of such sums as may be allotted and paid to this state under title III of the Social Security Act [42 U.S.C. 501 et seq.] for the purpose of assisting in the administration of the North Dakota unemployment compensation law.

52-02-14. Manner of cooperation between state and other states and federal government.

The administration of the North Dakota unemployment compensation law and of other state and federal unemployment compensation and public employment service laws will be promoted by cooperation between this state and such other states and the appropriate federal agencies in exchanging services and making available facilities and information. The bureau may make such investigations, secure and transmit such information, make available such services and facilities, and exercise such of the other powers provided in the North Dakota unemployment compensation law with respect to the administration of the North Dakota unemployment compensation law as it deems necessary or appropriate to facilitate the administration of any such unemployment compensation or public employment service law, and in a like manner, may accept and utilize information, services, and facilities made available to this state by the agency charged with the administration of any such other unemployment compensation or public employment service law.

52-02-15. Reciprocal arrangements with other states and federal government.

The bureau shall enter into reciprocal arrangements with appropriate and duly authorized agencies of other states or of the federal government or both, by which:

1. Services performed by an individual for a single employing unit, which services customarily are performed in more than one state, must be deemed to be services performed entirely within any one of the states:
   1. In which any part of such individual’s services is performed;
   2. In which such individual has such individual’s residence; or
   3. In which the employing unit maintains a place of business if there is in effect as to such services, an election, approved by the agency charged with the administration of such state’s unemployment compensation law, pursuant to which all the services performed by such individual for such employing unit, are deemed to be entirely within such state;
2. Potential rights to benefits accumulated under the unemployment compensation laws of one or more states or under one or more such laws of the federal government, or both, may constitute the basis for the payment of benefits through a single appropriate agency under terms which the bureau finds will be fair and reasonable as to all affected interests and will not result in any substantial loss to the fund;
3. Wages or services, upon the basis of which an individual may become entitled to benefits under an unemployment compensation law of another state or of the federal government, must be deemed to be wages for insured work for the purpose of determining the individual’s rights to benefits under the North Dakota unemployment compensation law, and wages for insured work, on the basis of which an individual may become entitled to benefits under the North Dakota unemployment compensation law, must be deemed to be wages or services on the basis of which unemployment compensation under such law of another state or of the federal government is payable. No such arrangement may be entered into unless it contains provisions for reimbursements to the fund for such of the benefits paid under the North Dakota unemployment compensation law upon the basis of such wages or services, and provisions for reimbursements from the fund for such of the compensation paid under such other law upon the basis of wages for insured work, as the bureau finds will be fair and reasonable as to all affected interests; and
4. Contributions due under the North Dakota unemployment compensation law with respect to wages for insured work, for the purposes of sections 52-04-11 through 52-04-14, must be deemed to have been paid to the fund as of the date payment was made as contributions therefor under another state or federal unemployment compensation law, but no such arrangement may be entered into unless it contains provisions for such reimbursements to the fund of such contributions and the actual earnings thereon as the bureau finds will be fair and reasonable as to all affected interests.

52-02-16. Title to real property acquired with federal funds.

The state of North Dakota may receive and accept title by general warranty deed to real property which may be acquired under standard legal practices, or combinations thereof, for acquisition of real estate in accordance with the needs and requirements of the particular transaction by documents executed or to be executed by the bureau, provided the property must be acquired without appropriation by the state of North Dakota and the cost thereof must be defrayed by federal funds made available for the administration of said bureau. Sufficiency of title to any property acquired hereunder must be approved by the attorney general prior to execution of documents for acquisition of such property. Property acquired under authority hereof must be for the use and benefit of the bureau to carry out and perform the duties, powers, and authority vested therein, and to administer and participate in federal programs delegated thereto by federal authority. Upon completion of negotiations for acquisition said property may be held and occupied by the bureau at no cost other than maintenance.

52-02-17. Trust fund balance — Report to legislative council.

The bureau shall report to the legislative council before March first of each year the actual trust fund balance and the targeted modified average high-cost multiplier, as of December thirty-first of the previous year. In addition, the report must include a projected trust fund balance for the next three years.

52-02-18. Independent performance audit.

The state auditor, upon request of the legislative audit and fiscal review committee, shall cause a performance audit of job service North Dakota to be conducted within twelve months after receipt of the request. The state auditor may appoint an independent audit firm, with extensive expertise in job service practices and standards, to complete a performance audit or the state auditor may conduct the performance audit. If the state auditor completes the audit, the state auditor may contract with a consulting firm to aid in the state audit or to complete the audit and shall charge job service North Dakota for the audit, including the services of the consulting firm. The executive director of job service North Dakota and the auditor shall present the audit report and any action taken as a result of the audit to the legislative audit and fiscal review committee and to the house and senate industry, business and labor standing committees during the next regular session of the legislative assembly following the audit.

52-02.1-01. Definitions.

When used in this chapter, unless the context otherwise requires:

1. “Agreement” is the agreement between an employer and job service North Dakota concerning a project.
2. “Base employment level” means the number of full-time jobs an employer employs prior to the date of the commencement of the project.
3. “Community” means the city or county in which an eligible primary sector business is or will be located or a local development corporation, community organization, institution of higher education that is assigned primary responsibility for workforce training under section 52-08-08, or any other group the interest of which is in the economic growth of the area.
4. “Date of commencement of the project” means the date of the agreement.
5. “Department” means the department of commerce.
6. “Employee” means the individual employed in a new job.
7. “Employer” means the individual, corporation, partnership, or association providing new jobs and entering into an agreement.
8. “New job” means a job in a new or expanding primary sector business. The term does not include recalled workers returning to positions they previously held, replacement workers, including workers newly hired as a result of a labor dispute, or other jobs that formerly existed within the employment of the employer in the state.
9. “New jobs credit from withholding” means the credit as provided in section 52-02.1-03.
10. “New jobs training program” or “program” means the project or projects established by job service North Dakota to provide workers with education and training required for jobs in new or expanding primary sector businesses in the state.
11. “Primary sector business” has the meaning provided in section 1-01-49. For purposes of this subsection, a primary sector business must also be an employer, excluding an employer engaged in production agriculture, which meets the following eligibility criteria:
    1. An employer entering into an agreement, and increasing its base employment level by at least one employee, or in the case of an employer without an established base employment level in this state creating at least five employees, within the time set in the agreement, is entitled to the new jobs credit from withholding.
    2. An employer must have an economically productive and socially desirable purpose within the state.
    3. An employer must not be closing or reducing its operation in one area of the state and relocating substantially the same operation in another area.
12. “Program costs” means all necessary and incidental costs of providing program services. The term does not include the cost of purchase of equipment to be owned or utilized by the training or educational institution or service.
13. “Program services” means training and education specifically directed to the new jobs, including the following:
    1. All direct training costs, such as:
       1. Program promotion;
       2. Instructor wages, per diem, and travel;
       3. Curriculum development and training materials;
       4. Lease of training equipment and training space;
       5. Miscellaneous direct training costs;
       6. Administrative costs; and
       7. Assessment and testing.
    2. In-house or on-the-job training.
    3. Subcontracted services with institutions governed by the state board of higher education, private colleges or universities, federal, state, or local agencies, or other private training or educational services.
14. “Project” means a training arrangement that is the subject of an agreement entered into between job service North Dakota and an employer to provide program services.

52-02.1-02. Job service North Dakota — Agreements.

1. Program services developed and coordinated by job service North Dakota must be provided to primary sector businesses found eligible for loans or grants under this chapter. Job service North Dakota may enter an agreement to establish a project with an employer which meets the following conditions:
   1. Sets a date of commencement of the project.
   2. Identifies program costs, including deferred costs, which are to be paid from available sources including new jobs credit from withholding to be received or derived from new jobs resulting from the project.
   3. Provides for a guarantee by the employer of payment for program costs.
   4. Provides that any deferral of program cost payments may not exceed ten years from the date of commencement of the project.
   5. Provides that on-the-job training costs for employees may not exceed fifty percent of the annual gross payroll costs of the new jobs in the first full year after the date of commencement of the project. For purposes of this subsection, “gross payroll” is the gross wages and salaries for the new jobs.
   6. Provides the maximum amount of new jobs credit from withholding or tuition and fee payments allowed for a project.
   7. Provides that every employee participating in the new jobs training program must be paid an income of at least ten dollars per hour, plus benefits, by the end of the first year of employment under the project and for the remaining life of the loan.
2. A project requiring a loan from the department or a community may not be approved, and an agreement may not be executed by job service North Dakota, until notification from the department or community that the employer has qualified for a loan. Upon execution of the agreement, job service North Dakota shall notify the state tax commissioner of the agreement and the identity of the employer. Job service North Dakota may adopt rules to implement this chapter. Job service North Dakota shall prepare an annual report for the governor and the legislative assembly with respect to the new jobs training program.
3. For purposes of this section and section 52-02.1-04, an employer that is not a primary sector business, but contracts to provide employees to a primary sector business, may qualify for program services if:
   1. The employer and the primary sector business are parties to the same agreement under this section; and
   2. The agreement under this section designates the employer as the recipient of the program services.

52-02.1-03. New jobs credit from income tax withholding — Continuing appropriation.

Loans made under section 52-02.1-04 for program costs must be repaid by receipt of new jobs credit from withholding as follows:

1. New jobs credit from withholding must be based upon the wages paid to the new employees.
2. The North Dakota income tax withholding on wages paid by the employer to each new employee participating in a project must be credited from the withholding payments made by the employer pursuant to section 57-38-60. The tax commissioner shall transmit the equivalent credit payment amount to the state treasurer to be allocated to a special fund for payment to the department, community, or both, as the case may be, of principal and interest on loans issued pursuant to section 52-02.1-04, or for reimbursing employers participating in the cost reimbursement option provided in section 52-02.1-06. All moneys deposited in the fund are hereby appropriated for the purposes of this section. When the principal and interest on the loans have been repaid or the employer’s self-financed training costs have been reimbursed, the employer credits must cease and any money received after the loans have been repaid must be remitted by the tax commissioner to the general fund of the state.
3. The employer shall provide such other information the tax commissioner may require.
4. A new employee participating in a project must receive full credit for the amount withheld as provided in section 57-38-59.
5. The tax commissioner and state treasurer shall administer this section and may adopt rules consistent with and necessary for the administration of this section.
6. The provisions of chapter 57-38 pertaining to the administration of the income tax withholding, including provisions for refund or credit, not in conflict with the provisions of this chapter, shall govern the administration of the credit provided by this chapter.

52-02.1-04. Fund — Administration.

Funding for programs must be through loans or grants as stated under this section. Loans may be made by the department from the North Dakota development fund, incorporated, a community, or the department and a community cooperatively. A community may provide loans directly or through any financial institution currently qualified to participate in a loan with the Bank of North Dakota. The Bank of North Dakota may participate in loans under such credit standards and lending policies it determines are necessary and applicable. A community may alternatively fund a program through a grant without use of new jobs credit from withholding.

1. Loans must be secured and payable from a sufficient portion of the future receipts of payments authorized by the agreement, with such other security as the lender may determine is justified. The state treasurer shall transfer the moneys from the special fund created in section 52-02.1-03 to a special fund set up for this purpose by the department or community. The receipts must be pledged to the payment of principal of and interest on the loan.
2. The department may adopt rules to implement this chapter.

52-02.1-05. Reports to legislative council budget section. [Repealed]

Repealed by S.L. 1997, ch. 445, § 4.

52-02.1-06. Cost reimbursement option.

Program services developed and coordinated by job service North Dakota provided to primary sector businesses found eligible for loans or grants under section 52-02.1-02 must also be provided to primary sector businesses that provide self-financing as funding for new jobs training programs. Under this option, employers may be reimbursed an amount up to sixty percent of the allowable state income tax withholding generated from the new jobs positions and identified in the final agreement. Reimbursement under this option is to be made over the ten-year period of the project. The agreement requirements set forth in section 52-02.1-02 and the provisions of section 52-02.1-03 apply to this section.

52-03-01. Unemployment compensation fund — Maintaining and administering — What constitutes.

A special fund, separate and apart from all public moneys or funds of this state, known as the “unemployment compensation fund”, must be administered by the bureau exclusively for the purposes of the North Dakota unemployment compensation law. This fund must consist of:

1. All contributions collected under the North Dakota unemployment compensation law.
2. All fines collected pursuant to the provisions of the North Dakota unemployment compensation law.
3. Interest earned upon any moneys in the fund.
4. Any property or securities acquired through the use of moneys belonging to the fund.
5. All earnings of such property or securities.
6. All money recovered on losses sustained by the fund.
7. All money received from the federal unemployment account in the unemployment trust fund in accordance with title XII of the Social Security Act [42 U.S.C. 1321 et seq.], as amended.
8. All money credited to this state’s account in the unemployment trust fund pursuant to section 903 of the Social Security Act [42 U.S.C. 1103], as amended.
9. All money received from the federal government as reimbursements pursuant to section 204 of the Federal-State Extended Compensation Act of 1970 [Pub. L. 91-373; 84 Stat. 708-712; 26 U.S.C. 3304 note].
10. All money received for the fund from any other source.

All moneys in the fund must be mingled and undivided.

52-03-02. State treasurer to be treasurer of unemployment compensation and federal advance interest repayment funds — Issuance of warrants — Additional bond of treasurer. [Repealed]

Repealed by S.L. 1995, ch. 480, § 9.

52-03-03. Accounts to be kept within unemployment compensation fund.

The bureau shall maintain within the unemployment compensation fund the following separate accounts:

1. The clearing account.
2. The unemployment trust fund account.
3. A benefit account.

All moneys payable to the fund, upon receipt thereof by the bureau, must be deposited immediately in the clearing account. Refunds payable pursuant to section 52-04-14 may be paid from the clearing account. After the clearance thereof, all other moneys in the clearing account must be deposited immediately with the secretary of the treasury of the United States of America to the credit of the account of this state in the unemployment trust fund established and maintained pursuant to section 904 of the Social Security Act [42 U.S.C. 1104], as amended, notwithstanding any provisions of law in this state relating to the deposit, administration, release, or disbursement of moneys in the possession or custody of this state to the contrary. The benefit account must consist of all moneys requisitioned from the state’s account in the unemployment trust fund. Except as otherwise provided in the North Dakota unemployment compensation law, moneys in the clearing and benefit accounts must be deposited by the bureau in separate interest-bearing accounts at the Bank of North Dakota, but no public deposit insurance charge or premium may be paid out of the fund.

52-03-04. Requisitioning and expenditure of funds from various accounts.

Moneys shall be requisitioned from this state’s account in the unemployment trust fund solely for the payment of benefits and for refunds pursuant to subdivision f of subsection 18 of section 52-01-01 and section 52-04-14, except that money credited to this state’s account pursuant to section 903 of the Social Security Act [42 U.S.C. 1103], as amended, must be used exclusively as provided in subsection 3 of section 52-03-07. From time to time, the bureau shall requisition from the unemployment trust fund such amounts, not exceeding the amounts standing to this state’s account therein, as it deems necessary for the payment of benefits for a reasonable future period. Upon receipt thereof, the bureau shall deposit such moneys in the benefit account and shall pay benefits solely from such benefit account. Expenditures of such moneys in the benefit account and refunds from the clearing account are not subject to any provision of law requiring specific appropriations or other formal release by state officers of money in their custody. Any balance of moneys requisitioned from the unemployment trust fund which remains unclaimed or unpaid in the benefit account after the expiration of the period for which such sums were requisitioned, either must be deducted from estimates for, and may be utilized for the payment of benefits during succeeding periods, or, in the discretion of the bureau, must be redeposited with the secretary of the treasury of the United States, to the credit of this state’s account in the unemployment trust fund as provided in section 52-03-03.

52-03-05. Reimbursements paid and received.

Reimbursements paid from the fund pursuant to subsection 3 of section 52-02-15 must be deemed to be benefits for the purpose of this chapter and chapter 52-06. The bureau may make to other state or federal agencies, and receive from such other state or federal agencies, reimbursements from or to the fund, in accordance with arrangements entered into pursuant to section 52-02-15.

52-03-06. Discontinuance of unemployment trust fund — Management of funds.

The provisions of this chapter, to the extent that they relate to the unemployment trust fund, are operative only as long as such unemployment trust fund continues to exist and as the secretary of the treasury of the United States continues to maintain for this state a separate book account of all funds deposited therein by this state for benefit purposes, together with this state’s proportionate share of the earnings of such unemployment trust fund, from which no other state is permitted to make withdrawals. If and when such unemployment trust fund ceases to exist, or such separate book account is no longer maintained, all moneys, properties, or securities therein belonging to the unemployment compensation fund of this state must be transferred to the treasurer of the unemployment compensation fund, who shall hold, invest, transfer, sell, deposit, and release such moneys, properties, or securities in a manner approved by the bureau in accordance with the provisions of the North Dakota unemployment compensation law. Such moneys must be invested in bonds or other interest-bearing obligations of the United States or of the state of North Dakota. Such investments must be made so that all the assets of the fund shall always be readily convertible into cash when needed for the payment of benefits. The treasurer shall dispose of the securities or other properties belonging to the unemployment compensation fund only under the direction of the bureau.

52-03-07. Administrative use.

1. Money credited to the account of this state in the unemployment trust fund by the secretary of the treasury of the United States pursuant to section 903 of the Social Security Act [42 U.S.C. 1103], as amended, may be requisitioned and used for the payment of expenses incurred for the administration of this law pursuant to a specific appropriation by the legislative assembly; provided, that the expenses are incurred and the money is requisitioned after the enactment of an appropriation law which:
   1. Specifies the purposes for which money is appropriated and the amounts appropriated therefor;
   2. Limits the period within which such money may be expended to a period ending not more than two years after the date of the enactment of the appropriation law; and
   3. Limits the amount which may be used during a twelve-month period beginning on July first and ending on the next June thirtieth to an amount which does not exceed the amount by which:
      1. The aggregate of the amounts credited to the account of this state pursuant to section 903 of the Social Security Act [42 U.S.C. 1103], as amended, during the same twelve-month period and the thirty-four preceding twelve-month periods, exceeds
      2. The aggregate of the amounts used pursuant to this section and charged against the amounts credited to the account of this state during any of such thirty-five 12-month periods. For the purposes of this section, amounts used during any such twelve-month period must be charged against equivalent amounts which were first credited and which are not already so charged; except that no amount used for administration during such twelve-month period may be charged against any amount credited during such a twelve-month period earlier than the thirty-fourth preceding such period.
2. For the purpose of the provisions set forth in section 52-04-06, any amount credited to this state’s account under section 903 of the Social Security Act [42 U.S.C. 1103], as amended, which has been appropriated for expenses of administration, whether or not withdrawn from the trust fund must be excluded from the unemployment fund balance.
3. Money credited to the account of this state pursuant to section 903 of the Social Security Act [42 U.S.C. 1103], as amended, may not be withdrawn or used except for the payment of benefits and for the payment of expenses for the administration of sections 52-02-09, 52-03-01, 52-03-04, 52-03-07, and 52-03-08 and of public employment offices pursuant to this section. Notwithstanding this subsection, moneys credited with respect to federal fiscal years 2000, 2001, and 2002 must be used solely for the administration of the unemployment compensation program and the moneys are not otherwise subject to the requirements of subsection 1 when appropriated by the legislative assembly. Moneys are hereby appropriated for the federal fiscal years identified in this subsection for purposes of administration of the unemployment compensation program.
4. Money requisitioned for the payment of expenses of administration pursuant to this section must be deposited in the job service administration fund, but, until expended, must remain a part of the unemployment compensation fund. The bureau 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 must 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.

52-03-08. Advances from the federal unemployment account.

The governor of this state is authorized and directed to apply for an advance to the state unemployment fund from the federal unemployment account in the unemployment trust fund and to accept the responsibility for the repayment of such advance in accordance with the conditions specified in title XII of the Social Security Act [42 U.S.C. 1321 et seq.], as amended, in order to secure to this state and its citizens the advantage available under the provisions of such title.

52-04-00.1. Definitions.

As used in this chapter, unless the context otherwise requires:

1. “Agency” or “bureau” means job service North Dakota.
2. “Client company” means a person that contracts to receive services, within the course of that person’s usual business, from a staffing service or that contracts to lease any or all of that person’s employees from a staffing service.
3. “Knowingly” means having actual knowledge of or acting with deliberate ignorance or reckless disregard for the prohibition involved.
4. “Staffing service” means an employer in the business of providing the employer’s employees to a client company to perform services within the course of that client company’s usual business. The term includes a professional employer organization, a staff leasing company, an employee leasing organization, and a temporary staffing company. The term “staffing service” must be broadly construed to encompass an entity that offers services provided by a professional employer organization, a staff leasing company, an employee leasing organization, or a temporary staffing company, regardless of the term used.
5. “Temporary staffing” or “temporary staffing service” means an arrangement through which an employer hires its own employees and assigns the employees to a client company to support or supplement the client company’s workforce in a special work situation, including an employee’s temporary absence; a temporary skill shortage; a seasonal workload; or a special assignment or project with a targeted end date.
6. “Unemployment insurance tax rate” means the rate calculated or assigned under sections 52-04-05 and 52-04-06.
7. “Violates or attempts to violate” includes intent to evade, misrepresentation, and willful nondisclosure.
8. “Workforce” means some or all of the employees of a transferring employer.

The term does not include an arrangement through which the majority of the client company’s workforce has been assigned by a temporary staffing service for a period of more than twelve consecutive months.

52-04-01. Payment of contributions by employer.

1. Contributions accrue and become payable by each employer, for each calendar year in which the employer is subject to the North Dakota unemployment compensation law, with respect to wages for employment. Such contributions become due and must be paid by each employer to the bureau for the fund in accordance with such regulations as the bureau may prescribe, and may not be deducted in whole or in part, from the wages of individuals in such employer’s employ. In the payment of any contributions, a fractional part of a cent must be disregarded unless it amounts to one-half cent or more, in which case it must be increased to one cent.
2. Contributions due with respect to wages for insured work must be deemed to have been paid to the fund as of the date payment was made as contributions therefor under another state or federal employment security law, if payment into the fund of such contributions is made on such terms as the bureau finds will be fair and reasonable as to all affected interests.

52-04-01.1. Electronic filing of contribution and wage reports — Electronic payment of contributions — Assessments.

Each employer required to file contribution and wage reports shall file the reports by an electronic method approved by the bureau beginning with the calendar quarter in which the employer is first required to file a report. An employer that does not comply with the requirements to file reports electronically is deemed to have failed to submit any employer’s contribution and wage report as provided in section 52-04-11. All contribution payments must be paid electronically.

52-04-02. Rates and base of contributions of wages payable by employer.

Each employer shall pay contributions equal to the following percentages of wages payable by the employer with respect to employment:

1. One and eight-tenths percent with respect to employment occurring during the calendar year 1937.
2. Two and seven-tenths percent with respect to employment occurring during the calendar years 1938, 1939, and 1940.

52-04-03. Rates and base of contributions of wages paid by employer.

1. Subject to the exceptions and modifications provided for in this section and elsewhere in this chapter, each employer shall pay contributions to the fund equal to two and seven-tenths percent of wages paid by the employer to any one individual employee during a calendar year with respect to employment, which also includes service constituting employment under the employment security law of any other state as defined in the North Dakota unemployment compensation law or of the federal government. “Employment”, as so inclusive, is applicable throughout to this chapter.
2. The amount of an individual’s wages paid to that individual in a calendar year by each employer and subject to tax may not be in excess of three thousand dollars for the years prior to 1968, nor in excess of three thousand three hundred dollars for 1968, nor in excess of three thousand four hundred dollars for 1969, nor in excess of three thousand eight hundred dollars for 1970, nor in excess of four thousand dollars for 1971, nor in excess of four thousand four hundred dollars for 1972, nor in excess of four thousand two hundred dollars for 1973, 1974, 1975, and 1976, nor in excess of four thousand three hundred dollars for 1977, and not in excess of six thousand dollars in 1978.
3. For the year 1979 and each year thereafter, the amount of an individual’s wages subject to tax, paid by each employer, must be in such amount as determined to be in an amount that is equal to seventy percent of a statewide average annual wage, rounded to the nearest one hundred dollars, determined by the bureau on or before each first day of October by the following computation:
4. Notwithstanding any of the provisions of subsection 3, the amount of an individual’s wages subject to tax must always be at least equal to the amount that is subject to tax under the Federal Unemployment Tax Act [68A Stat. 439; 26 U.S.C. 3301 et seq.].

The total wages reported on contribution reports for the third and fourth quarters of the preceding calendar year and the first and second quarters of the current calendar year must be divided by the average monthly number of covered workers for the same four quarters, whose number must be determined by dividing by twelve the total covered employment reported on contribution reports for those quarters, and the quotient obtained by dividing the total wages by the average monthly number of covered workers is the statewide average annual wage.

52-04-04. Separate account of employer’s contributions kept.

The bureau shall maintain a separate account for each employer showing the employer’s contributions and shall credit the employer’s account with all the contributions paid by the employer since January 1, 1937. The provisions of the North Dakota unemployment compensation law may not be construed to grant any employer or individuals in the employer’s service prior claims or rights to the amounts paid by the employer into the fund.

52-04-05. Determination of rates.

1. As used in this section:
   1. “Income needed to pay benefits” means the estimate of benefits payable in a given calendar year less the estimate of interest to be earned by the unemployment insurance trust fund for that calendar year.
   2. “Solvency balance” means the income needed, whether a positive or negative figure, in a given rate year to reach the solvency target over the number of years remaining of the period within which the solvency target is to be reached plus the estimate of the amount of income needed to pay benefits.
   3. “Trust fund reserve” excludes all Reed Act [42 U.S.C. 1103] cash.
2. For each calendar year, the bureau separately shall estimate the amount of income needed to pay benefits and shall estimate the amount of income needed to reach a solvency balance in the unemployment insurance trust fund, that moves toward the solvency target amount as determined under this subsection. The solvency target is an average high-cost multiple of one. The average high-cost multiple is the number of years the bureau could pay unemployment compensation, based on the reserve ratio, if the bureau paid the compensation at a rate equivalent to the average benefit cost rate in the one calendar year during the preceding twenty calendar years and the two calendar years during the preceding ten calendar years in which the benefit cost rates were the highest. “Reserve ratio” means the ratio determined by dividing the balance in the trust fund reserve at the end of the calendar year by the total covered wages in the state for that year. “Benefit cost rate” means the rate determined by dividing the unemployment compensation benefits paid during a calendar year by the total covered wages in the state for that year. The computation of the reserve ratio and benefit cost rate must exclude the wages and unemployment compensation paid by employers covered under section 3309 of the Internal Revenue Code of 1986, as amended [26 U.S.C. 3309].
3. The initial trust fund solvency target must be achieved over a seven-year period from January 1, 2000. After the solvency target required by this section is reached, the calculation of the solvency target must be continued and, if the trust fund reserve as of December thirty-first of any year is less or greater than the solvency target, the rates must be adjusted so that one-fifth of the difference between the solvency target and the current trust fund reserve is estimated to be collected in the following rate year.
4. Progress toward achieving the solvency target is measured by reducing any difference between one and the average high-cost multiple of the state by an amount that is at least equal to the ratio of the number of years left to reach the solvency target to the difference between the trust fund reserve and the targeted amount. In setting tax rates, the amount of the trust fund reserve may not be allowed to fall below three hundred percent from a standard margin of error for the targeted amount of the trust fund reserve. The executive director may make reasonable adjustments to the tax rates set for a calendar year to prevent significant rate variations between calendar years.
5. Rates must be determined as follows:
   1. The income needed to pay benefits for the calendar year must be divided by the estimated taxable wages for the calendar year. The result rounded to the next higher one-hundredth of one percent is the average required rate needed to pay benefits.
   2. The positive employer minimum rate in the first rate schedule of the table of rate schedules is one-hundredth of one percent. The positive employer minimum rate in each subsequent rate schedule of the table of rate schedules is the previous rate schedule’s positive employer minimum rate plus one-hundredth of one percent. The negative employer minimum rate needed to generate the amount of income needed to pay benefits is the positive employer minimum rate as described in this subsection plus six percent.
   3. The positive employer minimum rate necessary to generate the amount of income needed to pay benefits must be set so that all the rates combined generate the average required rate for income needed to pay benefits, multiplied by the ratio, calculated under subdivision d, needed to reach the solvency balance. The negative employer maximum rate necessary to generate the amount of income needed to pay benefits is the negative employer minimum rate necessary to generate the amount of income needed to pay benefits plus three and six-tenths percent. However, the maximum rate must be at least five and four-tenths percent.
   4. The tax rate necessary to generate the amount of income needed to reach a solvency balance must be calculated by dividing the solvency balance by the amount of income estimated as needed to pay benefits and multiplying the resulting ratio times each rate, within the positive and negative rate arrays, with a minimum multiplier of one hundred percent for the negative rate array, as determined under this section to meet the average required rate needed to pay benefits as defined by subdivision a. The ratio calculated under this subdivision must also be multiplied by any rate calculated as required by subsection 6 to arrive at a final rate for a new business. All results calculated under this subdivision must be rounded to the nearest one-hundredth of one percent.
6. 1. Except as otherwise provided in this subsection, an employer’s rate may not be less than the negative employer minimum rate for a calendar year unless the employer’s account has been chargeable with benefits throughout the thirty-six-consecutive-calendar-month period ending on September thirtieth of the preceding calendar year. If an employer in construction services has not been subject to the law as required, that employer qualifies for a reduced rate if the account has been chargeable with benefits throughout the twenty-four-consecutive-calendar-month period ending September thirtieth of the preceding calendar year. If an employer in nonconstruction services has not been subject to the law as required, the employer in nonconstruction services qualifies for a reduced rate if the account has been chargeable with benefits throughout the twelve-consecutive-calendar-month period ending September thirtieth of the preceding calendar year. The executive director may provide any negative employer whose contributions paid into the trust fund are greater than the benefit charges against that employer’s account, for a minimum of three consecutive years immediately preceding the computation date or subject to the law as required, with up to a thirty percent reduction to that employer’s rate for any year if that employer has in place a plan approved by the bureau which addresses substantive changes to that employer’s business operation and ensures that any rate reduction provided will not put the employer account back into a negative status.
   2. An employer that does not qualify under subdivision a is subject to a rate determined as follows:
      1. For each calendar year new employers must be assigned a rate that is ninety percent of the positive employer maximum rate or a rate of one percent, whichever is greater, unless the employer is classified in construction services. However, an employer must be assigned within the negative employer rate ranges for any year if, as of the computation date, the cumulative benefits charged to that employer’s account equal or exceed the cumulative contributions paid on or before October thirty-first with respect to wages paid by that employer before October first of that year. All results calculated under this paragraph must be rounded to the nearest one-hundredth of one percent.
      2. New employers in construction services must be assigned the negative employer maximum rate.
      3. Assignment by the bureau of an employer’s industrial classification for the purposes of this section must be the three-digit major group provided in the North American industrial classification system manual, in accordance with established classification practices found in the North American industrial classification system manual, issued by the executive office of the president, office of management and budget. Employers who are liable for coverage before August 1, 2001, remain under an industrial classification under the two-digit major group provided in the standard industrial classification manual unless they are classified in the construction industry within the standard industrial classification code.
7. An employer who has ceased to be liable for contributions shall continue its established experience rating account if it again becomes liable within three years from the date that it ceased to be liable providing that the employer’s experience record has not been transferred in accordance with section 52-04-08. The employer’s rate, however, must be determined in accordance with subsection 6.

52-04-06. Variations in standard rate of contributions — How determined.

1. An employer’s reserve ratio is the difference between the six-year contributions paid by that employer on or before October thirty-first of any year, with respect to wages paid by that employer before October first of that same year, and the six-year benefits charged to that employer’s account before October first of that year, divided by the average annual payroll. Employers whose cumulative contributions exceed cumulative benefits must be assigned within the positive employer rate groups. Employers whose cumulative contributions are equal to or less than cumulative benefits must be assigned within the negative employer rate groups.
2. For each calendar year the bureau shall establish a schedule of positive employer rate groups within the positive employer minimum rate and the positive employer maximum rate determined under section 52-04-05. Each successive rate group for positive employer rate groups must be assigned a rate equal to one hundred twenty percent of the previous group’s rate with a minimum increase of one-tenth of one percent and a maximum increase of four-tenths of one percent. The number of rate groups in the positive employer schedule must be ten. For each calendar year the bureau shall establish a schedule of negative employer rate groups with the negative employer minimum rate and the negative employer maximum rate determined under section 52-04-05. Each successive rate group for negative employer rate groups must be assigned a rate equal to the previous group’s rate plus four-tenths of one percent. The number of rate groups in the negative employer schedule must be the number required to provide for a rate group at each four-tenths of one percent interval between the negative employer minimum rate and the negative employer maximum rate determined under section 52-04-05. All results calculated under this subsection must be rounded to the nearest one-hundredth of one percent.
3. Positive employers must be assigned to the rate in the positive employer rate schedule in the rank order of their reserve ratios, as determined in subsection 1, with the highest reserve ratio positive employers assigned to the first positive employer rate. Each successively ranked positive employer must be assigned to a rate within the positive employer rate schedule so that the first rate within the rate schedule is assigned sixty percent of the positive employer’s prior year’s taxable wages and each of the remaining nine rates within the rate schedule are assigned the same proportion of the remaining forty percent of the positive employer’s prior year’s taxable wages. Negative employers must be assigned to the rate in the negative employer rate schedule in the rank order of their reserve ratios, as determined in subsection 1, with the highest reserve ratio negative employers assigned to the first negative employer rate. Each successively ranked negative employer must be assigned to a rate within the negative employer rate schedule so that each rate within the rate schedule is assigned the same proportion of the negative employer’s prior year’s taxable wages.
4. 1. After each year’s rate schedule has been established, an employer may pay into the fund, or cause to be paid into the fund on the employer’s behalf, an amount in excess of the contributions required to be paid under this section. That amount must be credited to the employer’s separate account. The employer’s rate must be recomputed with the amount paid pursuant to this subsection included only, except as allowed by subdivision b, if that amount was paid by April thirtieth of that year. Payments may not be refunded or used as credit in the payment of contributions.
   2. An employer that enters a contract with a staffing service, other than a temporary staffing service, may make the payments authorized by this subsection at any time during the rate year and the agency will determine if that payment is adequate to allow the staffing service to comply with subsection 3 of section 52-04-24; however, the employer’s tax rate will remain in effect for the remainder of the tax year. The agency will deposit any payment received pursuant to this subsection immediately and will credit it to the employer’s separate account, but the agency will apply the payment to the calculation of the employer’s tax rate for the following rate year. In order to take advantage of this subdivision and subsection 3 of section 52-04-24, an employer may not be delinquent in its unemployment insurance tax payments on the date on which the payment authorized by this subdivision is made.
5. In the bureau’s determination of the projected income requirements for computing contribution rates and taxable wage base, only the wages paid by, and the cost of benefits attributable to, tax-rated employers may be taken into account.
6. If an employer has a quarterly taxable payroll in excess of fifty thousand dollars and at least three times its established average annual payroll or the average annual payroll is zero, and the employer’s cumulative lifetime reserve balance is positive, then the tax rate for that employer is ninety percent of the positive employer maximum rate in effect that year or a rate of one percent, whichever is greater, beginning the first day of the calendar quarter in which it occurred and for the remainder of the calendar year. If the employer’s cumulative lifetime reserve balance is negative, then the tax rate for that employer is the negative employer maximum rate of contribution in effect that year, beginning the first day of the calendar quarter in which it occurred and for the remainder of the calendar year.

52-04-06.1. Construction project risk protection.

1. Any project in this state with an estimated construction cost of at least fifty million dollars which is planned to be completed or discontinued within a period of seven years is subject to this section. The general or prime contractor, or the owner in those situations in which there is no general or prime contractor, of a project that meets the criteria specified under this section shall post the bond or irrevocable letter of credit required in subsection 2 before commencement of construction work on the project and shall report annually, within thirty days of the anniversary date the project becomes subject to this section, to the bureau any change in the construction costs of projects subject to this section.
2. If the bureau determines that the project is or will be within the criteria stated by this section, the bureau shall require the general or prime contractor, or the owner in those situations in which there is no general or prime contractor, for whom the project is being constructed, on behalf of each employing unit, excluding design and engineering firms, to post a bond executed by a surety company authorized to do business in the state or an irrevocable letter of credit from a federal deposit insurance corporation insured state or nationally chartered bank authorized to do business in the state which will insure payment for all benefits claimed by employees of all employing units working on the project. The bureau may adjust the amount of bond or irrevocable letter of credit required under this subsection to cover any significant increases or decreases in project construction costs reported by the general or prime contractor or owner. If any general or prime contractor or owner fails to comply with this subsection, the bureau may apply to any court of this state within the jurisdiction in which the contractor or owner is found, located, or transacts business to obtain an order to compel the general or prime contractor or owner to post the required bond or irrevocable letter of credit required under this subsection. Any failure to obey an order of the court may be punished by the court as a contempt of court.
3. The amount of bond or irrevocable letter of credit must be the difference between the estimated benefits paid and estimated contributions, multiplied by fifty percent. The estimation of contributions expected must be made as follows: multiply the current year’s positive employer minimum rate times the current year’s taxable wage base times the estimated number of employees on the project using figures from project plans, times the number of years between the start date and the estimated completion date of the project. The estimation of benefits paid must be made as follows: multiply the estimated number of employees, from the project plans, times the current year’s maximum weekly benefit amount times the duration, twelve weeks for the first year and twelve weeks for subsequent years, times the number of years between the start date and the completion date rounded up to the next whole number.
4. Thirty months after the completion or discontinuance of the project, the bureau shall determine the total benefits paid to employees of the employing unit or units. If the total amount paid to the employees of the unit or units exceeds the total amount of contributions collected from the units under the North Dakota unemployment compensation law, the general or prime contractor, or the owner in those situations in which there is no general or prime contractor, shall pay the total amount of benefits paid to the employees of the units which exceeded the total amount of contributions collected from the unit or units. If the general or prime contractor, or the owner in those situations in which there is no general or prime contractor, does not pay the payment requirement, job service North Dakota shall collect the payment from the surety company that executed the surety bond or bank that issued the irrevocable letter of credit. The general or prime contractor, or the owner in those situations in which there is no general or prime contractor, shall remain liable for any amount of benefits paid to the employees working on the project which exceeds the amount of contributions collected from the employers who worked on the project which is not covered by the amount of the bond or irrevocable letter of credit.
5. For the purposes of this section, a project includes all entities that employ or contract for the employment of, or is employing directly or indirectly through agents, independent contractors, or subcontractors, excluding design and engineering firms. Each employing unit, whether contractor, subcontractor, or otherwise, involved in the project is subject to this section, excluding design and engineering firms.
6. Each employing unit having employees working on a project subject to this section, excluding design and engineering firms, shall maintain separate records for all employment on the project showing each individual’s name, social security number, wages paid, and the dates the wages were paid. The employers shall submit separate reports from other employment subject to the North Dakota unemployment compensation law under a separate reporting account established for the project.
7. This section applies to projects for which bids are let after August 1, 2001.
8. The determination of whether a project is subject to this section must be made in the same manner as provided for in section 52-04-17.
9. This section does not apply to any project in which the state is the owner or contractor.

52-04-07. Benefits paid chargeable to accounts of base-period employers.

1. Benefits paid to an individual must be charged against the accounts of the individual’s base-period employers. The amount of benefits so chargeable against each base-period employer’s account must bear the same ratio to the benefits paid to an individual as the base-period wages paid to the individual by such employer bear to the total amount of the base-period wages paid to the individual by all of the individual’s base-period employers.
2. Notwithstanding subsection 1, an employer’s account may not be charged for any of the following:
   1. With benefits paid to an individual for unemployment that is directly caused by a major natural disaster declared by the president pursuant to section 102(2) of the Disaster Relief Act of 1974 [Pub. L. 93-288; 88 Stat. 143; 42 U.S.C. 5122(2)], if the individual would have been eligible for disaster unemployment assistance with respect to that unemployment but for the individual’s receipt of unemployment insurance benefits.
   2. With benefits paid to an individual who:
      1. Left the employment of the base-period employer voluntarily without good cause or with good cause not involving fault on the part of the base-period employer;
      2. Was discharged from employment by the base-period employer for misconduct;
      3. Was separated from employment with the most recent employer for reasons directly attributable to domestic violence, stalking, or sexual assault; or
      4. Is a military spouse who voluntarily left the most recent employment to relocate because of permanent change of station orders of the individual’s military-connected spouse.
   3. As provided under section 52-06-29.
   4. With benefits paid to an individual who is in training with the approval of job service North Dakota.
   5. With benefits paid to an individual who is subsequently determined not entitled to receive the benefits.
   6. With benefits paid to an individual who is currently employed part time with that employer when the hiring agreement between the individual and the employer has not changed since the individual commenced work for that employer. This subdivision does not apply to an employee of a temporary help firm.
3. Subsection 2 does not apply to benefit payments if:
   1. Benefit payments are financed under a reimbursable method.
   2. An overpayment of unemployment compensation benefits results from:
      1. The employer, or the agent of the employer, failing to respond timely or adequately to the request from the bureau for information relating to a claim for unemployment compensation; and
      2. The employer, or agent of the employer, has established a demonstrated pattern of failing to respond to such requests.
4. Any nonprofit organization which elects to make payments in lieu of contributions into the unemployment compensation fund as provided in section 52-04-18 is not liable to make such payments with respect to the benefits paid to any individual whose base-period wages include wages for previously uncovered services as defined in subsection 3 of section 52-06-04 to the extent that the unemployment compensation fund is reimbursed for such benefits pursuant to section 121 of Public Law 94-566.
5. Notwithstanding the provisions of subsection 1, an employer’s account may not be charged with benefits paid for previously uncovered services as defined in subsection 3 of section 52-06-04 to the extent that the unemployment compensation fund is reimbursed for such benefits pursuant to section 121 of Public Law 94-566.

This section applies to overpayments established after October 21, 2013.

52-04-08. Succession to predecessor’s experience record — Impact of substantial common ownership, management, or control.

1. An employing unit that in any manner acquires all or part of the organization, business, trade, workforce, or assets of another employer and continues essentially the same business activity of the whole or part transferred, may upon request be transferred in accordance with law and any relevant rules adopted by the agency, the whole or appropriate part of the experience record, reserve balance, and benefit experience of the predecessor employer, unless the agency finds that the employing unit acquired the business solely or primarily for the purpose of obtaining a lower unemployment insurance tax rate. If the predecessor files a written protest against such transfer within fifteen days of being notified of the successor’s application, the transfer will not be made.
2. When an employing unit in any manner acquires all or part of the organization, business, trade, workforce, or assets of another employer, the agency shall transfer all or the appropriate part of the experience record, reserve balance, whether positive or negative, and benefit experience of such predecessor to the successor if it finds that there was, at the time of acquisition, substantially common ownership, management, or control of the predecessor and the successor.
3. When a part of an employer’s experience record reserve account and benefit experience is transferred under this section, the portion of the experience record and reserve account transferred must be in the same ratio to the total experience record and reserve account as the average annual payroll of the transferred organization, trade, business, workforce, or assets is to the total average annual payroll of the predecessor.
4. An employing unit’s experience record may not be transferred in an amount that results in the successor and predecessor portions totaling more than one hundred percent of the predecessor’s history.

52-04-08.1. Implementation of federal anti-SUTA dumping legislation.

The agency shall implement section 52-04-08.2 to ensure necessary compliance with section 303(k) of the Social Security Act [Pub. L. 108-195; 42 U.S.C. 503]. The agency shall adopt rules and procedures necessary to ensure compliance with that section. The agency may issue necessary subpoenas, in accordance with sections 52-06-23 and 52-06-25, to carry out its responsibilities under this chapter.

52-04-08.2. Transfers of unemployment insurance experience — Recalculation of rates — Definitions — Civil and criminal penalties.

Notwithstanding any other provision of law, the following applies regarding assignment of penalty tax rates and transfers and acquisitions of businesses:

1. 1. If an employer transfers all or a part of its trade or business to another employer and at the time of the transfer there is substantially common ownership, management, or control of the two employers, the unemployment experience attributable to the transferred trade or business is transferred to the employer to which the business is transferred. The rates of both employers must be recalculated and made effective on the first day of the quarter in which the transfer took effect. The transfer of any of the employer’s workforce to another employer is considered a transfer of trade or business under this subsection if, as a result of the transfer, the transferring employer no longer performs the trade or business in which the transferred workforce was engaged, and the trade or business is performed by the employer to which the workforce was transferred.
   2. If, following a transfer of experience under subdivision a, the agency determines that a substantial purpose of the transfer of trade or business was to obtain a reduced unemployment insurance tax rate, the experience ratings of the employers involved must be combined into a single account and a single unemployment insurance tax rate must be assigned to that account.
2. If a person, who at the time of acquisition is not an employer under this title, acquires the trade or business of an employer, the unemployment experience of the acquired business may not be transferred to that person if the agency finds that the person acquired the business solely or primarily for the purpose of obtaining a lower unemployment insurance tax rate. Instead, the person must be assigned the applicable new employer rate calculated under section 52-04-05. In determining whether the business was acquired solely or primarily for the purpose of obtaining a lower unemployment insurance tax rate, the agency shall use objective factors that may include the cost of acquiring the business, whether the person continued the business enterprise of the acquired business, how long the business enterprise was continued, and whether a substantial number of new employees were hired for performance of duties unrelated to the business activity conducted before acquisition.
3. If a person knowingly acts or attempts to transfer or acquire a trade or business solely or primarily for the purpose of obtaining a lower unemployment insurance tax rate or knowingly violates any other provision of this chapter related to determining the assignment of an unemployment insurance tax rate, or if a person knowingly advises another person in a way that results in a violation of those provisions, the person is subject to the civil penalties provided in this subsection.
   1. If the person is an employer, the employer must be assigned, in lieu of that employer’s experience rate, the highest rate assignable under this chapter for the rate year during which the violation or attempted violation occurred and the three rate years immediately following that rate year. However, if the employer’s experience rate is already at the highest rate for any year of that four-year period or if the amount of increase in the person’s experience rate imposed under this subdivision would be less than two percent for any year of the four-year period, the penalty unemployment insurance tax rate for the year must be determined by adding a rate increment of two percent of taxable wages to the calculated experience rate.
   2. If the person is not an employer, the person is subject to a civil penalty of not more than twenty-five thousand dollars. Any civil penalty collected must be deposited in the penalty and interest account established under section 52-04-22.
4. In addition to the civil penalty imposed under subsection 3, any person that knowingly violates this section or knowingly attempts to violate this section is guilty of a class C felony.

52-04-09. Classification of employers to determine contributions — Regulations governing.

An employer’s rate for a calendar year must be determined on the basis of the employer’s experience with contribution payments and benefit charges as of October first of the preceding year. If, when such determination is to be made, an employer has failed to file a required report or filed an insufficient report, job service North Dakota shall notify the employer thereof by certified mail addressed to the employer’s last-known address. Unless the employer files the report or a sufficient report within fifteen days after mailing of the notice, the employer’s rate for the following calendar year must be set as follows:

1. Experience-rated positive employers must be assigned the negative employer minimum rate.
2. Experience-rated negative employers must be assigned the negative employer maximum rate.
3. New positive nonconstruction employers must be assigned the negative employer minimum rate.
4. New positive construction employers must be assigned the negative employer maximum rate.
5. New negative employers must be assigned the negative employer maximum rate.

If, at any time, an employer has failed to file a required report or filed an insufficient report, job service North Dakota may, at any time, estimate the wage information required by the report on the basis of reasonably available evidence. Job service North Dakota shall notify the employer of the estimate by certified mail addressed to the employer’s last-known address. Unless the employer files the report or a sufficient report within fifteen days after the mailing of the notice, the estimate becomes final for all purposes, except that if the amount of estimated wages is less than the actual wages, job service North Dakota may reconsider the estimate.

52-04-10. Contributions for ensuing year — Notification — Review.

The bureau shall promptly make a determination and notify each employer of the employer’s rate of contributions as determined for each ensuing year by the end of the first full week of December, but not later than December tenth, of the preceding year. The rate of contributions must be computed pursuant to the provisions of this chapter. The determination becomes conclusive and binding upon the employer unless, within fifteen calendar days after the mailing of the notice thereof to the employer’s last-known address, or in the absence of the mailing, within fifteen calendar days after the delivery of such notice, the employer files a written appeal of the determination. However, no employer shall have standing, in any proceeding involving the employer’s rate of contributions or contribution liability, to contest the chargeability to the employer’s account of any benefits paid in accordance with a determination, redetermination, or decision pursuant to the provisions of chapter 52-06, except upon the ground that the services on the basis of which such benefits were found to be chargeable did not constitute services performed in employment for the employer and only in the event that the employer was not a party to such determination, redetermination, or decision or to any other administrative proceeding in which the character of these services was determined. For purposes of this section, an employer was not a party to any such proceeding if notice of the determination, redetermination, or decision and the employer’s right to appeal the determination, redetermination, or decision was not mailed or personally delivered to the employer.

52-04-11. Unpaid contributions to bear interest — Penalties for failure to file reports — Penalties and interest collected paid into the federal advance interest repayment fund.

1. Contributions unpaid when due must bear interest at the rate of one and one-half percent per month or fraction thereof from due date.
2. Any employer who fails to submit to the bureau any employer’s contribution and wage report by the date due shall pay the bureau a penalty equal to five percent of the contributions due for each month or part of a month until the report is submitted. The penalty for the first month of the first delinquent report in a calendar year may not be less than twenty-five dollars. The penalty for the first month of any subsequent delinquent reports in a calendar year may not be less than one hundred dollars. The penalty for subsequent months may not exceed twenty percent of contributions due. The maximum penalty imposed by this subsection may not exceed five hundred dollars for any single report. The penalty imposed by this subsection may be waived if the bureau determines that the failure to submit the report timely was caused by circumstances beyond the control of the employer.
3. The executive director, or any bureau employee authorized in writing by the executive director, is authorized to enter into written agreements with employers relating to their liability in respect to delinquent contributions, interest, penalties, and costs when such employers are indebted to the bureau because of failure to pay contributions required to be paid within any given period of time; provided, that such agreements must be in accordance with regulations promulgated by the bureau and filed as provided by law, and further provided that they do not contravene any other law, rule, or regulation.
4. The amount added under this section must be collected at the same time and in the same manner and as a part of the contributions and must be paid into the federal advance interest repayment fund.

52-04-11.1. Corporate officer personal liability.

1. Any officer, director, or any employee having twenty percent ownership interest of a corporation and any manager, governor, or employee having twenty percent ownership interest of a limited liability company, that is an employer under the North Dakota unemployment compensation law who has control of or supervision over the filing of and responsibility for filing contribution reports or making payment of contributions under the North Dakota unemployment compensation law, and who fails to file the reports or to make payments as required, is personally liable for contributions or reimbursement, including interest, penalties, and costs in the event the corporation or limited liability company does not pay to the bureau those amounts for which the employer is liable.
2. The personal liability of any person as provided herein shall survive dissolution, reorganization, bankruptcy, receivership, or assignment for the benefit of creditors. For the purposes of this section, all wages paid by the corporation or limited liability company must be considered earned from the person determined to be personally liable.
3. The unemployment insurance division shall make a written determination as to the personal liability of a corporate officer or employee under this section. The determination is final unless the person found to be personally liable files a written appeal of the determination within fifteen calendar days after mailing of the notice of determination to the person’s last-known address.

52-04-12. Civil action to collect contributions, interest, penalties, delinquency fees — Service on nonresident employers — Contribution liens — Certificates.

1. Collection process of the bureau shall also be by civil action for collection of any money owing to the bureau from any source and for whatever reason, inclusive of interest thereon, penalties and delinquency fees when there is provision for such additional assessments. Costs of the action allowed by statute must be added when judgment is awarded against the debtor, unless waived. When the debtor is a nonresident of this state and the claim for relief accrued subsequent to July 1, 1963, and prior to July 1, 1969, jurisdiction thereof by service of process must be governed by the provisions of this section as it appeared in chapter 334 of the 1963 North Dakota Session Laws and the Supplement to the North Dakota Century Code from July 1, 1963, to July 1, 1969, and when the claim for relief accrued subsequent to July 1, 1969, and prior to August 1, 1971, jurisdiction thereof by service of process must be governed by the provisions of chapter 293 of the 1969 North Dakota Session Laws and chapter 28-06.1 of the Supplement to the North Dakota Century Code, and when the claim for relief accrued subsequent to August 1, 1971, jurisdiction thereof by service of process must be governed by the amended provisions of rule 4 of the North Dakota Rules of Civil Procedure adopted and promulgated by the supreme court under date of June 28, 1971.
2. Whenever any employer, liable to pay contributions, interest, or penalty, fails to pay, the amount of contributions, interest, penalty, and costs that accrue is a lien in favor of the state upon all property and all rights to property belonging to the employer. The lien attaches at the time the contributions, interest, or penalty becomes due, and continues until the liability is satisfied. To preserve the lien against subsequent mortgages, purchasers for value and without notice of the lien, judgment creditors, and lienholders, job service North Dakota shall file a notice of lien utilizing one of these methods:
   1. In the central indexing system maintained by the secretary of state. Job service North Dakota shall index in the central indexing system the following data:
      1. The name of the employer.
      2. The name “job service North Dakota” as claimant.
      3. The date and time the notice of lien was indexed.
      4. The amount of the lien.
   2. With the recorder, in the county in which the property is located, a notice of the lien. The lien is effective from the time of filing of the notice. The recorder shall preserve the notice and endorse on it the day, hour, and minute when it was received. The recorder shall index the notice of lien in an appropriate index record and record the notice of lien in the manner provided for recording real estate mortgages. The recorder shall accept the notice of lien for filing without payment of a fee by job service North Dakota. Upon payment of the contributions, interest, penalty, and costs, job service North Dakota shall file with the recorder a satisfaction of the lien. The recorder shall enter the satisfaction on the notice of lien, index the satisfaction in an appropriate index record, and record the satisfaction in the manner provided for recording satisfactions of real estate mortgages. The recorder shall accept the satisfaction for filing without payment of a fee by job service North Dakota.
3. Whenever any employer, liable to pay contributions, interest, or penalty, fails to pay the same, job service North Dakota may file a certificate, specifying the amount of contributions, interest, and penalty due and the name of the liable employer, with the clerk of district court in any county. The clerk shall enter and docket the certificate in the same manner as a judgment that directs the payment of money. The certificate has the force and effect of a judgment of the district court. The certificate is a lien on all the real property, except the homestead, of every person named, which the person may have in any county in which the certificate is docketed at the time of docketing or which the person thereafter acquires in the county, for ten years from the time of docketing. The certificate may be renewed in the same manner and with the same effect as a judgment that directs the payment of money. Execution of the certificate is issuable in the same manner as provided for execution of judgments. Job service North Dakota may proceed by garnishment to enforce the certificate in the same manner as a creditor is entitled to proceed by garnishment to enforce a judgment. Upon payment of the contributions, interest, penalty, and costs, job service North Dakota shall file with the clerk of court a satisfaction of the certificate. The clerk shall discharge the record in the same manner as judgments.
4. The foregoing remedies are cumulative and no action taken by job service North Dakota may be construed to be an election to pursue any remedy to the exclusion of any other remedy provided by law.

The notice of lien is effective as of eight a.m. following the indexing of the notice. Job service North Dakota shall index any notice of lien without payment of a fee or cost to the secretary of state. Upon payment of contributions, interest, penalty, and costs, job service North Dakota shall index a satisfaction of the lien in the central indexing system without fees or costs.

In either method, the attorney general, upon request of job service North Dakota, may bring suit without bond, to foreclose the lien.

52-04-13. Priority rights to contributions upon 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 the benefits of creditors, adjudicated insolvency, composition, or similar proceeding, contributions then or thereafter due must be paid in full prior to all other claims except taxes and claims for wages of not more than two hundred fifty dollars to each claimant, earned within four months of the commencement of the proceeding. In the event of an employer’s adjudication in bankruptcy, judicially confirmed extension proposal, or composition, under the Bankruptcy Reform Act of 1978 [Pub. L. 95-598; 92 Stat. 2583] contributions then or thereafter due are entitled to such priority as is provided in section 507 of that Act [11 U.S.C. 507]. In any action for the recovery of delinquent and defaulted contributions, the remedies of garnishment or attachment, or both, are available. No exemptions except absolute exemptions may be allowed against any levy under execution pursuant to judgment recovered in such action.

52-04-14. Adjustment and refund of contributions.

Not later than three years after the date on which any contributions or interest thereon was paid, if the employer that paid such contributions or interest thereon shall make application for an adjustment thereof in connection with subsequent contribution payments, or for a refund thereof because such adjustment cannot be made, and the bureau shall determine that such contributions or interest or any portion thereof was collected erroneously, the bureau shall allow such employer to make an adjustment thereof, without interest, in connection with subsequent contribution payments by the employer, or if such adjustment cannot be made, the bureau shall refund said amount, without interest, from the fund. For like cause and within the same period, an adjustment or refund may be made on the bureau’s own initiative.

52-04-15. Refund of moneys not authorized by provisions of law.

Nothing in the North Dakota unemployment compensation law may be construed to authorize any refund of moneys due and payable under the law and regulations in effect at the time such moneys were paid.

52-04-16. Limitations on actions brought by bureau.

Actions brought under section 52-04-12 must be commenced within six years after the claim for relief has accrued; provided, however, that in the case of a false or fraudulent return, or the willful failure to file a return with intent to evade any payment, proceedings in court may be begun at any time.

52-04-17. Administrative determinations of coverage.

The unemployment insurance division, upon its own motion or upon application of an employing unit, may make a written determination with respect to whether an employing unit constitutes an employer, or whether services performed for or in connection with the business of an employing unit constitute employment, or both such determinations. A determination made pursuant to this section is final unless the employing unit, within fifteen calendar days of the date of mailing of the determination, files a written appeal with job service North Dakota.

52-04-17.1. Retroactive payment not required.

When the bureau reviews a potential employment relationship involving an independent contractor who has a valid identification number issued under section 34-05-01.4 and determines that the party described as an independent contractor is an employee for purposes of unemployment compensation, rather than an independent contractor, the bureau may not require the party determined to be the employer to pay contributions for that employee, or any interest, penalty, or delinquency fee with respect to those contributions, retroactive to the date the relationship with the employee began, unless, however, the bureau determines that the employer willfully and intentionally entered the relationship with the purpose of avoiding unemployment compensation benefits. The bureau may require the payment of contributions for that employee as of the date the order declaring an employment relationship becomes final.

52-04-18. Financing benefits paid to employees of nonprofit organizations.

Benefits paid to employees of nonprofit organizations must be financed in accordance with the provisions of this section. For the purpose of this section, a nonprofit organization is an organization, or group of organizations, described in section 501(c)(3) of the United States Internal Revenue Code which is exempt from income tax under section 501(a) of such code.

1. Liability for contributions and election of reimbursement. Any nonprofit organization which, pursuant to subdivision i of subsection 15 of section 52-01-01, is, or becomes, subject to the North Dakota unemployment compensation law on or after January 1, 1972, shall pay contributions under the provisions of this chapter, unless it elects, in accordance with this subsection, to pay to the bureau for the unemployment fund an amount equal to the amount of regular benefits and of one-half of the extended benefits paid, that is attributable to service in the employ of such nonprofit organization, to individuals for weeks of unemployment which begin during the effective period of such election.
   1. Any nonprofit organization which is, or becomes, subject to the North Dakota unemployment compensation law on January 1, 1972, may elect to become liable for payments in lieu of contributions for a period of not less than one taxable year beginning with January 1, 1972, provided it files with the bureau a written notice of its election within the thirty-day period immediately following such date or within a like period immediately following the date of enactment of this subdivision, whichever occurs later.
   2. Any nonprofit organization which becomes subject to the North Dakota unemployment compensation law after January 1, 1972, may elect to become liable for payments in lieu of contributions for a period of not less than twelve months beginning with the date on which such subjectivity begins by filing a written notice of its election with the bureau not later than thirty days immediately following the date of the determination of such subjectivity.
   3. Any nonprofit organization which makes an election in accordance with subdivision a or subdivision b will continue to be liable for payments in lieu of contributions until it files with the bureau a written notice terminating its election not later than thirty days prior to the beginning of the taxable year for which such termination shall first be effective, and it shall thereafter be treated as a new or newly covered employer for the purpose of rate computation.
   4. Any nonprofit organization which has been paying contributions under the North Dakota unemployment compensation law for a period subsequent to January 1, 1972, may change to a reimbursable basis by filing with the bureau not later than thirty days prior to the beginning of any taxable year a written notice of election to become liable for payments in lieu of contributions. Such election is not terminable by the organization for that and the next year.
   5. The bureau may for good cause extend the period within which a notice of election, or a notice of termination, must be filed and may permit an election to be retroactive but not any earlier than with respect to benefits paid after December 31, 1969.
   6. The bureau, in accordance with such regulations as it may prescribe, shall notify each nonprofit organization of any determination which it may make of its status as an employer and of the effective date of any election which it makes and of any termination of such election. Such determinations are subject to reconsideration, appeal, and review in accordance with administrative regulations of the bureau established for appeals from determinations on claims for benefits and thereafter the decision of the bureau is subject to judicial review as provided for in chapter 52-06.
2. Reimbursement payments. Payments in lieu of contributions must be made in accordance with the provisions of this subsection including either subdivision a or b.
   1. At the end of each calendar quarter, or at the end of any other period as determined by the bureau, the bureau shall bill each nonprofit organization, or group of such organizations, which has elected to make payments in lieu of contributions for an amount equal to the full amount of regular benefits plus one-half of the amount of extended benefits paid during such quarter or other prescribed period that is attributable to service in the employ of such organization.
   2. An alternative method for reimbursement payments may be as follows:
      1. Each nonprofit organization that has elected payments in lieu of contributions may request permission to make such payments as hereinafter provided. Such method of payment becomes effective upon approval by the bureau.
      2. At the end of each calendar quarter, the bureau shall bill each nonprofit organization for an amount representing one of the following:
         1. For 1972, two-tenths of one percent of its total payroll for 1971.
         2. For years after 1972, such percentage of its total payroll for the immediately preceding calendar year as the bureau shall determine. Such determination must be based each year on the average benefit costs attributable to service in the employ of nonprofit organizations during the preceding calendar year.
         3. For any organization which did not pay wages throughout the four calendar quarters of the preceding calendar year, such percentage of its payroll during such year as the bureau shall determine.
      3. At the end of each taxable year, the bureau may modify the quarterly percentage of payroll thereafter payable by the nonprofit organization in order to minimize excess or insufficient payments.
      4. At the end of each taxable year, the bureau shall determine whether the total of payments for such year made by a nonprofit organization is less than, or in excess of, the total amount of regular benefits plus one-half of the amount of extended benefits paid to individuals during such taxable year based on wages attributable to service in the employ of such organization. Each nonprofit organization whose total payments for such year are less than the amount so determined is liable for payment of the unpaid balance to the fund in accordance with subdivision c. If the total payments exceed the amount so determined for the taxable year, all or a part of the excess may, at the discretion of the bureau, be refunded from the fund or retained in the fund as part of the payments which may be required for the next taxable year.
   3. Payment of any bill rendered under subdivision a or b must be made not later than thirty days after such bill was mailed to the last-known address of the nonprofit organization or was otherwise delivered to it, unless there has been an application for review in accordance with subdivision e.
   4. Payments made by any nonprofit organization under the provisions of this subsection shall not be deducted or deductible, in whole or in part, from the remuneration of individuals in the employ of the organization.
   5. The amount due specified in any bill from the bureau is conclusive on the organization unless, not later than fifteen days after the bill was mailed to the last-known address or otherwise delivered to it, the organization files an appeal with the bureau setting forth the grounds for such appeal. Proceedings on appeal to the bureau from the amount of a bill rendered under this subsection must be in accordance with administrative regulations of the bureau and thereafter the decision of the bureau is subject to judicial review as provided for in chapter 52-06.
   6. Past-due payments of amounts in lieu of contributions are subject to the same interest, delinquency fee, and penalties that, pursuant to this chapter apply to past-due contributions.
3. Authority to terminate elections. If any nonprofit organization is delinquent in making payments in lieu of contributions as required under subsection 2, the bureau may terminate such organization’s election to make payments in lieu of contributions as of the beginning of the next taxable year, and such termination is effective for that and the next taxable year.
4. Allocation of benefit costs. Each employer that is liable for payments in lieu of contributions shall pay to the bureau for the fund the amount of regular benefits plus the amount of one-half of extended benefits paid that are attributable to service in the employ of such employer. If benefits paid to an individual are based on wages paid by more than one employer and one or more of such employers are liable for payments in lieu of contributions, the amount payable to the fund by each employer that is liable for such payments must be determined in accordance with the provisions of subdivision a or b.
   1. Proportionate allocation, when fewer than all base-period employers are liable for reimbursement. If benefits paid to an individual are based on wages paid by one or more employers that are liable for payments in lieu of contributions and on wages paid by one or more employers who are liable for contributions, the amount of benefits payable by each employer that is liable for payments in lieu of contributions must be an amount which bears the same ratio to the total benefits paid to the individual as the total base-period wages paid to the individual by such employer bear to the total base-period wages paid to the individual by all of the individual’s base-period employers.
   2. Proportionate allocation, when all base-period employers are liable for reimbursement. If benefits paid to an individual are based on wages paid by two or more employers that are liable for payments in lieu of contributions, the amount of benefits payable by each such employer must be an amount which bears the same ratio to the total benefits paid to the individual as the total base-period wages paid to the individual by such employer bear to the total base-period wages paid to the individual by all of the individual’s base-period employers.
5. Notwithstanding any provisions in this section, any nonprofit organization that prior to January 1, 1969, paid contributions required by this chapter, and elects, within thirty days after July 1, 1971, to make payments in lieu of contributions, may not be required to make any such payment on account of any regular or extended benefits paid, on the basis of wages paid by such organization to individuals for weeks of unemployment which begin on or after the effective date of such election until the total amount of such benefits equals the amount of the positive balance in the experience rating account of such organization.

52-04-19. Financing benefits paid to employees of the state hospitals or state institutions of higher education.

Benefits paid to employees based on service attributable to employment in state hospitals or of state institutions of higher education must be financed in accordance with the provisions of this section. For the purpose of this section and subdivision h of subsection 15 of section 52-01-01, an institution of higher education means an educational institution defined in subsection 27 of section 52-01-01, and a state hospital means an institution defined in subsection 25 of section 52-01-01. An employing unit which, pursuant to subdivision h of subsection 15 of section 52-01-01, is, or becomes, subject to the North Dakota unemployment compensation law on or after January 1, 1972, shall pay contributions under the provisions of this chapter, unless it elects as hereafter provided to pay to the bureau for the unemployment fund an amount equal to the amount of regular benefits and the extended benefits paid, that is attributable to service in the employ of such state hospital or such state institution of higher education, to individuals for weeks of unemployment which begin during the effective period of such election. Payments in lieu of contributions must be made at the end of each calendar quarter or at the end of any other period determined by the bureau. Election and changes in the method of financing must be in the same manner provided for in section 52-04-18.

52-04-19.1. Financing benefits paid to employees of the state of North Dakota and governmental entities within the state of North Dakota.

1. Benefits paid to employees of the state of North Dakota, its departments and instrumentalities, or any instrumentality of more than one of the foregoing, or an instrumentality of the foregoing and one or more other states, which are attributable to employment by an employing unit which, after December 31, 1977, is defined as an employer, must be financed by one of the following methods:
   1. By payment of contributions as provided under section 52-04-06, plus one-half the cost of the extended benefits paid that are attributable to wages paid by an employer.
   2. By payment in lieu of contributions each quarter for the calendar years 1978 and 1979 in an amount equal to one percent of their total quarterly payroll, and the rate of contributions to be paid for each two-year period after 1979 must be as determined by the bureau each January by computing the cost of benefits paid under chapters 52-06 and 52-07.1 which are attributable to wages paid by employers, and the bureau may modify such rate in order to minimize excess or insufficient payments in any prior periods.
   3. In lieu of contributions an employer may elect to pay to the bureau for the unemployment fund an amount equal to the amount of benefits paid under chapters 52-06 and 52-07.1 which are attributable to wages paid in the employ of such governmental employer, to individuals for weeks of unemployment.
2. Benefits paid to employees of political subdivisions, other than state government, its departments and instrumentalities, or any instrumentality of more than one of the foregoing which are attributable to employment by an employing unit which, after December 31, 1977, is defined as an employer, must be financed by one of the following methods:
   1. By payment of contributions as provided under section 52-04-06 plus one-half the cost of the extended benefits paid that are attributable to wages paid by an employer.
   2. By payment in lieu of contributions each quarter for the calendar year 1978 in an amount equal to one percent of their total quarterly payroll, and the rate of contribution to be paid quarterly each year after 1978 must be determined by the bureau each January by computing the cost of benefits paid under chapters 52-06 and 52-07.1 which are attributable to wages paid by employers, and the bureau may modify such rate in order to minimize excess or insufficient payments in any prior periods.
   3. In lieu of contributions an employer may elect to pay to the bureau for the unemployment fund an amount equal to the amount of benefits paid under chapters 52-06 and 52-07.1 which are attributable to wages paid in the employ of such governmental employer, to individuals for weeks of unemployment.
3. Employers under this section shall notify the bureau of the plan selected for financing benefits within sixty days of becoming an employer. In the event of an unexcused failure of an employer to notify the bureau of the plan selected for financing benefits, the bureau shall assess that employer the rate of contributions provided for in section 52-04-06 plus one-half the cost of the extended benefits paid that are attributable to wages paid by that employer.
4. Elections and changes in the method of financing provided for in section 52-04-18 are applicable to employers under this section.
5. Any two or more employers under this section may file a joint application for the establishment of a group for the purpose of wage reporting and financing as regulations may prescribe.
6. Past-due payments under this section are subject to the same interest and penalties that apply to past-due contributions in section 52-04-11.

52-04-20. Group accounts.

Two or more employers that have become liable for payments in lieu of contributions may file a joint application to the bureau for the establishment of a group account for the purpose of sharing the cost of benefits paid that are attributable to service in the employ of such employers. Each such application must identify and authorize a group representative to act as the group’s agent for the purposes of the North Dakota unemployment compensation law. Upon the approval of the application, the bureau shall establish a group account for such employers effective as of the beginning of the calendar quarter in which it receives the application and shall notify the group’s representative of the effective date of the account. Such account must remain in effect for not less than two years and thereafter until terminated at the discretion of the bureau or upon application by the group. Upon establishment of the account, each member of the group is liable for payments in lieu of contributions with respect to each calendar quarter in the amount that bears the same ratio to the total benefits paid in such quarter that are attributable to service performed in the employ of all members of the group as the total wages paid for service in employment by such member in such quarter bear to the total wages paid during such quarter for service performed in the employ of all members of the group. The bureau shall prescribe such regulations as it deems necessary with respect to applications for establishment, maintenance, and termination of group accounts that are authorized by this section, for addition of new members to, and withdrawal of active members from, such accounts, and for the determination of the amounts that are payable under this section by members of the group and the time and manner of such payments.

52-04-21. Advances from federal unemployment trust fund.

The governor is authorized to apply for advances to the state of North Dakota from the federal unemployment trust fund and to accept responsibility for repayment of such advances in accordance with the conditions specified in title XII of the Social Security Act, as amended, in order to secure to this state the advantages available under the provisions of said title.

Advances from the federal unemployment trust fund which are interest-bearing must have such interest cost assessed against and paid from the federal advance interest repayment fund.

52-04-21.1. Advances from certain sources other than federal unemployment trust fund.

Job service North Dakota may borrow funds from the Bank of North Dakota. Job service North Dakota may also receive title XII advances from the federal unemployment trust fund. However, the borrowings and advances may not exceed amounts which are necessary and sufficient to meet payment of unemployment compensation benefits, repayment of title XII advances from the federal unemployment trust fund, and payment of interest on title XII advances from the federal unemployment trust fund. Any such amounts borrowed from the Bank of North Dakota must be repaid no later than the end of the biennium in which they are borrowed. Any such amounts borrowed from the Bank of North Dakota are not indebtedness of the state or of any officer or agent of the state within the meaning of any statutory or constitutional provision. The borrowed funds may be placed in the state unemployment compensation fund or in the federal advance interest repayment fund established under section 52-04-22.

Any such amounts placed in the state unemployment compensation fund may be used to pay unemployment compensation benefits and to repay title XII advances from the federal unemployment trust fund. Any such amounts placed in the federal advance interest repayment fund may be used to pay interest on title XII advances from the federal unemployment trust fund.

Job service North Dakota may repay funds borrowed from the Bank of North Dakota, which are placed in the state unemployment compensation fund, from amounts in the state unemployment compensation fund. Job service North Dakota may also repay funds borrowed from the Bank of North Dakota which are placed in the federal advance interest repayment fund, from amounts in the federal advance interest repayment fund. However, any interest due on any borrowed funds whatsoever may not be paid from amounts in the state unemployment compensation fund. Interest due on such borrowed funds must be paid from the federal advance interest repayment fund.

52-04-22. Federal advance interest repayment fund — Continuing appropriation.

There is created the federal advance interest repayment fund, to which will be credited all assessments collected by the division for the purpose of paying interest due on federal advances to the state trust fund. The fund must consist of all interest collected on delinquent contributions, all penalties provided by the North Dakota unemployment compensation law, and funds borrowed from sources other than federal advances which are placed in this fund. All moneys accruing to this fund in any manner must be maintained in this separate interest-bearing account at the Bank of North Dakota or invested in deposits of the Bank of North Dakota.

Moneys in this fund may also be used for the purpose of repaying funds placed in this fund which are borrowed from sources other than federal advances and for the purpose of paying interest due on other than federal advances.

Moneys in this fund may also be used for the purpose of paying principal and interest costs associated with the acquisition and renovation of land and a building to be used as an office facility by job service North Dakota in Grand Forks, North Dakota. Moneys in this fund also may be used for the purpose of paying principal and interest costs associated with the acquisition and renovation of land and building to be used as an office facility by job service North Dakota in Bismarck, North Dakota. Moneys in this fund also may be used for the purpose of paying building lease costs of office facilities leased by job service North Dakota. Moneys in this fund may be used for the purpose of paying the costs of repair, renovation, or alteration of job service-owned office facilities. Moneys in this fund may be used for the purpose of paying the replacement rate charged for use of state fleet vehicles. Moneys in this fund may be used for the purposes of re-employment programs to ensure the integrity of the unemployment insurance program in this state. Moneys in this fund may be used to administer the unemployment insurance program and may be used to pay expenses incurred by job service North Dakota which are not payable with federal grant or state general funds. Moneys in this fund are hereby appropriated for the purposes specified in this section including the purpose of paying principal and interest costs associated with the acquisition and renovation of land and a building to be used as an office facility by job service North Dakota in Grand Forks, North Dakota. Moneys in this fund are appropriated for the purpose of paying the principal and interest costs associated with the acquisition and renovation of land and a building to be used as an office facility by job service North Dakota in Bismarck, North Dakota. Moneys in this fund are appropriated for the purpose of paying building lease costs of office facilities leased by job service North Dakota. Moneys in this fund are appropriated for the purpose of paying the costs of repair, renovation, or alteration of job service-owned office facilities. Moneys in this fund are appropriated for the purpose of paying the replacement rate charged for use of state fleet vehicles. Moneys in this fund are appropriated for the purposes of re-employment programs to ensure the integrity of the unemployment insurance program in this state. Moneys in this fund are appropriated to administer the unemployment insurance program and to pay expenses incurred by job service North Dakota which are not payable with federal grant or state general funds. The federal advance interest payment fund must maintain a minimum balance to pay interest due on advances to the state trust fund. The minimum balance must be calculated annually by multiplying the average calendar year benefits paid for the preceding five completed calendar years by one percent. The federal advance interest repayment fund may drop below the annual minimum balance only if payment is required on interest due on advances to the state trust fund.

52-04-23. Financing benefits paid to employees of Indian tribes.

1. Benefits based on service in employment with an Indian tribe are payable in the same amount, on the same terms, and subject to the same conditions as benefits payable on the basis of other service subject to the North Dakota unemployment compensation law.
2. 1. Indian tribes or tribal units, subdivisions, subsidiaries, or business enterprises wholly owned by the Indian tribe, subject to the North Dakota unemployment compensation law, shall pay contributions under the same terms and conditions as all other subject employers, unless it elects to pay into the state unemployment fund amounts equal to the amount of benefits attributable to service in the employ of the Indian tribe.
   2. Indian tribes electing to make payments in lieu of contributions must make such election in the same manner and under the same conditions as provided in sections 52-04-18 and 52-04-19.1. Indian tribes may determine if reimbursement for benefits paid will be elected by the tribe as a whole, by individual tribal units, or by combinations of individual tribal units.
   3. Indian tribes or tribal units must be billed for the full amount of benefits attributable to service in the employ of the Indian tribe or tribal unit on the same schedule as other employing units that have elected to make payments in lieu of contributions.
   4. An Indian tribe or tribal unit that elects to become liable for payments in lieu of contributions must, within thirty days after the effective date of its election, execute and file with the bureau a surety bond approved by the bureau.
3. 1. Failure of the Indian tribe or tribal unit to make required payments, including assessments of interest and penalty, within ninety days of receipt of the bill causes the Indian tribe to lose the option to make payments in lieu of contributions, as described in subsection 2, for the following tax year unless payment in full is received before contribution rates for the next tax year are computed.
   2. An Indian tribe that loses the option to make payments in lieu of contributions due to late payment or nonpayment, as described in subdivision a, is entitled to have the option reinstated if, after a period of one year, all contributions have been made timely, provided no contributions, payments in lieu of contributions for benefits paid, penalties, or interest remain outstanding.
   3. Failure of the Indian tribe or any tribal unit thereof to make required payments, including assessments of interest and penalty, after all collection activities deemed necessary by the bureau have been exhausted, causes services performed for the tribe to not be treated as employment for purposes of subsection 17 of section 52-01-01.
   4. The bureau may determine that an Indian tribe that loses coverage under subdivision c may have services performed for the tribe again included as employment, for purposes of subsection 17 of section 52-01-01 if all contributions, payments in lieu of contributions, penalties, and interest have been paid.
   5. The bureau will notify the United States internal revenue service and the United States department of labor of a termination or reinstatement of coverage made under subdivisions c and d.
4. Notices of payment and reporting delinquency to Indian tribes or their tribal units must include information that failure to make full payment within the prescribed time frame:
   1. Will cause the Indian tribe to be liable for taxes under the Federal Unemployment Tax Act;
   2. Will cause the Indian tribe to lose the option to make payments in lieu of contributions; and
   3. May cause the Indian tribe to be excepted from the definition of employer, as provided in subsection 15 of section 52-01-01, and services in the employ of the Indian tribe, as provided in subsection 17 of section 52-01-01, to be excepted from employment.
5. Benefits paid that are attributable to service in the employ of an Indian tribe must be financed as provided in section 52-04-19.1.

52-04-24. Staffing services — Payment of unemployment insurance taxes.

1. If a staffing service exclusively provides temporary staffing services, the staffing service is considered to be the employee’s employer and the staffing service shall pay unemployment insurance taxes at the staffing service’s unemployment insurance tax rate. If a staffing service provides temporary and long-term employee staffing services, the staffing service is subject to the reporting and tax requirements associated with the type of employee provided to the client company.
2. For the purposes of long-term employee staffing services provided by a staffing service, the staffing service shall:
   1. Report quarterly the wages of all employees furnished to each client company and pay taxes on those wages at the client company’s unemployment insurance tax rate, except as otherwise provided under subsection 3.
   2. Maintain complete and separate records of the wages paid to employees furnished to each of the client companies. Claims for benefits must be separately identified by the staffing service for each client company.
   3. Notify the agency of each client company’s name and unemployment insurance account number and the date the staffing service began providing services to the client company. The staffing service shall provide the agency with the information required under this subdivision upon entering an agreement with a client company, but no later than fifteen days from the effective date of the written agreement.
   4. Supply the agency with a copy of the agreement between the staffing service and the client company.
   5. Notify the agency upon termination of any agreement with a client company, but no later than fifteen days from the effective date of the termination.
   6. Share employer responsibilities with the client company, including retention of the authority to hire, terminate, discipline, and reassign employees. If the contractual agreement between the staffing service and a client company is terminated, the employees become the sole employees of the client company.
3. For the purposes of long-term employee staffing services provided by a staffing service, upon authorization of the agency, the staffing service may be considered to be the employee’s employer and the staffing service shall pay unemployment insurance taxes at the staffing service’s unemployment insurance tax rate. The agency may not make an authorization under this subsection unless one of the following requirements is met:
   1. In the case of a client company unemployment insurance tax rate that is higher than the staffing services tax rate:
      1. The staffing service:
         1. Calculates the difference between the staffing service’s tax rate and the client company’s tax rate;
         2. Applies the difference to the wages to be earned by the employees furnished to the client company in the following completed calendar quarter; and
         3. Notifies the agency that such application would, if the staffing service’s tax rate were applied to those same wages, cause a reduction in the tax due on those wages which does not exceed five hundred dollars.
      2. If the reduction under paragraph 1 exceeds five hundred dollars, at the written request of the staffing service, the agency may make a written determination that it is appropriate to allow the staffing service to use the staffing service’s unemployment insurance tax rate. The agency shall respond to a request under this paragraph within fifteen days of receiving all required information.
   2. The staffing service includes in its contract with the client company a requirement that if the client company’s unemployment insurance tax rate is higher than the staffing service’s tax rate, the client will arrange to make payment to the agency, pursuant to subsection 4 of section 52-04-06, in the amount necessary to cause the client company’s unemployment insurance tax rate should it be recomputed to be determined by the agency to be equivalent to the staffing service’s unemployment insurance tax rate. Before the agency makes an authorization under this subdivision, the agency actually must receive payment of the amount required to cause the determination that the client company has complied with this subdivision.
   3. The staffing service demonstrates to the agency that the staffing service has entered an agreement with a client company that has an unemployment insurance tax rate that is, at the time of execution of the contract, equal to or lower than the staffing service’s tax rate.
4. If a staffing service enters a contract with a client company that has an unemployment insurance tax rate that is lower than the staffing service’s tax rate, the agency shall determine the following year’s tax rate for the staffing service by calculating a blended reserve ratio using the proportion of that client company’s total wages paid for up to the previous six years to the total wages paid for up to the previous six years for all of that staffing service’s client companies whose furnished workers are considered the staffing service’s employees for unemployment insurance tax purposes pursuant to subsection 3.
5. Both a staffing service and client company are considered employers for the purposes of this title. Both parties to a contract between a staffing service and a client company are jointly liable for delinquent unemployment insurance taxes, and the agency may seek to collect such delinquent taxes, and any penalties and interest due, from either party. The agency shall send notices of rate determinations annually to the staffing service. This chapter does not modify or impair any other provisions of the contract between the staffing service and the client company not relating to the requirements of this subsection concerning liability for payment of taxes on the wages paid to workers furnished by the staffing service to the client company, and the means of determining the tax rate to be applied to those wages. Any report that relates to the Federal Unemployment Tax Act [68A Stat. 439; 26 U.S.C. 3301 et seq.] which is required to be submitted to the federal internal revenue service regarding a staffing service must be submitted with the employer identification number of the staffing service.
6. The agency shall determine whether a person is a staffing service. If the agency determines a person is a staffing service, the agency may further determine if the person is a temporary staffing service. The agency’s determination must be issued in writing, and within fifteen days of the date of issuance of that determination, a person aggrieved by that determination may appeal that determination. The appeal must be heard in the same manner and with the same possible results as all other administrative appeals under this title. In making a determination under this subsection, the agency may consider:
   1. The number of client companies with which the staffing service has contracts;
   2. The length of time the staffing service has been in existence;
   3. The extent to which the staffing service extends services to the general public;
   4. The degree to which the client company and the staffing services are separate and unrelated business entities;
   5. The repetition of officers and managers between the client company and staffing service;
   6. The scope of services provided by the staffing service;
   7. The relationship between the staffing service and the client company’s workers;
   8. The written agreement between the staffing service and the client company; and
   9. Any other factor determined relevant by the agency.
7. The agency may require information from any staffing service, including a list of current client company accounts, staffing assignments, and wage information. A client company shall provide any information requested by the agency regarding any staffing service.

52-05-01. Employing unit deemed to be employer for entire calendar year — Exception.

Any employing unit which is or becomes an employer subject to the North Dakota unemployment compensation law within any calendar year must be deemed to be an employer during the whole of such calendar year, except as provided in sections 52-05-02 and 52-05-03.

52-05-02. Employer subject to provisions of law for term of two years.

Any employing unit, not otherwise subject to the provisions of the North Dakota unemployment compensation law, which files with the bureau its written election to become an employer subject to such provisions for not less than two calendar years, upon the written approval of such election by the bureau, shall become an employer subject hereto to the same extent as all other employers as of the date stated in such approval. Such employing unit shall cease to be subject to the provisions of the North Dakota unemployment compensation law as of January first of any calendar year subsequent to such two calendar years, only if during January of such year it has filed with the bureau a written notice to that effect.

52-05-03. Employment not included within law may be deemed subject to provisions of law.

1. Any political subdivision of this state may elect to cover under the North Dakota unemployment compensation law service performed by employees in all of the hospitals and institutions of higher education, as defined in subsections 25 and 27 of section 52-01-01, operated by such political subdivision.
   1. Election is to be made by filing with the bureau a notice of such election at least thirty days prior to the effective date of such election. The election may exclude any services described in subdivision h of subsection 17 of section 52-01-01. Any political subdivision electing coverage under this subsection shall make payments in lieu of contributions with respect to benefits attributable to such employment in the same manner provided for payment by nonprofit organizations in chapter 52-04.
   2. The provisions in subsection 11 of section 52-06-02 with respect to benefit rights based on service for state and nonprofit institutions of higher education are applicable also to service covered by an election under this section.
   3. The amounts required to be paid in lieu of contributions by any political subdivision under this section must be billed and payment made as provided in chapter 52-04 with respect to similar payments by nonprofit organizations.
   4. An election under this subsection may be terminated by filing with the bureau written notice not later than thirty days preceding the last day of the calendar year in which the termination is to be effective. Such termination becomes effective as of the first day of the next ensuing calendar year with respect to services performed after that date.
2. Any other employing unit, inclusive of governmental units, for which services are performed that do not constitute employment as defined in the North Dakota unemployment compensation law may file with the bureau a written election that all such services with respect to which payments are not required under an unemployment compensation law of any other state or of the federal government, and which are performed by individuals in its employ in one or more distinct establishments or places of business must be deemed to constitute employment by an employer for all the purposes of the North Dakota unemployment compensation law for not less than two calendar years. Upon the written approval of such election by the bureau, such services must be deemed to constitute employment subject to the provisions of the North Dakota unemployment compensation law from and after the date stated in such approval. Such services must cease to be deemed employment subject hereto as of January first of any calendar year subsequent to such two calendar years, only if during January of such year such employing unit has filed with the bureau a written notice to that effect. The bureau in its discretion may on its own motion terminate any election agreement under this subsection upon thirty days’ notice to the employer. The rate of contribution for employment covered by an election under this subsection must be as provided in chapter 52-04, except, however, an electing governmental unit in addition to those provided for in subsection 1, which hereafter becomes an employer under this chapter, shall reimburse the state unemployment fund in an amount equal to its share of costs to the unemployment fund.
3. After the termination of an election under this chapter, governmental units shall remain liable for their proportionate share of benefits which are based on wages paid for services during the period of election.

52-05-04. Termination as employer — Regulations governing.

Except as provided in sections 52-05-02 and 52-05-03, an employing unit shall cease to be an employer subject to the North Dakota unemployment compensation law only as of the first day of January of any calendar year, and only if it files with the bureau during January of such year, a written application for termination of coverage, and the bureau finds that the employing unit is not an employer as defined in the North Dakota unemployment compensation law. During January of any calendar year, the bureau on its own motion, may file an application for termination of coverage on behalf of any employer who during the preceding year was liable for contributions under the terms of the North Dakota unemployment compensation law, but who:

1. Has removed from the state;
2. Has discontinued the business conducted by it at the time it became liable under the terms of the North Dakota unemployment compensation law; or
3. Has been adjudged bankrupt or has become insolvent.

Such application for termination of coverage filed by the bureau on its own motion must be acted upon in exactly the same manner as though the application had been filed by the employer.

52-06-01. Conditions required to be eligible for benefits.

An unemployed individual is eligible to receive benefits with respect to any week only if the bureau finds that:

1. The individual has made a claim for benefits with respect to such week in accordance with such regulations as the bureau may prescribe;
2. The individual has registered for work and thereafter continued to complete all assigned services and report to a local office as required in accordance with such regulations as the bureau may prescribe, except that the bureau may, by regulation, waive or alter either or both of the requirements of this subsection as to individuals attached to regular jobs and as to such other types of cases or situations with respect to which it finds that compliance with such requirements would be oppressive, or would be inconsistent with the purposes of the North Dakota unemployment compensation law; provided, that no such regulation shall conflict with section 52-06-03;
3. The individual is able to work and is available for suitable work and actively seeking work, provided:
   1. That notwithstanding any other provisions in this section, no otherwise eligible individual may be denied benefits for any week because the individual is in training with the approval of the bureau by reason of the application of provisions of this subsection relating to availability for work and to active search for work, or the provisions of subsection 3 of section 52-06-02 relating to disqualification for benefits for failure to apply for, or a refusal to accept, suitable work; and
   2. That no claimant may be considered ineligible in any week of unemployment for failure to comply with this subsection, if the failure is due to an illness or disability not covered by workforce safety and insurance and which occurred after the claimant has registered for work and no work has been offered the claimant which is suitable;
4. The individual has been unemployed for a waiting period of one week. The executive director may suspend the waiting period during periods of time when federal reimbursement for benefit charges incurred for the suspended waiting period is made available to the bureau. Any suspension of the waiting period applies to all new initial claims filed with an effective date within the time period in which the waiting period is suspended. No week may be counted as a week of unemployment for the purposes of this subsection:
   1. Unless it occurs within the benefit year which includes the week with respect to which the individual claims payment of benefits;
   2. If benefits have been paid with respect thereto; and
   3. Unless the individual was eligible for benefits, with respect thereto as provided in this section and section 52-06-02; and
5. The individual participates in re-employment services, such as job search assistance services, if the individual has been determined to be likely to exhaust regular benefits and to need re-employment services pursuant to a profiling system established by the bureau, unless the bureau determines that:
   1. The individual has completed these services; or
   2. There is justifiable cause for the claimant’s failure to participate in these services.

52-06-02. Disqualification for benefits.

An individual is disqualified for benefits:

1. 1. For the week in which the individual has left the individual’s most recent employment voluntarily without good cause attributable to the employer, and thereafter until such time as the individual:
      1. Can demonstrate that the individual has earned remuneration for personal services in employment from and after the date of the unemployment compensation claim filing, equivalent to at least eight times the individual’s weekly benefit amount as determined under section 52-06-04; and
      2. Has not left the individual’s most recent employment under disqualifying circumstances.
   2. A temporary employee of a temporary help firm is deemed to have left employment voluntarily if the employee does not contact the temporary help firm for reassignment before filing for benefits. Failure to contact the temporary help firm is not deemed a voluntary leaving of employment unless the claimant was advised of the obligation to contact the temporary help firm upon completion of an assignment and advised that unemployment benefits may be denied for failure to contact the temporary help firm. As used in this subsection, “temporary employee” means an employee assigned to work for a client of a temporary help firm; and “temporary help firm” means a firm that hires that firm’s own employees and assigns these employees to a client to support or supplement the client’s workforce in a work situation such as employee absence, temporary skill shortage, seasonal workload, a special assignment, and a special project.
   3. This subsection does not apply if job service North Dakota determines that the individual in an active claim filing status accepted work which the individual could have refused with good cause under section 52-06-36 and terminated such employment with the same good cause and within the first ten weeks after starting work.
   4. This subsection does not apply if the individual left employment or remains away from employment following illness or injury upon a physician’s written notice or order; no benefits may be paid under this exception unless the employee has notified the employer of the physician’s requirement and has offered service for suitable work to the employer upon the individual’s capability of returning to employment. This exception does not apply unless the individual’s capability of returning to employment and offer of service for suitable work to the employer occurs within sixty days of the last day of work. However, the cost of any benefits paid under this exception may not be charged against the account of the employer, other than a reimbursing employer, from whom the individual became separated as a result of the illness or injury. Job service North Dakota may request and designate a licensed physician to provide a second opinion regarding the claimant’s qualification; however, no individual may be charged fees of any kind for the cost of such second opinion.
   5. This subsection does not apply if the individual left the most recent employment because of an injury or illness caused or aggravated by the employment; no benefits may be paid under this exception unless the individual leaves employment upon a physician’s written notice or order, the individual has notified the employer of the physician’s requirement, and there is no reasonable alternative but to leave employment.
   6. For the purpose of this subsection, an individual who left the most recent employment in anticipation of discharge or layoff must be deemed to have left employment voluntarily and without good cause attributable to the employer.
   7. For the purpose of this subsection, “most recent employment” means employment with any employer for whom the claimant last worked and voluntarily quit without good cause attributable to the employer or with any employer, in insured work, for whom the claimant last worked and earned wages equal to or exceeding eight times the individual’s weekly benefit amount.
   8. This subsection does not apply if the individual leaves work which is two hundred road miles [321.87 kilometers] or more, as measured on a one-way basis, from the individual’s home to accept work which is less than two hundred road miles [321.87 kilometers] from the individual’s home provided the work is a bona fide job offer with a reasonable expectation of continued employment.
   9. This subsection does not apply if the individual voluntarily leaves most recent employment to accept a bona fide job offer with a base-period employer who laid off the individual and with whom the individual has a demonstrated job attachment. For the purposes of this exception, “demonstrated job attachment” requires earnings in each of six months during the five calendar quarters before the calendar quarter in which the individual files the claim for benefits.
   10. 1. This subsection does not apply if the reason for separation from the individual’s employment is directly attributable to domestic violence, stalking, or sexual assault that is verified by documentation submitted to job service North Dakota which substantiates the individual’s reason for separation from the most recent employment and such continued employment would jeopardize the safety of the individual or of the individual’s spouse, parent, or minor child. After receiving a claim for unemployment insurance benefits for which the individual identifies domestic violence, stalking, or sexual assault as the reason for separation, job service North Dakota shall notify the most recent employer of the reason for separation provided by the individual.
       2. For purposes of this subdivision, documentation of domestic violence or sexual assault includes:
          1. A court order, protection order, restraining order, or other record filed with a court;
          2. A police or law enforcement record;
          3. A medical record indicating domestic violence or sexual assault; or
          4. A written affidavit provided by an individual who has assisted the claimant in dealing with the domestic violence or sexual assault and who is a:
             1. Licensed counselor;
             2. Licensed social worker;
             3. Member of the clergy;
             4. Director or domestic violence advocate at a domestic violence sexual assault organization as defined in section 14-07.1-01; or
             5. Licensed attorney.
       3. For purposes of this subdivision, documentation of stalking must include:
          1. A police or law enforcement record; and
          2. A written affidavit provided by an individual who has assisted the claimant in dealing with the stalking and who is a:
             1. Licensed counselor;
             2. Licensed social worker;
             3. Member of the clergy;
             4. Director of domestic violence advocate at a domestic violence sexual assault organization as defined in section 14-07.1-01; or
             5. Licensed attorney.
       4. Documentation must be received by job service North Dakota within fourteen calendar days from the date the individual files a claim for unemployment insurance benefits after separating from employment for reasons directly attributable to domestic violence, stalking, or sexual assault.
       5. A false statement of domestic violence, stalking, or sexual assault in a claim for unemployment insurance benefits is subject to subsection 8 and section 52-06-40.
   11. This subsection does not apply if the individual is a military spouse who, after disclosure to the individual’s employer and a reasonable attempt to maintain the employment relationship through accommodation, voluntarily left the most recent employment to relocate because of permanent change of station orders of the individual’s military-connected spouse. For purposes of this subdivision:
       1. “Military spouse” means the spouse of a member of the armed forces of the United States or a reserve component of the armed forces of the United States stationed in this state in accordance with military orders or stationed in this state before a reassignment to duties outside this state.
       2. “Permanent change of station orders” means the assignment, reassignment, or transfer of a member of the armed forces of the United States or a reserve component of the armed forces of the United States from the member’s present duty station or location without return to the previous duty station or location.
2. For the week in which the individual has been discharged for misconduct in connection with the individual’s most recent employment and thereafter until such time as the individual:
   1. Can demonstrate that the individual has earned remuneration for personal services in employment from and after the date of the unemployment compensation claim filing, equivalent to at least ten times the individual’s weekly benefit amount as determined under section 52-06-04; and
   2. Has not left the individual’s most recent employment under disqualifying circumstances.
3. If the individual has failed, without good cause, either to accept suitable employment; to apply for suitable employment; or to return to the individual’s customary self-employment, if any, when so directed to do so by the bureau or its authorized representative. Such disqualification must continue for the week in which such failure occurred and thereafter until such time as the individual:
   1. Can demonstrate that the individual has earned remuneration for personal services in employment equivalent to at least ten times the individual’s weekly benefit amount as determined under section 52-06-04; and
   2. Has not left the individual’s most recent employment under disqualifying circumstances.
4. For any week with respect to which it is found that the individual’s unemployment is due to any kind of labor dispute, including a strike, sympathy strike, or lockout; provided, that this subsection does not apply if it is shown that:
   1. The individual is not participating in or directly interested in the labor dispute; and
   2. The individual does not belong to a grade or class of workers of which, immediately before the commencement of the labor dispute, there were members employed at the premises at which the labor dispute occurs, any of whom are participating in or directly interested in the labor dispute; provided, that if in any case separate branches of work, which are commonly conducted as separate businesses in separate premises, are conducted in separate departments of the same premises, each such department must, for the purpose of this subsection, be deemed to be a separate factory, establishment, or other premises.
5. For any week with respect to which or a part of which the individual has received or is seeking unemployment benefits under an unemployment compensation law of another state or of the United States; provided, that if the appropriate agency of such state or of the United States finally determines that the individual is not entitled to such unemployment benefits, this disqualification does not apply.
6. For any week of unemployment if such individual is a student registered for a full-time curriculum at, and is regularly attending, an established school, college, or university, and the scheduled class hours are the same time period or periods as the normal work hours of the occupation from which that individual earned the majority of the wages in that individual’s base period, unless that individual is authorized to receive benefits while in training pursuant to subsection 3 of section 52-06-01. However, this disqualification does not apply to students registered for a full-time curriculum who have earned the majority of the wages in their base periods for services performed during weeks in which the individual was so registered and attending school. As used in this subsection, the term “full-time curriculum” means a course load of twelve or more credit hours or a course load found to be equivalent by rule adopted by job service North Dakota.
7. For any week in which the individual is partially or totally unemployed by reason of a disciplinary suspension of not more than thirty days by the individual’s employer for misconduct connected with the individual’s employment, and the bureau so finds.
8. For the week in which the individual has filed an otherwise valid claim for benefits and:
   1. For one year from the date on which a determination is made that such individual has made a false statement for the purposes of obtaining benefits to which the individual was not lawfully entitled. Provided, however, that this disqualification does not apply to cases in which it appears to the satisfaction of job service North Dakota that the false statement was made by reason of a mistake or misunderstanding of law or of facts without fraudulent intent; or
   2. For one year when the individual has been separated from the individual’s last employment because of gross misconduct in connection with work.
9. Which are based on service performed in an instructional, research, or principal administrative capacity for any educational institution, for any week of unemployment commencing during the period between two successive academic years, or during a similar period between two regular but not successive terms, or during a period of paid sabbatical leave provided for in the individual’s contract, if the individual performed such services in the first of such academic years or terms and if there is a contract or a reasonable assurance that the individual will perform services in any such capacity for any educational institution in the second of such academic years or terms. This disqualification does not apply to such services performed by an individual who is in the employ of an elementary or secondary school operated by the federal government or to an individual with respect to services performed in employment other than employment as defined in subdivisions f and g of subsection 17 of section 52-01-01. Except for the provisions of this subsection, benefits based on service in employment as defined in subdivisions f and g of subsection 17 of section 52-01-01 are payable in the same amount, on the same terms, and subject to the same conditions as compensation payable on the basis of other service subject to the North Dakota unemployment compensation law.
10. Which are based on services performed in any other capacity not described in subsection 9 for any educational institution, for any week which commences during a period between two successive academic years or terms if the individual performed such services in the first of such academic years or terms and there is a reasonable assurance that the individual will perform such services in the second of such academic years or terms. This disqualification does not apply to such services performed by an individual who is in the employ of an elementary or secondary school operated by the federal government or to an individual with respect to services performed in employment other than employment as defined in subdivisions f and g of subsection 17 of section 52-01-01. Except for the provisions of this subsection, benefits based on service in employment as defined in subdivisions f and g of subsection 17 of section 52-01-01 are payable in the same amount, on the same terms, and subject to the same conditions as compensation payable on the basis of other service subject to the North Dakota unemployment compensation law. If compensation is denied to any individual under this subsection and the individual was not offered an opportunity to perform such services for the educational institution for the second of such academic years or terms, that individual is entitled to a retroactive payment of compensation for each week for which the individual filed a timely claim for compensation and for which compensation was denied solely by reason of this subsection.
11. Which are based on any services described in subsection 9 or 10 for any week which commences during an established and customary vacation period or holiday recess if the individual performs the services in the period immediately before the vacation period or holiday recess, and there is a reasonable assurance that the individual will perform the services in the period immediately following the vacation period or holiday recess.
12. Which are based on any services described in subsection 9 or 10 if the individual performed the services in an educational institution while in the employ of an educational service agency. The disqualification must be as specified in subsections 9, 10, and 11. For this purpose the term “educational service agency” means a governmental agency or governmental entity which is established and operated exclusively for the purpose of providing such services to one or more educational institutions.
13. Which are based on service, substantially all of which consists of participating in sports or athletic events or training or preparing to so participate, for any week which commences during the period between two successive sport seasons or similar periods if such individual performed such services in the first of such seasons or similar periods and there is a reasonable assurance that such individual will perform such services in the later of such seasons or similar periods.
14. Which are based on service performed by an alien, unless such alien is an individual who was lawfully admitted for permanent residence at the time such services were performed, was lawfully present for purposes of performing such services, or otherwise was permanently residing in the United States under color of law at the time such services were performed, including an alien who was lawfully present in the United States as a result of the application of the provisions of sections 207 and 208 or section 212(d)(5) of the Immigration and Nationality Act.
    1. Any data or information required of individuals applying for benefits to determine whether benefits are not payable to them because of their alien status must be uniformly required from all applicants for benefits.
    2. In the case of an individual whose application for benefits would otherwise be approved, no determination that benefits to such individual are not payable because of the individual’s alien status may be made except upon a preponderance of the evidence.
15. For any week with respect to which an individual is receiving a pension, including a governmental pension other than federal social security retirement benefits, and any other pension, retirement pay, retired pay, annuity, and any other similar periodic payment under a plan maintained or contributed to by a base-period or chargeable employer as determined under applicable law, unless the weekly benefit amount payable to such individual for such week is reduced, but not below zero:
    1. By the prorated weekly amount of the pension after deduction of three-fourths of the portion of the pension that is directly attributable to the percentage of the contributions made to the plan by such individual for claims filed after June 30, 1985, and by the prorated weekly amount of the pension after deduction of the portion of the pension that is directly attributable to the percentage of the contributions made to the plan by such individual for claims filed after June 30, 1986;
    2. By the entire prorated weekly amount of the pension if subdivision a or c does not apply; or
    3. By one-fourth of the pension if the entire contributions to the plan were provided by such individual, by the individual and an employer, or by any other person that is not a base-period or chargeable employer as determined under applicable law, for claims filed after June 30, 1985, and by no part of the pension if the entire contributions to the plan were provided by such individual, by the individual and an employer, or by any other person that is not a base-period or chargeable employer as determined under applicable law, for claims filed after June 30, 1986.
16. Except that no otherwise eligible individual may be denied benefits for any week because the individual is in training approved under section 236(a)(1) of the Trade Act of 1974 [19 U.S.C. 2296(a)(1)], nor may such individual be denied benefits by reason of leaving work to enter such training, provided the work left is not suitable employment, or because of the application to any such week in training of provisions in the North Dakota unemployment compensation law, or any applicable federal unemployment compensation law, relating to availability for work, active search for work, or refusal to accept work.
17. With respect to services to which subdivisions f and g of subsection 17 of section 52-01-01 apply, if the services are provided to or on behalf of an educational institution, benefits are not payable under the same circumstances and subject to the same terms and conditions as described in subsections 9, 10, 11, and 12.

For the purpose of this subsection, “most recent employment” means employment with any employer for whom the claimant last worked and was discharged for misconduct in connection with the claimant’s employment or with any employer, in insured work, for whom the claimant last worked and earned wages equal to or exceeding ten times the claimant’s weekly benefit amount.

A reduction may not be made under this subsection by reason of the receipt of a pension if the services performed by the individual during the base period, or remuneration received for such services, for the employer did not affect the individual’s eligibility for, or increase the amount of, the pension, retirement pay, retired pay, annuity, or similar payment. This limitation does not apply to pensions paid under the Railroad Retirement Act of 1974, or the corresponding provisions of prior law. Payments made under the Railroad Retirement Act of 1974 must be treated solely in the manner specified by subdivisions a, b, and c. A reduction may not be made under this subsection by reason of receipt of federal social security retirement benefits.

For purposes of this subsection, the term “suitable employment” means with respect to an individual, work of a substantially equal or higher skill level than the individual’s past adversely affected employment, as defined for purposes of the Trade Act of 1974, and wages for such work at not less than eighty percent of the individual’s average weekly wage as determined for the purposes of the Trade Act of 1974.

52-06-03. When benefits payable.

Beginning twenty-four months after the date when contributions first accrued under the North Dakota unemployment compensation law, benefits become payable from the fund. Benefits must be paid through public employment offices in accordance with such regulations as the bureau may prescribe.

52-06-04. Weekly benefit amount — Average annual wage — Average weekly wage — Minimum weekly benefit amount — Maximum weekly benefit amount — Qualifying wage — Insured worker and insured work defined.

1. The procedures, provisions, and conditions of this section must determine the “weekly benefit amount” of those individuals who establish a benefit year:
   1. For the purpose of this section, the bureau shall each year, on or before the first day of June, determine the average annual wage paid to insured workers and, from that determination, an “average weekly wage”, by the following computation:
   2. An individual’s “weekly benefit amount” is one sixty-fifth, if not a multiple of one dollar to be computed to the next lower multiple of one dollar, of the sum of:
      1. The individual’s total wages for insured work paid during the two quarters of the individual’s base period in which the individual’s wages were the highest; and
      2. One-half of the individual’s total wages for insured work paid during the third highest quarter in the individual’s base period.
2. To qualify as an insured worker an individual must have been paid wages for insured work in at least two calendar quarters of the individual’s base period totaling not less than one and one-half times the individual’s total wages paid during the quarter of the individual’s base period in which the individual’s wages were the highest. However, the wage credits of an individual earned during the period commencing with the end of the prior base period and ending on the date on which the individual filed a valid claim are not available for benefit purposes in a subsequent benefit year unless, in addition thereto, the individual has subsequently earned wages for insured work in an amount equal to at least ten times the individual’s current weekly benefit amount. Base-period wages used to determine an individual’s monetary eligibility under this subsection, as a result of the following employment, may not exceed ten times the individual’s weekly benefit amount:
   1. Employment by a partnership, if one-fourth or greater ownership interest in the partnership is or during such employment was owned or controlled, directly or indirectly by the individual’s spouse or child, or by the individual’s parent if the individual is under age eighteen, or by a combination of two or more of them.
   2. Employment by a corporation, if one-fourth or more of the ownership interest, however designated or evidenced in the corporation is or during such employment was owned or controlled, directly or indirectly, by the individual or by the individual’s spouse or child, or by the individual’s parent if the individual is under age eighteen, or by a combination of two or more of them.
   3. Employment by a limited liability company, if one-fourth or more of the ownership interest, however designated or evidenced in the limited liability company is or during such employment was owned or controlled, directly or indirectly, by the individual’s spouse or child, or by the individual’s parent if the individual is under eighteen, or by a combination of two or more of them.
   4. The exceptions in subdivisions a, b, and c do not apply if, at the time of making the claim, the ownership interest described in those subdivisions has been ceded. An ownership interest is ceded within the meaning of this subdivision if:
      1. The appropriate official of the partnership, corporation, or limited liability company has officially filed articles of dissolution, a notice of intent to dissolve, or a notice of termination with the secretary of state, and presents proof of that filing to job service North Dakota;
      2. The appropriate official of the corporation has received a certificate of dissolution from the secretary of state;
      3. The partnership, corporation, or limited liability company has sold or otherwise transferred to uninvolved third parties substantially all the assets of the partnership, corporation, or limited liability company with an intent to end the business operation and terminate or dissolve the partnership, corporation, or limited liability company. As used in this subdivision, “uninvolved third parties” excludes all relatives of the partners, directors, members of a board of governors, or substantial stockholders or holders of a substantial membership interest in a limited liability company; and excludes any corporation, limited liability company, or partnership, in which the relative holds a one-fourth or greater ownership interest. As used in this paragraph, “relative” means the following persons whether related by blood, marriage, or adoption: grandparents, parents, siblings, spouses, children, grandchildren, uncles, aunts, and first cousins; or
      4. Substantially all of the assets of the partnership, corporation, or limited liability company have been legally seized by creditors rendering the business incapable of further operation.
3. With respect to weeks of unemployment beginning on or after January 1, 1978, wages for insured work shall include wages paid for previously uncovered services. For the purposes of this subsection, the term “previously uncovered services” means services:
   1. Which were not employment as defined in subsection 17 of section 52-01-01 and were not services covered pursuant to section 52-05-03 at any time during the one-year period ending December 31, 1975; and
   2. Which are:
      1. Agricultural labor as defined in subdivision m of subsection 17 of section 52-01-01, or domestic service as defined in subdivision n of subsection 17 of section 52-01-01; or
      2. Services performed by an employee of this state or a political subdivision thereof, as provided in subdivision f of subsection 17 of section 52-01-01, or by an employee of a nonprofit educational institution which is not an institution of higher education, as provided in paragraph 3 of subdivision h of subsection 17 of section 52-01-01; except to the extent that assistance under title II of the Emergency Jobs and Unemployment Assistance Act of 1974 was paid on the basis of such services.
4. For the purpose of the North Dakota unemployment compensation law, the term “insured worker” means an individual who, with respect to a base period, meets the wage and employment requirements of this chapter and “insured worker” means employment for “employers”.

The total wages reported on contribution reports for the preceding calendar year must be divided by the average monthly number of covered workers, whose number must be determined by dividing by twelve the total covered employment reported on contribution reports for the preceding calendar year, and the quotient obtained by dividing the total wages by the average monthly number of covered workers is the average annual wage; and such quotient must be divided by fifty-two and the amount thus obtained, rounded to the nearest cent, is the “average weekly wage”.

However, if that amount is less than the “minimum weekly benefit amount” the individual is monetarily ineligible for benefits. The “minimum weekly benefit amount” is forty-three dollars. The “maximum weekly benefit amount” is sixty-two percent of the “average weekly wage”, rounded to the next lower multiple of one dollar if not a multiple of one dollar. However, if on October first of any calendar year this state’s average contribution rate is below the nationwide average for the preceding calendar year, the maximum weekly benefit amount is sixty-five percent of the “average weekly wage”, rounded to the next lower multiple of one dollar if not a multiple of one dollar.

52-06-05. Maximum potential benefits.

Any otherwise eligible individual is entitled during the individual’s benefit year to benefits for the number of times the individual’s weekly benefit amount appearing in the following table on the line which includes the individual’s ratio of total base-period wages to highest quarter base-period wages:

Ratio of Total Base-PeriodWages to High Quarter Times WeeklyBenefit Amount 1.50 to 2.29 12 2.30 to 2.44 14 2.45 to 2.59 16 2.60 to 2.74 18 2.75 to 2.89 20 2.90 to 3.04 22 3.05 to 3.19 24 3.20 or more 26

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52-06-06. Weekly benefit for unemployment.

Each eligible individual who is unemployed with respect to any week must be paid with respect to such week a benefit in an amount equal to the individual’s weekly benefit amount less that part of the wages, if any, payable to the individual with respect to such week which is in excess of sixty percent of the individual’s weekly benefit amount. Such benefit, if not a multiple of one dollar, must be computed to the next higher multiple of one dollar. For the purposes of this section, wages are payable with respect to the weeks for which they were reasonably intended to be payable, irrespective of whether services were performed in those weeks.

52-06-06.1. Weekly benefit reduction for child support.

1. An individual filing a new claim for unemployment compensation shall, at the time of filing such claim, disclose whether or not the individual owes child support obligations as defined under subsection 7. If any such individual discloses that the individual owes child support obligations, and is determined to be eligible for unemployment compensation, the bureau shall notify the state or local child support enforcement agency enforcing such obligation that the individual has been determined to be eligible for unemployment compensation.
2. The bureau shall deduct and withhold from any unemployment compensation payable to an individual that owes child support obligations as defined under subsection 7:
   1. The amount specified by the individual to the bureau to be deducted and withheld under this subsection, if neither subdivision b nor c are applicable;
   2. The amount, if any, determined pursuant to an agreement submitted to the bureau under section 454(20)(B)(i) of the Social Security Act [42 U.S.C. 654(20)(B)(i)] by the state or local child support enforcement agency, unless subdivision c is applicable; or
   3. Any amount otherwise required to be so deducted and withheld from such unemployment compensation pursuant to legal process, as that term is defined in section 459(i)(5) of the Social Security Act [42 U.S.C. 659(i)(5)], properly served upon the bureau.
3. Any amount deducted and withheld under subsection 2 must be paid by the bureau to the appropriate state or local child support enforcement agency.
4. Any amount deducted and withheld under subsection 2 must for all purposes be treated as if it were paid to the individual as unemployment compensation and paid by such individual to the state or local child support enforcement agency in satisfaction of the individual’s child support obligations.
5. For purposes of subsections 1 through 4, the term “unemployment compensation” means any compensation payable under the North Dakota unemployment compensation law, including amounts payable by the bureau pursuant to an agreement under any federal law providing for compensation, assistance, or allowances with respect to unemployment.
6. This section applies only if appropriate arrangements have been made for reimbursement by the state or local child support enforcement agency for the administrative costs incurred by the bureau under this section which are attributable to child support obligations being enforced by the state or local child support enforcement agency.
7. The term “child support obligations” is defined for purposes of these provisions as including only obligations which are being enforced pursuant to a plan described in section 454 of the Social Security Act [42 U.S.C. 654] which has been approved by the secretary of health and human services under part D of title IV of the Social Security Act.
8. The term “state or local child support enforcement agency”, as used in these provisions, means any agency of this state or a political subdivision thereof operating pursuant to a plan described in subsection 7.

52-06-07. Wages payable prior to January 1, 1941, deemed wages paid within calendar quarter.

For the purposes of section 52-06-04 and subsection 30 of section 52-01-01, wages payable to an individual for insured work performed prior to January 1, 1941, must be deemed to be wages paid within the calendar quarter with respect to which such wages were paid.

52-06-08. Claims for benefits — How made.

Claims for benefits under the North Dakota unemployment compensation law must be made in accordance with such regulations as the bureau may prescribe.

52-06-09. Determinations upon claim filed — Contents.

A determination upon a claim filed pursuant to section 52-06-08 must be made promptly by an examiner and must include a statement as to whether and in what amount the claimant is entitled to benefits for the weeks with respect to which the determination is made and in the event of a denial must include a statement of the reasons therefor. A determination with respect to the first week of a benefit year also must include a statement as to whether the claimant has been paid the wages required under section 52-06-04 and if so, the first day of the benefit year, the claimant’s weekly benefit amount, and the maximum total amount of benefits payable to the claimant with respect to such benefit year.

52-06-10. Determinations in labor dispute cases.

Whenever any claim for benefits under the North Dakota unemployment compensation law involves the application of the provisions of subsection 4 of section 52-06-02, the examiner handling the claim, if so directed by the bureau, shall transmit such claim promptly to the appeals referee for the purpose of making a determination upon the issues involved under that section or upon such claim. The appeals referee shall make the determination on the claim after such investigation as the appeals referee deems necessary and after affording the parties entitled to notice an opportunity for a fair hearing in accordance with the provisions of the North Dakota unemployment compensation law with respect to hearings and determinations of the appeal tribunals. The parties must be notified promptly of the determination, together with the reasons therefor, in the event of the denial of the claim. Such determination must be deemed to be the final decision on the claim, unless within seven days of the mailing of the notice to a party’s last-known address, or in the absence of such mailing, within ten days after the delivery of such notice, an appeal is filed with the bureau.

52-06-11. Determination of benefits for individual who secures work on a regular attachment basis.

Notwithstanding any other provisions of the North Dakota unemployment compensation law, the bureau, by regulation, may prescribe that the existence of unemployment, the eligibility for benefits, and the amount of benefits shall be determined for that portion of the week occurring before or after a separation from, or securing of, work in the case of any otherwise eligible claimant who, within a week of unemployment, is separated from or secures work on a regular attachment basis. Such rules must be reasonably calculated to secure general results substantially similar to those provided by the North Dakota unemployment compensation law with respect to weeks of unemployment.

52-06-12. Notice of determinations — Dispensing with.

Notice of a determination upon a claim must be given promptly to the claimant by delivery thereof or by mailing such notice to the claimant’s last-known address. In addition, notice of any determination which involves the application of the provisions of section 52-06-02 together with the reasons therefor, must be given promptly in the same manner to the last employing unit by whom the claimant was employed. The bureau may dispense with the giving of notice of any determination to any employing unit and such employing unit shall not be entitled to such notice if it has failed to indicate prior to the determination if and as required by regulation of the bureau, that such employing unit was the claimant’s base-period employer, as defined in the North Dakota unemployment compensation law, and that the claimant may be ineligible or disqualified under any provisions of the North Dakota unemployment compensation law.

52-06-12.1. Determination of eligibility — Notification of charges.

The bureau shall, upon determination of an individual’s eligibility for benefits chargeable against each base-period employer’s account, notify each of the individual’s base-period employers, including employers electing to finance benefit payments on a reimbursable basis, of the individual’s eligibility and maximum potential charges against the base-period employer’s account resulting from the individual’s eligibility for benefits.

52-06-13. Notice of appeal from determination — Filing — Hearing — Special notice required.

The claimant or any other party entitled to a notice of a determination as provided in the North Dakota unemployment compensation law may file an appeal from such determination with the appeal tribunal within twelve days after the date of mailing of the notice to the person’s last-known address or, if such notice is not mailed, within twelve days after the service of such notice. Unless the appeal is withdrawn with the permission of the appeal tribunal or is removed to the bureau, the appeal tribunal after affording the parties reasonable opportunity for a fair hearing shall make findings and conclusions and on the basis thereof shall affirm, modify, or reverse such determination. Whenever an appeal involves a question as to whether services were performed by the claimant in employment or for an employer, the tribunal shall give special notice of such issue and of the pendency of the appeal to the employing unit and to the bureau, both of whom thenceforth shall be parties to the proceeding and must be afforded a reasonable opportunity to adduce evidence bearing on such question.

52-06-14. Appeal tribunals — How comprised — Duties — Fees — Alternates — Chairman.

The bureau shall appoint one or more impartial appeal examiners known as the appeal tribunal, who shall hear and decide appealed claims. Each such tribunal shall consist of a referee selected in accordance with chapter 52-02, or a body composed of three members, one of whom must be a referee who shall serve as chairman and who must be a salaried full-time member of the staff of the job insurance division, and one of whom must be a representative of employers, and the other of whom must be a representative of employees. Each of the latter two members may be selected without regard to section 52-02-06 and shall serve at the pleasure of the bureau and be paid a fee of twenty-five dollars per day of active service on such tribunal, plus necessary expenses. The bureau may designate alternates to serve in the absence or disqualification of any member of an appeal tribunal. The chairman shall act alone in the absence or disqualification of any other member or member’s alternates. In no case may the hearings proceed unless the chairman of the appeal tribunal is present.

52-06-15. Appeal tribunal’s decision — Copy to be furnished — To be final — Exception.

The parties must be notified promptly of an appeal tribunal’s decision upon an appeal taken as is provided in section 52-06-13 and must be furnished with a copy of the decision and the findings and conclusions in support thereof. The decision is final unless, within twelve days after the date of mailing the notice thereof to the party’s last-known address, or in the absence of such mailing, within twelve days after the delivery of such notice, further review is initiated pursuant to section 52-06-19.

52-06-16. When redeterminations made by division — Notice.

The job insurance division may reconsider a determination of a claim whenever it finds:

1. That an error in computation or identity has occurred in connection therewith;
2. That wages of the claimant pertinent to such determination but not considered in connection therewith have been newly discovered; or
3. That benefits have been allowed or denied or the amount of benefits fixed on the basis of a misrepresentation of facts.

No such redetermination may be made after two years from the day of the original determination, except that a reconsidered determination involving a finding that benefits have been allowed or denied or the amount of benefits fixed on the basis of nondisclosure or misrepresentations of fact may be made within three years from the date of the determination. Notice of any such redetermination must be given promptly to the parties entitled to the notice or original determination and in the manner prescribed in section 52-06-12.

52-06-17. Appeal from redetermination — Regulations governing.

If the amount of benefits is increased upon such redetermination, an appeal from the redetermination, solely with respect to the matters involved in such increase, may be filed in the manner and subject to the limitations provided in this chapter. If the amount of benefits is decreased upon such redetermination, the matters involved in such decrease shall be subject to review in connection with an appeal from any determination upon a subsequent claim for benefits which may be affected in amount or duration by such redetermination. Subject to the same limitations and for the same reasons, the job insurance division may reconsider the determination in any case in which the final decision has been rendered by an appeal tribunal, the bureau, or a court and may apply to that body or court which rendered such final decision to issue a revised decision.

52-06-18. When appeal from original determination treated as appeal from redetermination.

If an appeal involving an original determination is pending as of the date a redetermination thereof is issued, such appeal, unless withdrawn, must be treated as an appeal from such redetermination.

52-06-19. Review of decision of appeal tribunal by the bureau.

The bureau, on its own motion, and within the time specified in section 52-06-15, may initiate a review of the decision of the appeal tribunal or may allow an appeal from such decision upon an application filed within such time by any party entitled to notice of such decision. An appeal filed by such parties must be allowed as a matter of right if such decision was not unanimous or if the examiner’s determination was not affirmed by the appeal tribunal. Upon a review on its own motion, or upon an appeal, the bureau upon the basis of the evidence previously submitted in such case or upon the basis of such additional evidence as it may direct to be taken, may affirm, modify, or reverse the findings and conclusions of the appeal tribunal. The bureau may remove to itself or transfer to another appeal tribunal the proceedings on any claim pending before an appeal tribunal. Any proceedings removed to the bureau prior to the completion of a fair hearing must be heard by the bureau in the same manner as proceedings before an appeal tribunal. The bureau shall notify promptly the parties to any proceeding before it of its decision, including its findings and conclusions in support thereof. Such decision is final unless within thirty days after the mailing of a notice thereof to the party’s last-known address, or in the absence of such mailing, within thirty days after service of such notice, a proceeding for a judicial review is initiated pursuant to section 52-06-27. Upon a denial by the bureau of an application for appeal from the decision of the appeal tribunal, the decision of the appeal tribunal must be deemed to be a decision of the bureau within the meaning of this section for the purposes of judicial review and is subject to judicial review within the time and in the manner provided with respect to decisions of the bureau, except that the time for initiating such review must run from the date of notice of the order by the bureau denying the application for appeal.

52-06-20. Procedure in hearings and appeals — Consolidating claims.

The bureau and appeal tribunal shall not be bound by common law or statutory rules of evidence or by technical rules of procedure, but any hearing or appeal before such tribunals must be conducted in such manner as to ascertain the substantial rights of the parties. The bureau shall adopt reasonable regulations governing the manner of filing appeals and the conduct of hearings and appeals, consistent with the provisions of the North Dakota unemployment compensation law. When the same or substantially similar evidence is relevant and material to the matters in issue in claims by more than one individual or in claims by a single individual with respect to two or more weeks of unemployment, the same time and place for considering each such claim may be fixed, hearings thereon jointly conducted, a single record of the proceedings made, and evidence adduced with respect to one proceeding considered as introduced in the others when, in the judgment of the appeal tribunal having jurisdiction of the proceeding, such consolidation would not be prejudicial to any party. No person may participate on behalf of the bureau in any case in which the person has a direct or indirect interest.

52-06-21. Conclusiveness of determinations and decisions.

Any right, fact, or matter in issue directly passed upon or necessarily involved in a determination or redetermination which has become final, or which has become final following a decision or appeal under the North Dakota unemployment compensation law, is conclusive for all the purposes of the North Dakota unemployment compensation law as between the bureau, the claimant, and all employing units who had notice of such determination, redetermination, or decisions. Any determination, redetermination, or decision as to rights to benefits which has become final and conclusive in accordance with this section is not subject to collateral attack by any employing unit, irrespective of notice. As used in this section, “collateral attack by any employing unit” includes a collateral attack by a reimbursing or contributory base-period employer on a final and conclusive determination of benefits involving a different employer provided that an employer challenging the propriety of charging any benefits paid as a result of a final determination, redetermination, or decision is entitled to receive data and information from job service North Dakota concerning the monetary basis for the claimant’s right to the benefits at issue. Provided further, that at any hearing on the challenge, job service North Dakota is not required to call or subpoena the claimant or the claimant’s last or most recent employer as a witness.

52-06-22. Rule of decision.

The final decisions of the bureau or of an appeal tribunal and the principles of law declared by it in arriving at such decisions, unless expressly or impliedly overruled by a later decision of the bureau or by a court of competent jurisdiction, are binding upon the bureau and any appeal tribunal in subsequent proceedings which involve similar questions of law. In any subsequent proceeding, if the job insurance division or any appeal tribunal has serious doubt as to the correctness of any principle so declared, the division or appeal tribunal may certify its findings of fact in the case, together with the question of law involved, to the bureau, which after giving notice and reasonable opportunity for hearing upon the law to all parties to such proceeding thereupon shall certify to the division, or to the appeal tribunal, and the parties, its answer to the questions submitted. If the question thus certified to the bureau arises in connection with a claim for benefits, the bureau in its discretion may remove to itself the entire proceedings on such claim, and after proceeding in accordance with the requirements of the North Dakota unemployment compensation law with respect to proceedings before an appeal tribunal, shall render its decision upon the entire claim. Any decision made under the North Dakota unemployment compensation law after the removal of the proceedings upon a claim to the bureau has the effect of a decision under section 52-06-19 and is subject to judicial review within the same time and to the same extent.

52-06-23. Administering oaths — Taking depositions — Compelling attendance of witnesses and memoranda — Penalty.

In the discharge of the duties imposed by the North Dakota unemployment compensation law, the chairman of an appeal tribunal, or any duly authorized representative or member of the bureau, may administer oaths and affirmations, take depositions, certify to official acts, and issue a subpoena to compel the attendance of witnesses and the production of books, papers, correspondence, memoranda, and other records deemed necessary as evidence in connection with a disputed claim or the administration of the North Dakota unemployment compensation law. Any person who willfully fails to obey a subpoena issued under this section, unless good cause for failure to obey is shown, is guilty of a class B misdemeanor.

52-06-24. Record of testimony to be kept — Witness fees.

A record must be kept of all testimony and proceedings before the bureau or in connection with any appeal, but the testimony need not be transcribed unless further review is initiated. Witnesses subpoenaed pursuant to this chapter must be allowed fees at the rate specified by law, and the fees of such witnesses subpoenaed either by the bureau or on behalf of any party to said appeal must be deemed part of the expenses of administering the North Dakota unemployment compensation law.

52-06-25. Order issued by court upon failure to obey subpoena — Failure to obey order.

In case of contumacy by, or refusal to obey a subpoena issued to, any person, any court of this state within the jurisdiction of which the inquiry is carried on or within the jurisdiction of which the person guilty of contumacy or refusal to obey is found or resides or transacts business, upon application by the chairman of an appeal tribunal or the bureau or its duly authorized representative, shall have jurisdiction to issue to such person an order requiring such person to appear before an appeal tribunal or the bureau, or its duly authorized representative, there to produce evidence, if so ordered, or there to give testimony touching the matter under investigation or in question. Any failure to obey such order of the court may be punished by the court as a contempt thereof.

52-06-26. Self-incrimination not to exempt person from testifying — Regulations governing.

No person may be excused from attending and testifying or from producing books, papers, correspondence, memoranda, and other records before the chairman of an appeal tribunal, the bureau or any member thereof, or any duly authorized representative of the bureau, in any cause or proceeding before the bureau, on the grounds that the testimony or evidence, documentary or otherwise, required of the person, may tend to incriminate the person or subject the person to a penalty or forfeiture. No individual may be prosecuted or subjected to any penalty or forfeiture for or on account of any transaction, matter, or thing concerning which the individual is compelled, after having claimed the individual’s privilege against self-incrimination, to testify or produce evidence, documentary or otherwise, except that such individual so testifying is not exempt from prosecution and punishment for perjury committed in so testifying.

52-06-27. Judicial review of decision — Petition — Filing.

A party to proceedings before the bureau may obtain a judicial review of the decision of the bureau by filing a petition for review within thirty days after the date of mailing the bureau’s decision to the party at the party’s last-known address, or in the absence of mailing, within thirty days after delivery of the decision to the party. The petition for review must be filed in the district court of the county in which the petitioner resides, must be verified, and must state the grounds upon which review is sought. All other parties to the proceeding before the bureau must be parties respondent. The bureau is deemed to be a party to any such proceeding. If the bureau is a party respondent, the petition must be served upon it by leaving with it or its chairman, or any other representative as it may designate for that purpose, as many copies of the petition as there are respondents. With its answer or petition, the bureau shall certify and file with the court a verified copy of the record of the case, including all documents and papers and a transcript of all testimony taken in the matter, together with the bureau’s findings, conclusions, and decision therein. Upon the filing of a petition for review by the bureau or upon the service of the petition upon it, the bureau forthwith shall send by registered mail to each other party to the proceeding a copy of such petition and such mailing is deemed to be completed service upon all such parties. In any proceeding under this section the finding of the bureau as to the facts, if supported by evidence and in the absence of fraud, is conclusive and the review by the court must be confined to questions of law. Such proceedings must be heard by the court and must be given precedence over all other civil cases except cases arising under the workforce safety and insurance statute of this state. An appeal may be taken from the decision of the district court to the supreme court of this state in the same manner as is provided in civil cases. Upon the final termination of such judicial proceeding, the bureau shall enter an order in accordance with the mandate of the court.

52-06-28. Bureau entitled to notice upon claim for benefits — Attorney upon judicial review.

The bureau is entitled to notice as a party in any proceeding involving a claim for benefits before the bureau or an appeal tribunal. In any proceeding for judicial review pursuant to section 52-06-27, the bureau may be represented by the attorney employed by it for that purpose.

52-06-29. Payment of benefits.

Benefits must be promptly paid in accordance with a determination or redetermination regardless of any appeal or pending appeal. If a determination allowing benefits is affirmed in any amount by an appeals referee or is so affirmed by the bureau or if a decision of an appeals referee allowing benefits is affirmed in any amount by the bureau, such benefits must be promptly paid regardless of any further appeal and no injunction, supersedeas, stay, or other writ or process suspending the payment of such benefits may be issued by any court but if such decision is finally reversed, no employer’s account may be charged with benefits so paid pursuant to the erroneous determination, except on those employer accounts which make payments in lieu of contributions, and benefits may not be paid for any subsequent weeks of unemployment involved in such reversal. Benefits due and payable to a deceased or judicially declared incompetent person may be paid in accordance with such regulations as the bureau shall prescribe, to the person or persons, payment to whom the bureau finds would effectuate the purposes of the North Dakota unemployment compensation law. Such regulations need not conform to the statutes applicable to the descent and distribution of decedents’ estates. A receipt from the person or persons to whom the bureau makes payment shall fully discharge the fund and the bureau from liability for such benefits.

52-06-30. Assignment of benefits prohibited — Benefits exempt from remedies for collection of debt — Exception.

1. No assignment, pledge, or encumbrance of any right to benefits which are or may become due or payable under the North Dakota unemployment compensation law is valid. Such rights to benefits are exempt from levy, execution, attachment, or any other remedy provided for the collection of a debt. Benefits received by any individual, as long as they are not mingled with other funds of the recipient, are exempt from any remedy for the collection of all debts except debts incurred for necessaries furnished to the individual, that person’s spouse, or dependents during the time when the individual was unemployed. No waiver of any exemption provided for in this subsection is valid. However, this subsection does not impair the operation of subsection 2 or section 52-06-06.1 or the continuous levy authorized under Public Law No. 105-34, section 1024 [111 Stat. 923-924; 26 U.S.C. 6331(h)].
2. An individual filing a new claim for unemployment compensation benefits, at the time of filing the claim, must be advised that:
   1. Unemployment compensation is subject to federal income tax and state income tax;
   2. Requirements exist pertaining to estimated federal and state tax payments;
   3. The individual may elect to have federal income tax deducted and withheld from the individual’s payment of unemployment compensation benefits at the amount specified in the federal Internal Revenue Code;
   4. The individual, having elected to have federal income tax withheld, may also elect to have state income tax deducted and withheld from the individual’s payment of unemployment compensation at a rate determined by the tax commissioner pursuant to section 57-38-59; and
   5. The individual is permitted to change a previously elected withholding status. Amounts deducted and withheld from unemployment compensation must remain in the unemployment fund until transferred to the federal and state taxing authority as payment of income tax. The bureau shall follow all procedures specified by the United States department of labor, the federal internal revenue service, and the tax commissioner pertaining to the deducting and withholding of income tax. Amounts must be deducted and withheld under this section only after amounts are deducted and withheld for any overpayments of unemployment compensation, child support obligations, or any other amounts required to be deducted and withheld under this chapter.

52-06-31. Waiver of rights of individual prohibited.

No agreement by any individual to waive, release, or commute the individual’s rights to benefits or any other rights under the North Dakota unemployment compensation law is valid. No agreement by any individual in the employ of any person or concern to pay all or any portion of an employer’s contributions, required under the North Dakota unemployment compensation law from such employer, is valid. No employer may make, require, or accept, directly or indirectly, any deduction from wages to finance the employer’s contributions required from the employer, nor require nor accept any waiver of any right hereunder by any individual in the employer’s employ. However, this section does not impair the operation of section 52-06-06.1.

52-06-32. Individual claiming benefits not to be charged fees by bureau — Fees of individual’s attorney.

A claimant may not be charged fees by the bureau or by any court or officer thereof in any proceeding under this chapter. Any party in any proceeding before the bureau may be represented by counsel or other duly authorized agent. A claimant’s attorney’s fees for representation in district court must be paid by the bureau, in an amount determined to be reasonable by the bureau, if the claimant finally prevails; however, the bureau may not pay attorney’s fees if the claimant’s attorney is employed by or contracting with a legal services organization funded totally or in part by public funds. A claimant’s attorney’s fees are those fees charged to the claimant by the attorney and which would otherwise be payable by the claimant to the attorney. The bureau may not pay attorney’s fees for representation in any proceeding before the bureau or its representatives.

52-06-33. Recovery and recoupment — Penalty.

A person who has received any amount of benefits under the North Dakota unemployment compensation law to which the person is not entitled shall be liable to refund to the bureau for the fund the amount so paid or to have such amount deducted from any future benefits payable to the person under the North Dakota unemployment compensation law or the unemployment compensation law of another state or the federal government following a finding that such payment occurred. Such findings shall have become final and shall specify the reason for such finding, the week or weeks for which such benefits were paid, and the amount of benefits so paid. The bureau, in its discretion, may release such person from liability to refund when it finds that recovery would be contrary to equity and good conscience. Amounts determined collectible may be so collected by civil action in the name of the bureau. If the bureau has found that the individual has made a false statement for the purpose of obtaining unemployment compensation benefits to which the individual was not lawfully entitled, the bureau shall assess a monetary penalty of fifteen percent of the amount of unemployment compensation benefits overpaid. The penalty must be applied to all forms of state and federal unemployment compensation and the federally mandated penalty amounts collected must be deposited in the state unemployment compensation fund. Amounts unpaid on the date on which they are due and payable, as determined by the bureau, may bear interest at the rate of one and one-half percent per month from and after that date until payment plus accrued interest is received by the bureau. However, no interest may be assessed for the first one hundred eighty days on any overpayment when the bureau has found that the individual did not make a false statement to obtain benefits to which the individual was not lawfully entitled.

52-06-34. Benefits payable only to extent provided — State or bureau not liable for excess sums.

Benefits may be deemed to be due and payable under this chapter only to the extent provided in this chapter and to the extent that moneys are available therefor to the credit of the unemployment compensation fund. Neither the state nor the bureau is liable for any amount in excess of such sums.

52-06-35. Statements relating to benefit rights and claims to be posted — Regulations governing.

Each employer shall post and maintain in places readily accessible to individuals in the employer’s employ printed statements concerning benefit rights, claims for benefits, and such other matters relating to the administration of the North Dakota unemployment compensation law as the bureau may prescribe by regulation. Each employer shall supply to such individuals copies of such printed statements or other materials relating to claims for benefits when and as the bureau may prescribe by regulation. Such printed statements and other materials must be supplied by the bureau to each employer without cost.

52-06-36. Factors considered in determining suitability of work and good cause for voluntary leaving.

In determining whether or not any work is suitable for an individual and in determining the existence of good cause for voluntarily leaving the individual’s work under subsections 1 and 3 of section 52-06-02, there must be considered among other factors, and in addition to those enumerated in this section, the degree of risk involved to the individual’s health, safety, and morals, the individual’s physical fitness and prior training, the individual’s experience and prior earnings, the length of the individual’s unemployment, the individual’s prospects for obtaining work in the individual’s customary occupation, the distance of available work from the individual’s residence, and the prospects for obtaining local work. However, any work paying wages equal to the maximum weekly benefit amount must be determined suitable for an individual who has filed for and received benefit payments for eighteen consecutive weeks; provided, that consideration must be given to the degree of risk involved to the individual’s health, safety, morals, the individual’s physical fitness, and the distance of the work from the individual’s residence. No work may be deemed suitable and benefits may not be denied under the North Dakota unemployment compensation law to any otherwise eligible individual for refusing to accept new work under any of the following conditions:

1. If the position offered is vacant due directly to a strike, lockout, or other labor dispute.
2. If the wages, hours, or other conditions of work offered are substantially less favorable to the individual than those prevailing for similar work in the locality.
3. If, as a condition of being employed, the individual would be required to join a company union or to resign from or refrain from joining any bona fide labor organization.

52-06-37. Action for libel or slander not to be predicated upon disqualification for benefits.

No action for slander or libel, either civil or criminal, may be predicated upon information furnished by an employer to the job insurance division in connection with the imposition of any of the disqualifications set forth in section 52-06-02.

52-06-37.1. Applicability of decision to separate proceedings.

Any finding of fact or law, judgment, conclusion, or decision made by a claims examiner, appeals referee, the bureau, or any person with the authority to make findings of fact or law in any action or proceeding before the bureau is not conclusive or binding on, nor may it be used as evidence in, any separate or subsequent action or proceeding unrelated to the North Dakota unemployment compensation law, except for workforce safety and insurance purposes, between an individual and the individual’s present or prior employer brought before an arbitrator, court, or judge of this state or the United States, regardless of whether the prior action was between the same or related parties or involved the same facts.

52-06-38. Penalty for making false statement or failure to disclose material fact to obtain or increase benefits. [Repealed]

Repealed by S.L. 1975, ch. 106, § 673.

52-06-39. Penalty for false statement or failure to disclose material fact to prevent or reduce benefits. [Repealed]

Repealed by S.L. 1975, ch. 106, § 673.

52-06-40. Penalty for violation or failure to perform duty when no penalty provided.

Any person who willfully violates any provision of this title, or any order, rule, or regulation thereunder, and for which a penalty is neither prescribed in this title nor provided by any other applicable statute, is guilty of a class B misdemeanor.

52-07.1-01. Extended benefit program — Purpose — Effective date.

Effective January 1, 1972, an unemployment program is hereby established to provide for the payment of extended unemployment compensation benefits to hereinafter qualified workers who during periods of high unemployment in the state, or in the nation, have exhausted their rights to regular benefits under the North Dakota unemployment compensation law, or under federal law as administered by job service North Dakota.

52-07.1-02. Administration.

Job service North Dakota, hereinafter called the “bureau”, is vested with the duties, powers, and authority to administer the extended benefits program.

52-07.1-03. Definitions.

In this chapter, unless the context or subject matter otherwise requires:

1. “Additional benefits” means benefits payable to exhaustees by reasons of conditions of high unemployment or by reason of other special factors under the provisions of any state law.
2. “Eligibility period” of an individual means the period consisting of the weeks in the individual’s benefit year which begin in an extended period and, if the individual’s benefit year ends within such extended benefit period, any weeks thereafter which begin in such period.
3. “Exhaustee” means an individual who, with respect to any week of unemployment in the individual’s eligibility period:
   1. Has received, prior to such week, all of the regular benefits that were available to the individual under chapter 52-06 or any other state law, including dependents’ allowances and benefits payable to federal civilian employees and ex-servicemen under 5 U.S.C. chapter 85, in the individual’s current benefit year that includes such week; provided, that for the purposes of this subdivision, an individual shall be deemed 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 wages 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;
   2. Having established a benefit year, no regular compensation is payable to the individual during such year because the individual’s wage credits were canceled or the individual’s right to regular compensation was totally reduced as the result of the application of a disqualification;
   3. Has a benefit year which has expired prior to such week and has insufficient wages or employment or both on the basis of which the individual could establish in any state a new benefit year that would include such week, or having established a new benefit year that includes such week, the individual is precluded from receiving regular compensation by reason of a state law provision which requires that an individual who has received benefits during a benefit year must have had work since the beginning of such year in order to qualify for benefits in the individual’s next benefit year; or
   4. Has no right to unemployment benefits or allowances, as the case may be, under the Railroad Unemployment Insurance Act [52 Stat. 1094; 45 U.S.C. 351 et seq.], the Trade Expansion Act of 1962 [Pub. L. 87-794; 76 Stat. 872; 19 U.S.C. 1801 et seq.], the Automotive Products Trade Act of 1965 [Pub. L. 89-283; 79 Stat. 1016; 19 U.S.C. 2001 et seq.], 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 unemployment benefits under the unemployment compensation law of the Virgin Islands or of Canada; but if the individual is seeking such benefits and the appropriate agency finally determines that the individual is not entitled to benefits thereunder, the individual must be considered an exhaustee.
4. “Extended benefit period” means a period which begins with the third week after a week for which there is a state “on” indicator; and 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 thirteenth consecutive week of such period; provided, that no extended benefit period may begin by reason of a state “on” indicator before the fourteenth week following the end of a prior extended benefit period which was in effect with respect to this state.
5. “Extended benefits” means benefits, including benefits payable to federal civilian employees and to ex-servicemen pursuant to 5 U.S.C. chapter 85, payable to an individual under the provisions of this chapter for weeks of unemployment in the individual’s eligibility period.
6. Repealed by S.L. 1983, ch. 541, § 8.
7. Repealed by S.L. 1983, ch. 541, § 8.
8. “Rate of insured unemployment”, for purposes of subsections 11 and 12, means the percentage derived by dividing:
   1. The average weekly number of individuals filing claims for regular compensation in this state for weeks of unemployment with respect to the most recent thirteen-consecutive-week period, as determined by the bureau on the basis of its reports to the United States secretary of labor, by
   2. The average monthly employment covered under the North Dakota unemployment compensation law for the first four of the most recent six completed calendar quarters ending before the end of such thirteen-week period.
9. “Regular benefits” means benefits payable to an individual under chapter 52-06 or under any other state law, including benefits payable to federal civilian employees and to ex-servicemen pursuant to 5 U.S.C. chapter 85, other than extended benefits.
10. “State law” means the unemployment insurance law of any state, approved by the United States secretary of labor under section 3304 of the Internal Revenue Code of 1954 [26 U.S.C. 3304].
11. There is a “state ‘off’ indicator” for this state for a week if the bureau 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 twelve weeks, the rate of insured unemployment, not seasonally adjusted, under this chapter:
    1. Was less than one hundred twenty percent of the average of such rates for the corresponding thirteen-week period ending in each of the preceding two calendar years; or
    2. Was less than five percent.
12. There is a “state ‘on’ indicator” for this state for a week if the bureau 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 twelve weeks, the rate of insured unemployment, not seasonally adjusted, under this chapter:
    1. Equaled or exceeded one hundred twenty percent of the average of such rates for the corresponding thirteen-week period ending in each of the preceding two calendar years; and
    2. Equaled or exceeded five percent.

Computations provided for in this subsection must be made by the bureau in accordance with regulations provided by the United States secretary of labor.

52-07.1-04. Effect of North Dakota unemployment compensation 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 chapter, as provided by regulations of the bureau, the provisions of chapter 52-06 which apply to claims for, or the payment of, regular benefits shall apply to claims for, and the payment of, extended benefits.

52-07.1-05. Eligibility requirements for extended benefits.

An individual is eligible to receive extended benefits with respect to any week of unemployment in the individual’s eligibility period only if the bureau finds that with respect to such week:

1. The individual is an “exhaustee” as defined in subsection 3 of section 52-07.1-03; and
2. The individual has satisfied the requirement of this chapter for the receipt of regular benefits that are applicable to individuals claiming extended benefits, including not being subject to a disqualification for the receipt of benefits.

52-07.1-06. 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 is an amount equal to the weekly benefit amount payable to the individual during the individual’s applicable benefit year. Provided, that for any week during a period in which federal payments to states under section 204 of the Federal-State Extended Unemployment Compensation Act of 1970 are reduced under an order issued under section 252 of the Balanced Budget and Emergency Deficit Control Act of 1985, the weekly extended benefit amount payable to an individual for a week of total unemployment in the individual’s eligibility period must be reduced by a percentage equivalent to the percentage of the reduction in the federal payment. Such reduced weekly extended benefit amount, if not a full dollar amount, must be rounded to the nearest lower full dollar amount.

52-07.1-07. Total extended benefit amount.

The total extended benefit amount payable to any eligible individual with respect to the individual’s applicable benefit year must be the least of the following amounts:

1. Fifty percent of the total amount of regular benefits which were payable to the individual under chapter 52-06 in the individual’s applicable benefit year; or
2. Thirteen times the individual’s weekly benefit amount which was payable to the individual under chapter 52-06 for a week of total unemployment in the applicable benefit year. Provided further, that during any fiscal year in which federal payments to states under section 204 of the Federal-State Extended Unemployment Compensation Act of 1970 are reduced under an order issued under section 252 of the Balanced Budget and Emergency Deficit Control Act of 1985, the total extended benefit amount payable to an individual with respect to the individual’s applicable benefit year must be reduced by an amount equal to the aggregate of the reductions under section 52-07.1-06 in the weekly amounts paid to the individual.

52-07.1-08. Beginning and termination of extended benefit period.

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 bureau shall make an appropriate public announcement.

52-07.1-08.1. Cessation of extended benefits when paid under an interstate claim in a state where extended benefit period is not in effect.

1. Except as provided in subsection 2, an individual is not eligible for extended benefits for any week if:
   1. Extended benefits are payable for such week pursuant to an interstate claim filed in any state under the interstate benefit payment plan; and
   2. No extended benefit period is in effect for such week in such state.
2. Subsection 1 does not apply with respect to the first two weeks for which extended benefits are payable, determined without regard to this section, 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.

52-07.1-08.2. Eligibility for extended benefits.

1. Notwithstanding the provisions of section 52-07.1-04, an individual is ineligible for payment of extended benefits for any week of unemployment in the individual’s eligibility period if the bureau finds that during such period:
   1. The individual failed to accept any offer of “suitable work”, as defined under subsection 3, or failed to apply for any suitable work to which the individual was referred by the bureau; or
   2. The individual failed to actively engage in seeking work as prescribed under subsection 5.
2. Any individual who has been found ineligible for extended benefits by reason of the provisions in subsection 1 must also be denied benefits beginning with the first day of the week following the week in which such failure occurred and until the individual has been employed in each of four subsequent weeks, whether or not consecutive, and has earned remuneration equal to not less than four times the extended weekly benefit amount.
3. For purposes of this section, the term “suitable work” means, with respect to any individual, any work which is within such individual’s capabilities; provided, however, that the gross average weekly remuneration payable for the work must exceed the sum of:
   1. The individual’s extended weekly benefit amount as determined under section 52-07.1-06; plus
   2. The amount, if any, of supplemental unemployment benefits, as defined in section 501(c)(17)(D) of the Internal Revenue Code of 1954 [26 U.S.C. 501], payable to such individual for such week; and further,
   3. Pays wages not less than the higher of:
      1. The minimum wage provided by section 6(a)(1) of the Fair Labor Standards Act of 1938 [29 U.S.C. 206], without regard to any exemption; or
      2. The applicable state or local minimum wage; and
   4. Provided, however, that no individual may be denied extended benefits for failure to accept an offer of or apply for any job which meets the definition of suitability as described above if:
      1. The position was not offered to such individual in writing and was not listed with the bureau.
      2. Such failure could not result in a denial of benefits under the definition of suitable work for regular benefit claimants in section 52-06-36 to the extent that the criteria of suitability in that section are not inconsistent with the provisions of this subsection.
      3. The individual furnishes satisfactory evidence to the bureau that the individual’s prospects for obtaining work in the individual’s customary occupation within a reasonably short period are good. If such evidence is deemed satisfactory for this purpose, the determination of whether any work is suitable with respect to such individual must be made in accordance with the definition of suitable work for regular benefit claimants in section 52-06-36 without regard to the definition specified by this subsection.
4. Notwithstanding the provisions of section 52-07.1-04 to the contrary, no work may be deemed to be suitable work for an individual which does not accord with the labor standard provisions required by section 3304(a)(5) of the Internal Revenue Code of 1954 [26 U.S.C. 3304] and set forth under section 52-06-36.
5. For the purposes of subdivision b of subsection 1, an individual must be treated as actively engaged in seeking work during any week if:
   1. The individual has engaged in a systematic and sustained effort to obtain work during such week; and
   2. The individual furnishes tangible evidence that the individual has engaged in such effort during such week.
6. The bureau shall refer any claimant entitled to extended benefits under this chapter to any suitable work which meets the criteria prescribed in subsection 3.
7. An individual is not eligible to receive extended benefits with respect to any week of unemployment in the individual’s eligibility period if such individual has been disqualified for regular benefits under this chapter because the individual voluntarily left work, was discharged for misconduct, or failed to accept an offer of or apply for suitable work, unless the disqualification imposed for such reasons has been terminated in accordance with specific conditions established under this chapter requiring the individual to perform service for remuneration subsequent to the date of such disqualification.

52-07.1-08.3. Extended benefit reduction for trade readjustment allowances.

Notwithstanding any other provisions of this chapter, if the benefit year of any individual ends with an extended benefit period, the remaining balance of extended benefits that such individual would, but for this section, be entitled to receive in that extended benefit period, with respect to weeks of unemployment beginning after the end of the benefit year, must be reduced, but not below zero, by the product of the number of weeks for which the individual received any amounts as trade readjustment allowances within that benefit year, multiplied by the individual’s weekly benefit amount for extended benefits.

52-07.1-09. Enforcement and carrying out of program for extended benefits.

The provisions of chapters 52-01, 52-02, 52-03, 52-04, and 52-05 in respect to the carrying out of the provisions of this chapter shall be the same as are set forth therein and shall be applicable, insofar as the provisions thereof are consistent, with the provisions of this chapter.

52-08-01. Acceptance of Wagner-Peyser Act by state of North Dakota.

The state of North Dakota accepts and will observe and comply with the provisions of the Wagner-Peyser Act approved June 6, 1933, which was “An Act to provide for the establishment of a national employment system and for cooperation with the states in the promotion of such system, and for other purposes” [48 Stat. 113; 29 U.S.C. 49].

52-08-02. Job service North Dakota agent of state for Wagner-Peyser Act.

For the purposes provided for in the preceding section, job service North Dakota is designated and constituted the agency of this state to carry out the purposes of this chapter.

52-08-03. Job service North Dakota — Offices maintained.

The job service North Dakota executive director shall establish and maintain free public employment offices in such number and in such places as may be necessary for the proper administration of chapters 52-01 through 52-08.

52-08-04. Merit system and personnel — Agreements for free employment service. [Repealed]

Repealed by S.L. 1965, ch. 333, § 9.

52-08-05. Director of employment service — Duties. [Repealed]

Repealed by S.L. 1965, ch. 333, § 9.

52-08-06. Financing of employment service — Regulations governing. [Repealed]

Repealed by S.L. 1965, ch. 333, § 9.

52-08-07. Administration and organization of employment service. [Repealed]

Repealed by S.L. 1965, ch. 333, § 9.

52-08-08. Institution to serve workforce needs.

Subject to state board of higher education policies, the president of an institution of higher education that is assigned primary responsibility for workforce training shall establish a division or other unit within the institution to serve the workforce needs of business and industry and to serve as a broker in arranging the delivery of training.

52-08-09. Workforce training board — Formation.

Subject to state board of higher education policies, the president of an institution of higher education that is assigned primary responsibility for workforce training shall appoint a workforce training board consisting of representatives from businesses, labor, and industries located within the institution’s delivery area. The workforce training board must consist of at least seven but no more than fifteen members and must include at least one representative from either an Indian-owned business, the tribal government, or the tribal colleges within the designated region.

52-08-10. Preparation of business plan — Revolving loans.

Subject to state board of higher education policies, the president of an institution of higher education that is assigned primary responsibility for workforce training shall prepare an annual business plan that must include provisions for use of the training capacity of the tribal colleges within the designated region, in consultation with the workforce training board. The business plan may include participation as a community under the new jobs training program under chapter 52-02.1. The workforce training board shall approve the business plan and make recommendations for funding of the business plan to the state board of higher education. Any state funds received under this program by the institutions of higher education assigned primary responsibility for workforce training must be used for business and customized training activities. The state board of higher education may establish for each institution of higher education assigned primary responsibility for workforce training a revolving loan fund for workforce training program startups using the borrowing authority provided in section 15-10-16.1.

52-08-11. Performance measurements for workforce training.

Subject to state board of higher education policies, the president of an institution of higher education that is assigned primary responsibility for workforce training shall develop, in consultation with the workforce training board, performance measurements for workforce training. The measurements must include requirements for being time-sensitive and results-oriented and must determine how well the training needs of business and industry are being met.

52-08-12. Workforce training funds — Distribution. [Repealed]

Repealed by S.L. 2003, ch. 445, § 1.

52-08-13. Job task analysis services — Testing services — Job fair services — Personal re-employment account services — Authorization to charge fees — Continuing appropriation.

Job service North Dakota may provide job task analysis services, testing services, and job fair services to an employer requesting these services and may provide personal re-employment account services to an individual requesting those services. Notwithstanding the reference to free public employment offices in this chapter or in any other provision of law, job service North Dakota may charge reasonable fees for providing job task analysis services, testing services, job fair services, and personal re-employment account services. All fees collected under this section must be deposited in a separate interest-bearing account at the Bank of North Dakota and must be used for the purpose of providing job task analysis services, testing services, job fair services, and personal re-employment account services. Moneys in this fund are appropriated on a continuing basis for the purpose of providing job task analysis services, testing services, job fair services, and personal re-employment account services.

52-08.1-01. North Dakota workforce 20/20 policy and goals.

1. The legislative assembly finds that a highly skilled workforce is critical to the present and future competitiveness of North Dakota’s economy. The legislative assembly, therefore, declares that it is the policy of the state to support and promote skill training, retraining, and upgrade training for North Dakota workers. It is the goal of the state to:
   1. Improve the skills of North Dakota workers;
   2. Promote and sponsor effective and responsive training programs for employed and unemployed North Dakotans who need job-related training;
   3. Promote programs that lead to family wage jobs;
   4. Secure the active participation and full cooperation of North Dakota industry leaders, business owners, and employee representatives in developing programs to increase and improve worker skill training;
   5. Promote the coordination of North Dakota’s education and job training systems to more fully respond to the increasingly complex training needs of workers; and
   6. Promote access to education and job training programs for all North Dakotans regardless of their economic status or geographic location within the state.
2. The legislative assembly declares that it is the policy of this state to integrate skill training and development programs into its economic development strategies.

52-08.1-02. North Dakota workforce 20/20 program administration.

Job service North Dakota shall administer the North Dakota workforce 20/20 program within the state.

1. Job service North Dakota shall give priority to applicants that:
   1. Are compatible with statewide economic development strategies.
   2. Demonstrate business and community financial support and participation.
   3. Coordinate activities and resources with other training programs.
   4. Provide for followup and evaluation of program results.
   5. Provide customized training, retraining, and upgrade training in occupations that pay not less than two hundred percent of the federal and state minimum wage.
   6. Provide training to unemployed and employed residents of North Dakota for new businesses creating new jobs and expanding businesses.
2. Funding through the program is limited to training for permanent jobs or occupations that have significant career opportunities and which require substantive instructions resulting from:
   1. Introduction of new technologies or new equipment; or
   2. Significant changes in business operations or production methods.
3. An applicant may be eligible for funding of sales and marketing training that is necessitated due to technology or equipment changes that affect manufacturing or production.
4. Training funded through the program is limited to upgrade training or retraining of current workers in situations in which training is required for continued employment and to training of trainees if the company gives successful graduates hiring priority. Only trainees approved by participating parties are eligible for training funded through the program.
5. Training funded through the program is limited to state residents.
6. All direct training costs are allowable for funding through the program. Direct training costs may include:
   1. Program promotion.
   2. Instructor wages, per diem, and travel.
   3. Curriculum development and training materials.
   4. Lease of training equipment and training space.
   5. Miscellaneous direct training costs.
   6. Administrative costs.
   7. Assessment and testing.

52-08.1-03. North Dakota workforce 20/20 priority of industry requirements.

1. The program is designed to assist companies that are undergoing major technological changes and where training is deemed critical to the company and in occupations that are deemed to have inadequate trained personnel.
2. Job service North Dakota shall encourage training assistance for small companies and companies located in rural areas.
3. Job service North Dakota shall encourage companies to participate with in-kind contributions of training space, training equipment, training supplies, and technical assistance.
4. Training programs must require the direct participation of the sponsoring company and an employee representative.
5. If new job openings are created through upgrade training, the sponsoring company should give priority consideration to individuals eligible for other state and federal job training programs.
6. Job service North Dakota shall encourage training assistance for a company that manufactures or otherwise produces a product. However, the class of occupations eligible to receive training through such a company is not limited to manufacturing or production.

52-08.1-04. North Dakota workforce 20/20 program implementation and coordination.

1. All programs must be conducted through contractual arrangements made with job service North Dakota.
2. Programs must be conducted in cooperation with appropriate state board for career and technical education approved training providers and institutions.
3. Final screening of trainees must be conducted by the company with the assistance of job service North Dakota when required.
4. Program effectiveness will be determined by post-training monitoring that will address such issues as:
   1. Company satisfaction with the program.
   2. Company transition to new technologies or products.
   3. Post-training wage levels versus pretraining wage levels.
   4. Number of trainees successfully completing the program.
   5. Number of trainees who are retained by the company as a result of the training program.
   6. Number of new jobs created at entry level as a result of upgrade training.

52-08.1-05. North Dakota workforce 20/20 application procedure.

1. A proposal or concept paper must be submitted by the appropriate company, trade representative, or employee representative to job service North Dakota.
2. The proposal or concept paper should address the key guideline points but be kept brief.

52-08.1-06. North Dakota workforce 20/20 gifts and grants.

Job service North Dakota is authorized to accept and use any funds, including gifts and grants, made available for the purpose of defraying expenses involved in carrying out this chapter.

52-09-01. System established. [Repealed]

52-09-02. Purpose of chapter. [Repealed]

52-09-02.1. Administration of chapter — Definition. [Repealed]

52-09-03. Administration. [Repealed]

52-09-04. Enforcement of provisions of chapter. [Repealed]

Repealed by S.L. 2003, ch. 446, § 6.

52-09-05. Old-age survivors’ fund created. [Repealed]

52-09-06. Custodian and trustee of fund — Investing and disbursing. [Repealed]

52-09-07. Purposes for which fund may be used — Appropriation. [Repealed]

52-09-08. Default in taxes — Interest — Action to collect — Levy of tax by political subdivisions. [Repealed]

52-09-09. Rate of contribution. [Repealed]

Repealed by S.L. 1999, ch. 440, § 4.

52-09-10. Overpayments. [Repealed]

Repealed by S.L. 1999, ch. 440, § 4.

52-09-11. Tax paid deductible in computing net income. [Repealed]

Repealed by S.L. 1999, ch. 440, § 4.

52-09-12. Employer to furnish employee statement showing taxes deducted. [Repealed]

Repealed by S.L. 1999, ch. 440, § 4.

52-09-13. Employer payments — Manner of payment. [Repealed]

Repealed by S.L. 1999, ch. 440, § 4.

52-09-14. Benefit payments. [Repealed]

52-09-15. Deductions from and additions to benefits. [Repealed]

52-09-16. Error in payment of amount of benefits — Adjustment — Liability. [Repealed]

52-09-17. Powers and duties. [Repealed]

52-09-18. Agent and attorney may represent claimant — Regulations — Fees — Penalty. [Repealed]

52-09-19. False statement — Penalty. [Repealed]

Repealed by S.L. 1975, ch. 106, § 673.

52-09-20. Definitions. [Repealed]

52-09-21. Refunds. [Repealed]

52-09-22. Benefits unassignable and exempt from legal remedies. [Repealed]

52-09-23. When political subdivisions may apply to bureau for coverage. [Repealed]

52-09-24. System not subject to general insurance laws and regulations. [Repealed]

52-09-25. Chapter applies to special charter cities. [Repealed]

52-09-26. Preservation of rights of person in military service — Contribution by employer continued. [Repealed]

52-09-27. State and political subdivisions may participate in federal old-age benefits. [Repealed]

52-10-01. Declaration of policy.

In order to extend to employees of the state and political subdivisions within the state, and to the dependents and survivors of such employees, the basic protection accorded to others by the old-age and survivor insurance system embodied in the Social Security Act [42 U.S.C. 301 et seq.], it is hereby declared the policy of the legislative assembly, subject to the limitations of this chapter, that such steps be taken as to provide such protection to employees of the state and political subdivisions within the state on as broad a basis as is permitted under the Social Security Act [42 U.S.C. 301 et seq.]. It is the policy also of the legislative assembly that the protection afforded employees in positions covered by a retirement system on the date an agreement under this chapter is made applicable to service performed in such positions, or receiving periodic benefits under such retirement system at such time, will not be impaired as a result of making the agreement so applicable or as a result of legislative enactment in anticipation thereof.

52-10-02. Definitions.

For the purposes of this chapter:

1. “Employee” includes an officer of a state or political subdivision as well as all persons employed in and by regulatory boards, commissions, or councils recognized and established by the statutes of the state of North Dakota, except part-time elected persons or persons hired on a fee basis, if excluded by the federal-state agreement.
2. “Employer” means the state of North Dakota, and all its political subdivisions, and all of their departments and instrumentalities.
3. “Employment” means any service performed by an employee in the employ of the state, or any political subdivision thereof for such employer, except:
   1. Service which in the absence of an agreement entered into under this chapter would constitute “employment” as defined in the Social Security Act; or
   2. Service which under the Social Security Act may not be included in an agreement between the state and the secretary of health and human services.
4. “Federal Insurance Contributions Act” means subchapters A and B of chapter 21 of the federal Internal Revenue Code of 1954 [26 U.S.C. 3101 et seq.], as such codes have been or may be from time to time amended; and the term “employees tax” means the tax imposed by section 3101 of the Internal Revenue Code of 1954 [26 U.S.C. 3101].
5. “Political subdivision” includes an instrumentality of a state, of one or more of its political subdivisions, or of a state and one or more of its political subdivisions, but only if the instrumentality is a juristic entity which is legally separate and distinct from the state or subdivision and only if its employees are not by virtue of their relation to the juristic entity employees of the state or subdivisions.
6. “Secretary of health and human services” includes any individual to whom the secretary of health and human services has delegated any of the secretary’s functions under the Social Security Act with respect to coverage under such Act of employees of states and their political subdivisions.
7. “Social Security Act” means the Act of the Congress approved August 14, 1935, chapter 531 [49 Stat. 620; 42 U.S.C. 301 et seq.], officially cited as the “Social Security Act”, including regulations and requirements pursuant thereto, as the Act has been and may from time to time be amended.
8. “State agency” means the job insurance division of job service North Dakota.
9. “Wages” means all remuneration for employment as defined herein, including the cash value of all remuneration paid in any medium other than cash, except that the term does not include that part of such remuneration which, even if it were for “employment” within the meaning of the Federal Insurance Contributions Act, would not constitute “wages” within the meaning of that Act.

Service which under the Social Security Act may be included in an agreement only upon certification by the governor in accordance with section 218(d)(3) of that chapter [42 U.S.C. 418] must be included in the term “employment” if and when the governor issues, with respect to such service, a certificate to the secretary of health and human services pursuant to subsection 2 of section 52-10-07.

52-10-03. Federal-state agreement — Interstate instrumentalities.

1. The state agency, with the approval of the governor, is hereby authorized to enter on behalf of the state into an agreement with the secretary of health and human services consistent with the terms and provisions of this chapter, for the purpose of extending the benefits of the federal old-age and survivors’ insurance system to employees of the state or any political subdivision with respect to services specified in such agreement which constitute “employment” as defined in section 52-10-02. The agreement may contain such provisions relating to coverage, benefits, contributions, effective date, modification, and termination of the agreement, administration, and other appropriate provisions as the state agency and the secretary of health and human services shall agree upon, but, except as may be otherwise required by or under the Social Security Act as to the services to be covered, such agreement shall provide in effect that:
   1. Benefits will be provided for employees whose services are covered by the agreement, and their dependents and survivors, on the same basis as though such services constituted employment within the meaning of title II of the Social Security Act [42 U.S.C. 401 et seq.].
   2. The state will pay to the secretary of the treasury, at such time or times as may be prescribed under the Social Security Act, contributions with respect to wages, as defined in section 52-10-02, equal to the sum of the taxes which would be imposed by the Federal Insurance Contributions Act if the services covered by the agreement constituted employment within the meaning of that Act.
   3. The agreement shall be effective with respect to services in employment covered by the agreement performed after a date specified therein but in no event may it be effective with respect to any such services performed prior to the last day of the sixth calendar year preceding the year in which the agreement is entered into or in which the modification of the agreement making it applicable to such services, is entered into, except that an agreement or modification entered into after December 31, 1955, and prior to January 1, 1960, shall be effective with respect to services performed after December 31, 1955; or after a later date specified in such modification.
   4. All services, which constitute employment as defined in section 52-10-02 and are performed in the employ of the state by employees of the state, shall be covered by the agreement; all services which constitute employment as defined in section 52-10-02 and are performed in the employ of any municipality except elected officials, shall be covered by the agreement, notwithstanding the provisions of section 52-10-05, which provides for plans for coverage of employees.
   5. All services, which constitute employment as defined in section 52-10-02, are performed in the employ of a political subdivision of the state, and are covered by a plan which is in conformity with the terms of the agreement and has been approved by the state agency under section 52-10-05, shall be covered by the agreement.
   6. The agreement shall include all services described in either subdivision d or e and performed by individuals to whom section 218(c)(3)(C) of the Social Security Act [42 U.S.C. 418] is applicable, and shall provide that the service of any such individual shall continue to be covered by the agreement in case the individual thereafter becomes eligible to be a member of the retirement system.
   7. The agreement shall include all services described in either subdivision d or e and performed by individuals in positions covered by a retirement system with respect to which the governor has issued a certificate to the secretary of health and human services pursuant to subsection 2 of section 52-10-07.
2. Any instrumentality jointly created by this state and any other state or states is hereby authorized, upon the granting of like authority by such other state or states:
   1. To enter into an agreement with the secretary of health and human services by which the benefits of the federal old-age and survivors’ insurance system shall be extended to employees of such instrumentality;
   2. To require its employees to pay, and for that purpose to deduct from their wages, contributions equal to the amounts which they would be required to pay under subsection 1 of section 52-10-04 if they were covered by an agreement made pursuant to subsection 1; and
   3. To make payments to the secretary of the treasury in accordance with such agreement, including payments from its own funds, and otherwise to comply with such agreements.

Such agreement, shall, to the extent practicable, be consistent with the terms and provisions of subsection 1 and other provisions of this chapter.

52-10-03.1. Modification of federal-state agreement to exclude certain students.

The state agency, with the approval of the governor, is hereby authorized to modify at any time prior to January 1, 1974, the agreement of December 5, 1955, between the state and the secretary of health, education, and welfare, whereby under section 218 [42 U.S.C. 418] the insurance system established by the Social Security Act was extended to services performed by individuals as employees of the state or any political subdivision thereof, to effect the exclusion of service performed in the employ of a school, college, or university if such service is performed by a student who is enrolled and is regularly attending classes at such school, college, or university.

52-10-03.2. Authority of executive director — Social security coverage for national guard employees.

The executive director of job service North Dakota may enter into an agreement with the federal security agency, social security administration bureau of old-age and survivor insurance to provide coverage for national guard state civilian employees under the old-age and survivor insurance provisions of the Social Security Act as provided in section 218 of the Social Security Act amendments of 1950 [Pub. L. 81-734; 64 Stat. 514; 42 U.S.C. 418]. For purposes of the agreement, the executive director may make such collections, contributions, and reports as may be required by the federal agency under the terms of the agreement.

52-10-04. Contributions by employees of the state and of political subdivisions.

1. Every employee of the state or of a political subdivision and every employer is required to pay for the period of such coverage, into the contribution fund established by section 52-10-06, contributions, with respect to wages, as defined in section 52-10-02, equal to the amount of the tax which would be imposed by the Federal Insurance Contributions Act if such services constituted employment within the meaning of that Act. Such employee’s liability shall arise in consideration of the employee’s retention in the service of the state or of a political subdivision or the employee’s entry upon such service, after the enactment of this chapter.
2. The employee’s contribution imposed by this section must be collected by deducting the amount of the contribution from wages as and when paid, but failure to make such deduction does not relieve the employee from liability for such contribution.
3. If more or less than the correct amount of the contribution imposed by this section is paid or deducted with respect to any remuneration, proper adjustments, or refund if adjustment is impracticable, must be made, without interest, in such manner and at such times as the state agency shall prescribe.

52-10-05. Plans for coverage of employees of political subdivisions.

1. Each political subdivision of the state is hereby authorized to submit for approval by the state agency a plan for extending the benefits of title II of the Social Security Act [42 U.S.C. 401 et seq.], in conformity with applicable provisions of such Act, to employees of such political subdivision. Each such plan and any amendment thereof must be approved by the state agency if it finds that such plan, or such plan as amended is in conformity with such requirements as are provided in regulations of the state agency, except that no such plan may be approved unless:
   1. It is in conformity with the requirements of the Social Security Act and with the agreement entered into under section 52-10-03;
   2. It provides that all services which constitute employment as defined in section 52-10-02 and are performed in the employ of the political subdivision by employees thereof, shall be covered by the plan;
   3. It specifies the source or sources from which the funds necessary to make the payments required by subdivision a of subsection 3 and by subsection 4 are expected to be derived and contains a reasonable assurance that such sources will be adequate for such purpose;
   4. It provides for such methods of administration of the plan by the political subdivision as are found by the state agency to be necessary for the proper and efficient administration of the plan;
   5. It provides that the political subdivision will make such reports, in such form and containing such information, as the state agency may from time to time require, and comply with such provisions as the state agency or the secretary of health and human services may from time to time find necessary to assure the correctness and verification of such reports; and
   6. It authorizes the state agency to terminate the plan in its entirety, in the discretion of the state agency, if it finds that there has been a failure to comply substantially with any provision contained in such plan, such termination to take effect at the expiration of such notice and on such conditions as may be provided by regulations of the state agency and may be consistent with the provisions of the Social Security Act.
2. The state agency may not finally refuse to approve a plan submitted by a political subdivision under subsection 1, and may not terminate an approved plan, without reasonable notice and opportunity for hearing to the political subdivision affected thereby.
3. 1. Each political subdivision as to which a plan has been approved under this section shall pay into the social security contribution fund, with respect to wages, as defined in section 52-10-02, at such time or times as the state agency may by regulation prescribe, contributions in the amounts and at the rates specified in the applicable agreement entered into by the state agency under section 52-10-03.
   2. Each political subdivision required to make payments under subdivision a is authorized, in consideration of the employee’s retention in, or entry upon, employment after enactment of this chapter, to impose upon each of its employees, as to services which are covered by an approved plan, a contribution with respect to the employee’s wages, as defined in section 52-10-02, not exceeding the amount of employee tax which would be imposed by the Federal Insurance Contributions Act if such services constituted employment within the meaning of that Act, and to deduct the amount of such contribution from the employee’s wages as and when paid. Contributions so collected must be paid into the social security contribution fund in partial discharge of the liability of such political subdivision or instrumentality under subdivision a. Failure to deduct such contribution does not relieve the employee or employer of liability therefor.
4. Delinquent payments due under subdivision a of subsection 3 must bear interest at the rate specified in the Social Security Act at 42 U.S.C. 418 and may be recovered by action in a court of competent jurisdiction against the political subdivision liable therefor or may, at the request of the state agency, be deducted from any other moneys payable to such subdivision by any department or agency of the state. In no case may the interest imposed hereby be less than five dollars. In addition, a penalty may be assessed on delinquent reports if such penalty is provided for in the Social Security Act at 42 U.S.C. 418. Any such penalty must be under the terms, conditions, and in the amounts specified in the Social Security Act. In no case may any penalty imposed hereby be less than five dollars.
5. 1. When the state, or any political subdivision as defined in section 52-10-02, is liable for an amount due under an agreement pursuant to this chapter, the state, or such political subdivision shall remain so liable until the secretary of health and human services is satisfied that the amount due has been paid to the secretary of the treasury.
   2. Notwithstanding subdivision a, the state, or any political subdivision as defined in section 52-10-02, is not liable for an amount due under an agreement pursuant to this chapter, with respect to the wages paid to individuals, after the expiration of the latest of the following periods:
      1. Three years, three months, and fifteen days after the year in which such wages were paid;
      2. Three years after the date on which such amount became due; or
      3. Three years, three months, and fifteen days after January 1, 1962,

unless prior to the expiration of such period the secretary of health and human services makes an assessment of the amount due from the state, or any political subdivision.

52-10-06. Social security contribution fund.

1. There is hereby established a special fund to be known as the social security contribution fund. Such fund must consist of and there must be deposited in such fund:
   1. All contributions, interest, and penalties collected under sections 52-10-04 and 52-10-05;
   2. All moneys appropriated thereto under this chapter;
   3. Any property or securities and earnings thereof acquired through the use of moneys belonging to the fund;
   4. Interest earned upon any moneys in the fund; and
   5. All sums recovered upon the bond of the custodian or otherwise for losses sustained by the fund and all other moneys received from the fund from any other source.
2. The social security contribution fund must be established and held separate and apart from any other funds or moneys of the state and must be used and administered exclusively for the purpose of this chapter. Withdrawals from such fund must be made for, and solely for:
   1. Payment of amounts required to be paid to the secretary of the treasury pursuant to an agreement entered into under section 52-10-03;
   2. Payment of refunds provided for in subsection 3 of section 52-10-04; and
   3. Refunds of overpayments, not otherwise adjustable, made by a political subdivision or instrumentality.
3. From the social security contribution fund the custodian of the fund shall pay to the secretary of the treasury such amounts and at such time or times as may be directed by the state agency in accordance with any agreement entered into under section 52-10-03 and the Social Security Act.
4. The treasurer of the state of North Dakota is ex officio treasurer and custodian of the social security contribution fund and shall administer such fund in accordance with the provisions of this chapter and the directions of the state agency. All disbursements from such fund except administrative expenses must be made in accordance with such regulations as the state agency may prescribe.
5. 1. There are hereby authorized to be appropriated annually to the contribution fund, in addition to the contributions collected and paid into the contribution fund under sections 52-10-04 and 52-10-05, to be available for the purposes of subsections 2 and 3 until expended, such additional sums as are found to be necessary in order to make the payments to the secretary of the treasury which the state is obligated to make pursuant to an agreement entered into under section 52-10-03.
   2. The state agency shall submit to each regular session of the legislative assembly, at least ninety days in advance of the beginning of such session, an estimate of the amounts authorized to be appropriated to the social security contribution fund by subdivision a for the next appropriation period.

All moneys in the fund must be mingled and undivided. Subject to the provisions of this chapter, the state agency is vested with full power, authority, and jurisdiction over the fund, including all moneys and property or securities belonging thereto, and may perform any and all acts whether or not specifically designated, which are necessary to the administration thereof and are consistent with the provisions of this chapter.

52-10-07. Referenda and certification.

1. With respect to employees of any political subdivision who are under a locally administered retirement system, the governor shall authorize a referendum upon request of the governing body of such subdivision; and with respect to employees covered by any other retirement system, the governor may authorize a referendum; and in either case the referendum must be conducted and the governor shall designate an agency or individual to supervise its conduct, in accordance with the requirements of section 218(d)(3) of the Social Security Act [42 U.S.C. 418], on the question of whether service in positions covered by a retirement system established by the state or by a political subdivision thereof should be excluded from or included under an agreement under this chapter. The notice of referendum required by section 218(d)(3)(C) of the Social Security Act [42 U.S.C. 418] to be given to employees must contain or must be accompanied by a statement, in such form and such detail as the agency or individual designated to supervise the referendum shall deem necessary and sufficient, to inform the employees of the rights which will accrue to them and their dependents and survivors, and the liabilities to which they will be subject, if their services are included under an agreement under this chapter.
2. Upon receiving evidence satisfactory to the governor that with respect to any such referendum the conditions specified in section 218(d)(3) of the Social Security Act [42 U.S.C. 418] have been met, the governor, or an official designated by the governor to act in the governor’s behalf in respect to this subsection, shall so certify to the secretary of health and human services.

52-10-08. Rules and regulations.

The state agency shall make and publish such rules and regulations, not inconsistent with the provisions of this chapter, as it finds necessary or appropriate to the efficient administration of the functions with which it is charged under this chapter. Such regulations must require the employers to make such reports in such form and containing such information as the state agency may from time to time request, and must require employers to comply with such provisions as the state agency or the secretary of health and human services may from time to time find necessary to assure the correctness and verification of such reports.

52-10-09. Studies and reports.

The state agency shall submit a biennial report to the governor and the secretary of state in accordance with section 54-06-04.

52-10-10. Identification of enlarged or reorganized public school district — Liability of surviving district.

1. As used in this section, “most populous district” means the public school district involved in annexation or reorganization of school districts:
   1. Which maintained an elementary school;
   2. More than one-half of which is included in the enlarged or reorganized public school district; and
   3. Which had a larger number of children of school age at the school census next preceding the inclusion of such district in the enlarged or reorganized public school district than any other public school district of the type described in subdivisions a and b which is included in the enlarged or reorganized public school district.
2. For the purposes of this chapter when an enlarged or reorganized school district is formed:
   1. The most populous district must be deemed to be the surviving district for social security purposes.
   2. The enlarged or reorganized public school district shall retain the same identification number which was previously assigned to the most populous district, as defined in subsection 1.
   3. The school districts, or parts thereof, included in the enlarged or reorganized district must be deemed to be annexed to the most populous district, or the part of the most populous district included in the enlarged or reorganized district, and to become identified with it, and the employees of the public school districts included in the enlarged or reorganized district, or if only part of a district is included in the enlarged or reorganized district, the employees who were employed in schools included within the enlarged or reorganized district must be deemed to be employees of the most populous district, which shall succeed the other districts in such enlarged district as a party to their respective contracts of employment.

52-10-11. Systems divided — Referendum on social security.

1. Notwithstanding the provisions of sections 52-10-05 and 52-10-07, with respect to the employees of any political subdivision who are under a locally administered retirement system in existence prior to April 23, 1957, including the North Dakota teachers’ insurance and retirement fund for the purposes of this section, the governor is empowered to authorize a referendum for a divided retirement system as provided by section 218 of title II of the Social Security Act [42 U.S.C. 418]. The system must be divided as follows:
   1. Group A of the divided retirement system must be composed of:
      1. Persons, in positions covered in a locally administered retirement system at the time the political subdivision submits the plan of coverage, who have indicated in accordance with this section that they desire coverage under an agreement under section 218 of title II of the federal Social Security Act [42 U.S.C. 418]; and
      2. Individuals, including former employees, who become employed in a position covered by a local retirement system after April 23, 1957, and inactive members who become employed in positions covered by a locally administered retirement system after said date.
   2. Group B must be composed of all other persons who are employed in positions covered by a local retirement system at the time referred to in paragraph 1 of subdivision a.
2. Each person who is an actively employed person in a position covered by a local retirement system on the date the political subdivision makes application to the governor for a referendum under this section shall indicate whether the person desires to be a member of group A or group B on a form furnished for that purpose by the state agency and deliver said form to the office of the state agency. An employee who chooses to become a member of group A shall thereby elect to become subject to the laws relating to group A. Each such employee shall enter the employee’s mailing address on such form. At the time the state agency certifies to the governor that the plan of coverage required by section 52-10-05 meets the requirements of the law, the state agency shall certify to the governor the names and addresses of the employees of the political subdivision who have indicated their desire to become members of group A.
3. When the state agency has certified to the governor the names and addresses of group A, the governor shall forthwith take all actions necessary for the conduct of a referendum under section 52-10-07 so that members of group A may vote in favor of or against coverage under the federal old-age and survivors’ insurance system. If a majority of the members of group A vote in favor of such coverage, the amendments made and provisions created by this section shall be fully operative. If less than a majority vote in favor of such coverage, such amendments and provisions do not continue in effect and a retirement system must be deemed not to be divided into group A and group B.
4. Employees in positions covered by locally administered retirement plans who have indicated their desire to become members of group B under this section may request a transfer to group A, provided such request is in writing and received by the state agency within the time limit specified in section 218 of title II of the Social Security Act [42 U.S.C. 418].

52-11-01. Retirement for certain state employees.

1. The North Dakota national guard is authorized to establish an employee retirement program by contract with an insurance company, state or national bank and trust company, or an investment company, authorized under the law to do business in this state, the state investment board, or the North Dakota public employees retirement system. Except for a retirement program established under chapter 54-52, the North Dakota national guard shall prepare specifications of the terms of the retirement program which must be submitted to not less than three companies or agencies with a request for bids upon the retirement program contracts. After the submission of at least three bids, the adjutant general shall compare the bids, and with the approval of the governor, shall execute a contract for the retirement program with the company or agency submitting the lowest and best bid. The public employees retirement system board is authorized to administer the retirement plan established in 1961 and frozen to new entrants in 1980 for employees of job service North Dakota. The public employees retirement system board shall fund the administrative expenses of administering that retirement plan from the funds in that plan.
2. The employing agency shall be authorized to withhold the employee’s share of the contributions required under such retirement program from the salary paid each employee of such agency. The amount of such withholding must be an adjustable percentage rate of the employee’s salary sufficient to provide financing of the required employee’s contributions to such retirement plan as such plan was originally contracted and as it has been or will be amended, provided that such percentage rate may not exceed the percentage rate which may be fixed for withholding from federal employees for employee contributions to the federal retirement program under civil service. The employing agency shall be authorized to pay a sum as prescribed in the program contract toward the cost of such retirement program, which sum may not be in excess of the amount approved by the appropriate federal agency supervising the payment or reimbursement of salary and retirement program costs. The amount withheld from the wages due an employee and the amount to be paid by the employing agency must be paid to the company holding such retirement program contract in accordance with the terms of such contract.
3. The employing agency’s share of the costs of such retirement program must be paid from any funds made available to it for this purpose by the United States government, and in the case of employees of such agencies for whom the state does not receive federal payments for salary costs, such employer’s share may be made from any appropriations made available for the purpose of paying such salaries. Payments may be made for prior service of employees in accordance with the terms of the retirement program contract and in accordance with the availability of funds. The contract must specify the terms and conditions under which employee contributions may be withdrawn from the program and for the crediting of the employer’s contributions to future payments due from the employing agency. Provision may be made in the contract for optional payment of benefits to survivors of covered employees. Each agency participating in the retirement program shall be authorized to do all things necessary for the proper administration of the program, but no benefits payable under the terms of the retirement program contract shall ever become an obligation of the state.