Adds testing positive for illegal drugs under a Department of Transportation qualified drug screen program, in accordance with the employer's bona fide written drug policy, to the types of misconduct that lead to a disqualification for benefits. 

Eliminates the requirement that the Division of Employment and Training in the Department of Labor and Employment deduct, from an employer's refund of excess unemployment insurance taxes, an amount equal to the benefits the Division has paid to employees upon whose wages the taxes were based.

Relieves employer of obligation to pay unemployment insurance taxes in a calendar quarter if the amount due is less than five dollars.

Repeals the penalty that employers lose their appeal rights if they fail to provide separation information without good cause within 10 days of a request from the Department.

Modifies the interest payment provisions on Federal loans to:

• change from a requirement to an option for the director to pay interest charges due and payable from the Federal advance interest repayment fund;
• change from a requirement to an option to levy on experience-rated employers a Federal advance interest repayment tax; and
• change from a requirement to an option at the director's sole discretion, to assess a Federal advance interest repayment on each covered employer if the estimated interest payable is more than zero.

Provides that no social security payments to which an employee has made contributions shall be deducted from unemployment compensation; such payments were previously deductible.

Raises maximum weekly benefit amount from $190 to $200, effective July 1, 2001, and from $200 to $210, effective July 1, 2002.

Exempts from employment services performed by election judges who receive less than $1,000 in remuneration in a calendar year.

Eliminates the 12 times statewide average weekly wage option for purposes of determining eligibility for benefits for other than agricultural workers.

Replaces the 12 times statewide average weekly option with 1,000 times the minimum wage for agricultural workers.

Eliminates from the definition of base week for unemployment benefits the 20 percent times statewide average weekly wage option.

Replaces the 20 times statewide average weekly wage with 20 times the minimum wage in the definition of base week for temporary disability benefits.

Replaces the 12 times statewide average weekly wage option with 1,000 times the minimum wage in determining entitlement to temporary disability benefits.

Specifies that an individual is not considered to have left employment voluntarily without good cause if the individual 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.

Changes procedures for posting a bond or irrevocable letter of credit on construction projects to ensure the payment of all benefits claimed by employees working on the project.

Raises the threshold for estimated cost of a construction project that requires posting a bond or letter of credit from $25 to $50 million.

Changes the definition of "employer" and "employment" to include service performed for an Indian tribe, resulting in UI coverage of such services.

Allows an Indian tribe either to pay contributions or to elect to make reimbursements.

Requires an Indian tribe that elects to make reimbursements to file a surety bond.

Provides that failure of an Indian tribe to make required payments within ninety days will result in loss of option to make reimbursements and that further failure of the tribe to make payments will cause loss of coverage of services performed for the Indian tribe.

Specifies that the job service North Dakota bureau will notify the U.S. Internal Revenue Service and U.S. Department of Labor of a termination or reinstatement of coverage of an Indian tribe.

Provides that during the building of the trust fund reserve for calendar years 2000, 2001, and 2002, a negative employer that was a negative employer the previous year may not make excess contributions to become a positive employer.

Removes the limitations, imposed during the building of the trust fund reserve for calendar years 2000, 2001, and 2002, that the rate assigned to an employer may not exceed one hundred thirty percent of the previous year's rate for that employer and that an employer may not receive more than a ten percent decrease in rate from the previous year's rate, on the following employers:

• an experience-rated employer that was a new employer the previous year,
   
• a negative employer that was a positive employer the previous year,
   
• a positive employer that was a negative employer the previous year,
   
• an employer that has failed to file a report,
   
• a new employer, and
   
• an employer that chose to make payments in lieu of contributions.

Extends UI coverage to services performed in the employ of an Indian tribe or tribal unit.

Allows Indian tribes and tribal units either to pay contributions or make reimbursements.

Provides that failure of any Indian tribe or tribal unit to make requires payments within 90 days of receipt of a billing will cause the Indian tribe to lose the reimbursement option.

Permits reimbursing Indian tribes or tribal units to establish group accounts.

Non charges benefits paid to an inmate participating in a work-release program when the inmate's separation from work arose from conditions of release or parole from such program.

Creates a department of workforce services and instructs the new director of that department to prepare a plan for reorganizing various agencies and functions, including the possible transfer of unemployment insurance and other functions to the Department of Workforce Services. The plan is to be submitted to and approved by the Governor and submitted to the joint labor, health and social services interim committee of the legislature no later than October 15, 2001.

For calendar year 2002, lowers contribution rates by 30 percent for experience-rated employers and employers at the base rate of 8.5 percent.