S.F. _____ H.F. _____ DIVISION I 1 CRIMINAL HISTORY CHECKS 2 Section 1. NEW SECTION . 84A.12 Criminal history checks. 3 An applicant for employment with the department of 4 workforce development shall be subject to a national criminal 5 history check through the federal bureau of investigation. 6 A contractor, vendor, employee, or any other individual 7 performing work for the department of workforce development 8 shall be subject to a national criminal history check through 9 the federal bureau of investigation at least once every ten 10 years. The department of workforce development shall request 11 the national criminal history check and shall provide the 12 individual’s fingerprints to the department of public safety 13 for submission through the state criminal history repository 14 to the federal bureau of investigation. The individual shall 15 authorize release of the results of the national criminal 16 history check to the department of workforce development. The 17 department of workforce development shall pay the actual cost 18 of the fingerprinting and national criminal history check, 19 if any. The results of a criminal history check conducted 20 pursuant to this section shall not be considered a public 21 record under chapter 22. 22 DIVISION II 23 UNEMPLOYMENT INSURANCE 24 Sec. 2. Section 96.5, subsection 5, paragraph a, 25 subparagraph (3), Code 2018, is amended to read as follows: 26 (3) A governmental or other pension, retirement or retired 27 pay, annuity, or any other similar periodic payment made 28 under a plan maintained or contributed to by a base period 29 or chargeable employer where, except for benefits under the 30 federal Social Security Act or the federal Railroad Retirement 31 Act of 1974 or the corresponding provisions of prior law, 32 the plan’s eligibility requirements or benefit payments are 33 affected by the base period employment or the remuneration 34 for the base period employment. However, if an individual’s 35 -1- LSB 5282XD (5) 87 je/rj 1/ 8

S.F. _____ H.F. _____ benefits are reduced due to the receipt of a payment under this 1 subparagraph , the reduction shall be decreased by the same 2 percentage as the percentage contribution of the individual 3 to the plan under which the payment is made shall only be 4 applicable if the base period employer has made one hundred 5 percent of the contributions to the plan . 6 Sec. 3. Section 96.5, subsection 7, paragraphs b, c, and d, 7 Code 2018, are amended to read as follows: 8 b. When, in connection with a separation or layoff of 9 an individual, the individual’s employer makes a payment or 10 payments to the individual, or becomes obligated to make a 11 payment to the individual as, or in the nature of, vacation 12 pay, or vacation pay allowance, or as pay in lieu of vacation , 13 and within ten calendar days after notification of the filing 14 of the individual’s claim, designates by notice in writing 15 to the department the period to which the payment shall be 16 allocated; provided, that if such designated period is extended 17 by the employer, the individual may again similarly designate 18 an extended period, by giving notice in writing to the 19 department not later than the beginning of the extension of the 20 period, with the same effect as if the period of extension were 21 included in the original designation . The amount of a payment 22 or obligation to make payment, is deemed “wages” as defined in 23 section 96.19, subsection 41 , and shall be applied as provided 24 in paragraph “c” of this subsection 7 . 25 c. Of the wages described in paragraph “a” (whether or not 26 the employer has designated the period therein described), 27 or of the wages described in paragraph “b” , if the period 28 therein described has been designated by the employer as 29 therein provided, a sum equal to the wages of such individual 30 for a normal workday shall be attributed to, or deemed to 31 be payable to the individual with respect to, the first and 32 each subsequent workday in such period until such amount so 33 paid or owing is exhausted , not to exceed five workdays . Any 34 individual receiving or entitled to receive wages as provided 35 -2- LSB 5282XD (5) 87 je/rj 2/ 8

S.F. _____ H.F. _____ herein shall be ineligible for benefits for any week in which 1 the sums , so designated or attributed to such normal workdays, 2 equal or exceed the individual’s weekly benefit amount. If 3 the amount so designated or attributed as wages is less than 4 the weekly benefit amount of such individual, the individual’s 5 benefits shall be reduced by such amount. 6 d. Notwithstanding contrary provisions in paragraphs “a” , 7 “b” , and “c” , if an individual is separated from employment and 8 is scheduled to receive vacation payments during the period of 9 unemployment attributable to the employer and if the employer 10 does not designate the vacation period pursuant to paragraph 11 “b” , then payments made by the employer to the individual or an 12 obligation to make a payment by the employer to the individual 13 for vacation pay, vacation pay allowance or pay in lieu of 14 vacation shall not be deemed wages as defined in section 96.19, 15 subsection 41 , for any period in excess of one week five 16 workdays and such payments or the value of such obligations 17 shall not be deducted for any period in excess of one week from 18 the unemployment benefits the individual is otherwise entitled 19 to receive under this chapter . However, if the employer 20 designates more than one week as the vacation period pursuant 21 to paragraph “b” , the vacation pay, vacation pay allowance, or 22 pay in lieu of vacation shall be considered wages and shall be 23 deducted from benefits. 24 Sec. 4. Section 96.6, subsection 3, paragraph a, Code 2018, 25 is amended to read as follows: 26 a. Unless the appeal is withdrawn, an administrative law 27 judge, after affording the parties reasonable opportunity for 28 fair hearing, shall affirm or modify the findings of fact 29 and decision of the representative. The hearing shall be 30 conducted pursuant to the provisions of chapter 17A relating 31 to hearings for contested cases. Before the hearing is 32 scheduled, the parties shall be afforded the opportunity to 33 choose either a telephone hearing or an in-person hearing. 34 A request for an in-person hearing shall be approved unless 35 -3- LSB 5282XD (5) 87 je/rj 3/ 8

S.F. _____ H.F. _____ the in-person hearing would be impractical because of the 1 distance between the parties to the hearing. A The notice for 2 a telephone or in-person hearing shall not be scheduled before 3 the seventh sent to all the parties at least ten calendar day 4 after the parties receive notice of days before the hearing 5 date . Reasonable requests for the postponement of a hearing 6 shall be granted. The parties shall be duly notified of 7 the administrative law judge’s decision, together with the 8 administrative law judge’s reasons for the decision, which is 9 the final decision of the department, unless within fifteen 10 days after the date of notification or mailing of the decision, 11 further appeal is initiated pursuant to this section . 12 Sec. 5. Section 96.7, subsection 8, Code 2018, is amended by 13 adding the following new paragraphs: 14 NEW PARAGRAPH . c. (1) In the discretion of the department, 15 a nonprofit organization employing fifteen or more full-time 16 individuals that elects to become liable for payments in lieu 17 of contributions shall be required, within fifteen days after 18 the effective date of its election, to execute and file with 19 the department a bond or security approved by the department. 20 The amount of the bond or security shall be determined by rule 21 pursuant to chapter 17A. 22 (2) A bond or security deposited under this subsection shall 23 be in force for a period of not less than two calendar years and 24 shall be renewed with the approval of the department, at such 25 times as the department may require, but not less frequently 26 than at two-year intervals as long as the organization 27 continues to be liable for payments in lieu of contributions. 28 The department shall require adjustments to be made in a 29 previously filed bond or security as it deems appropriate. If 30 the bond or security is to be increased, the adjusted bond or 31 security shall be filed by the organization within fifteen days 32 after the date notice of the required adjustment was provided. 33 Failure by an organization covered by such bond or security 34 to pay the full amount of payments in lieu of contributions 35 -4- LSB 5282XD (5) 87 je/rj 4/ 8

S.F. _____ H.F. _____ when due, together with any applicable interest and penalties, 1 shall render the surety liable on said bond or security to the 2 extent of the bond or security, as though the surety were such 3 an organization. 4 (3) If a nonprofit organization fails to file a bond or 5 security or to file a bond or security in an increased amount 6 as required under this paragraph “c” , the department may 7 terminate the organization’s election to make payments in lieu 8 of contributions, and the termination shall continue for a 9 period of not less than four consecutive calendar quarters 10 beginning with the quarter in which the termination becomes 11 effective, but the department may, for good cause, extend the 12 applicable filing or adjustment period by not more than fifteen 13 days. 14 NEW PARAGRAPH . d. If a nonprofit organization is 15 delinquent in making payments in lieu of contributions as 16 required under this subsection, the department may terminate 17 the organization’s election to make payments in lieu of 18 contributions as of the beginning of the next calendar year. 19 Sec. 6. Section 96.16, subsection 4, paragraph a, Code 2018, 20 is amended to read as follows: 21 a. An individual who, by reason of the nondisclosure or 22 misrepresentation by the individual or by another of a material 23 fact, has received any sum as benefits under this chapter 24 while any conditions for the receipt of benefits imposed by 25 this chapter were not fulfilled in the individual’s case, or 26 while the individual was disqualified from receiving benefits, 27 shall , in the discretion of the department, either be liable 28 to have the sum deducted from any future benefits payable to 29 the individual under this chapter or shall be liable to repay 30 to the department for the unemployment compensation fund, a 31 sum equal to the amount so received by the individual. If 32 the department seeks to recover the amount of the benefits by 33 having the individual pay to the department a sum equal to that 34 amount, the department may file a lien with the county recorder 35 -5- LSB 5282XD (5) 87 je/rj 5/ 8

S.F. _____ H.F. _____ in favor of the state on the individual’s property and rights 1 to property, whether real or personal. The amount of the lien 2 shall be collected in a manner similar to the provisions for 3 the collection of past-due contributions in section 96.14, 4 subsection 3 . 5 Sec. 7. Section 96.19, subsection 16, paragraph a, Code 6 2018, is amended to read as follows: 7 a. For purposes of this chapter with respect to any calendar 8 year after December 31, 1971 2018 , any employing unit which 9 in any calendar quarter in either the current or preceding 10 calendar year paid wages for service in employment wages of 11 one thousand five hundred dollars or more excluding wages paid 12 for domestic service or for some portion of a day in each of 13 twenty different calendar weeks, whether or not such weeks were 14 consecutive, in either the current or the preceding calendar 15 year, had in employment at least one individual irrespective 16 of whether the same individual was in employment in each such 17 day . An employing unit treated as a domestic service employer 18 shall not be treated as an employer with respect to wages paid 19 for service other than domestic service unless such employing 20 unit is treated as an employer under this paragraph or as an 21 agricultural labor employer. 22 Sec. 8. EFFECTIVE DATE. The following takes effect January 23 1, 2019: 24 The section of this division of this Act amending section 25 96.19. 26 EXPLANATION 27 The inclusion of this explanation does not constitute agreement with 28 the explanation’s substance by the members of the general assembly. 29 Division I of this bill relates to criminal history checks to 30 be carried out by the department of workforce development. 31 The division provides that an applicant for employment 32 with the department shall be subject to a national criminal 33 history check through the federal bureau of investigation. The 34 division provides that a contractor, vendor, employee, or any 35 -6- LSB 5282XD (5) 87 je/rj 6/ 8

S.F. _____ H.F. _____ other individual performing work for the department shall be 1 subject to such a check at least once every 10 years. 2 The division directs the department to request the 3 national criminal history check and provide the individual’s 4 fingerprints to the department of public safety for submission 5 through the state criminal history repository to the federal 6 bureau of investigation. The department shall pay the actual 7 cost of the check. The results of the check shall not be 8 considered a public record. 9 Division II of the bill relates to unemployment insurance. 10 Under current law, the amount of certain pension payments 11 received by a claimant is deducted from the claimant’s 12 unemployment benefits. However, the reduction in benefits 13 is decreased by the percentage of contributions the claimant 14 made to the pension plan. The division instead provides that 15 a reduction in unemployment benefits due to pension payments 16 received will only occur if the claimant’s base period employer 17 has made 100 percent of the contributions to the pension plan. 18 The division strikes language requiring employers to 19 designate a period for the allocation of vacation pay that is 20 paid out to an employee in connection with a separation or 21 layoff. The division provides that vacation pay paid out to 22 an employee shall only be considered wages for purposes of 23 unemployment benefits for a maximum of five workdays. 24 The division strikes language providing that a telephone or 25 in-person hearing for an appeal of a determination regarding 26 eligibility for unemployment benefits shall not be scheduled 27 before seven days after the parties receive notice of the 28 hearing. The division instead provides that a notice for such 29 a hearing shall be sent to all parties at least 10 days before 30 the hearing date. 31 The division permits the department in its discretion 32 to require a nonprofit organization employing 15 or more 33 full-time individuals that elects to become liable for payments 34 reimbursing the department for unemployment benefits in 35 -7- LSB 5282XD (5) 87 je/rj 7/ 8

S.F. _____ H.F. _____ lieu of contributions to file with the department a bond or 1 security approved by the department, in an amount determined 2 by rule, within 15 days after the effective date of its 3 election. Failure by the organization to pay the full amount 4 of payments in lieu of contributions when due shall render the 5 surety liable for the bond or security. The division permits 6 the department to terminate the organization’s election to 7 become liable for payments in lieu of contributions if the 8 organization fails to file the bond or security. Such bonds or 9 securities shall be in force for a period of not less than two 10 calendar years and shall be renewed with the approval of the 11 department. The division permits the department to adjust the 12 required amount of a previously filed bond or security. 13 The division permits the department to terminate a nonprofit 14 organization’s election to become liable for payments in lieu 15 of contributions if the organization is delinquent in making 16 such payments. 17 The division strikes language permitting the department 18 in its discretion to allow an individual who, by reason of 19 the nondisclosure or misrepresentation of a material fact, 20 receives unemployment benefits without meeting the conditions 21 of eligibility or while disqualified from benefits to have the 22 sum of the benefits received deducted from future benefits 23 payments. Language requiring such an individual to repay 24 the department an amount equal to the benefits received is 25 unchanged. 26 The division amends the definition of employer for purposes 27 of unemployment benefits effective for calendar years beginning 28 after December 31, 2018, by striking language excluding from 29 the definition of employer those who did not pay at least 30 $1,500 in wages for service in employment or who did not have 31 at least one individual in employment for some portion of a 32 day in each of 20 different calendar weeks in the current or 33 preceding calendar year. 34 -8- LSB 5282XD (5) 87 je/rj 8/ 8