SSB 1086 (LSB 1241XD (7) 88)

SENATE/HOUSE FILE _____

BY  (PROPOSED DEPARTMENT OF WORKFORCE DEVELOPMENT BILL)

A BILL FOR

An Act concerning unemployment insurance and including effective date and applicability provisions. 
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

DIVISION I
UNEMPLOYMENT INSURANCE TAX AND BENEFITS —— 2019

    Section 1.  Section 96.3, subsection 5, paragraph a, Code 2019, is amended to read as follows:
   a.  Duration of benefits.  The maximum total amount of benefits payable to an eligible individual during a benefit year shall not exceed the total of the wage credits accrued to the individual’s account during the individual’s base period, or twenty-six times the individual’s weekly benefit amount, whichever is the lesser. The director shall maintain a separate account for each individual who earns wages in insured work. The director shall compute wage credits for each individual by crediting the individual’s account with one-third of the wages for insured work paid to the individual during the individual’s base period. However, the director shall recompute wage credits for an individual who is laid off due to the individual’s employer going out of business at the factory, establishment, or other premises at which the individual was last employed, by crediting the individual’s account with one-half, instead of one-third, of the wages for insured work paid to the individual during the individual’s base period. Benefits paid to an eligible individual shall be charged against the base period wage credits in the individual’s account which have not been previously charged, in the inverse chronological order as the wages on which the wage credits are based were paid. However if the state “off” indicator is in effect and if the individual is laid off due to the individual’s employer going out of business at the factory, establishment, or other premises at which the individual was last employed, the maximum benefits payable shall be extended to thirty-nine times the individual’s weekly benefit amount, but not to exceed the total of the wage credits accrued to the individual’s account.
    Sec. 2.  Section 96.6, subsection 2, Code 2019, is amended to read as follows:
   2.  Initial determination.  A representative designated by the director shall promptly notify all interested parties to the claim of its filing, and the parties have ten days from the date of mailing issuing the notice of the filing of the claim by ordinary mail to the last known address to protest payment of benefits to the claimant.  All interested parties shall select a format as specified by the department to receive such notifications. The representative shall promptly examine the claim and any protest, take the initiative to ascertain relevant information concerning the claim, and, on the basis of the facts found by the representative, shall determine whether or not the claim is valid, the week with respect to which benefits shall commence, the weekly benefit amount payable and its maximum duration, and whether any disqualification shall be imposed. The claimant has the burden of proving that the claimant meets the basic eligibility conditions of section 96.4. The employer has the burden of proving that the claimant is disqualified for benefits pursuant to section 96.5, except as provided by this subsection. The claimant has the initial burden to produce evidence showing that the claimant is not disqualified for benefits in cases involving section 96.5, subsections 10 and 11, and has the burden of proving that a voluntary quit pursuant to section 96.5, subsection 1, was for good cause attributable to the employer and that the claimant is not disqualified for benefits in cases involving section 96.5, subsection 1, paragraphs “a” through “h”. Unless the claimant or other interested party, after notification or within ten calendar days after notification was mailed issued to the claimant’s last known address, files an appeal from the decision, the decision is final and benefits shall be paid or denied in accordance with the decision. If an administrative law judge affirms a decision of the representative, or the appeal board affirms a decision of the administrative law judge allowing benefits, the benefits shall be paid regardless of any appeal which is thereafter taken, but if the decision is finally reversed, no employer’s account shall be charged with benefits so paid and this relief from charges shall apply to both contributory and reimbursable employers, notwithstanding section 96.8, subsection 5.
    Sec. 3.  Section 96.14, subsection 16, Code 2019, is amended to read as follows:
   16.  Injunction upon nonpayment.  Any employer or employing unit refusing or failing to make and file required reports, records, or to pay any contributions, interest, or penalty under the provisions of this chapter, after ten days’ written notice sent by the department to the employer’s or employing unit’s last known address by certified mail, may be enjoined from operating any business in the state while in violation of this chapter upon the complaint of the department in the district court of a county in which the employer or employing unit has or had a place of business within the state, and any temporary injunction enjoining the continuance of such business may be granted without notice and without a bond being required from the department. Such injunction may enjoin any employer or employing unit from operating a business unit until the delinquent contributions, interest, or penalties shall have been made and filed or paid; or the employer shall have furnished a good and sufficient bond conditioned upon the payment of such delinquencies in such an amount and containing such terms as may be determined by the court; or the employer has entered into a plan for the liquidation of the business to pay for such delinquencies as the court may approve, provided that such injunction may be reinstated upon the employer’s failure to comply with the terms of said plan.
    Sec. 4.  Section 96.40, subsection 2, paragraphs e and i, Code 2019, are amended to read as follows:
   e.  The reduction in hours and corresponding reduction in wages must be applied equally to all employees in the affected unit for each week reported.
   i.  The duration of the shared work plan will not exceed fifty-two weeks.  The employer shall only be authorized one plan during a twenty-four-month period. 
    Sec. 5.  Section 96.40, subsection 2, Code 2019, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  l.  The employer shall notify all affected employees and receive consent from each participating employee before the plan is authorized.
    Sec. 6.  Section 96.40, Code 2019, is amended by adding the following new subsection:
   NEW SUBSECTION.  4A.  An employer may file an appeal in writing of a denial or approval of a plan or revocation of an approved plan by the department within thirty days from the date of the decision.
    Sec. 7.  Section 96.40, subsection 9, paragraph b, Code 2019, is amended to read as follows:
   b.  An employer may provide as part of the plan a training program the employees may attend during the hours that have been reduced. Such a training program may include a training program funded under the Workforce Investment Innovation and Opportunity Act, of 1998, Pub. L. No. 105-220 113-128. If the employer is able to show that the training program will provide a substantive increase in the workplace and employability skills of the employee so as to reduce the potential for future periods of unemployment, the department shall relieve the employer of charges for benefits paid to the individual attending training under the plan. The employee may attend the training at the work site utilizing internal resources, provided the training is outside of the normal course of employment, or in conjunction with an educational institution.
    Sec. 8.  EFFECTIVE DATE.  This division of this Act, being deemed of immediate importance, takes effect upon enactment.
    Sec. 9.  APPLICABILITY.
   1.  The following apply to any week of unemployment benefits beginning on or after the first Sunday after the effective date of this division of this Act:
   a.  The section of this Act amending section 96.3.
   2.  The following apply to all voluntary shared work plans approved by the department of workforce development on or after the effective date of this division of this Act:
   a.  The section of this division of this Act amending section 96.40, subsection 2, paragraphs “e” and “i”.
   b.  The section of this division of this Act enacting section 96.40, subsection 2, paragraph “l”. 
   c.  The section of this division of this Act enacting section 96.40, subsection 4A.
   d.  The section of this division of this Act amending section 96.40, subsection 9, paragraph “b”.
DIVISION II
UNEMPLOYMENT INSURANCE TAX AND BENEFITS —— 2020

    Sec. 10.  Section 96.3, subsection 4, Code 2019, is amended to read as follows:
   4.  Determination of benefits.  With respect to benefit years beginning on or after July 1, 1983, an An eligible individual’s weekly benefit amount for a week of total unemployment shall be an amount equal to the following fractions of the individual’s total wages in insured work paid during that quarter of the individual’s base period in which such total wages were highest; the director shall determine annually a maximum weekly benefit amount equal to the following percentages, to vary with the number of based on whether the individual has dependents, of the statewide average weekly wage paid to employees in insured work which shall be effective the first day of the first full week in July: July.
If the       The weekly                Subject to
 number of       benefit amount                the following
 dependents        shall equal                maximum
 is:       the following                percentage of

        fraction of high                the statewide
       quarter wages:                average
                weekly wage:

 0       1/23                53%
 1 or more       1/22                55% 57%
 2       1/21                57%
 3       1/20                60%
 4 or more       1/19                65%

The maximum weekly benefit amount, if not a multiple of one dollar, shall be rounded to the lower multiple of one dollar. However, until such time as sixty-five percent of the statewide average weekly wage exceeds one hundred ninety dollars, the The maximum weekly benefit amounts shall be determined using the statewide average weekly wage computed on the basis of wages reported for the current calendar year 1981. As used in this section “dependent” means dependent as defined in section 422.12, subsection 1, paragraph “a”, as if the individual claimant was a taxpayer, except that an individual claimant’s nonworking spouse shall be deemed to be a dependent under this section. “Nonworking spouse” means a spouse who does not earn more than one hundred twenty dollars in gross wages in one week.
    Sec. 11.  Section 96.4, Code 2019, is amended by adding the following new subsection:
   NEW SUBSECTION.  8.  The individual has satisfied a single one-week waiting period during the individual’s benefit year. To satisfy the one-week waiting period, the individual, with respect to the week in question, must be eligible for benefits from this state, but must not have received benefits from this state, and must not be eligible for benefits from another state.
    Sec. 12.  Section 96.7, subsection 2, paragraph c, subparagraph (2), Code 2019, is amended to read as follows:
   (2)  A construction or landscaping contributory employer, as defined under rules adopted by the department pursuant to chapter 17A, which is newly subject to this chapter shall pay contributions at the rate specified in the twenty-first benefit ratio rank until the end of the calendar year in which the employer’s account has been chargeable with benefits for twelve consecutive calendar quarters.
    Sec. 13.  Section 96.19, subsection 20, unnumbered paragraph 1, Code 2019, is amended to read as follows:
   “Exhaustee” means an individual who, with respect to any week of unemployment in the individual’s eligibility period has received, prior to such week, all of the regular benefits that were available to the individual under this chapter or any other state law, including dependents’ allowances and benefits payable to federal civilian employees and former armed forces personnel under 5 U.S.C. ch. 85, in the individual’s current benefit year that includes such weeks. Provided that for the purposes of this subsection 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 add regular benefits, or:
    Sec. 14.  EFFECTIVE DATE.  This division of this Act takes effect July 1, 2020.
    Sec. 15.  APPLICABILITY.
   1.  The following apply to any week of unemployment benefits beginning on or after July 5, 2020:
   a.  The section of this division of this Act amending section 96.3, subsection 4.
   b.  The section of this division of this Act amending section 96.19, subsection 20.
   2.  The following apply to any new claim of unemployment benefits with an effective date on or after July 5, 2020:
   a.  The section of this division of this Act enacting section 96.4, subsection 8.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to unemployment insurance under Code chapter 96. 
   DIVISION I. This division strikes language requiring the director of the department of workforce development to recompute wage credits for purposes of calculating an individual’s maximum total amount of unemployment benefits payable during a benefit year. The stricken language applied to an individual who is laid off due to the individual’s employer going out of business at the factory, establishment, or other premises at which the individual was last employed by crediting the individual’s account with one-half, instead of one-third, of the wages for insured work paid to the individual during the individual’s base period. The division also strikes language providing an additional 13 weeks of benefits to such individuals if the state “off” indicator, which relates to the rate of insured unemployment in the state, is in effect. This provision applies to any week of unemployment benefits beginning on or after the first Sunday after the effective date of the division. 
   The division strikes language providing that notifications of interested parties that a claim for unemployment benefits has been made be sent by ordinary mail. The division instead provides that such notifications shall be in a format as specified by the department selected by the parties. 
   The division provides that an employer or employing unit refusing or failing to make and file required records is subject to a possible injunction by the department for the violation. 
   The division modifies a reference to plans for liquidation of deficiencies under Code chapter 96 by an employer or employing unit to specify that such a plan is for the liquidation of a business to pay for such deficiencies. 
   The division modifies conditions for approval of a voluntary shared work program by the department. The division provides that a reduction in hours and corresponding reduction in wages that must be applied equally to all employees in the affected unit must be applied equally for each week reported. The division provides that an employer shall only be authorized one plan during a 24-month period. The division requires an employer to notify all affected employees and receive consent from each participating employee before the plan is authorized. The division also permits an employer to file an appeal in writing of a denial or approval of a plan or revocation of an approved plan by the department within 30 days from the date of the decision and replaces a reference to the federal Workforce Investment Act of 1998 with a reference to the federal Workforce Innovation and Opportunity Act. These provisions apply to all voluntary shared work plans approved by the department of workforce development on or after the effective date of the division.
   The division takes effect upon enactment.
   DIVISION II. This division strikes language providing that an eligible individual’s maximum weekly benefit amount varies with the number of dependents the individual has. The division instead provides that an individual with dependents is subject to a maximum of 57 percent of the statewide average weekly wage. The division strikes language defining “dependent”. The division strikes additional obsolete language. These provisions apply to any week of unemployment benefits beginning on or after July 5, 2020.
   The division provides that in order to be eligible for unemployment benefits, an individual must satisfy a single one-week waiting period during the individual’s benefit year. To satisfy the one-week waiting period, the individual, with respect to the week in question, must be eligible for benefits from this state, but must not have received benefits from this state, and must not be eligible for benefits from another state. This provision applies to any new claim of unemployment benefits with an effective date on or after July 5, 2020.
   The division provides that a landscaping contributory employer, as defined by the department by rule, which is newly subject to Code chapter 96 shall pay contributions at the rate specified in the twenty-first benefit ratio rank until the end of the calendar year in which the employer’s account has been chargeable with benefits for 12 consecutive calendar quarters.
   The division takes effect July 1, 2020.