1996 SUMMARY OF LEGISLATION

LABOR & EMPLOYMENT

Labor & Employment LegislationRelated Legislation
SENATE FILE 2409 - Workforce Development
SENATE FILE 2453 - Boilers and Unfired Steam Pressure Vessels
HOUSE FILE 308 - Workers' Compensation -- Limited Liability Company Members
HOUSE FILE 2229 - Employment Security
SENATE FILE 284 - Forgery and Related Matters
SENATE FILE 2245 - Public Retirement Systems
SENATE FILE 2331 - False Academic Records
SENATE FILE 2470 - Miscellaneous Appropriations and Related Matters -- Economic Development Appropriations
HOUSE FILE 2416 - Appropriations -- Administration and Regulation

LABOR & EMPLOYMENT LEGISLATION

SENATE FILE 2409 - Workforce Development (full text of bill)
BY COMMITTEE ON SMALL BUSINESS, ECONOMIC DEVELOPMENT AND TOURISM. This Act creates the Department of Workforce Development. This new department replaces the current Department of Employment Services. In addition, the Act transfers certain responsibilities from the Department of Economic Development to the new Department of Workforce Development.
The Act also establishes a Workforce Development Board and regional advisory boards to assist in the operation of the new department.
In addition, the Act eliminates the Division of Job Service and Job Service Commissioner with the Director of the Department of Workforce Development and the new department being given these duties.
The Act provides that the Department of Economic Development is responsible for incorporating workforce development as a component of community-based economic development planning activities and for reviewing workforce development as it relates to the state's economic development agenda.
Under the Act, the new Department of Workforce Development undertakes several duties previously administered by other departments. The new department is responsible for developing a job training delivery system, managing job training program reporting, and for administering the Iowa Conservation Corps, workforce development centers, the Workforce Investment Program, Job Training Partnership Programs, and the statewide mentoring program.
The department is also given the responsibility, in consultation with the applicable regional advisory board, of selecting service providers in each service delivery area to provide workforce development services within that area.
The Act establishes a Workforce Development Board, consisting of nine voting members, with one member representing a nonprofit organization interested in workforce development, four members representing employers and four members representing nonsupervisory employees. Seven ex officio members are also named to the board. The board is directed to develop 20-year and five-year comprehensive workforce development plans. The board shall also approve the budget of the new department as it relates to workforce development, establish guidelines and review procedures concerning the awarding and monitoring of grants and contracts awarded by the department, and adopt administrative rules related to workforce development.
The regional advisory boards are established within each service delivery area defined generally as a community college district extended to the county borders. The regional boards shall provide for equal representation of business and labor and include certain county, city and school officials. The regional boards are established to provide advice concerning workforce development issues to the Workforce Development Board and the department and to monitor the performance of grants awarded in the region.
The Act also requires the location of a workforce development center within each merged area as defined in Section 260C.2, realigned to the closest county border by the new department, and to provide a presence, through satellite offices or electronic means, in each county within the merged area. The Act permits the department to make accommodations in the boundaries of the service delivery areas with the approval of the State Workforce Development Board.
SENATE FILE 2453 - Boilers and Unfired Steam Pressure Vessels (full text of bill)
BY HORN AND RIFE. This Act provides that the Labor Commissioner, when adopting rules concerning boilers and unfired steam pressure vessels that adopt standards by reference to another publication, is exempt from the requirement that the publication referenced be deposited in the State Law Library under certain conditions. The Act provides that the requirement to deposit the publication in the State Law Library is waived if the Administrative Rules Coordinator agrees, the cost of compliance is unreasonable, the rule identifies the location of the publication, and the publication is available within the State Capitol complex. This portion of the Act takes effect April 23, 1996.
The Act also provides for the inspection of certain unfired steam pressure vessels manufactured on or after January 1, 1994, with an allowable pressure of 150 pounds per square inch and the safety relief valve set at 150 pounds per square inch. The Act requires that these vessels have an annual external inspection and a second internal inspection completed before December 31, 1997. Prior law provided that these vessels have an external and internal inspection on an annual basis.
HOUSE FILE 308 - Workers' Compensation -- Limited Liability Company Members (full text of bill)
BY TYRRELL. This Act provides that a limited liability company member who is actively engaged in that member's business may elect to be covered by the workers' compensation law by purchasing workers' compensation insurance. The Act provides that a limited liability company member who elects not to be covered by a workers' compensation law is not an employee or worker for purposes of the workers' compensation law.
The Act also provides that if the limited liability company is primarily involved in farming, members of the company, as well as certain relatives of the members, are exempted from the provisions of the workers' compensation law.
HOUSE FILE 2229 - Employment Security (full text of bill)
BY COMMITTEE ON COMMERCE AND REGULATION. This Act eliminates the Job Service Advisory Council and makes several changes concerning unemployment insurance benefits.
The Act permits the Department of Employment Services to deduct and withhold federal and state income tax from unemployment compensation benefits if the claimant chooses. This section of the Act takes effect January 1, 1997, and applies to unemployment compensation benefits paid on or after that date.
The Act allows employers who purchase part of a business to be relieved of unemployment insurance charges unless the acquiring employer requests and is granted a partial transfer of experience. The Act also treats reimbursable and contributory employers the same.
The Act requires the Division of Job Service to send contribution rate notices to employers by regular mail at the employer's last known address. The Act also requires the employer to pay contributions at a disputed rate prior to a decision concerning the rate, but the employer is eligible for a refund pending a decision reversing benefits.
The Act defines services performed by a member of a limited liability company, beyond services performed in making a contribution to the membership interest in the company, as employment. The Act also limits the definition of "wages" for purposes of unemployment compensation to only the remuneration received by limited liability company members above their contributions to their membership interest in the company.
The Act allows an individual who is concurrently a corporate officer of two or more related corporations, and who is paid through only one of those corporations, to be reported as an employee of only the corporation that issues the paycheck.
Pursuant to S. F. 2409, references to the Department of Employment Services and the Division of Job Service shall both be changed to the Department of Workforce Development.

RELATED LEGISLATION

SENATE FILE 284 - Forgery and Related Matters (Complete summary under CORRECTIONS, CRIMINAL LAW & PROCEDURE.)
This Act creates criminal and civil penalties for persons who possess, or employers who hire or continue to employ persons knowing that the persons possess, forged documents relating to the person's entry into or as evidence of authorized stay or employment in the United States.
SENATE FILE 2245 - Public Retirement Systems (Complete summary under STATE GOVERNMENT.)
This Act makes numerous changes pertaining to public retirement systems, including the Iowa Public Employees' Retirement System (IPERS, Chapter 97B), the Public Safety Peace Officers' Retirement, Accident, and Disability System (PORS, Chapter 97A), and the Statewide Fire and Police Retirement System (Chapter 411).
SENATE FILE 2331 - False Academic Records (Complete summary under CORRECTIONS, CRIMINAL LAW & PROCEDURE.)
This Act establishes a criminal penalty for certain uses and false representations relating to academic degrees, grades or honors.
SENATE FILE 2470 - Miscellaneous Appropriations and Related Matters -- Economic Development Appropriations (Complete summary under APPROPRIATIONS.)
This Act relates to public levy, expenditure and regulatory matters by making standing, economic development and other appropriations, and includes provisions extending liability protection to persons who are involved in a workplace rescue arising out of an emergency or accident and for funding of the start-up of voluntary benefit programs in the Statewide Fire and Police Retirement System.
HOUSE FILE 2416 - Appropriations -- Administration and Regulation (Complete summary under APPROPRIATIONS.)
This Act relates to and appropriates $84.1 million to various state departments, agencies, funds, and certain other interstate and national entities for FY 1997. The Act also authorizes the assessment of a surcharge on workers' compensation weekly benefits paid during the fiscal year commencing July 1, 1994, for the Second Injury Fund. The surcharge assessment is limited to a maximum of $870,000. The Act creates a Second Injury Task Force under the direction of the Industrial Commissioner to study the basic role and purpose of the Second Injury Fund and to determine its needs for continuation and source of funding.

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Last update: Mon August 26, 1996
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