Text: HSB00307 Text: HSB00309 Text: HSB00300 - HSB00399 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. UNEMPLOYMENT TRUST FUND. There is appropriated 1 2 from moneys transferred to the state on March 13, 2002, 1 3 pursuant to section 903(d) of the federal Social Security Act, 1 4 as amended, to the department of workforce development, the 1 5 following amount, to be deposited, under the direction of the 1 6 department of workforce development, in the unemployment 1 7 compensation fund for the payment of unemployment benefits for 1 8 the first year of the unemployment compensation reserve fund, 1 9 alternative base period, and removal of the one-and-one- 1 10 quarter earnings barrier: 1 11 .................................................. $ 40,000,000 1 12 Sec. 2. UNEMPLOYMENT TAX AND CLAIM SYSTEM. There is 1 13 appropriated from moneys transferred to the state on March 13, 1 14 2002, pursuant to section 903(d) of the federal Social 1 15 Security Act, as amended, to the department of workforce 1 16 development, the following amount for purposes of automation 1 17 and technology for the unemployment tax and claim system: 1 18 .................................................. $ 20,000,000 1 19 Sec. 3. ENHANCED SERVICES TO CLAIMANTS. There is 1 20 appropriated from moneys transferred to the state on March 13, 1 21 2002, pursuant to section 903(d) of the federal Social 1 22 Security Act, as amended, to the department of workforce 1 23 development the following amount for purposes of 1 24 infrastructure improvements and the administrative and 1 25 technology costs associated with utilizing the alternative 1 26 base period for unemployment benefit claims and enhanced 1 27 services to unemployment benefit claimants for workforce and 1 28 labor exchange services: 1 29 .................................................. $ 20,700,000 1 30 Sec. 4. Section 96.4, subsection 4, unnumbered paragraph 1 31 1, Code 2003, is amended to read as follows: 1 32 The individual has been paid wages for insured workduring1 33the individual's base period in an amount at least one and1 34one-quarter times the wages paid to the individual during that1 35quarter of the individual's base period in which the2 1individual's wages were highest; provided that the individual2 2has been paid wages for insured worktotaling at least three 2 3 and five-tenths percent of the statewide average annual wage 2 4 for insured work, computed for the preceding calendar year if 2 5 the individual's benefit year begins on or after the first 2 6 full week in July and computed for the second preceding 2 7 calendar year if the individual's benefit year begins before 2 8 the first full week in July, in that calendar quarter in the 2 9 individual's base period in which the individual's wages were 2 10 highest, and the individual has been paid wages for insured 2 11 work totaling at least one-half of the amount of wages 2 12 required under this subsection in the calendar quarter of the 2 13 base period in which the individual's wages were highest, in a 2 14 calendar quarter in the individual's base period other than 2 15 the calendar quarter in which the individual's wages were 2 16 highest. The calendar quarter wage requirements shall be 2 17 rounded to the nearest multiple of ten dollars. 2 18 Sec. 5. Section 96.9, Code 2003, is amended by adding the 2 19 following new subsection: 2 20 NEW SUBSECTION. 8. UNEMPLOYMENT COMPENSATION RESERVE 2 21 FUND. 2 22 a. A special fund to be known as the unemployment 2 23 compensation reserve fund is created in the state treasury. 2 24 The reserve fund is separate and distinct from the 2 25 unemployment compensation fund. All moneys from reserve 2 26 contributions defined in paragraph "b" shall be deposited in 2 27 the reserve fund. The moneys in the reserve fund may be used 2 28 for the payment of unemployment benefits and shall remain 2 29 available for expenditures in accordance with the provisions 2 30 of this subsection. The treasurer of state shall be custodian 2 31 of the reserve fund and shall disburse the moneys in the 2 32 reserve fund in accordance with directions from the director 2 33 of the department of workforce development. 2 34 b. If the balance in the reserve fund on the first day of 2 35 the third month of any calendar quarter of calendar year 2004 3 1 and each calendar year thereafter is less than one hundred 3 2 million dollars, a percentage, established by the director of 3 3 the department of workforce development, of the contributions 3 4 received for deposit into the state unemployment compensation 3 5 fund from all employers during the next calendar quarter shall 3 6 be deemed to be reserve contributions and shall be deposited 3 7 into the reserve fund rather than the unemployment 3 8 compensation fund. The reserve contributions collected in any 3 9 calendar year shall not exceed twenty million dollars. The 3 10 provisions for the collection of contributions under section 3 11 96.14 are applicable to the collection of reserve 3 12 contributions. Reserve contributions shall not be deducted in 3 13 whole or in part by any employer from the wages of individuals 3 14 in its employ. All reserve contributions shall be deposited 3 15 in the clearing account of the unemployment compensation fund 3 16 for clearance only and shall not become part of the 3 17 unemployment compensation fund. After clearance, the moneys 3 18 shall be deposited in the reserve fund created in this 3 19 subsection. 3 20 c. Moneys in the reserve fund shall only be used to pay 3 21 unemployment benefits to the extent moneys in the unemployment 3 22 compensation fund are insufficient to pay benefits during a 3 23 calendar quarter. In determining the contribution rate table 3 24 to be used pursuant to section 96.7, subsection 2, the amount 3 25 of moneys in the reserve fund shall be added to the amount of 3 26 moneys in the unemployment compensation fund. 3 27 d. The interest earned on the moneys in the reserve fund 3 28 shall be deposited in and credited to the reserve fund. 3 29 e. The interest earned on the moneys in the reserve fund 3 30 shall be used by the department only upon appropriation by the 3 31 general assembly and only for purposes contained in section 3 32 96.12 and for administrative costs to collect the reserve 3 33 contributions. 3 34 Sec. 6. Section 96.19, subsection 3, Code 2003, is amended 3 35 to read as follows: 4 1 3. "Base period" means the period beginning with the first 4 2 day of the five completed calendar quarters immediately 4 3 preceding the first day of an individual's benefit year and 4 4 ending with the last day of the next to the last completed 4 5 calendar quarter immediately preceding the date on which the 4 6 individual filed a valid claim. If an eligible claim is 4 7 invalid solely because of using as the base period the first 4 8 four of the last five completed calendar quarters, the 4 9 department shall use the last four completed calendar quarters 4 10 as the base period, provided those quarters have not been used 4 11 for the base period of a prior claim. 4 12 Computations using the last four completed calendar 4 13 quarters shall be based on available wage items processed as 4 14 of the close of business on the day preceding the date of the 4 15 filing of a claim. The department shall utilize information 4 16 supplied by the claimant and promptly contact employers to 4 17 request assistance in obtaining wage information for the last 4 18 completed calendar quarter if it has not been reported at the 4 19 time of the initial filing of a claim. In all other respects, 4 20 a claim utilizing the last four completed calendar quarters 4 21 must meet all the requirements and will be treated the same as 4 22 a claim utilizing the first four of the last five completed 4 23 calendar quarters. Quarters of wage credits utilized for an 4 24 alternative base period shall not be available for use for 4 25 future claims. 4 26 EXPLANATION 4 27 This bill relates to unemployment compensation and makes 4 28 appropriations. 4 29 The bill appropriates moneys from moneys transferred to the 4 30 state on March 13, 2002, pursuant to section 903(d) of the 4 31 federal Social Security Act, as amended, to the department of 4 32 workforce development for deposit in the unemployment 4 33 compensation fund for the payment of unemployment benefits, 4 34 for automation and technology for the unemployment tax and 4 35 claim system, and for infrastructure improvements and the 5 1 administrative and technology costs associated with utilizing 5 2 the alternative base period for unemployment benefit claims 5 3 and enhanced services to unemployment benefit claimants for 5 4 workforce and labor exchange services. 5 5 The bill establishes an unemployment compensation reserve 5 6 fund as a fund separate and distinct from the unemployment 5 7 compensation fund. The bill provides that moneys in the 5 8 reserve fund may be used to receive reserve contributions and 5 9 pay unemployment benefits. Reserve contributions occur when 5 10 the balance in the reserve fund on the first day of the third 5 11 month of any calendar quarter of calendar year 2004 and each 5 12 calendar year thereafter is less than $100 million. The bill 5 13 limits reserve contributions in a calendar year to $20 5 14 million. The bill provides that interest earned on the moneys 5 15 in the reserve fund shall be deposited in and credited to the 5 16 reserve fund for use of the department of workforce 5 17 development in collecting reserve contributions or in 5 18 supporting free employment services. 5 19 The bill eliminates the one-and-a-quarter-of-the-high- 5 20 quarter-in-the-base-period wage requirements for unemployment 5 21 benefit claim eligibility. 5 22 The bill establishes an alternative base period for 5 23 unemployment benefit claimants who do not qualify under the 5 24 regular base period. 5 25 LSB 3372HC 80 5 26 tm/pj/5
Text: HSB00307 Text: HSB00309 Text: HSB00300 - HSB00399 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
© 2003 Cornell College and League of Women Voters of Iowa
Comments about this site or page?
webmaster@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.
Last update: Wed Apr 2 02:30:36 CST 2003
URL: /DOCS/GA/80GA/Legislation/HSB/00300/HSB00308/030401.html
jhf