Senate File 56 - Introduced



                                       SENATE FILE       
                                       BY  DOTZLER


    Passed Senate, Date               Passed House,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to an employer's failure to make payments for
  2    employee health care benefits and providing a penalty.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 2068SS 81
  5 av/sh/8

PAG LIN



  1  1    Section 1.  NEW SECTION.  91A.12A  CRIMINAL PENALTIES ==
  1  2 HEALTH BENEFITS PLANS.
  1  3    An employer who knowingly fails to make payments to a
  1  4 health benefit plan or to a designee of an employee for the
  1  5 purpose of securing medical, health, or hospital benefits for
  1  6 the employee, when the payments are required, or are
  1  7 authorized by the employee under an agreement with the
  1  8 employer or under a policy of the employer, is guilty of a
  1  9 fraudulent practice.
  1 10    Sec. 2.  Section 714.8, Code 2005, is amended by adding the
  1 11 following new subsection:
  1 12    NEW SUBSECTION.  21.  An employer who knowingly fails to
  1 13 make payments to a health benefit plan or to a designee of an
  1 14 employee for the purpose of securing medical, health, or
  1 15 hospital benefits for the employee in violation of section
  1 16 91A.12A.
  1 17    Sec. 3.  Section 714.10, Code 2005, is amended by adding
  1 18 the following new subsection:
  1 19    NEW SUBSECTION.  3.  A fraudulent practice which is a
  1 20 violation of section 91A.12A.
  1 21                           EXPLANATION
  1 22    This bill provides that it is a criminal violation of the
  1 23 "Iowa Wage Payment Collection Law" for an employer to
  1 24 knowingly fail to make payments to a health benefit plan or to
  1 25 a designee of an employee for the purpose of securing medical,
  1 26 health, or hospital benefits for the employee, when the
  1 27 payments are required, or are authorized by the employee,
  1 28 under an agreement with the employer or under a policy of the
  1 29 employer.
  1 30    The bill provides that this violation constitutes the crime
  1 31 of a fraudulent practice in the second degree under Code
  1 32 sections 714.8 and 714.10.
  1 33    The bill provides that a fraudulent practice in the second
  1 34 degree is committed by a violation of Code section 91A.12A.  A
  1 35 fraudulent practice in the second degree is a class "D" felony
  2  1 and is punishable by confinement for no more than five years
  2  2 and a fine of at least $750 but not more than $7,500.
  2  3 LSB 2068SS 81
  2  4 av:rj/sh/8