House File 623 - Introduced



                                       HOUSE FILE       
                                       BY  COMMITTEE ON ECONOMIC GROWTH

                                       (SUCCESSOR TO HSB 183)


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

                                      A BILL FOR

  1 An Act relating to unemployment insurance benefits and compliance
  2    with federal law regarding and in order to qualify for
  3    funding, and including an appropriation and effective and
  4    applicability dates.
  5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  6 TLSB 1434HV 83
  7 ak/rj/14

PAG LIN



  1  1    Section 1.  Section 96.3, subsection 5, Code 2009, is
  1  2 amended to read as follows:
  1  3    5.  a.  DURATION OF BENEFITS.  The maximum total amount of
  1  4 benefits payable to an eligible individual during a benefit
  1  5 year shall not exceed the total of the wage credits accrued to
  1  6 the individual's account during the individual's base period,
  1  7 or twenty=six times the individual's weekly benefit amount,
  1  8 whichever is the lesser.  The director shall maintain a
  1  9 separate account for each individual who earns wages in
  1 10 insured work.  The director shall compute wage credits for
  1 11 each individual by crediting the individual's account with
  1 12 one=third of the wages for insured work paid to the individual
  1 13 during the individual's base period.  However, the director
  1 14 shall recompute wage credits for an individual who is laid off
  1 15 due to the individual's employer going out of business at the
  1 16 factory, establishment, or other premises at which the
  1 17 individual was last employed, by crediting the individual's
  1 18 account with one=half, instead of one=third, of the wages for
  1 19 insured work paid to the individual during the individual's
  1 20 base period.  Benefits paid to an eligible individual shall be
  1 21 charged against the base period wage credits in the
  1 22 individual's account which have not been previously charged,
  1 23 in the inverse chronological order as the wages on which the
  1 24 wage credits are based were paid.  However if the state "off
  1 25 indicator" is in effect and if the individual is laid off due
  1 26 to the individual's employer going out of business at the
  1 27 factory, establishment, or other premises at which the
  1 28 individual was last employed, the maximum benefits payable
  1 29 shall be extended to thirty=nine times the individual's weekly
  1 30 benefit amount, but not to exceed the total of the wage
  1 31 credits accrued to the individual's account.
  1 32    b.  TRAINING EXTENSION BENEFITS.
  1 33    (1)  An individual who has been separated from a declining
  1 34 occupation or who has been involuntarily separated from
  1 35 employment as a result of a permanent reduction of operations
  2  1 at the last place of employment and who is in training with
  2  2 the approval of the director or in a job training program
  2  3 pursuant to the Workforce Investment Act of 1998, Pub. L. No.
  2  4 105=220, at the time regular benefits are exhausted, may be
  2  5 eligible for training extension benefits.
  2  6    (2)  A declining occupation is one in which there is a lack
  2  7 of sufficient current demand in the individual's labor market
  2  8 area for the occupational skills for which the individual is
  2  9 fitted by training and experience or current physical or
  2 10 mental capacity, and the lack of employment opportunities is
  2 11 expected to continue for an extended period of time, or the
  2 12 individual's occupation is one for which there is a seasonal
  2 13 variation in demand in the labor market and the individual has
  2 14 no other skill for which there is current demand.
  2 15    (3)  The training extension benefit amount shall be
  2 16 twenty=six times the individual's weekly benefit amount and
  2 17 the weekly benefit amount shall be equal to the individual's
  2 18 weekly benefit amount for the claim in which benefits were
  2 19 exhausted while in training.
  2 20    (4)  An individual who is receiving training extension
  2 21 benefits shall not be denied benefits due to application of
  2 22 section 96.4, subsection 3, or section 96.5, subsection 3.
  2 23 However, an employer's account shall not be charged with
  2 24 benefits so paid.  Relief of charges under this paragraph "b"
  2 25 applies to both contributory and reimbursable employers,
  2 26 notwithstanding section 96.8, subsection 5.
  2 27    (5)  In order for the individual to be eligible for
  2 28 training extension benefits, all of the following criteria
  2 29 must be met:
  2 30    (a)  The training must be for a high=demand occupation or
  2 31 high=technology occupation, including the fields of life
  2 32 sciences, advanced manufacturing, biotechnology, alternative
  2 33 fuels, insurance, and environmental technology.  "High=demand
  2 34 occupation" means an occupation in a labor market area in
  2 35 which the department determines work opportunities are
  3  1 available and there is a lack of qualified applicants.
  3  2    (b)  The individual must file any unemployment insurance
  3  3 claim to which the individual becomes entitled under state or
  3  4 federal law, and must draw any unemployment insurance benefits
  3  5 on that claim until the claim has expired or has been
  3  6 exhausted, in order to maintain the individual's eligibility
  3  7 under this paragraph "b".  Training extension benefits end
  3  8 upon completion of the training even though a portion of the
  3  9 training extension benefit amount may remain.
  3 10    (c)  The individual must be enrolled and making
  3 11 satisfactory progress to complete the training.
  3 12    Sec. 2.  Section 96.3, subsection 6, paragraph b, Code
  3 13 2009, is amended to read as follows:
  3 14    b.  The director shall prescribe fair and reasonable
  3 15 general rules applicable to part=time workers, for determining
  3 16 their full=time weekly wage, and the total wages in employment
  3 17 by employers required to qualify such workers for benefits.
  3 18 An individual is a part=time worker if a majority of the weeks
  3 19 of work in such individual's base period includes part=time
  3 20 work.  Part=time workers are not required to be available for,
  3 21 seek, or accept full=time employment.
  3 22    Sec. 3.  Section 96.4, subsection 4, Code 2009, is amended
  3 23 to read as follows:
  3 24    4.  a.  The individual has been paid wages for insured work
  3 25 during the individual's base period in an amount at least one
  3 26 and one=quarter times the wages paid to the individual during
  3 27 that quarter of the individual's base period in which the
  3 28 individual's wages were highest; provided that the individual
  3 29 has been paid wages for insured work totaling at least three
  3 30 and five=tenths percent of the statewide average annual wage
  3 31 for insured work, computed for the preceding calendar year if
  3 32 the individual's benefit year begins on or after the first
  3 33 full week in July and computed for the second preceding
  3 34 calendar year if the individual's benefit year begins before
  3 35 the first full week in July, in that calendar quarter in the
  4  1 individual's base period in which the individual's wages were
  4  2 highest, and the individual has been paid wages for insured
  4  3 work totaling at least one=half of the amount of wages
  4  4 required under this subsection paragraph in the calendar
  4  5 quarter of the base period in which the individual's wages
  4  6 were highest, in a calendar quarter in the individual's base
  4  7 period other than the calendar quarter in which the
  4  8 individual's wages were highest.  The calendar quarter wage
  4  9 requirements shall be rounded to the nearest multiple of ten
  4 10 dollars.
  4 11    b.  For an individual who does not have sufficient wages in
  4 12 the base period, as defined in section 96.19, to otherwise
  4 13 qualify for benefits pursuant to this subsection, the
  4 14 individual's base period shall be the last four completed
  4 15 calendar quarters immediately preceding the first day of the
  4 16 individual's benefit year if such period qualifies the
  4 17 individual for benefits under this subsection.
  4 18    (1)  Wages that fall within the alternative base period
  4 19 established under this paragraph "b" are not available for
  4 20 qualifying benefits in any subsequent benefit year.
  4 21    (2)  Employers shall be charged in the manner provided in
  4 22 this chapter for benefits paid based upon quarters used in the
  4 23 alternative base period.
  4 24    c.  If the individual has drawn benefits in any benefit
  4 25 year, the individual must during or subsequent to that year,
  4 26 work in and be paid wages for insured work totaling at least
  4 27 two hundred fifty dollars, as a condition to receive benefits
  4 28 in the next benefit year.
  4 29    Sec. 4.  Section 96.7, subsection 2, paragraph a,
  4 30 subparagraph (2), Code 2009, is amended by adding the
  4 31 following new subparagraph division:
  4 32    NEW SUBPARAGRAPH DIVISION.  (e)  The account of an employer
  4 33 shall not be charged with benefits paid to an individual who
  4 34 is laid off if the benefits are paid as the result of the
  4 35 return to work of a permanent employee who is one of the
  5  1 following:
  5  2    (i)  A member of the national guard or organized reserves
  5  3 of the armed forces of the United States ordered to temporary
  5  4 duty, as defined in section 29A.1, subsection 3, 11, or 12,
  5  5 for any purpose, who has completed the duty as evidenced in
  5  6 accordance with section 29A.43.
  5  7    (ii)  A member of the civil air patrol performing duty
  5  8 pursuant to section 29A.3A, who has completed the duty as
  5  9 evidenced in accordance with section 29A.43.
  5 10    Sec. 5.  Section 96.20, subsection 2, Code 2009, is amended
  5 11 to read as follows:
  5 12    2.  The department may enter into arrangements with the
  5 13 appropriate agencies of other states, or a contiguous country
  5 14 with which the United States has an agreement with respect to
  5 15 unemployment compensation or of the federal government (a)
  5 16 whereby wages or services, upon the basis of which an
  5 17 individual may become entitled to benefits under the
  5 18 unemployment compensation law of another state or of the
  5 19 federal government, shall be deemed to be wages for employment
  5 20 by employers for the purposes of section 96.3 and section
  5 21 96.4, subsection 5; provided such other state agency or agency
  5 22 of the federal government has agreed to reimburse the fund for
  5 23 such portion of benefits paid under this chapter upon the
  5 24 basis of such wages or services as the department finds will
  5 25 be fair and reasonable as to all affected interests, and (b)
  5 26 whereby the department will reimburse other state or federal
  5 27 agencies charged with the administration of unemployment
  5 28 compensation laws with such reasonable portion of benefits,
  5 29 paid under the law of any such other states or of the federal
  5 30 government upon the basis of employment or wages for
  5 31 employment by employers, as the department finds will be fair
  5 32 and reasonable as to all affected interests.  Reimbursements
  5 33 so payable shall be deemed to be benefits for the purposes of
  5 34 section 96.3, subsection 5, paragraph "a", and section 96.9,
  5 35 but no reimbursement so payable shall be charged against any
  6  1 employer's account for the purposes of section 96.7, unless
  6  2 wages so transferred are sufficient to establish a valid claim
  6  3 in Iowa, and that such charges shall not exceed the amount
  6  4 that would have been charged on the basis of a valid claim.
  6  5 The department is hereby authorized to make to other state or
  6  6 federal agencies and receive from such other state or federal
  6  7 agencies, reimbursements from or to the fund, in accordance
  6  8 with arrangements pursuant to this section.  The department
  6  9 shall participate in any arrangements for the payment of
  6 10 compensation on the basis of combining an individual's wages
  6 11 and employment covered under this Act with the individual's
  6 12 wages and employment covered under the unemployment
  6 13 compensation laws of other states which are approved by the
  6 14 United States secretary of labor in consultation with the
  6 15 state unemployment compensation agencies as reasonably
  6 16 calculated to assure the prompt and full payment of
  6 17 compensation in such situations and which include provisions
  6 18 for:  Applying the base period of a single state law to a
  6 19 claim involving the combining of an individual's wages and
  6 20 employment covered under two or more state unemployment
  6 21 compensation laws, and avoiding the duplication use of wages
  6 22 and employment by reason of such combining.
  6 23    Sec. 6.  Section 96.23, subsection 1, paragraph b, Code
  6 24 2009, is amended to read as follows:
  6 25    b.  The individual did not receive wages from insured work
  6 26 for two calendar quarters and did not receive wages from
  6 27 insured work for another calendar quarter equal to or greater
  6 28 than the amount required for a calendar quarter, other than
  6 29 the calendar quarter in which the individual's wages were
  6 30 highest, under section 96.4, subsection 4, paragraph "a".
  6 31    Sec. 7.  Section 96.40, subsection 8, Code 2009, is amended
  6 32 to read as follows:
  6 33    8.  An individual shall not be entitled to receive shared
  6 34 work benefits and regular unemployment compensation benefits
  6 35 in an aggregate amount which exceeds the maximum total amount
  7  1 of benefits payable to that individual in a benefit year as
  7  2 provided under section 96.3, subsection 5, paragraph "a".
  7  3 Notwithstanding any other provisions of this chapter, an
  7  4 individual shall not be eligible to receive shared work
  7  5 benefits for more than twenty=six calendar weeks during the
  7  6 individual's benefit year.
  7  7    Sec. 8.  FUTURE APPROPRIATION OF FEDERAL FUNDS.  Any funds
  7  8 received by this state from the federal government pursuant to
  7  9 section 903 of the federal Social Security Act as a result of
  7 10 the enactment of this Act are appropriated by the general
  7 11 assembly to the department of workforce development to be
  7 12 placed in the unemployment compensation trust fund.  The
  7 13 computation date provided in section 96.19, subsection 8,
  7 14 shall be delayed until the funds pursuant to section 903 of
  7 15 the federal Social Security Act are received by the state but
  7 16 the computation date shall be no later than September 5, 2009,
  7 17 if the funds are not received on or before that date.  The
  7 18 contribution rate table calculation shall use data as of July
  7 19 1, 2009, except for inclusion in the unemployment compensation
  7 20 trust fund balance of funds received pursuant to section 903
  7 21 of the Social Security Act.
  7 22    Sec. 9.  APPLICABILITY AND EFFECTIVE DATES.  The section of
  7 23 this Act amending section 96.3 applies to any week of
  7 24 unemployment benefits beginning on or after July 5, 2009.  The
  7 25 section of this Act amending section 96.4 applies to any new
  7 26 claim of unemployment benefits with an effective date on or
  7 27 after July 5, 2009.
  7 28                           EXPLANATION
  7 29    This bill relates to unemployment insurance benefits and
  7 30 brings Iowa into compliance with federal law in order to
  7 31 receive additional federal funds.
  7 32    The bill establishes a benefits extension for individuals
  7 33 enrolled in a training program.  Regular benefits must be
  7 34 exhausted and the benefit amount shall be no more than 26
  7 35 times the individual's weekly benefit amount.  The individual
  8  1 who qualifies must have been separated from a declining
  8  2 occupation or laid off.  Declining occupation is defined in
  8  3 the bill.  In order to qualify for the training extension
  8  4 benefits, the following criteria must be met:  the benefits
  8  5 end when training is completed; the individual must be
  8  6 enrolled, participating, and making satisfactory progress in
  8  7 the training; and the training must be for a high=demand or
  8  8 high=technology occupation, which are explained in the bill.
  8  9 An employer is relieved of charges of unemployment benefits
  8 10 paid due to claims for training extension benefits.
  8 11    The bill amends the part=time workers section such that an
  8 12 individual who was a part=time worker a majority of the time
  8 13 in the base period shall not be required to be a full=time
  8 14 worker to qualify for benefits or to seek full=time work.
  8 15    An alternate method of calculating the base period, to
  8 16 determine the monetary attachment=to=the=workforce eligibility
  8 17 of individuals for unemployment benefits, is included for
  8 18 cases where the current method of calculation makes an
  8 19 individual ineligible for unemployment benefits.  The bill
  8 20 moves the base period closer, by one quarter, to the benefit
  8 21 claim filing date so that the base period would consist of the
  8 22 first four calendar quarters immediately preceding the
  8 23 calendar quarter in which the claim for unemployment benefits
  8 24 is filed if doing so would qualify the individual for
  8 25 benefits.
  8 26    The bill waives employer charges for unemployment claims
  8 27 stemming from temporary workers who have replaced active=duty
  8 28 military employees.  The bill prevents the account of an
  8 29 employer from being charged if benefits are paid to an
  8 30 individual who is laid off as the result of the return to work
  8 31 of a permanent employee who is a member of the national guard
  8 32 of the United States armed forces reserves ordered to
  8 33 temporary duty, as defined in Code section 29A.1, subsection
  8 34 3, 11, or 12, for any purpose and who has completed the duty,
  8 35 or who is a member of the civil air patrol performing duty
  9  1 pursuant to Code section 29A.3A and who has completed the
  9  2 duty.
  9  3    Any possible future funds received from the federal
  9  4 government due to the bill's enactment are appropriated to the
  9  5 department to be placed in the unemployment compensation trust
  9  6 fund.  The computation date shall be delayed until funds
  9  7 pursuant to section 903 of the federal Social Security Act are
  9  8 received by the state, but no later than September 5, 2009.
  9  9    The amendment in the bill to Code section 96.3 applies to
  9 10 any week of unemployment benefits that begins on or after July
  9 11 5, 2009.  The amendment in the bill to Code section 96.4
  9 12 applies to any new claim with an effective date on or after
  9 13 July 5, 2009.
  9 14 LSB 1434HV 83
  9 15 ak/rj/14