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 thissubsectionparagraph 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