HOUSE FILE 2103

BY  COMMITTEE ON LABOR

(SUCCESSOR TO HF 2013)

A BILL FOR

An Act reducing the time period during which new employers are subject to the new employer contribution rate for unemployment insurance and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 96.7, subsection 2, paragraph c, subparagraphs (1) and (2), Code 2011, are amended to read as follows:
   (1)  A nonconstruction contributory employer newly subject to this chapter shall pay contributions at the rate specified in the twelfth benefit ratio rank but not less than one percent until the end of the calendar year in which the employer’s account has been chargeable with benefits for twelve
 
four consecutive calendar quarters immediately preceding the computation date.
   (2)  A construction contributory employer, as defined under rules adopted by the department, which is newly subject to this chapter shall pay contributions at the rate specified in the twenty-first benefit ratio rank until the end of the calendar year in which the employer’s account has been chargeable with benefits for twelve
 
four consecutive calendar quarters
 
immediately preceding the computation date.
    Sec. 2.  EFFECTIVE DATE.  This Act takes effect July 1, 2012.
EXPLANATION
   This bill reduces the time period during which construction and nonconstruction employers are subject to the contribution rate for new employers for unemployment insurance from three years to four calendar quarters.
   The bill takes effect July 1, 2012.