House Study Bill 601 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED DEPARTMENT OF WORKFORCE DEVELOPMENT BILL) A BILL FOR An Act relating to unemployment insurance benefit eligibility 1 requirements and periods for calculating employer 2 contribution rates and including effective date and 3 applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5207DP (5) 84 je/rj
S.F. _____ H.F. _____ Section 1. Section 96.4, subsection 4, paragraph c, Code 1 2011, is amended to read as follows: 2 c. If the individual has drawn benefits in any benefit year, 3 the individual must during or subsequent to that year, work 4 in and be paid wages for insured work totaling at least two 5 hundred fifty one thousand five hundred dollars, as a condition 6 to receive benefits in the next benefit year. 7 Sec. 2. Section 96.4, Code 2011, is amended by adding the 8 following new subsection: 9 NEW SUBSECTION . 8. The individual has satisfied one 10 one-week waiting period during the individual’s benefit year. 11 To satisfy the one-week waiting period, the individual, with 12 respect to the week in question, must meet all of the following 13 conditions: 14 a. Must be unemployed. 15 b. Must have filed a claim for benefits in accordance with 16 section 96.6, subsection 1. 17 c. Must be eligible for benefits from this state and would 18 receive benefits after deductions from this state but for the 19 waiting period; must not receive benefits from this or any 20 other state; and must not be eligible for benefits from any 21 other state. 22 Sec. 3. Section 96.7, subsection 2, paragraph c, 23 subparagraphs (1) through (3), Code 2011, are amended to read 24 as follows: 25 (1) A nonconstruction contributory employer newly subject 26 to this chapter shall pay contributions at the rate specified 27 in the twelfth benefit ratio rank but not less than one percent 28 until the end of the calendar year in which the employer’s 29 account has been chargeable with benefits for twelve four 30 consecutive calendar quarters immediately preceding the 31 computation date. 32 (2) A construction contributory employer, as defined under 33 rules adopted by the department, which is newly subject to this 34 chapter shall pay contributions at the rate specified in the 35 -1- LSB 5207DP (5) 84 je/rj 1/ 3
S.F. _____ H.F. _____ twenty-first benefit ratio rank until the end of the calendar 1 year in which the employer’s account has been chargeable 2 with benefits for twelve four consecutive calendar quarters 3 immediately preceding the computation date . 4 (3) Thereafter, the employer’s contribution rate shall be 5 determined in accordance with paragraph “d” , except that the 6 employer’s average annual taxable payroll and benefit ratio 7 may be computed, as determined by the department, for less 8 than five three periods of four consecutive calendar quarters 9 immediately preceding the computation date. 10 Sec. 4. Section 96.7, subsection 2, paragraph d, 11 subparagraph (2), unnumbered paragraph 3, Code 2011, is amended 12 to read as follows: 13 “Benefit ratio” means a number computed to six decimal places 14 on July 1 of each year obtained by dividing the average of all 15 benefits charged to an employer during the five three periods 16 of four consecutive calendar quarters immediately preceding 17 the computation date by the employer’s average annual taxable 18 payroll. 19 Sec. 5. Section 96.19, subsection 2, Code 2011, is amended 20 to read as follows: 21 2. “Average annual taxable payroll” means the average of the 22 total amount of taxable wages paid by an employer for insured 23 work during the five three periods of four consecutive calendar 24 quarters immediately preceding the computation date. 25 Sec. 6. EFFECTIVE DATE. This Act takes effect July 1, 2012. 26 Sec. 7. APPLICABILITY. This Act applies to unemployment 27 insurance benefit claims with an effective date on or after 28 July 1, 2012. 29 EXPLANATION 30 This bill requires an individual who has drawn unemployment 31 insurance benefits to earn wages for insured work totaling 32 at least $1,500 before the individual can be eligible for 33 unemployment insurance benefits in a subsequent benefit year. 34 Under current law, such an individual must earn $250. 35 -2- LSB 5207DP (5) 84 je/rj 2/ 3
S.F. _____ H.F. _____ The bill requires an individual to satisfy a one-week 1 waiting period during the individual’s benefit year in order 2 to receive unemployment insurance benefits. The bill requires 3 that, regarding the week in question, the individual must be 4 unemployed, must have filed a claim for benefits in accordance 5 with Code section 96.6(1), must be eligible for benefits after 6 deductions in the state of Iowa but for the waiting period, 7 must not receive benefits from the state of Iowa or any other 8 state, and must not be eligible for benefits from any other 9 state. 10 The bill reduces the time period during which construction 11 and nonconstruction employers are subject to the contribution 12 rate for new employers for unemployment insurance from three 13 years to one year. The bill reduces the years of experience 14 used to calculate the benefit ratio for an employer’s 15 contribution rate from five to three. 16 The bill takes effect July 1, 2012, and applies to 17 unemployment insurance benefit claims with an effective date on 18 or after July 1, 2012. 19 -3- LSB 5207DP (5) 84 je/rj 3/ 3