Senate File 324 - Introduced SENATE FILE 324 BY SODDERS A BILL FOR An Act providing for family disability leave benefits, 1 establishing a task force, and providing penalties. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2416XS (4) 84 jp/nh
S.F. 324 Section 1. NEW SECTION . 96A.1 Title. 1 This chapter shall be known as the “Iowa Family Disability 2 Leave Benefits Law” . 3 Sec. 2. NEW SECTION . 96A.2 Definitions. 4 As used in this chapter, unless the context clearly requires 5 otherwise: 6 1. “Appeal board” means the employment appeal board created 7 under section 10A.601. 8 2. “Base period” means the period beginning with the 9 first day of the five completed calendar quarters immediately 10 preceding the first day of a covered individual’s benefit year 11 and ending with the last day of the next to the last completed 12 calendar quarter immediately preceding the date on which the 13 covered individual filed a valid claim. 14 3. “Benefit year” means a period of one year beginning with 15 the day with respect to which a covered individual filed a 16 valid claim for benefits. 17 4. “Benefits” means the money payments payable to a covered 18 individual, as provided in this chapter, with respect to the 19 individual’s family disability leave. 20 5. “Calendar quarter” means the period of three consecutive 21 calendar months ending on March 31, June 30, September 30, or 22 December 31. 23 6. “Child” means a biological, adopted, or foster child, 24 stepchild, or legal ward who is less than eighteen years of age 25 or is eighteen years of age or older but incapable of self-care 26 because of mental or physical impairment. 27 7. “Contributions” means the money payments to the family 28 disability leave benefits fund required by this chapter. 29 8. “Covered employer” means an employer as defined in 30 section 96.19, subsection 16. 31 9. “Covered individual” means an individual who is in 32 employment with a covered employer and who has been employed 33 for at least twelve months by the covered employer and for at 34 least one thousand two hundred fifty hours of service with the 35 -1- LSB 2416XS (4) 84 jp/nh 1/ 19
S.F. 324 covered employer during the previous twelve-month period. 1 10. “Department” means the department of workforce 2 development created in section 84A.1. 3 11. “Director” means the director of the department of 4 workforce development created in section 84A.1. 5 12. “Employment” means as defined in section 96.19, 6 subsection 18. 7 13. “Family disability leave” means unpaid leave taken by a 8 covered individual from employment to provide care for a family 9 member made necessary by the following: 10 a. The birth of a child of the individual. 11 b. The placement of a child with the individual in 12 connection with the adoption of the child by the individual. 13 c. A serious health condition of a family member of the 14 individual. 15 d. Attending a parent-teacher conference for a child. 16 e. Accompanying a family member for routine medical or 17 dental care. 18 14. “Family member” means a child, parent, or spouse of a 19 covered individual. 20 15. “Fund” means the family disability leave benefits 21 fund established by this chapter, to which all contributions 22 required and from which all benefits provided under this 23 chapter shall be paid. 24 16. “Parent” means a biological parent, foster parent, 25 adoptive parent, or stepparent of a covered individual or a 26 person who was a legal guardian of the covered individual when 27 the covered individual was a child. 28 17. “Serious health condition” means an illness, injury, 29 or physical or mental condition which requires inpatient care 30 in a hospital, hospice, or residential medical care facility; 31 or continuing medical treatment or continuing supervision by 32 a health care provider. 33 18. “Statewide average weekly wage” means the amount 34 computed by the department as provided in chapter 96 concerning 35 -2- LSB 2416XS (4) 84 jp/nh 2/ 19
S.F. 324 unemployment compensation. 1 19. “Wages” means as defined in section 96.19, subsection 2 41. 3 20. “Week” means such period or periods of seven consecutive 4 calendar days ending at midnight, or as the department may by 5 rule prescribe. 6 21. “Weekly benefit amount” means the amount of benefits a 7 covered individual would be entitled to receive for one week 8 of family disability leave. An individual’s weekly benefit 9 amount, as determined for the first week of the individual’s 10 benefit year, shall constitute the individual’s weekly benefit 11 amount throughout such benefit year. 12 Sec. 3. NEW SECTION . 96A.3 Duties, powers, rules —— 13 privilege. 14 1. Duties and powers of director. The director shall 15 administer this chapter and shall adopt rules pursuant to 16 chapter 17A, employ such persons, make such expenditures, 17 require such reports, make such investigations, and take such 18 other action as the director deems necessary or suitable 19 to that end. Not later than the fifteenth day of December 20 of each year, the director shall submit to the governor a 21 report covering the administration and operation of this 22 chapter during the preceding fiscal year and shall make such 23 recommendations for amendments to this chapter as the director 24 deems proper. Such report shall include a balance sheet of the 25 moneys in the fund. 26 2. General and special rules. Each covered employer shall 27 post and maintain printed statements of all rules of the 28 department in places readily accessible to individuals in the 29 employer’s service, and shall make available to each such 30 individual at the time the individual is absent from work due 31 to a family disability leave potentially compensable under 32 this chapter a printed statement of such rules relating to the 33 filing of claims for benefits. Such printed statements shall 34 be supplied by the department to each employer without cost to 35 -3- LSB 2416XS (4) 84 jp/nh 3/ 19
S.F. 324 the employer. 1 3. Publications. The director shall cause to be printed 2 for distribution to the public the text of this chapter, the 3 department’s general rules, its annual reports to the governor, 4 and any other material the director deems relevant and suitable 5 and shall furnish the same to any person upon application 6 therefor. 7 4. Records, reports, and confidentiality. 8 a. An employing unit shall keep true and accurate work 9 records containing information required by the department. 10 The records shall be open to inspection and copying by an 11 authorized representative of the department at any reasonable 12 time and as often as necessary. An authorized representative 13 of the department may require from an employing unit a sworn 14 or unsworn report, with respect to individuals employed by the 15 employing unit, which the department deems necessary for the 16 effective administration of this chapter. 17 b. (1) The department shall hold confidential the 18 information obtained from an employer or individual in 19 the course of administering this chapter and the initial 20 determination made by a representative of the department under 21 section 96A.8, subsection 2, as to the benefit rights of an 22 individual. The department shall not disclose or open this 23 information for public inspection in a manner that reveals the 24 identity of the employer or the individual, except as provided 25 in subparagraph (3) or paragraph “c” . 26 (2) A report or statement, whether written or verbal, 27 made by a person to a representative of the department or 28 to another person administering this chapter is a privileged 29 communication. A person is not liable for slander or libel 30 on account of the report or statement unless the report or 31 statement is made with malice. 32 (3) Information obtained from an employer or individual 33 in the course of administering this chapter and an initial 34 determination made by a representative of the department 35 -4- LSB 2416XS (4) 84 jp/nh 4/ 19
S.F. 324 under section 96A.8, subsection 2, as to benefit rights of 1 an individual shall not be used in any action or proceeding, 2 except in a contested case proceeding or judicial review under 3 chapter 17A. However, the department shall make information, 4 which is obtained from an employer or individual in the 5 course of administering this chapter and which relates to 6 the employment and wage history of the individual, available 7 to a county attorney for the county attorney’s use in the 8 performance of duties under section 331.756, subsection 5. 9 The information may be used by the interested parties in a 10 proceeding under this chapter to the extent necessary for the 11 proper presentation or defense of a claim. 12 c. Subject to conditions as the department by rule 13 prescribes, information obtained from an employer or individual 14 in the course of administering this chapter and an initial 15 determination made by a representative of the department 16 under section 96A.8, subsection 2, as to benefit rights of an 17 individual may be made available for purposes consistent with 18 the purposes of this chapter to any of the following: 19 (1) The internal revenue service of the United States 20 department of the treasury. 21 (2) The department of revenue. 22 (3) Colleges, universities, and public agencies of this 23 state for use in connection with research of a public nature, 24 provided the department does not reveal the identity of an 25 employer or individual. 26 (4) An employee of the department, a member of the general 27 assembly, or a member of the Congress of the United States in 28 connection with the employee’s or member’s official duties. 29 d. Upon request of an agency of this or another state 30 or of the federal government which administers or operates 31 a program of public assistance or child support enforcement 32 under either the law of this or another state or federal 33 law, or which is charged with a duty or responsibility under 34 the program, and if the agency is required by law to impose 35 -5- LSB 2416XS (4) 84 jp/nh 5/ 19
S.F. 324 safeguards for the confidentiality of information at least as 1 effective as required under this subsection, the department 2 shall provide to the requesting agency, with respect to any 3 named individual without regard to paragraph “g” , any of the 4 following information: 5 (1) Whether the individual is receiving or has received 6 benefits, or has made an application for benefits under this 7 chapter. 8 (2) The period, if any, for which benefits were payable and 9 the weekly benefit amount. 10 (3) The individual’s most recent address. 11 e. The department may require an agency which is provided 12 information under this subsection to reimburse the department 13 for the costs of furnishing the information. 14 f. An employee of the department, an administrative 15 law judge, or a member of the appeal board who violates 16 this subsection is guilty, upon conviction, of a serious 17 misdemeanor. 18 g. Information subject to the confidentiality of this 19 subsection shall not be directly released to any authorized 20 agency unless an attempt is made to provide written 21 notification to the individual involved. Information released 22 in accordance with criminal investigations by a law enforcement 23 agency of this state, another state, or the federal government 24 is exempt from this requirement. 25 h. The department and its employees shall not be liable for 26 any acts or omissions resulting from the release of information 27 to any person pursuant to this subsection. 28 5. Oaths and witnesses. In the discharge of the duties 29 imposed by this chapter, the chairperson of the appeal board 30 and any duly authorized representative of the department 31 shall have power to administer oaths and affirmations, take 32 depositions, certify to official acts, and issue subpoenas to 33 compel the attendance of witnesses and the production of books, 34 papers, correspondence, memoranda, and other records deemed 35 -6- LSB 2416XS (4) 84 jp/nh 6/ 19
S.F. 324 necessary as evidence in connection with a disputed claim or 1 the administration of this chapter. 2 6. Subpoenas. In case of contumacy by, or refusal to obey 3 a subpoena issued to any person, any court of this state within 4 the jurisdiction of which the inquiry is carried on or within 5 the jurisdiction of which the person guilty of contumacy or 6 refusal to obey is found or resides or transacts business, upon 7 application by the department, or any member or duly authorized 8 representative thereof, shall have jurisdiction to issue to 9 such person an order requiring such person to appear before 10 the department or any member or duly authorized representative 11 thereof to produce evidence if so ordered or to give testimony 12 touching the matter under investigation or in question; any 13 failure to obey such order of the court may be punished by the 14 court as a contempt thereof. 15 7. Protection against self-incrimination. A person shall 16 not be excused from attending and testifying or from producing 17 books, papers, correspondence, memoranda, and other records 18 before the department, or the appeal board, or in obedience 19 to a subpoena in any cause or proceeding provided for in 20 this chapter, on the ground that the testimony or evidence, 21 documentary or otherwise, required of the person may tend to 22 incriminate the person or subject the person to a penalty 23 for forfeiture; but a person shall not be prosecuted or 24 subjected to any penalty of forfeiture for or on account of 25 any transaction, matter, or thing concerning which the person 26 is compelled, after having claimed privilege against self- 27 incrimination, to testify or produce evidence, documentary or 28 otherwise, except that such person so testifying shall not be 29 exempt from prosecution and punishment for perjury committed 30 in so testifying. 31 8. Destruction of records. The department may destroy 32 or dispose of such original reports or records as have been 33 properly recorded or summarized in the permanent records of 34 the department and are deemed by the director to be no longer 35 -7- LSB 2416XS (4) 84 jp/nh 7/ 19
S.F. 324 necessary to the proper administration of this chapter. Wage 1 records of the individual or transcripts therefrom may be 2 destroyed or disposed of two years after the expiration of the 3 period covered by such wage records or upon proof of the death 4 of the individual. Such destruction or disposition shall be 5 made only by order of the director. 6 9. Purging uncollectible overpayments. Notwithstanding any 7 other provision of this chapter, the department shall review 8 all outstanding overpayments of benefit payments annually. 9 The department may determine as uncollectible and purge from 10 its records any remaining unpaid balances of outstanding 11 overpayments which are ten years or older from the date of the 12 overpayment decision. 13 10. Reimbursement of setoff costs. The department shall 14 include in the amount set off in accordance with section 15 421.17, subsection 27, for the collection of an overpayment 16 created pursuant to this chapter, an additional amount for the 17 reimbursement of setoff costs incurred by the department of 18 revenue. 19 Sec. 4. NEW SECTION . 96A.4 Private plans. 20 1. Any covered employer may establish a private plan for 21 the purpose of providing family disability leave benefits in 22 lieu of benefits as provided by this chapter. The private plan 23 shall provide benefits to the same or greater extent than that 24 which is provided under this chapter. 25 2. The department shall establish requirements for 26 determining whether a private plan meets the requirements of 27 this section and shall certify whether a covered employer has 28 established an eligible private plan. 29 3. Covered individuals of a covered employer that has 30 established an eligible private plan shall not be entitled to 31 benefits as provided by this chapter. In addition, covered 32 individuals and the covered employer of an eligible private 33 plan shall not be required to make contributions to the family 34 disability leave benefits fund. 35 -8- LSB 2416XS (4) 84 jp/nh 8/ 19
S.F. 324 Sec. 5. NEW SECTION . 96A.5 Nonduplication of benefits. 1 Benefits shall not be required to be paid or paid under this 2 chapter for any period of family disability leave with respect 3 to which benefits are paid or payable under any unemployment 4 compensation or similar law, or under any disability or cash 5 sickness benefit or similar law, of this state or of any other 6 state or of the federal government. Benefits shall not be 7 required to be paid or paid under this chapter for any period 8 of family disability leave with respect to which benefits are 9 paid or payable on account of a disability of the covered 10 individual under any worker’s compensation law, occupational 11 disease law, or similar legislation of this state or of any 12 other state or the federal government. 13 Sec. 6. NEW SECTION . 96A.6 Coverage. 14 All covered individuals shall be entitled on and after 15 January 1, 2012, to family disability leave benefits provided 16 by this chapter pursuant to family disability leave. 17 Sec. 7. NEW SECTION . 96A.7 Family disability leave benefits 18 —— determination —— duration. 19 1. Determination of benefits. a. A covered individual who 20 is absent from work during an entire week pursuant to family 21 disability leave shall be paid with respect to such weekly 22 benefits in an amount which shall be equal to the individual’s 23 weekly benefit amount. A covered individual who is absent from 24 work pursuant to family disability leave for a portion of any 25 week and who meets the conditions of eligibility for benefits 26 shall be paid with respect to that week an amount equal to the 27 individual’s weekly benefit amount less that part of wages 28 payable to the individual with respect to that week in excess 29 of one-fourth of the individual’s weekly benefit amount. The 30 benefits shall be rounded to the lower multiple of one dollar. 31 b. For purposes of this section, a covered individual’s 32 weekly benefit amount shall be an amount equal to the amount as 33 determined pursuant to section 96.3, subsection 4. 34 2. Eligibility for benefits. The department shall adopt 35 -9- LSB 2416XS (4) 84 jp/nh 9/ 19
S.F. 324 rules governing the ability of a covered employer to establish 1 reasonable guidelines governing a covered individual’s request 2 for, and continued eligibility for, family disability leave. 3 The rules shall provide that any guidelines established by 4 an employer shall not require a covered individual to use 5 paid leave prior to becoming eligible for benefits under this 6 chapter. 7 3. Duration of benefits. The maximum total amount of family 8 disability leave for which a covered individual is eligible for 9 benefits pursuant to this chapter during a benefit year shall 10 not exceed twenty-six weeks. Of the maximum family disability 11 leave permitted pursuant to this section, no more than 12 twenty-four hours shall be family disability leave as described 13 in section 96A.2, subsection 13, paragraphs “d” and “e” . 14 Sec. 8. NEW SECTION . 96A.8 Filing —— determination —— 15 appeal. 16 1. Filing. Claims for benefits shall be made in accordance 17 with such rules as the department may prescribe. 18 2. Initial determination. A representative designated 19 by the director shall promptly notify all interested parties 20 to the claim of its filing, and the parties shall have ten 21 days from the date of mailing the notice of the filing of the 22 claim by ordinary mail to the last known address to protest 23 payment of benefits to the claimant. The representative shall 24 promptly examine the claim and any protest, take the initiative 25 to ascertain relevant information concerning the claim, and, 26 on the basis of the facts found by the representative, shall 27 determine whether or not the claim is valid, the week with 28 respect to which benefits shall commence, the weekly benefit 29 amount payable and its maximum duration, and whether any 30 disqualification shall be imposed. The claimant has the burden 31 of proving that the claimant meets the basic eligibility 32 conditions of this chapter. Unless the claimant or other 33 interested party, after notification or within ten calendar 34 days after notification was mailed to the claimant’s last 35 -10- LSB 2416XS (4) 84 jp/nh 10/ 19
S.F. 324 known address, files an appeal from the decision, the decision 1 is final and benefits shall be paid or denied in accordance 2 with the decision. If an administrative law judge affirms a 3 decision of the representative, or the appeal board affirms a 4 decision of the administrative law judge allowing benefits, 5 the benefits shall be paid regardless of any appeal which is 6 thereafter taken. 7 3. Appeals. Unless the appeal is withdrawn, an 8 administrative law judge, after affording the parties 9 reasonable opportunity for fair hearing, shall affirm or modify 10 the findings of fact and decision of the representative. The 11 hearing shall be conducted pursuant to the provisions of 12 chapter 17A relating to hearings for contested cases. Before 13 the hearing is scheduled, the parties shall be afforded 14 the opportunity to choose either a telephone hearing or an 15 in-person hearing. A request for an in-person hearing shall 16 be approved unless the in-person hearing would be impractical 17 because of the distance between the parties to the hearing. A 18 telephone or in-person hearing shall not be scheduled before 19 the seventh calendar day after the parties receive notice of 20 the hearing. Reasonable requests for the postponement of a 21 hearing shall be granted. The parties shall be duly notified 22 of the administrative law judge’s decision, together with 23 the administrative law judge’s reasons for the decision, 24 which is the final decision of the department, unless within 25 fifteen days after the date of notification or mailing of 26 the decision, further appeal is initiated pursuant to this 27 section. Appeals from the initial determination shall be heard 28 by an administrative law judge employed by the department. An 29 administrative law judge’s decision may be appealed by any 30 party to the appeal board. The decision of the appeal board is 31 final agency action and an appeal of the decision shall be made 32 directly to the district court. 33 4. Effect of determination. A finding of fact or law, 34 judgment, conclusion, or final order made pursuant to this 35 -11- LSB 2416XS (4) 84 jp/nh 11/ 19
S.F. 324 section by an employee or representative of the department, 1 administrative law judge, or the appeal board, is binding only 2 upon the parties to proceedings brought under this chapter, 3 and is not binding upon any other proceedings or action 4 involving the same facts brought by the same or related parties 5 before the division of labor services, division of workers’ 6 compensation, other state agency, arbitrator, court, or judge 7 of this state or the United States. 8 Sec. 9. NEW SECTION . 96A.9 Recovery of overpayment of 9 benefits. 10 If a covered individual receives benefits for which the 11 individual is subsequently determined to be ineligible, even 12 though the individual acts in good faith and is not otherwise 13 at fault, the benefits shall be recovered. The department 14 in its discretion may recover the overpayment of benefits 15 either by having a sum equal to the overpayment deducted from 16 any future benefits payable to the individual or by having 17 the individual pay to the department a sum equal to the 18 overpayment. 19 Sec. 10. NEW SECTION . 96A.10 Waiver —— fees —— assignments 20 —— penalties. 21 1. Waiver of rights void. Any agreement by a covered 22 individual to waive, release, or commute the individual’s 23 rights to benefits or any other rights under this chapter shall 24 be void. Any agreement by any individual in the employ of 25 any person or concern to pay all or any portion of a covered 26 employer’s contributions, required under this chapter from 27 such employer, shall be void. A covered employer shall not 28 directly or indirectly make or require or accept any deduction 29 from wages to finance the employer’s contributions required 30 from the employer, or require or accept any waiver of any 31 right hereunder by any individual in the employer’s employ. 32 Any covered employer or officer or agent of an employer who 33 violates any provision of this subsection shall, for each 34 offense, be guilty of a serious misdemeanor. 35 -12- LSB 2416XS (4) 84 jp/nh 12/ 19
S.F. 324 2. Prohibition against fees. A covered individual claiming 1 benefits under this chapter shall not be charged fees of any 2 kind in any proceeding under this chapter by the department or 3 its representatives or by a court or an officer of the court. 4 An individual claiming benefits in a proceeding before the 5 department, an appeal tribunal, or a court may be represented 6 by counsel or other duly authorized agent. A person who 7 violates a provision of this subsection is guilty of a serious 8 misdemeanor for each violation. 9 3. No assignment of benefits —— exemptions. a. Any 10 assignment, pledge, or encumbrance of any right to benefits 11 which are or may become due or payable under this chapter shall 12 be void, and such rights to benefits shall be exempt from levy, 13 execution, attachment, or any other remedy whatsoever provided 14 for the collection of debt; and benefits received by any 15 individual, so long as they are not mingled with other funds 16 of the recipient, shall be exempt from any remedy whatsoever 17 for the collection of all debts. Any waiver of any exemption 18 provided for in this subsection shall be void. 19 b. However, benefits under this chapter are not exempt from 20 income withholding, garnishment, attachment, or execution if 21 withheld for or garnisheed by the child support recovery unit, 22 established in section 252B.2, or if an income withholding 23 order or notice of the income withholding order under section 24 598.22 or 598.23 is being enforced by the child support 25 recovery unit to satisfy the child support obligation of a 26 covered individual who is eligible for benefits under this 27 chapter. 28 Sec. 11. NEW SECTION . 96A.11 Family disability leave 29 benefits fund. 30 1. Establishment and control. A family disability leave 31 benefits fund is hereby established as a special fund, separate 32 and apart from all public moneys or funds of this state. The 33 department shall administer the fund exclusively for the 34 purposes of this chapter. The fund shall consist of all of the 35 -13- LSB 2416XS (4) 84 jp/nh 13/ 19
S.F. 324 following: 1 a. All contributions collected under this chapter, 2 including any interest and penalties collected on delinquent 3 contributions. 4 b. Interest earned upon any moneys in the fund. 5 c. Any property or securities acquired through the use of 6 moneys belonging to the fund. 7 d. All earnings of such property or securities. 8 e. Any other moneys specifically directed or appropriated 9 to the fund. 10 2. Accounts and deposits. The treasurer of state shall 11 be the custodian of the fund and shall administer the fund in 12 accordance with the directions of the department. 13 3. Exclusive use. Moneys in the fund shall be held in trust 14 for the exclusive payment of family disability leave benefits 15 pursuant to this chapter. 16 Sec. 12. NEW SECTION . 96A.12 Contributions. 17 1. Covered employers who have not established an eligible 18 private plan pursuant to section 96A.4 and all employees of 19 a covered employer shall pay into the fund contributions as 20 provided by this section. 21 2. a. For each calendar year, the department shall by 22 November 1 of the previous calendar year, establish a total 23 contribution rate for the upcoming calendar year based upon 24 the anticipated wages of employees of covered employers for 25 the upcoming calendar year which shall be sufficient to pay 26 anticipated benefits pursuant to this chapter for that calendar 27 year. 28 b. Of the total contribution rate established by the 29 department, covered employers shall pay contributions based 30 on two-thirds of the total contribution rate established and 31 employees of covered employers shall pay contributions based 32 on one-third of the total contribution rate established by the 33 department. Covered employers shall ensure that the employee 34 contribution shall be deducted from the employee’s wages. 35 -14- LSB 2416XS (4) 84 jp/nh 14/ 19
S.F. 324 Sec. 13. NEW SECTION . 96A.13 Priority —— refunds. 1 1. Interest. An employer who fails to pay any contribution 2 at the time required by this chapter and the rules of the 3 department shall pay to the department in addition to such 4 contribution, interest thereon at the rate of one percent per 5 month and one-thirtieth of one percent for each day or fraction 6 thereof computed from the date upon which the contribution 7 should have been paid. 8 2. Fraud —— penalty. If the department finds that an 9 employer has willfully failed to pay any contribution or part 10 thereof when required by this chapter and the rules of the 11 department, with intent to defraud the department, the employer 12 shall in addition to such contribution or part thereof, pay 13 a contribution equal to fifty percent of the amount of such 14 contribution or part thereof, as the case may be. 15 3. Cancellation upon proof. The department may cancel any 16 interest or penalties if it is shown to the satisfaction of 17 the department that the failure to pay a required contribution 18 or to file a required report was not the result of negligence, 19 fraud, or intentional disregard of the law or the rules of the 20 department. 21 4. Lien of contributions —— collection. Whenever any covered 22 employer liable to pay contributions refuses or neglects to pay 23 the contributions, the amount, including any interest, together 24 with the costs that may accrue in addition thereto, shall be 25 a lien in favor of the state upon all property and rights to 26 property, whether real or personal, belonging to the employer. 27 Sec. 14. NEW SECTION . 96A.14 Offenses. 28 1. Penalties. An individual who makes a false statement 29 or representation knowing it to be false or knowingly fails to 30 disclose a material fact, to obtain or increase any benefit or 31 other payment under this chapter, either for the individual or 32 for any other individual, is guilty of a fraudulent practice 33 as defined in sections 714.8 through 714.14. The total amount 34 of benefits or payments involved in the completion of or in 35 -15- LSB 2416XS (4) 84 jp/nh 15/ 19
S.F. 324 the attempt to complete a fraudulent practice shall be used in 1 determining the value involved under section 714.14. 2 2. False statement. Any covered employer or any officer 3 or agent of a covered employer or any other person who makes a 4 false statement or representation knowing it to be false, or 5 who knowingly fails to disclose a material fact, to prevent 6 or reduce the payment of benefits to any individual entitled 7 thereto, or to avoid becoming or remaining subject hereto, 8 or to avoid or reduce any contribution or other payment 9 required from a covered employer under this chapter, or who 10 willfully fails or refuses to make any such contributions or 11 other payment or to furnish any reports required hereunder 12 or to produce or permit the inspection or copying of records 13 as required hereunder, is guilty of a fraudulent practice as 14 defined in sections 714.8 through 714.14. The total amount of 15 benefits, contributions, or payments involved in the completion 16 of or in the attempt to complete a fraudulent practice shall be 17 used in determining the value involved under section 714.14. 18 3. Unlawful acts. Any person who willfully violates any 19 provision of this chapter or any rule adopted pursuant to 20 this chapter, the violation of which is made unlawful or 21 the observance of which is required under the terms of this 22 chapter, and for which a penalty is neither prescribed herein 23 nor provided by any other applicable statute, shall be guilty 24 of a simple misdemeanor, and each day such violation continues 25 shall be deemed to be a separate offense. 26 4. Misrepresentation. An individual who, by reason of the 27 nondisclosure or misrepresentation by the individual or by 28 another of a material fact, has received any sum as benefits 29 under this chapter while any conditions for the receipt of 30 benefits imposed by this chapter were not fulfilled in the 31 individual’s case, or while the individual was disqualified 32 from receiving benefits, shall, in the discretion of the 33 department, either be liable to have the sum deducted from any 34 future benefits payable to the individual under this chapter 35 -16- LSB 2416XS (4) 84 jp/nh 16/ 19
S.F. 324 or shall be liable to repay to the department for the fund, 1 a sum equal to the amount so received by the individual. If 2 the department seeks to recover the amount of the benefits by 3 having the individual pay to the department a sum equal to that 4 amount, the department may file a lien with the county recorder 5 in favor of the state on the individual’s property and rights 6 to property, whether real or personal. 7 Sec. 15. TASK FORCE ON WORK AND THE FAMILY. 8 1. A task force on work and the family is established under 9 the sponsorship of the department of workforce development. 10 The task force shall consist of the following members: the 11 director of the department of workforce development and 12 fourteen public members, appointed by the governor and 13 confirmed by the senate, including four representatives 14 of women’s organizations; four representatives of labor 15 organizations; four representatives of business organizations; 16 and two individuals with expertise on the impact of work on 17 family life. Not more than seven of the public members shall 18 be of the same political party. Each member shall serve on 19 the task force for a term lasting until the task force is 20 dissolved. Any member may be removed from office by the 21 governor, for cause, after a hearing and may be suspended 22 by the governor pending the completion of the hearing. All 23 vacancies shall be filled in the same manner as the original 24 appointment. Members shall serve without compensation. The 25 task force shall organize itself within fifteen days after 26 the appointment of its members. In organizing itself, the 27 task force shall elect a chairperson and vice chairperson 28 from among its members. Each member shall be entitled to one 29 vote on all matters which may come before the task force. No 30 determination, decision, or action of the task force shall be 31 made or taken unless a majority of the members votes in favor 32 of the action. 33 2. The task force shall issue a report not later than 34 June 1, 2015, which evaluates and describes the impact of the 35 -17- LSB 2416XS (4) 84 jp/nh 17/ 19
S.F. 324 provisions of chapter 96A, including the costs and benefits 1 resulting from the provisions of the chapter for the following: 2 a. Employees and their families. 3 b. Employers, including benefits such as reduced training 4 and other costs related to reduced turnover of personnel, and 5 increased affordability of family disability leave benefits 6 through the provisions of chapter 96A, with special attention 7 given to small businesses. 8 c. The public, including savings caused by any reduction in 9 the number of people receiving public assistance. 10 The task force shall evaluate the impact of the provisions of 11 chapter 96A on welfare costs and on the stability of employment 12 of participants. The report shall include recommendations 13 regarding whether to continue or modify the provisions of 14 chapter 96A after December 31, 2016, and any draft legislation 15 needed to implement the recommendations. The task force shall 16 dissolve immediately after issuing the report. The task force 17 may hold public hearings and shall have access to all files 18 and records of the department of revenue and finance, the 19 department of workforce development, and other relevant state 20 agencies and may call to its assistance and avail itself of the 21 services of the employees of those departments and agencies to 22 provide whatever information the task force deems necessary in 23 the performance of its functions. 24 3. The total amount of expenses which the task force 25 determines is necessary to carry out its duties pursuant 26 to this section, if any, shall be provided through an 27 appropriation to the department of workforce development, 28 except that the amount shall in no case exceed one hundred 29 fifty thousand dollars during any fiscal year. The task force 30 shall make that determination in consultation with the director 31 of the department of workforce development and shall report 32 that determination to the director not later than the sixtieth 33 day following its organization. 34 EXPLANATION 35 -18- LSB 2416XS (4) 84 jp/nh 18/ 19
S.F. 324 This bill establishes a family disability leave benefits law 1 which provides benefits to individuals who take unpaid time 2 from work to provide care for a family member’s disability or 3 for certain other absences from work. The law is administered 4 by the department of workforce development. The bill defines 5 family disability leave as unpaid leave for the birth of a 6 child of the individual, the placement of a child with the 7 individual in connection with the adoption of the child by the 8 individual, a serious health condition of a family member of 9 the individual, attending a parent-teacher conference for a 10 child, and accompanying a family member for routine medical and 11 dental care. Benefits are calculated in the same manner as 12 unemployment compensation benefits are calculated. The bill 13 establishes a mechanism for employers to opt out of coverage 14 under the law if the employer has established a private plan to 15 provide family disability leave benefits. 16 The bill establishes a family disability leave benefits 17 fund for the payment of benefits and establishes the mechanism 18 for establishing the rate for both employers and employees to 19 make contributions into the fund. The department of workforce 20 development administers the fund and also provides for the 21 payment and determination of benefits payable from the fund. 22 The bill provides for the recovery of benefit overpayments 23 and establishes penalties for violations of various provisions 24 of the law. The bill provides that the rights granted by the 25 bill cannot be waived. 26 The bill provides that family disability leave benefits 27 shall be payable beginning January 1, 2012. 28 The bill establishes a task force concerning work and 29 family in the department of workforce development to examine 30 the impact of the bill and requires the task force to issue 31 a report by June 1, 2015, concerning its findings. The bill 32 specifies the membership of the task force and provides that 33 the costs associated with the task force be payable from an 34 appropriation to the department of workforce development. 35 -19- LSB 2416XS (4) 84 jp/nh 19/ 19