S.F. _____ Section 1. LEGISLATIVE FINDINGS. It is the finding of the 1 general assembly that the recent Iowa supreme court decision of 2 Homan v. Branstad, No. 11-2022, March 16, 2012, has invalidated 3 the proper enactment of certain provisions contained in the 4 2011 Iowa Acts, chapter 130 (Senate File 517). It is the 5 intent of the general assembly to reenact, as amended, certain 6 invalidated provisions of Senate File 517 that were published 7 in the 2011 Iowa Acts and to validate expenditures made by the 8 department of workforce development and actions entered into 9 in reliance on the enactment of the invalidated provisions 10 published in the 2011 Iowa Acts. 11 Sec. 2. DEPARTMENT OF WORKFORCE DEVELOPMENT. There 12 is appropriated from the general fund of the state to the 13 department of workforce development for the fiscal year 14 beginning July 1, 2011, and ending June 30, 2012, the following 15 amounts, or so much thereof as is necessary, for the purposes 16 designated: 17 1. DIVISION OF LABOR SERVICES 18 a. For the division of labor services, including salaries, 19 support, maintenance, miscellaneous purposes, and for not more 20 than the following full-time equivalent positions: 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,495,440 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 64.00 23 b. From the contractor registration fees, the division of 24 labor services shall reimburse the department of inspections 25 and appeals for all costs associated with hearings under 26 chapter 91C , relating to contractor registration. 27 2. DIVISION OF WORKERS’ COMPENSATION 28 a. For the division of workers’ compensation, including 29 salaries, support, maintenance, miscellaneous purposes, and for 30 not more than the following full-time equivalent positions: 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,949,044 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 30.00 33 b. The division of workers’ compensation shall charge a 34 $100 filing fee for workers’ compensation cases. The filing 35 -1- LSB 6116XC (4) 84 ad/tm 1/ 4

S.F. _____ fee shall be paid by the petitioner of a claim. However, the 1 fee can be taxed as a cost and paid by the losing party, except 2 in cases where it would impose an undue hardship or be unjust 3 under the circumstances. The moneys generated by the filing 4 fee allowed under this subsection are appropriated to the 5 department of workforce development to be used for purposes of 6 administering the division of workers’ compensation. 7 3. WORKFORCE DEVELOPMENT OPERATIONS 8 a. For the operation of field offices, the workforce 9 development board, and for not more than the following 10 full-time equivalent positions: 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,671,352 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 130.00 13 The moneys appropriated in this paragraph are contingent 14 upon the workforce development centers, including satellite 15 offices, which maintain a physical presence in a county, other 16 than those centers maintained by electronic means, which were 17 open and operational October 31, 2011, remaining open and 18 operational through June 30, 2012. 19 b. Of the moneys appropriated in paragraph “a” of this 20 subsection, the department shall allocate $1,130,602 for the 21 operation of satellite field offices in Decorah, Fort Madison, 22 Iowa City, and Webster City. 23 4. OFFENDER REENTRY PROGRAM 24 a. For the development and administration of an offender 25 reentry program to provide offenders with employment skills, 26 and for not more than the following full-time equivalent 27 positions: 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 284,464 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 3.00 30 b. The department shall partner with the department of 31 corrections to provide staff within the correctional facilities 32 to improve offenders’ abilities to find and retain productive 33 employment. 34 5. NONREVERSION 35 -2- LSB 6116XC (4) 84 ad/tm 2/ 4

S.F. _____ Notwithstanding section 8.33 , moneys appropriated in this 1 section that remain unencumbered or unobligated at the close of 2 the fiscal year shall not revert but shall remain available for 3 expenditure for the purposes designated until the close of the 4 succeeding fiscal year. 5 Sec. 3. EMPLOYMENT SECURITY CONTINGENCY FUND. 6 1. There is appropriated from the special employment 7 security contingency fund to the department of workforce 8 development for the fiscal year beginning July 1, 2011, and 9 ending June 30, 2012, the following amount, or so much thereof 10 as is necessary, to be used for field offices: 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,217,084 12 2. Any remaining additional penalty and interest revenue 13 collected by the department of workforce development is 14 appropriated to the department for the fiscal year beginning 15 July 1, 2011, and ending June 30, 2012, to accomplish the 16 mission of the department. 17 Sec. 4. UNEMPLOYMENT COMPENSATION RESERVE FUND —— FIELD 18 OFFICES. Notwithstanding section 96.9, subsection 8 , paragraph 19 “e”, there is appropriated from interest earned on the 20 unemployment compensation reserve fund to the department of 21 workforce development for the fiscal year beginning July 1, 22 2011, and ending June 30, 2012, the following amount or so much 23 thereof as is necessary, for the purposes designated: 24 For the operation of field offices: 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,238,260 26 Sec. 5. GENERAL FUND —— EMPLOYEE MISCLASSIFICATION 27 PROGRAM. There is appropriated from the general fund of the 28 state to the department of workforce development for the fiscal 29 year beginning July 1, 2011, and ending June 30, 2012, the 30 following amount, or so much thereof as is necessary, to be 31 used for the purposes designated: 32 For enhancing efforts to investigate employers that 33 misclassify workers and for not more than the following 34 full-time equivalent positions: 35 -3- LSB 6116XC (4) 84 ad/tm 3/ 4

S.F. _____ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 451,458 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 8.10 2 Sec. 6. RETROACTIVE APPLICABILITY. This Act applies 3 retroactively to July 1, 2011. 4 Sec. 7. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 5 immediate importance, takes effect upon enactment. 6 EXPLANATION 7 This bill makes appropriations from the general fund and 8 other funds to the department of workforce development for FY 9 2011-2012. The bill reenacts certain provisions, as amended, 10 of Senate File 517 that were published in the 2011 Iowa Acts, 11 chapter 130, after the invalidation of the provisions pursuant 12 to the Iowa supreme court decision of Homan v. Branstad. 13 The bill appropriates moneys from the general fund to the 14 department of workforce development. 15 The bill appropriates moneys from the special employment 16 security contingency fund to the department of workforce 17 development for field offices. 18 The bill appropriates interest earned on the unemployment 19 compensation reserve fund to the department of workforce 20 development for the operation of field offices. 21 The bill appropriates moneys to the department of workforce 22 development for an employee misclassification program. 23 The bill is effective upon enactment. The bill makes 24 appropriations to the department of workforce development for 25 FY 2011-2012 and applies retroactively to July 1, 2011. 26 -4- LSB 6116XC (4) 84 ad/tm 4/ 4