H.F. _____ Section 1. Section 96.5, unnumbered paragraph 1, Code 2017, 1 is amended to read as follows: 2 An individual shall be disqualified for benefits , regardless 3 of the source of the individual’s wage credits : 4 Sec. 2. Section 96.5, subsection 2, paragraph a, Code 2017, 5 is amended to read as follows: 6 a. The individual shall be disqualified for benefits 7 disqualification shall continue until the individual has worked 8 in and has been paid wages for insured work equal to ten times 9 the individual’s weekly benefit amount, provided the individual 10 is otherwise eligible. 11 Sec. 3. Section 96.5, Code 2017, is amended by adding the 12 following new subsections: 13 NEW SUBSECTION . 11. Incarceration —— disqualified. If 14 the department finds that the individual became separated 15 from employment due to the individual’s incarceration in a 16 jail, municipal holding facility, or correctional institution 17 or facility. The disqualification shall continue until the 18 individual has worked in and has been paid wages for insured 19 work equal to ten times the individual’s weekly benefit amount, 20 provided the individual is otherwise eligible. 21 NEW SUBSECTION . 12. Supplemental part-time employment. If 22 the department finds that an individual is disqualified for 23 benefits under subsection 1 or 2 based on the nature of the 24 individual’s separation from supplemental part-time employment, 25 all wages paid by the supplemental part-time employer to that 26 individual in any quarter which are chargeable following a 27 disqualifying separation under subsection 1 or 2 shall not be 28 considered wages credited to the individual until such time 29 as the individual meets the conditions of requalification 30 as provided for in this chapter, or until the period of 31 disqualification provided for in this chapter has elapsed. 32 Sec. 4. Section 96.6, subsection 2, Code 2017, is amended 33 to read as follows: 34 2. Initial determination. A representative designated by 35 -1- LSB 1632YC (1) 87 je/rj 1/ 3

H.F. _____ the director shall promptly notify all interested parties to 1 the claim of its filing, and the parties have ten days from 2 the date of mailing the notice of the filing of the claim by 3 ordinary mail to the last known address to protest payment of 4 benefits to the claimant. The representative shall promptly 5 examine the claim and any protest, take the initiative to 6 ascertain relevant information concerning the claim, and, on 7 the basis of the facts found by the representative, shall 8 determine whether or not the claim is valid, the week with 9 respect to which benefits shall commence, the weekly benefit 10 amount payable and its maximum duration, and whether any 11 disqualification shall be imposed. The claimant has the burden 12 of proving that the claimant meets the basic eligibility 13 conditions of section 96.4 . The employer has the burden of 14 proving that the claimant is disqualified for benefits pursuant 15 to section 96.5 , except as provided by this subsection . The 16 claimant has the initial burden to produce evidence showing 17 that the claimant is not disqualified for benefits in cases 18 involving section 96.5, subsection subsections 10 and 11 , and 19 has the burden of proving that a voluntary quit pursuant to 20 section 96.5, subsection 1 , was for good cause attributable 21 to the employer and that the claimant is not disqualified 22 for benefits in cases involving section 96.5, subsection 1 , 23 paragraphs “a” through “h” . Unless the claimant or other 24 interested party, after notification or within ten calendar 25 days after notification was mailed to the claimant’s last 26 known address, files an appeal from the decision, the decision 27 is final and benefits shall be paid or denied in accordance 28 with the decision. If an administrative law judge affirms a 29 decision of the representative, or the appeal board affirms a 30 decision of the administrative law judge allowing benefits, 31 the benefits shall be paid regardless of any appeal which is 32 thereafter taken, but if the decision is finally reversed, 33 no employer’s account shall be charged with benefits so paid 34 and this relief from charges shall apply to both contributory 35 -2- LSB 1632YC (1) 87 je/rj 2/ 3

H.F. _____ and reimbursable employers, notwithstanding section 96.8, 1 subsection 5 . 2 Sec. 5. EFFECTIVE DATE. This Act takes effect July 2, 2017. 3 EXPLANATION 4 The inclusion of this explanation does not constitute agreement with 5 the explanation’s substance by the members of the general assembly. 6 This bill provides that an individual disqualified for 7 unemployment benefits is disqualified for benefits regardless 8 of the source of the individual’s wage credits. 9 The bill provides that if the department of workforce 10 development finds that an individual became separated from 11 employment due to the individual’s incarceration in a jail, 12 municipal holding facility, or correctional institution or 13 facility, the individual shall be disqualified from benefits. 14 The bill provides that the disqualification shall continue 15 until the individual has worked in and has been paid wages for 16 insured work equal to 10 times the individual’s weekly benefit 17 amount, provided the individual is otherwise eligible. The 18 bill provides that an individual claiming benefits bears the 19 legal burden to prove that the individual is not disqualified 20 from benefits due to such incarceration. 21 The bill provides that if the department of workforce 22 development finds that an individual is disqualified for 23 unemployment benefits due to voluntarily quitting employment 24 or a discharge for misconduct, based on the nature of the 25 individual’s separation from supplemental part-time employment, 26 all wages paid by the supplemental part-time employer to that 27 individual in any quarter which are chargeable following such 28 a disqualification shall not be considered wages credited to 29 the individual until such time as the individual meets the 30 conditions of requalification as provided for in Code chapter 31 96, or until the period of disqualification provided for in 32 Code chapter 96 has elapsed. 33 The bill takes effect July 2, 2017. 34 -3- LSB 1632YC (1) 87 je/rj 3/ 3