H.F. 531 DIVISION I 1 UNEMPLOYMENT INSURANCE TAX AND BENEFITS —— 2019 2 Section 1. Section 96.3, subsection 5, paragraph a, Code 3 2019, is amended to read as follows: 4 a. Duration of benefits. The maximum total amount of 5 benefits payable to an eligible individual during a benefit 6 year shall not exceed the total of the wage credits accrued 7 to the individual’s account during the individual’s base 8 period, or twenty-six times the individual’s weekly benefit 9 amount, whichever is the lesser. The director shall maintain 10 a separate account for each individual who earns wages in 11 insured work. The director shall compute wage credits for 12 each individual by crediting the individual’s account with 13 one-third of the wages for insured work paid to the individual 14 during the individual’s base period. However, the director 15 shall recompute wage credits for an individual who is laid 16 off due to the individual’s employer going out of business at 17 the factory, establishment, or other premises at which the 18 individual was last employed, by crediting the individual’s 19 account with one-half, instead of one-third, of the wages for 20 insured work paid to the individual during the individual’s 21 base period. Benefits paid to an eligible individual shall 22 be charged against the base period wage credits in the 23 individual’s account which have not been previously charged, 24 in the inverse chronological order as the wages on which the 25 wage credits are based were paid. However if the state “off” 26 indicator is in effect and if the individual is laid off due to 27 the individual’s employer going out of business at the factory, 28 establishment, or other premises at which the individual was 29 last employed, the maximum benefits payable shall be extended 30 to thirty-nine times the individual’s weekly benefit amount, 31 but not to exceed the total of the wage credits accrued to the 32 individual’s account. 33 Sec. 2. Section 96.6, subsection 2, Code 2019, is amended 34 to read as follows: 35 -1- LSB 1241HV (3) 88 je/rn 1/ 9

H.F. 531 2. Initial determination. A representative designated by 1 the director shall promptly notify all interested parties to 2 the claim of its filing, and the parties have ten days from 3 the date of mailing issuing the notice of the filing of the 4 claim by ordinary mail to the last known address to protest 5 payment of benefits to the claimant. All interested parties 6 shall select a format as specified by the department to receive 7 such notifications. The representative shall promptly examine 8 the claim and any protest, take the initiative to ascertain 9 relevant information concerning the claim, and, on the basis of 10 the facts found by the representative, shall determine whether 11 or not the claim is valid, the week with respect to which 12 benefits shall commence, the weekly benefit amount payable 13 and its maximum duration, and whether any disqualification 14 shall be imposed. The claimant has the burden of proving 15 that the claimant meets the basic eligibility conditions of 16 section 96.4 . The employer has the burden of proving that the 17 claimant is disqualified for benefits pursuant to section 96.5 , 18 except as provided by this subsection . The claimant has the 19 initial burden to produce evidence showing that the claimant 20 is not disqualified for benefits in cases involving section 21 96.5, subsections 10 and 11 , and has the burden of proving 22 that a voluntary quit pursuant to section 96.5, subsection 1 , 23 was for good cause attributable to the employer and that the 24 claimant is not disqualified for benefits in cases involving 25 section 96.5, subsection 1 , paragraphs “a” through “h” . Unless 26 the claimant or other interested party, after notification or 27 within ten calendar days after notification was mailed issued 28 to the claimant’s last known address, files an appeal from the 29 decision, the decision is final and benefits shall be paid or 30 denied in accordance with the decision. If an administrative 31 law judge affirms a decision of the representative, or the 32 appeal board affirms a decision of the administrative law judge 33 allowing benefits, the benefits shall be paid regardless of 34 any appeal which is thereafter taken, but if the decision is 35 -2- LSB 1241HV (3) 88 je/rn 2/ 9

H.F. 531 finally reversed, no employer’s account shall be charged with 1 benefits so paid and this relief from charges shall apply to 2 both contributory and reimbursable employers, notwithstanding 3 section 96.8, subsection 5 . 4 Sec. 3. Section 96.14, subsection 16, Code 2019, is amended 5 to read as follows: 6 16. Injunction upon nonpayment. Any employer or employing 7 unit refusing or failing to make and file required reports , 8 records, or to pay any contributions, interest, or penalty 9 under the provisions of this chapter , after ten days’ written 10 notice sent by the department to the employer’s or employing 11 unit’s last known address by certified mail, may be enjoined 12 from operating any business in the state while in violation 13 of this chapter upon the complaint of the department in the 14 district court of a county in which the employer or employing 15 unit has or had a place of business within the state, and 16 any temporary injunction enjoining the continuance of such 17 business may be granted without notice and without a bond being 18 required from the department. Such injunction may enjoin any 19 employer or employing unit from operating a business unit 20 until the delinquent contributions, interest, or penalties 21 shall have been made and filed or paid; or the employer shall 22 have furnished a good and sufficient bond conditioned upon the 23 payment of such delinquencies in such an amount and containing 24 such terms as may be determined by the court; or the employer 25 has entered into a plan for the liquidation of the business to 26 pay for such delinquencies as the court may approve, provided 27 that such injunction may be reinstated upon the employer’s 28 failure to comply with the terms of said plan. 29 Sec. 4. Section 96.40, subsection 2, paragraphs e and i, 30 Code 2019, are amended to read as follows: 31 e. The reduction in hours and corresponding reduction in 32 wages must be applied equally to all employees in the affected 33 unit for each week reported . 34 i. The duration of the shared work plan will not exceed 35 -3- LSB 1241HV (3) 88 je/rn 3/ 9

H.F. 531 fifty-two weeks. The employer shall only be authorized one 1 plan during a twenty-four-month period. 2 Sec. 5. Section 96.40, subsection 2, Code 2019, is amended 3 by adding the following new paragraph: 4 NEW PARAGRAPH . l. The employer shall notify all affected 5 employees and receive consent from each participating employee 6 before the plan is authorized. 7 Sec. 6. Section 96.40, Code 2019, is amended by adding the 8 following new subsection: 9 NEW SUBSECTION . 4A. An employer may file an appeal in 10 writing of a denial or approval of a plan or revocation of an 11 approved plan by the department within thirty days from the 12 date of the decision. 13 Sec. 7. Section 96.40, subsection 9, paragraph b, Code 2019, 14 is amended to read as follows: 15 b. An employer may provide as part of the plan a training 16 program the employees may attend during the hours that have 17 been reduced. Such a training program may include a training 18 program funded under the Workforce Investment Innovation and 19 Opportunity Act , of 1998 , Pub. L. No. 105-220 113-128 . If the 20 employer is able to show that the training program will provide 21 a substantive increase in the workplace and employability 22 skills of the employee so as to reduce the potential for 23 future periods of unemployment, the department shall relieve 24 the employer of charges for benefits paid to the individual 25 attending training under the plan. The employee may attend 26 the training at the work site utilizing internal resources, 27 provided the training is outside of the normal course of 28 employment, or in conjunction with an educational institution. 29 Sec. 8. EFFECTIVE DATE. This division of this Act, being 30 deemed of immediate importance, takes effect upon enactment. 31 Sec. 9. APPLICABILITY. 32 1. The following apply to any week of unemployment benefits 33 beginning on or after the first Sunday after the effective date 34 of this division of this Act: 35 -4- LSB 1241HV (3) 88 je/rn 4/ 9

H.F. 531 a. The section of this Act amending section 96.3. 1 2. The following apply to all voluntary shared work plans 2 approved by the department of workforce development on or after 3 the effective date of this division of this Act: 4 a. The section of this division of this Act amending section 5 96.40, subsection 2, paragraphs “e” and “i”. 6 b. The section of this division of this Act enacting section 7 96.40, subsection 2, paragraph “l”. 8 c. The section of this division of this Act enacting section 9 96.40, subsection 4A. 10 d. The section of this division of this Act amending section 11 96.40, subsection 9, paragraph “b”. 12 DIVISION II 13 UNEMPLOYMENT INSURANCE TAX AND BENEFITS —— 2020 14 Sec. 10. Section 96.3, subsection 4, Code 2019, is amended 15 to read as follows: 16 4. Determination of benefits. With respect to benefit years 17 beginning on or after July 1, 1983, an An eligible individual’s 18 weekly benefit amount for a week of total unemployment shall be 19 an amount equal to the following fractions of the individual’s 20 total wages in insured work paid during that quarter of 21 the individual’s base period in which such total wages were 22 highest; the director shall determine annually a maximum weekly 23 benefit amount equal to the following percentages, to vary with 24 the number of dependents, of the statewide average weekly wage 25 paid to employees in insured work which shall be effective the 26 first day of the first full week in July: 27 If the The weekly Subject to 28 number of benefit amount the following 29 dependents shall equal maximum 30 is: the following percentage of 31 fraction of high the statewide 32 quarter wages: average 33 weekly wage: 34 0 1/23 53% 35 -5- LSB 1241HV (3) 88 je/rn 5/ 9

H.F. 531 1 1/22 55% 1 2 1/21 57% 2 3 1/20 60% 3 4 or more 1/19 65% 4 The maximum weekly benefit amount, if not a multiple of one 5 dollar, shall be rounded to the lower multiple of one dollar. 6 However, until such time as sixty-five percent of the statewide 7 average weekly wage exceeds one hundred ninety dollars, the 8 The maximum weekly benefit amounts shall be determined using 9 the statewide average weekly wage computed on the basis of 10 wages reported for the current calendar year 1981 . As used in 11 this section, “dependent” means dependent as defined in section 12 422.12, subsection 1, paragraph “a” , as if the individual 13 claimant was a taxpayer, except that an individual claimant’s 14 nonworking spouse shall be deemed to be a dependent under this 15 section. “Nonworking spouse” means a spouse who does not earn 16 more than one hundred twenty dollars in gross wages in one 17 week. 18 Sec. 11. Section 96.7, subsection 2, paragraph c, 19 subparagraph (2), Code 2019, is amended to read as follows: 20 (2) A construction or landscaping contributory employer, 21 as defined under rules adopted by the department pursuant to 22 chapter 17A , which is newly subject to this chapter shall pay 23 contributions at the rate specified in the twenty-first benefit 24 ratio rank until the end of the calendar year in which the 25 employer’s account has been chargeable with benefits for twelve 26 consecutive calendar quarters. 27 Sec. 12. Section 96.19, subsection 20, unnumbered paragraph 28 1, Code 2019, is amended to read as follows: 29 “Exhaustee” means an individual who, with respect to any 30 week of unemployment in the individual’s eligibility period 31 has received, prior to such week, all of the regular benefits 32 that were available to the individual under this chapter or any 33 other state law, including dependents’ allowances and benefits 34 payable to federal civilian employees and former armed forces 35 -6- LSB 1241HV (3) 88 je/rn 6/ 9

H.F. 531 personnel under 5 U.S.C. ch. 85, in the individual’s current 1 benefit year that includes such weeks. Provided that for the 2 purposes of this subsection an individual shall be deemed to 3 have received all of the regular benefits that were available 4 to the individual, although as a result of a pending appeal 5 with respect to wages that were not considered in the original 6 monetary determination in the individual’s benefit year the 7 individual may subsequently be determined to be entitled to add 8 regular benefits, or: 9 Sec. 13. EFFECTIVE DATE. This division of this Act takes 10 effect July 1, 2020. 11 Sec. 14. APPLICABILITY. The section of this division of 12 this Act amending section 96.19, subsection 20, applies to any 13 week of unemployment benefits beginning on or after July 5, 14 2020. 15 EXPLANATION 16 The inclusion of this explanation does not constitute agreement with 17 the explanation’s substance by the members of the general assembly. 18 This bill relates to unemployment insurance under Code 19 chapter 96. 20 DIVISION I. This division strikes language requiring 21 the director of the department of workforce development 22 to recompute wage credits for purposes of calculating an 23 individual’s maximum total amount of unemployment benefits 24 payable during a benefit year. The stricken language applied 25 to an individual who is laid off due to the individual’s 26 employer going out of business at the factory, establishment, 27 or other premises at which the individual was last employed by 28 crediting the individual’s account with one-half, instead of 29 one-third, of the wages for insured work paid to the individual 30 during the individual’s base period. The division also strikes 31 language providing an additional 13 weeks of benefits to such 32 individuals if the state “off” indicator, which relates to 33 the rate of insured unemployment in the state, is in effect. 34 This provision applies to any week of unemployment benefits 35 -7- LSB 1241HV (3) 88 je/rn 7/ 9

H.F. 531 beginning on or after the first Sunday after the effective date 1 of the division. 2 The division strikes language providing that notifications 3 of interested parties that a claim for unemployment benefits 4 has been made be sent by ordinary mail. The division instead 5 provides that such notifications shall be in a format as 6 specified by the department selected by the parties. 7 The division provides that an employer or employing unit 8 refusing or failing to make and file required records is 9 subject to a possible injunction by the department for the 10 violation. 11 The division modifies a reference to plans for liquidation 12 of deficiencies under Code chapter 96 by an employer or 13 employing unit to specify that such a plan is for the 14 liquidation of a business to pay for such deficiencies. 15 The division modifies conditions for approval of a voluntary 16 shared work program by the department. The division provides 17 that a reduction in hours and corresponding reduction in wages 18 that must be applied equally to all employees in the affected 19 unit must be applied equally for each week reported. The 20 division provides that an employer shall only be authorized 21 one plan during a 24-month period. The division requires 22 an employer to notify all affected employees and receive 23 consent from each participating employee before the plan is 24 authorized. The division also permits an employer to file 25 an appeal in writing of a denial or approval of a plan or 26 revocation of an approved plan by the department within 30 days 27 from the date of the decision and replaces a reference to the 28 federal Workforce Investment Act of 1998 with a reference to 29 the federal Workforce Innovation and Opportunity Act. These 30 provisions apply to all voluntary shared work plans approved 31 by the department of workforce development on or after the 32 effective date of the division. 33 The division takes effect upon enactment. 34 DIVISION II. This division provides that a landscaping 35 -8- LSB 1241HV (3) 88 je/rn 8/ 9

H.F. 531 contributory employer, as defined by the department by 1 rule, which is newly subject to Code chapter 96 shall pay 2 contributions at the rate specified in the 21st benefit ratio 3 rank until the end of the calendar year in which the employer’s 4 account has been chargeable with benefits for 12 consecutive 5 calendar quarters. 6 The division strikes a reference to dependents’ allowances 7 with respect to exhaustion of unemployment benefits. This 8 provision applies to any week of unemployment benefit beginning 9 on or after July 5, 2020. 10 The division strikes obsolete language. 11 The division takes effect July 1, 2020. 12 -9- LSB 1241HV (3) 88 je/rn 9/ 9