H.F. _____ DIVISION I 1 UNEMPLOYMENT INSURANCE 2 Section 1. Section 96.2, Code 2022, is amended to read as 3 follows: 4 96.2 Guide for interpretation. 5 As a guide to the interpretation and application of this 6 chapter , the public policy of this state is declared to be as 7 follows: Economic insecurity due to unemployment is a serious 8 menace to negatively impacts the health, morals, and welfare 9 of the people of this state Iowa . Involuntary unemployment 10 is therefore a subject of general interest and concern which 11 requires appropriate action by the legislature to prevent 12 its spread and to lighten its burden which now so often 13 falls with crushing force upon the unemployed worker and the 14 worker’s family. The achievement of social security requires 15 protection against this greatest hazard of our economic 16 life. This can be provided These undesirable consequences can 17 be reduced by encouraging employers to provide more stable 18 employment and by the systematic accumulation of funds during 19 periods of employment to provide benefits for periods of 20 unemployment , thus maintaining purchasing power and limiting 21 the serious social consequences of poor relief assistance. 22 The legislature, therefore, declares that in its considered 23 judgment the public good and the general welfare of the 24 citizens of this state require the enactment of this measure, 25 under the police powers of the state, for the compulsory 26 setting aside of unemployment reserves to be used for the 27 benefit of persons . This chapter provides for payment of 28 benefits to workers unemployed through no fault of their own. 29 The policy herein is intended to encourage stabilization in 30 employment, to provide for integrated employment and training 31 services in support of state economic development programs, and 32 to provide meaningful job training and employment opportunities 33 for the unemployed, underemployed, economically disadvantaged, 34 dislocated workers, and others with substantial barriers to 35 -1- LSB 6164YC (2) 89 dg/rn 1/ 13

H.F. _____ employment. To further this public policy, the state, through 1 its department of workforce development, will maintain close 2 coordination among all federal, state, and local agencies 3 whose missions affect the employment or employability of the 4 unemployed and underemployed. 5 Sec. 2. Section 96.3, subsection 5, paragraph a, Code 2022, 6 is amended to read as follows: 7 a. Duration of benefits. The maximum total amount of 8 benefits payable to an eligible individual during a benefit 9 year shall not exceed the total of the wage credits accrued to 10 the individual’s account during the individual’s base period, 11 or twenty-six sixteen times the individual’s weekly benefit 12 amount, whichever is the lesser. The director shall maintain 13 a separate account for each individual who earns wages in 14 insured work. The director shall compute wage credits for 15 each individual by crediting the individual’s account with 16 one-third of the wages for insured work paid to the individual 17 during the individual’s base period. However, the director 18 shall recompute wage credits for an individual who is laid 19 off due to the individual’s employer going out of business at 20 the factory, establishment, or other premises at which the 21 individual was last employed, by crediting the individual’s 22 account with one-half, instead of one-third, of the wages for 23 insured work paid to the individual during the individual’s 24 base period. Benefits paid to an eligible individual shall 25 be charged against the base period wage credits in the 26 individual’s account which have not been previously charged, 27 in the inverse chronological order as the wages on which the 28 wage credits are based were paid. However if the state “off” 29 indicator is in effect and if the individual is laid off due to 30 the individual’s employer going out of business at the factory, 31 establishment, or other premises at which the individual was 32 last employed, the maximum benefits payable shall be extended 33 to thirty-nine twenty-six times the individual’s weekly benefit 34 amount, but not to exceed the total of the wage credits accrued 35 -2- LSB 6164YC (2) 89 dg/rn 2/ 13

H.F. _____ to the individual’s account. 1 Sec. 3. Section 96.4, Code 2022, is amended by adding the 2 following new subsection: 3 NEW SUBSECTION . 8. The individual has satisfied a single 4 one-week waiting period during the individual’s benefit year. 5 To satisfy the one-week waiting period, the individual, with 6 respect to the week in question, must otherwise be eligible 7 for benefits from this state, must not have received or have 8 payable benefits from this state, and must not be eligible for 9 benefits from another state. 10 Sec. 4. Section 96.5, subsection 2, Code 2022, is amended by 11 adding the following new paragraph: 12 NEW PARAGRAPH . d. For the purposes of this subsection, 13 “misconduct” means a deliberate act or omission by an 14 employee that constitutes a material breach of the duties 15 and obligations arising out of the employee’s contract of 16 employment. Misconduct is limited to conduct evincing such 17 willful or wanton disregard of an employer’s interest as 18 is found in deliberate violation or disregard of standards 19 of behavior which the employer has the right to expect of 20 employees, or in carelessness or negligence of such degree of 21 recurrence as to manifest equal culpability, wrongful intent 22 or evil design, or to show an intentional and substantial 23 disregard of the employer’s interests or of the employee’s 24 duties and obligations to the employer. Misconduct by an 25 individual includes but is not limited to all of the following: 26 (1) Falsification of the individual’s employment 27 application. 28 (2) Knowing violation of a reasonable and uniformly 29 enforced rule of an employer. 30 (3) Intentional damage of an employer’s property. 31 (4) Dishonesty to an employer with regard to the 32 individual’s employment. 33 (5) Consumption of alcohol, illegal or nonprescribed 34 prescription drugs, or an impairing substance in a manner 35 -3- LSB 6164YC (2) 89 dg/rn 3/ 13

H.F. _____ not directed by the manufacturer, or a combination of such 1 substances, on the employer’s premises in violation of the 2 employer’s employment policies. 3 (6) Reporting to work under the influence of alcohol, 4 illegal or nonprescribed prescription drugs, or an impairing 5 substance in an off-label manner, or a combination of such 6 substances, on the employer’s premises in violation of the 7 employer’s employment policies, unless the individual is 8 compelled to work by the employer outside of scheduled or 9 on-call working hours. 10 (7) Conduct that endangers the personal safety of the 11 individual, coworkers, or the general public. 12 (8) Incarceration for an act for which one could reasonably 13 expect to be incarcerated that results in missing work. 14 (9) Incarceration as a result of a misdemeanor or felony 15 conviction by a court of competent jurisdiction. 16 (10) Excessive unexcused tardiness or absenteeism. 17 (11) Falsification of any work-related report, task, or job 18 that could expose the employer or coworkers to legal liability 19 or sanction for violation of health or safety laws. 20 (12) Failure to maintain any license, registration, or 21 certification that is reasonably required by the employer or 22 by law, or that is a functional requirement to perform the 23 individual’s regular job duties, unless the failure is not 24 within the control of the individual. 25 (13) Conduct that is libelous or slanderous toward an 26 employer or an employee of the employer if such conduct is not 27 protected under state or federal law. 28 (14) Conduct creating or attempting to create dissention or 29 animus against the employer or a coworker if such conduct is 30 not protected under state or federal law. 31 (15) Theft of an employer or coworker’s funds or property. 32 (16) Misrepresentation of time worked or work carried out 33 that results in the individual receiving unearned wages or 34 unearned benefits. 35 -4- LSB 6164YC (2) 89 dg/rn 4/ 13

H.F. _____ Sec. 5. Section 96.5, subsection 3, paragraph a, 1 subparagraph (1), subparagraph divisions (a), (b), (c), and 2 (d), Code 2022, are amended to read as follows: 3 (a) One hundred percent, if the work is offered during the 4 first five weeks week of unemployment. 5 (b) Seventy-five Ninety percent, if the work is offered 6 during the sixth second through the twelfth third week of 7 unemployment. 8 (c) Seventy Eighty percent, if the work is offered during 9 the thirteenth fourth through the eighteenth fifth week of 10 unemployment. 11 (d) Sixty-five Seventy percent, if the work is offered 12 after during the eighteenth sixth through the eighth week of 13 unemployment. 14 Sec. 6. Section 96.5, subsection 3, paragraph a, 15 subparagraph (1), Code 2022, is amended by adding the following 16 new subparagraph division: 17 NEW SUBPARAGRAPH DIVISION . (e) Sixty percent, if the work 18 is offered after the eighth week of unemployment. 19 Sec. 7. Section 96.6, subsection 3, paragraph b, Code 2022, 20 is amended to read as follows: 21 b. Appeals from the initial determination shall be heard 22 by an administrative law judge employed by the department. 23 An administrative law judge’s decision may be appealed by 24 any party to the employment appeal board created in section 25 10A.601 . The decision of the appeal board is final agency 26 action and an appeal of the decision shall be made or directly 27 to the district court. 28 DIVISION II 29 TORT LIABILITY 30 Sec. 8. Section 147.136A, subsection 1, paragraph b, Code 31 2022, is amended to read as follows: 32 b. (1) “Noneconomic damages” means damages arising from 33 pain, suffering, inconvenience, physical impairment, mental 34 anguish, emotional pain and suffering, loss of chance, loss of 35 -5- LSB 6164YC (2) 89 dg/rn 5/ 13

H.F. _____ consortium, or any other nonpecuniary damages. 1 (2) “Noneconomic damages” does not include the loss of 2 dependent care, including the loss of child care, due to the 3 death of or severe injury to a spouse or parent who is the 4 primary caregiver of a child under the age of eighteen or a 5 disabled adult. Such damages shall be considered economic 6 damages. 7 Sec. 9. Section 147.136A, subsection 2, Code 2022, is 8 amended to read as follows: 9 2. The total amount recoverable in any civil action for 10 noneconomic damages for personal injury or death, whether in 11 tort, contract, or otherwise, against a health care provider 12 shall be limited to two hundred fifty thousand dollars for any 13 occurrence resulting in injury or death of a patient regardless 14 of the number of plaintiffs, derivative claims, theories of 15 liability, or defendants in the civil action, shall not exceed 16 two hundred fifty thousand dollars unless the jury determines 17 that there is a substantial or permanent loss or impairment of 18 a bodily function, substantial disfigurement, or death, which 19 warrants a finding that imposition of such a limitation would 20 deprive the plaintiff of just compensation for the injuries 21 sustained , in which case the amount recoverable shall not 22 exceed one million dollars . 23 Sec. 10. NEW SECTION . 668.12A Liability for employee 24 negligence in actions involving commercial motor vehicles. 25 1. In a civil action involving a commercial motor vehicle 26 as defined in section 321.1, if an employer who is a defendant 27 in the action complies with subsection 2, the employer’s 28 liability for damages caused by the negligence of an employee 29 acting within the course and scope of employment shall be based 30 solely on respondeat superior and not on the employer’s direct 31 negligence in hiring, training, supervising, or trusting the 32 employee, or other similar claim that the employer’s negligence 33 enabled the employee’s harmful conduct. 34 2. On motion of an employer who is the defendant in 35 -6- LSB 6164YC (2) 89 dg/rn 6/ 13

H.F. _____ a civil action involving a commercial motor vehicle, and 1 notwithstanding section 671A.2, a trial court shall dismiss 2 from the civil action any claim of the employer’s direct 3 negligence in hiring, training, supervising, or trusting an 4 employee, or other claim of direct negligence on the part of 5 the employer for the employee’s harmful conduct, or other 6 similar claims, if the employer stipulates that at the time 7 of the event that caused the damages that are the subject of 8 the action that the person whose negligence is alleged to have 9 caused the damages was the employer’s employee and was acting 10 within the course and scope of employment with the employer. 11 3. If an employer makes the stipulations in subsection 2 12 with respect to an employee, and the employee’s negligence is 13 found to have caused or contributed to causing the damages, the 14 employer shall be adjudged vicariously liable for the resulting 15 damages. 16 Sec. 11. NEW SECTION . 668.15A Noneconomic damages —— 17 commercial motor vehicle owners or operators. 18 1. As used in this section: 19 a. “Commercial motor vehicle” means the same as defined in 20 section 321.1. 21 b. “Noneconomic damages” means damages arising from 22 pain, suffering, inconvenience, physical impairment, mental 23 anguish, emotional pain and suffering, loss of chance, loss of 24 consortium, or any other nonpecuniary damages. 25 c. “Occurrence” means the event, incident, or happening, 26 and the acts or omissions incident thereto, which proximately 27 caused injuries or damages for which recovery is claimed. 28 2. The total amount recoverable in any civil action for 29 noneconomic damages for personal injury or death, whether in 30 tort, contract, or otherwise, against the owner or operator 31 of a commercial motor vehicle shall be limited to one million 32 dollars, regardless of the number of derivative claims, 33 theories of liability, or defendants in the civil action. 34 Sec. 12. Section 668A.1, Code 2022, is amended by adding the 35 -7- LSB 6164YC (2) 89 dg/rn 7/ 13

H.F. _____ following new subsection: 1 NEW SUBSECTION . 2A. A claim for punitive or exemplary 2 damages shall not be included in any initial claim for relief. 3 A claim for punitive or exemplary damages may be allowed by 4 amendment to the pleadings only after the exchange of initial 5 disclosures pursuant to the Iowa rules of civil procedure and 6 after the plaintiff establishes prima facie proof of a triable 7 issue. After the plaintiff establishes the existence of a 8 triable issue, the court may, in its discretion and subject 9 to subsection 3, allow discovery on the issue of punitive or 10 exemplary damages as the court deems appropriate. 11 EXPLANATION 12 The inclusion of this explanation does not constitute agreement with 13 the explanation’s substance by the members of the general assembly. 14 This bill relates to matters under the purview of the state, 15 including unemployment benefits and civil torts. 16 DIVISION I —— UNEMPLOYMENT INSURANCE. This division of the 17 bill amends the Iowa employment security law concerning state 18 unemployment insurance benefits. 19 The bill revises the language of Code section 96.2 20 concerning guidance for interpreting Code chapter 96. The bill 21 changes the default maximum benefits payable to an individual 22 eligible to receive unemployment compensation to the lesser of 23 total wage credits accrued to the individual’s account during 24 the individual’s base period or 16 times the individual’s 25 weekly benefit amount. Under current law, the default maximum 26 is the lesser of total wage credits accrued to the individual’s 27 account during the individual’s base period or 26 times the 28 individual’s weekly benefit amount. 29 The bill changes the maximum benefits payable to an 30 individual eligible to receive unemployment compensation, when 31 the state “off” indicator is in effect and the individual 32 was laid off due to the individual’s employer going out of 33 business at the factory, establishment, or other premises at 34 which the individual was last employed, to the lesser of total 35 -8- LSB 6164YC (2) 89 dg/rn 8/ 13

H.F. _____ wage credits accrued to the individual’s account or 26 times 1 the individual’s weekly benefit amount. Under current law, 2 the maximum is the lesser of total wage credits accrued to 3 the individual’s account or 39 times the individual’s weekly 4 benefit amount. 5 The bill requires an individual to first satisfy a single 6 one-week waiting period during the individual’s benefit year 7 prior to receiving unemployment compensation. To satisfy the 8 waiting period, the individual, with respect to the week in 9 question, must otherwise be eligible for unemployment benefits 10 from this state, must not have received or have payable 11 unemployment benefits from this state, and must not be eligible 12 for unemployment benefits from another state. 13 The bill defines “misconduct” for the purposes of 14 unemployment benefit determinations as a deliberate act or 15 omission by an employee that constitutes a material breach 16 of the duties and obligations arising out of the employee’s 17 contract of employment. “Misconduct” is limited to conduct 18 evincing such willful or wanton disregard of an employer’s 19 interest as is found in deliberate violation or disregard 20 of standards of behavior which the employer has the right 21 to expect of employees, or in carelessness or negligence of 22 such degree of recurrence as to manifest equal culpability, 23 wrongful intent or evil design, or to show an intentional and 24 substantial disregard of the employer’s interests or of the 25 employee’s duties and obligations to the employer. The bill 26 also provides several examples of what constitutes “misconduct” 27 by an individual. 28 The bill modifies the percentages of an individual’s 29 average weekly wage for insured work paid to the individual 30 during the quarter of the individual’s base period in which 31 the individual’s wages were highest, which the gross weekly 32 wages for new work by the individual must equal or exceed 33 for the new work to be considered suitable. Under current 34 law, if an individual fails without good cause to apply for 35 -9- LSB 6164YC (2) 89 dg/rn 9/ 13

H.F. _____ or accept suitable work, the individual is disqualified from 1 eligibility for unemployment benefits. The percentages under 2 current law are 100 percent for work offered during the first 3 five weeks of unemployment; 75 percent for work offered during 4 the sixth through the twelfth week of unemployment; 70 percent 5 for work offered during the thirteenth through the eighteenth 6 week of unemployment; and 65 percent for work offered after 7 the eighteenth week of unemployment. Under the bill, the 8 percentages are 100 percent for work offered during the first 9 week of unemployment; 90 percent for work offered during the 10 second through the third week of unemployment; 80 percent 11 for work offered during the fourth through the fifth week of 12 unemployment; 70 percent for work offered during the sixth 13 through the eighth week of unemployment; and 60 percent for 14 work offered after the eighth week of unemployment. 15 The bill provides that a decision of an administrative law 16 judge may be appealed by any party to the unemployment appeal 17 board or directly to the district court. Under current law, 18 such appeals may only be made to the employment appeal board 19 and then to the district court. 20 The bill strikes language providing that a finding of 21 fact or law, judgment, conclusion, or final order regarding 22 a determination of eligibility for unemployment benefits is 23 binding only upon the parties to proceedings and is not binding 24 upon any other proceedings or action involving the same facts 25 brought by the same or related parties before the division of 26 labor services, division of workers’ compensation, other state 27 agency, arbitrator, court, or judge of this state or the United 28 States. 29 DIVISION II —— TORT LIABILITY. This division of the bill 30 relates to tort liability, including noneconomic damage 31 awards against health care providers, employer liability for 32 an employee’s torts involving a commercial motor vehicle, 33 noneconomic damages available against an owner or operator 34 of a commercial motor vehicle, and pleading and discovery 35 -10- LSB 6164YC (2) 89 dg/rn 10/ 13

H.F. _____ requirements related to punitive damages. 1 Current law provides that in a civil action brought by a 2 patient against a health care provider, the maximum amount of 3 noneconomic damages that the patient may recover is $250,000, 4 unless the jury determines that there is a substantial or 5 permanent loss or impairment of a bodily function, substantial 6 disfigurement, or death, which warrants a finding that 7 imposition of such a limitation would deprive the plaintiff 8 of just compensation for the injuries sustained. In such a 9 case, there is no cap on the amount of noneconomic damages 10 that a patient may recover. The bill makes two changes to 11 current law. First, the bill establishes that the definition 12 of nonecomonic damages does not include the loss of dependent 13 care due to the death of or severe injury to a spouse or parent 14 who is the primary caregiver of a child or disabled adult. 15 Instead, such damages are economic damages. Second, the bill 16 provides a $1 million cap on noneconomic damages when the jury 17 finds that there is substantial or permanent loss or impairment 18 of a bodily function, substantial disfigurement, or death which 19 warrants exceeding the $250,000 cap. 20 The bill provides that an employer’s liability who is a 21 defendant in a civil action involving a commercial motor for 22 damages caused by negligence of an employee acting within the 23 scope and course of employment shall be based on respondeat 24 superior. Upon motion of an employer, and notwithstanding 25 Code section 671A.2 (limitations on liability protection for 26 negligent hiring), a trial court shall dismiss from the action 27 any claim of the employer’s direct negligence in hiring, 28 training, supervising, or trusting an employee, or other claim 29 of direct negligence on the part of the employer for the 30 employee’s harmful conduct, or other similar claims, if the 31 employer stipulates that at the time of the event that caused 32 the damages that the person whose negligence is the basis of 33 the action is the employer’s employee and the employee was 34 acting within the course and scope of employment with the 35 -11- LSB 6164YC (2) 89 dg/rn 11/ 13

H.F. _____ employer. If an employer makes the stipulation with respect 1 to an employee, and the employee’s negligence is found to have 2 caused or contributed to causing the damages, the employer 3 shall be adjudged vicariously liable for the resulting damages. 4 Under current law, an employer is liable for an employee’s 5 negligence and may be held responsible for direct negligence 6 relating to hiring, training, supervising, trusting an 7 employee, or other claims of direct negligence on part of the 8 employee’s harmful conduct, subject to certain limitations 9 contained in Code chapter 671 (negligent hiring —— limitations 10 on liability). 11 The bill limits the amount of noneconomic damages available 12 against the owner or operator of a commercial motor vehicle. 13 The division defines “noneconomic damages” to mean damages 14 arising from pain, suffering, inconvenience, physical 15 impairment, mental anguish, emotional pain and suffering, 16 loss of chance, loss of consortium, or any other nonpecuniary 17 damages and “occurrence” to mean the event, incident, or 18 happening, and the acts or omissions incident thereto, which 19 proximately caused injuries or damages for which recovery is 20 claimed. The bill provides that the total amount recoverable 21 in any civil action for noneconomic damages for personal injury 22 or death against the owner or operator of a commercial motor 23 vehicle shall be limited to $1 million for any occurrence 24 regardless of the number of plaintiffs, derivative claims, 25 theories of liability, or defendants in the civil action. 26 Under current law, noneconomic damages are unlimited except 27 for suits under Code sections 123.92 (dramshop liability) and 28 147.136A (medical malpractice). 29 The bill provides that a claim for punitive or exemplary 30 damages in an action governed by Code section 668A.1 shall 31 not be included in any initial claim for relief. A claim for 32 punitive or exemplary damages may be allowed by amendment to 33 the pleadings only after the exchange of initial disclosures 34 and after the plaintiff establishes prima facie proof of a 35 -12- LSB 6164YC (2) 89 dg/rn 12/ 13

H.F. _____ triable issue. After the plaintiff establishes the existence 1 of a triable issue of punitive or exemplary damages, the court 2 may allow additional discovery on the issue of punitive or 3 exemplary damages. Under current law and under the bill, the 4 mere allegation or assertion of a claim for punitive damages 5 cannot form the basis for discovery of the wealth or ability to 6 respond in damages on behalf of the party from whom punitive 7 damages are claimed until the claimant has established that 8 sufficient admissable evidence exists to support a prima facie 9 case establishing, by a preponderance of clear, convincing, and 10 satisfactory evidence, that the conduct of the defendant from 11 which the claim arose constituted willful and wanton disregard 12 for the rights or safety of another. 13 -13- LSB 6164YC (2) 89 dg/rn 13/ 13