Senate File 2249 - Introduced SENATE FILE 2249 BY COMMITTEE ON LABOR AND BUSINESS RELATIONS (SUCCESSOR TO SSB 3096) A BILL FOR An Act relating to unemployment benefits and including 1 effective date provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5275SV (1) 89 dg/rn
S.F. 2249 Section 1. NEW SECTION . 14.1 State publications —— 1 unemployment rates. 2 1. For the purposes of this chapter: 3 a. “Nonparticipating workforce rate” means the portion of 4 the population that is not employed or earnestly and actively 5 seeking work as described in section 96.4, subsection 3. 6 b. “Workforce term” means the nonparticipating workforce 7 rate, the state unemployment rate, or the number of known, 8 available jobs in Iowa as published by the department of 9 workforce development. 10 2. When a state agency makes a reference to the state 11 unemployment rate in an official written statement from the 12 agency or a report or other document that is published and 13 available to the public, the agency shall include a reference 14 to the nonparticipating workforce rate. 15 3. When the department of workforce development makes a 16 reference to a workforce term in an official written statement 17 or a report or other document that is published and available 18 to the public, the department of workforce development shall 19 also reference each other workforce term. 20 Sec. 2. Section 96.1A, subsection 18, unnumbered paragraph 21 1, Code 2022, is amended to read as follows: 22 “Exhaustee” means an individual who, with respect to any 23 week of unemployment in the individual’s eligibility period 24 has received, prior to such week, all of the regular benefits 25 that were available to the individual under this chapter or any 26 other state law, including dependents’ allowances and benefits 27 payable to federal civilian employees and former armed forces 28 personnel under 5 U.S.C. ch. 85, in the individual’s current 29 benefit year that includes such weeks. Provided that for the 30 purposes of this subsection an individual shall be deemed to 31 have received all of the regular benefits that were available 32 to the individual, although as a result of a pending appeal 33 with respect to wages that were not considered in the original 34 monetary determination in the individual’s benefit year the 35 -1- LSB 5275SV (1) 89 dg/rn 1/ 14
S.F. 2249 individual may subsequently be determined to be entitled to add 1 regular benefits, or: 2 Sec. 3. Section 96.1A, Code 2022, is amended by adding the 3 following new subsections: 4 NEW SUBSECTION . 34A. “Statewide average unemployment rate” 5 means the average seasonally adjusted unemployment rate as 6 published by the department in the third week of the month 7 prior to the current calendar month. 8 NEW SUBSECTION . 43. “Work search” means any of the 9 following: 10 a. Applying for a job by submitting a resume or application 11 to a potential employer in person, through the mail, by 12 electronic means, or by fax transmission. 13 b. Interviewing for a job virtually or in person. 14 c. Taking a civil service exam. 15 d. Taking a military aptitude exam. 16 Sec. 4. Section 96.3, subsection 4, Code 2022, is amended 17 to read as follows: 18 4. Determination of benefits. 19 a. With respect to benefit years beginning on or after July 20 1, 1983, an An eligible individual’s weekly benefit amount for 21 a week of total unemployment shall be an amount equal to the 22 following fractions of the individual’s total wages in insured 23 work paid during that quarter of the individual’s base period 24 in which such total wages were highest. The director shall 25 determine annually a maximum weekly benefit amount equal to 26 the following percentages, to vary with the number of based on 27 whether the individual has dependents, of the statewide average 28 weekly wage paid to employees in insured work which shall be 29 effective the first day of the first full week in July: 30 If the The weekly Subject to 31 number of benefit amount the following 32 dependents shall equal maximum 33 is: the following percentage of 34 fraction of high the statewide 35 -2- LSB 5275SV (1) 89 dg/rn 2/ 14
S.F. 2249 quarter wages: average 1 weekly wage: 2 0 1/23 53% 3 1 or more 1/22 55% 57% 4 2 1/21 57% 5 3 1/20 60% 6 4 or more 1/19 65% 7 b. The maximum weekly benefit amount, if not a multiple 8 of one dollar, shall be rounded to the lower multiple of one 9 dollar. However, until such time as sixty-five percent of 10 the statewide average weekly wage exceeds one hundred ninety 11 dollars, the The maximum weekly benefit amounts shall be 12 determined using the statewide average weekly wage computed on 13 the basis of wages reported for the current calendar year 1981 . 14 As used in this section , “dependent” means dependent as defined 15 in section 422.12, subsection 1 , paragraph “a” , as if the 16 individual claimant was a taxpayer, except that an individual 17 claimant’s nonworking spouse shall be deemed to be a dependent 18 under this section . “Nonworking spouse” means a spouse who does 19 not earn more than one hundred twenty dollars in gross wages 20 in one week. 21 Sec. 5. Section 96.3, subsection 5, paragraph a, Code 2022, 22 is amended to read as follows: 23 a. Duration of benefits. 24 (1) The maximum total amount of benefits payable to an 25 eligible individual during a benefit year shall not exceed the 26 total of the wage credits accrued to the individual’s account 27 during the individual’s base period , or twenty-six times the 28 individual’s weekly benefit amount, whichever is the lesser . 29 (2) Additionally, the maximum total amount of benefits 30 payable to an eligible individual during a benefit year shall 31 not exceed the following, calculated on the date the individual 32 applied for benefits: 33 (a) Twelve times the individual’s weekly benefit amount if 34 the statewide average unemployment rate is at or below four 35 -3- LSB 5275SV (1) 89 dg/rn 3/ 14
S.F. 2249 percent. 1 (b) One additional multiple of the individual’s weekly 2 benefit amount for each increment of one percent the statewide 3 average unemployment rate is above four percent, up to a 4 maximum of sixteen times the individual’s weekly benefit 5 amount. 6 (c) However, if the governor has declared a statewide 7 disaster emergency pursuant to section 29C.6, the amount shall 8 instead be twenty times the individual’s weekly benefit amount 9 for the duration of the emergency. 10 (d) However, if the state “off” indicator is in effect and 11 if the individual is laid off due to the individual’s employer 12 going out of business at the factory, establishment, or other 13 premises at which the individual was last employed, the maximum 14 benefits payable as provided in subparagraph division (a), (b), 15 or (c), as applicable, shall be extended by fifty percent of 16 the amount provided in subparagraph division (a), (b), or (c), 17 as applicable. 18 (3) If, on the date an individual exhausts all benefits 19 payable to the individual, the statewide average unemployment 20 rate has increased so that the maximum total amount of benefits 21 for benefit applicants on that date is greater than the maximum 22 amount determined for the individual pursuant to subparagraph 23 (2), then the individual shall receive additional multiple 24 weekly benefits to make up the difference. 25 (4) The director shall maintain a separate account for 26 each individual who earns wages in insured work. The director 27 shall compute wage credits for each individual by crediting the 28 individual’s account with one-third of the wages for insured 29 work paid to the individual during the individual’s base 30 period. However, the director shall recompute wage credits 31 for an individual who is laid off due to the individual’s 32 employer going out of business at the factory, establishment, 33 or other premises at which the individual was last employed, by 34 crediting the individual’s account with one-half, instead of 35 -4- LSB 5275SV (1) 89 dg/rn 4/ 14
S.F. 2249 one-third, of the wages for insured work paid to the individual 1 during the individual’s base period. Benefits paid to an 2 eligible individual shall be charged against the base period 3 wage credits in the individual’s account which have not been 4 previously charged, in the inverse chronological order as the 5 wages on which the wage credits are based were paid. However 6 if the state “off” indicator is in effect and if the individual 7 is laid off due to the individual’s employer going out of 8 business at the factory, establishment, or other premises at 9 which the individual was last employed, the maximum benefits 10 payable shall be extended to thirty-nine times the individual’s 11 weekly benefit amount, but not to exceed the total of the wage 12 credits accrued to the individual’s account. 13 Sec. 6. Section 96.3, subsection 5, paragraph b, 14 subparagraph (3), Code 2022, is amended to read as follows: 15 (3) The training extension benefit amount shall be 16 twenty-six times a multiple of the individual’s weekly 17 benefit amount provided in paragraph “a” , subparagraph (2), 18 subparagraph division (a), (b), or (c), as applicable, and the 19 weekly benefit amount shall be equal to the individual’s weekly 20 benefit amount for the claim in which benefits were exhausted 21 while in training. 22 Sec. 7. Section 96.4, subsection 3, Code 2022, is amended 23 to read as follows: 24 3. a. The individual is able to work, is available for 25 work, and is earnestly and actively seeking work. 26 b. (1) A person shall be required, at a minimum, to meet 27 the following requirements to be deemed earnestly and actively 28 seeking work: 29 (a) If the number of available jobs is at or above sixty 30 thousand, the person must complete a minimum of six work 31 searches for each week the person applies for benefits. 32 (b) If the number of available jobs is at or above fifty 33 thousand but below sixty thousand, the person must complete a 34 minimum of five work searches for each week the person applies 35 -5- LSB 5275SV (1) 89 dg/rn 5/ 14
S.F. 2249 for benefits. 1 (c) If the number of available jobs is below fifty thousand, 2 the person must complete a minimum of four work searches for 3 each week the person applies for benefits. 4 (2) A work search shall not satisfy the requirements of this 5 paragraph if the individual previously applied for the same 6 position within the most recent four weeks. 7 (3) If the individual has received six or more payments of 8 benefits for a benefit year, at least half of the individual’s 9 work searches shall be from a list of known available jobs 10 provided by the department pursuant to section 96.33. 11 (4) For the purposes of this paragraph, “the number of 12 available jobs” means the number of jobs listed as available as 13 published by the department on the most recent third calendar 14 week of a month. 15 c. This subsection is waived if the individual is deemed 16 partially unemployed, while employed at the individual’s 17 regular job, as defined in section 96.1A, subsection 37 , 18 paragraph “b” , subparagraph (1), or temporarily unemployed 19 as defined in section 96.1A, subsection 37 , paragraph “c” . 20 The work search requirements of this subsection and the 21 disqualification requirement for failure to apply for, or 22 to accept suitable work of section 96.5, subsection 3 , are 23 waived if the individual is not disqualified for benefits under 24 section 96.5, subsection 1 , paragraph “h” . 25 b. d. Notwithstanding any provision of this chapter to the 26 contrary, the department may establish by rule a process to 27 waive or alter the work search requirements of this subsection 28 for a claim for benefits if an individual has a reasonable 29 expectation that the individual will be returning to employment 30 and is attached to a regular job or industry or a member in 31 good standing of a union therein eligible for referral for 32 employment. To be considered attached to a regular job or 33 industry, an individual must be on a short-term temporary 34 layoff. If work is not available at the conclusion of the 35 -6- LSB 5275SV (1) 89 dg/rn 6/ 14
S.F. 2249 layoff period due to short-term circumstances beyond the 1 employer’s control, the employer may request an extension 2 of the waiver or alteration for up to two weeks from the 3 department. For purposes of this paragraph, “short-term 4 temporary layoff” means a layoff period of sixteen weeks or 5 less due to seasonal weather conditions that impact the ability 6 to perform work related to highway construction, repair, or 7 maintenance with a specific return-to-work date verified by the 8 employer. 9 Sec. 8. Section 96.4, Code 2022, is amended by adding the 10 following new subsections: 11 NEW SUBSECTION . 8. The individual has satisfied a single 12 one-week waiting period during the individual’s benefit year. 13 To satisfy the one-week waiting period, the individual, with 14 respect to the week in question, must otherwise be eligible 15 for benefits from this state, must not have received or have 16 payable benefits from this state, and must not be eligible for 17 benefits from another state. 18 NEW SUBSECTION . 9. The individual has completed one search 19 activity each week from a list of permissible search activities 20 as designated by the department. This shall be in addition 21 to the requirements under subsection 3. A search activity 22 shall only meet the requirements of this subsection if the 23 individual has not previously performed that type of search 24 activity during the individual’s benefit year in order to 25 remain eligible under this subsection. The department shall 26 adopt rules to implement this subsection. 27 NEW SUBSECTION . 10. The individual has listed the email 28 address and the identification number the individual received 29 pursuant to section 96.33 on each application the individual 30 has used to satisfy the requirements of this section. 31 NEW SUBSECTION . 11. The individual has performed at 32 least twenty hours of civic work each week as defined by the 33 department by rule. Civic work shall include but not be 34 limited to roadside trash pickup, public building and park 35 -7- LSB 5275SV (1) 89 dg/rn 7/ 14
S.F. 2249 beautification projects, and volunteering at public schools. 1 This subsection shall only apply if the individual has received 2 sixteen or more payments of benefits for a benefit year and the 3 individual is eligible to receive additional payments pursuant 4 to section 96.3, subsection 5, paragraph “a” , subparagraph (1), 5 subparagraph division (c). 6 Sec. 9. NEW SECTION . 96.33 Applicant auditing. 7 1. The department shall conduct audits of the information 8 an individual provides to satisfy the requirements of section 9 96.4 at a minimum once each month to ensure the individual is 10 meeting all eligibility requirements for benefits. Audits 11 conducted pursuant to this section shall include but not be 12 limited to sending a form to employers who the individual 13 claims to have interviewed with for employment for the purpose 14 of collecting all of the following information: 15 a. The employer’s employer identification number. 16 b. The individual’s identification number provided by the 17 department pursuant to subsection 2. 18 c. The date the employer received the individual’s 19 application. 20 d. Whether the individual appeared for the interview. 21 e. Whether the individual rejected an offer of employment 22 for the position for which the individual was applying. 23 f. The date the individual rejected an offer of employment, 24 if any. 25 g. The title, wage, and estimated weekly salary for the 26 position for which the individual was applying. 27 2. Upon initially determining an individual is eligible for 28 benefits, the department shall issue an identification number 29 and an email address to the individual. The email address 30 shall be accessible to both the individual and the department 31 and shall be the individual’s primary source of receiving 32 emails for work searches the individual uses to satisfy the 33 requirements of section 96.4. 34 3. The department shall provide on a weekly basis to an 35 -8- LSB 5275SV (1) 89 dg/rn 8/ 14
S.F. 2249 individual applying for benefits a list of known available 1 jobs within a fifty-mile radius of the applicant’s residence 2 in fields related to the employment the applicant had within 3 the most recent ten years, in fields which the applicant 4 has identified an interest, or that require skills that the 5 applicant claimed to have when applying for benefits. 6 Sec. 10. Section 96.5, subsection 3, paragraph a, 7 subparagraph (1), subparagraph divisions (a), (b), (c), and 8 (d), Code 2022, are amended to read as follows: 9 (a) One hundred percent, if the work is offered during the 10 first five four weeks of unemployment. 11 (b) Seventy-five percent, if the work is offered during the 12 sixth fifth through the twelfth eighth week of unemployment. 13 (c) Seventy percent, if the work is offered during the 14 thirteenth ninth through the eighteenth twelfth week of 15 unemployment. 16 (d) Sixty-five percent, if the work is offered after the 17 eighteenth twelfth week of unemployment. 18 Sec. 11. DEPARTMENT OF WORKFORCE DEVELOPMENT —— 19 UNEMPLOYMENT INSURANCE RULES. The department of workforce 20 development shall adopt or amend its administrative rules 21 pursuant to chapter 17A to provide for all of the following: 22 1. Set the number of search activities acceptable to meet 23 the requirements of section 96.4, subsection 9, to sixteen 24 different types of activities. 25 2. Allow employers to protest a payment of unemployment 26 benefits and protest and sign a notice of claim electronically 27 using a form created by the department. 28 Sec. 12. EFFECTIVE DATE. This Act takes effect January 1, 29 2023. 30 EXPLANATION 31 The inclusion of this explanation does not constitute agreement with 32 the explanation’s substance by the members of the general assembly. 33 This bill relates to unemployment benefits. 34 The bill defines “nonparticipating workforce rate” as the 35 -9- LSB 5275SV (1) 89 dg/rn 9/ 14
S.F. 2249 portion of the population that is not employed or earnestly 1 and actively seeking work. The bill defines “workforce 2 term” as the nonparticipating workforce rate, the state 3 unemployment rate, or the number of known, available jobs in 4 Iowa as published by the department of workforce development 5 (IWD). The bill requires that, when a state agency makes a 6 reference to the state unemployment rate in an official written 7 statement from the agency or a report or other document that 8 is published and available to the public, the agency shall 9 include a reference to the nonparticipating workforce rate. 10 The bill also requires that when the IWD makes a reference to a 11 workforce term in an official written statement or a report or 12 other document that is published and available to the public, 13 the IWD must also reference each other workforce term. 14 The bill defines “statewide average unemployment rate” as 15 the average seasonally adjusted unemployment rate in this state 16 as published by the department in the third week of the month 17 prior to the current calendar month. 18 The bill defines “work search” as applying for a job by 19 submitting a resume or application to a potential employer 20 in person, through the mail, by electronic means, or by fax 21 transmission; interviewing for a job virtually or in person; 22 taking a civil service exam; or taking a military aptitude 23 exam. 24 The bill strikes language providing that an eligible 25 individual’s maximum weekly benefit amount varies with the 26 number of the individual’s dependents. The bill instead 27 provides that an individual with dependents will have a weekly 28 benefit amount of 1/22 the individual’s highest gross quarterly 29 salary during the individual’s base period, subject to a 30 maximum of 57 percent of the statewide average weekly wage. 31 Under current law, the maximum total amount of unemployment 32 benefits payable to an eligible individual in a benefit year 33 cannot exceed 26 times the individual’s weekly benefit amount, 34 among other limitations. The bill provides that the maximum 35 -10- LSB 5275SV (1) 89 dg/rn 10/ 14
S.F. 2249 total amount of unemployment benefits payable to an eligible 1 individual in a benefit year cannot exceed 12 times the 2 individual’s weekly benefit amount if the statewide average 3 unemployment rate, as defined in the bill, is at or below 4 4 percent, calculated on the date the individual applied for 5 benefits. The bill provides for one additional multiple of 6 the individual’s weekly benefit amount for each increment of 7 1 percent the statewide average unemployment rate is above 4 8 percent, up to a maximum of 16 times the individual’s weekly 9 benefit amount. If the governor has declared a statewide 10 disaster emergency, the amount shall instead be 20 times the 11 individual’s weekly benefit amount for the duration of the 12 emergency. 13 The bill provides that if, on the date an individual exhausts 14 all unemployment benefits payable to the individual, the 15 statewide average unemployment rate has increased so that the 16 maximum total amount of benefits for benefit applicants on 17 that date is greater than the maximum amount determined for 18 the individual, then the individual shall receive additional 19 multiple weekly benefits to make up the difference. 20 The bill makes related changes to training extension 21 benefits and certain other unemployment benefits available when 22 an individual is laid off due to the individual’s employer 23 going out of business at the factory, establishment, or other 24 premises. 25 The bill requires a person applying for unemployment 26 benefits to complete a certain number of work searches, based 27 on the number of jobs listed as available as published by the 28 IWD on the most recent third calendar week of a month, for 29 each week the person is applying for benefits in order to be 30 eligible for benefits. If the number of available jobs is at 31 or above 60,000, the person must complete a minimum of six 32 work searches each week; if the number of available jobs is 33 at or above 50,000 but below 60,000, the person must complete 34 a minimum of five work searches each week; and if the number 35 -11- LSB 5275SV (1) 89 dg/rn 11/ 14
S.F. 2249 of available jobs is below 50,000, the person must complete a 1 minimum of four work searches each week. A work search shall 2 not satisfy an individual’s eligibility requirements if the 3 individual previously applied to the same position within the 4 most recent four weeks. 5 The bill requires that, if an individual has received six 6 or more payments of benefits for a benefit year, at least half 7 of the work searches the individual uses to meet eligibility 8 requirements must be from a list of known available jobs within 9 a 50-mile radius of the individual’s residence in fields 10 related to employment the applicant held within the most recent 11 10 years, in fields which the applicant has identified an 12 interest, or that require skills that the individual claimed 13 to have when applying for benefits. The bill requires IWD to 14 provide the individual a list of these jobs on a weekly basis. 15 The bill requires an individual to first satisfy a single 16 one-week waiting period during the individual’s benefit year 17 prior to receiving unemployment compensation. To satisfy the 18 one-week waiting period, the individual, with respect to the 19 week in question, must otherwise be eligible for unemployment 20 benefits from this state, must not have received or have 21 payable unemployment benefits from this state, and must not be 22 eligible for unemployment benefits from another state. 23 The bill requires a person applying for unemployment 24 benefits to complete one search activity each week as 25 designated by IWD in order to be eligible for unemployment 26 benefits. The search activities are in addition to other 27 work search requirements to receive unemployment benefits. 28 A search activity shall only meet eligibility requirements 29 if the individual has not previously performed that type of 30 search activity during the individual’s benefit year in order 31 to remain eligible. The bill directs IWD to adopt rules to 32 implement this requirement. 33 The bill requires IWD to provide an individual applying 34 for unemployment benefits with an email address and an 35 -12- LSB 5275SV (1) 89 dg/rn 12/ 14
S.F. 2249 identification number upon the department’s initial 1 determination that the individual is eligible for benefits. 2 The email address shall be accessible to both the individual 3 and the department, and shall be the individual’s primary 4 source of receiving emails for work searches the individual 5 uses to satisfy unemployment benefit eligibility requirements. 6 The bill also requires the individual to list the email 7 address and the identification number on each application 8 the individual uses in order to maintain eligibility for 9 unemployment benefits. 10 The bill requires that, if the individual has received 16 11 payments of benefits for a benefit year and the individual 12 is eligible to receive extended payments due to a statewide 13 disaster declaration issued by the governor, the individual 14 shall perform at least 20 hours of civic work each week as 15 defined by IWD by rule in order to maintain eligibility for 16 unemployment benefits. Civic work shall include but not be 17 limited to roadside trash pickup, public building and park 18 beautification projects, and volunteering at public schools. 19 The bill requires IWD to conduct audits of the information 20 an individual provides at a minimum once each month to ensure 21 the individual is meeting all eligibility requirements for 22 unemployment benefits. Audits conducted shall include but not 23 be limited to sending a form to employers who the individual 24 claims to have interviewed with for employment for the purpose 25 of collecting the employer’s employer identification number; 26 the individual’s identification number provided by the 27 department; the date the employer received the individual’s 28 application; whether the individual appeared for the interview; 29 whether the individual rejected an offer of employment for the 30 position for which the individual was applying; the date the 31 individual rejected an offer of employment, if any, and the 32 title, wage, and estimated weekly salary for the position for 33 which the individual was applying. 34 A failure to accept an offer of or apply for available 35 -13- LSB 5275SV (1) 89 dg/rn 13/ 14
S.F. 2249 suitable work may affect an individual’s eligibility for 1 unemployment benefits. IWD uses certain criteria to determine 2 whether work is considered suitable, including whether the 3 offered or available work meets or exceeds an individual’s 4 highest gross weekly salary during the individual’s base 5 period. The bill changes the percentages the salary available 6 or offered work must meet or exceed in order to be considered 7 suitable. Work must meet or exceed 100 percent of the base 8 period salary, if the work is offered during the first four 9 weeks of unemployment; 75 percent if the work is offered during 10 the 5th through the 8th week of unemployment; 70 percent if 11 the work is offered during the 9th through the 12th week of 12 unemployment; and 65 percent if the work is offered after the 13 12th week of unemployment. Previously, work offered must 14 exceed 100 percent of the base period salary, if the work is 15 offered during the first five weeks of unemployment; 75 percent 16 if the work is offered during the 6th through the 12th week of 17 unemployment; 70 percent if the work is offered during the 13th 18 through the 18th week of unemployment; and 65 percent if the 19 work is offered after the 18th week of unemployment. 20 The bill makes a conforming change to Code section 96.1A, 21 subsection 18. 22 The bill requires IWD to adopt or amend its administrative 23 rules to set the number of search activities acceptable to 24 meet the work search requirements for unemployment benefit 25 eligibility to 16 different types of activities and allow 26 employers to protest a payment of unemployment benefits and 27 protest and sign a notice of claim electronically using a form 28 created by IWD. 29 The bill takes effect January 1, 2023. 30 -14- LSB 5275SV (1) 89 dg/rn 14/ 14