SSB 1159 (LSB 2398XC (2) 90)

SENATE FILE _____ 

BY  (PROPOSED COMMITTEE ON WORKFORCE BILL BY CHAIRPERSON DICKEY)

A BILL FOR

An Act concerning unemployment benefits and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 96.1A, subsection 18, unnumbered paragraph 1, Code 2023, is amended to read as follows:
   “Exhaustee” means an individual who, with respect to any week of unemployment in the individual’s eligibility period has received, prior to such week, all of the regular benefits that were available to the individual under this chapter or any other state law, including dependents’ allowances and benefits payable to federal civilian employees and former armed forces personnel under 5 U.S.C. ch. 85, in the individual’s current benefit year that includes such weeks. Provided that for the purposes of this subsection an individual shall be deemed to have received all of the regular benefits that were available to the individual, although as a result of a pending appeal with respect to wages that were not considered in the original monetary determination in the individual’s benefit year the individual may subsequently be determined to be entitled to add regular benefits, or:
    Sec. 2.  Section 96.1A, Code 2023, is amended by adding the following new subsection:
   NEW SUBSECTION.  43.  “Work search” means any of the following:
   a.  Applying for a job by submitting a resume or application to a potential employer in person, through the mail, by electronic means, or by fax transmission.
   b.  Interviewing for a job virtually or in person.
   c.  Taking a civil service exam.
   d.  Taking a military aptitude exam.
    Sec. 3.  Section 96.3, subsection 4, Code 2023, is amended to read as follows:
   4.  Determination of benefits.
   a.  With respect to benefit years beginning on or after July 1, 1983, an An eligible individual’s weekly benefit amount for a week of total unemployment shall be an amount equal to the following fractions of the individual’s total wages in insured work paid during that quarter of the individual’s base period in which such total wages were highest. The director shall determine annually a maximum weekly benefit amount equal to the following percentages, to vary with the number of based on whether the individual has dependents, of the statewide average weekly wage paid to employees in insured work which shall be effective the first day of the first full week in July:
If the       The weekly                Subject to
 number of       benefit amount                the following
 dependents        shall equal                maximum
 is:       the following                percentage of

        fraction of high                the statewide
       quarter wages:                average
                weekly wage:
 0       1/23                53%
 1 or more       1/22                55% 57%
 2       1/21                57%
 3       1/20                60%
 4 or more       1/19                65%

   b.  The maximum weekly benefit amount, if not a multiple of one dollar, shall be rounded to the lower upper multiple of one dollar. However, until such time as sixty-five percent of the statewide average weekly wage exceeds one hundred ninety dollars, the The maximum weekly benefit amounts shall be determined using the statewide average weekly wage computed on the basis of wages reported for the current calendar year 1981. As used in this section, “dependent” means dependent as defined in section 422.12, subsection 1, paragraph “a”, as if the individual claimant was a taxpayer, except that an individual claimant’s nonworking spouse shall be deemed to be a dependent under this section. “Nonworking spouse” means a spouse who does not earn more than one hundred twenty dollars in gross wages in one week.
    Sec. 4.  Section 96.4, subsection 3, Code 2023, is amended to read as follows:
   3.  a.  The individual is able to work, is available for work, and is earnestly and actively seeking work.
   b.  (1)  A person shall be required, at a minimum, to meet the following requirements to be deemed earnestly and actively seeking work:
   (a)  If the number of available jobs is at or above sixty thousand, the person must complete a minimum of six work searches for each week the person applies for benefits.
   (b)  If the number of available jobs is at or above fifty thousand but below sixty thousand, the person must complete a minimum of five work searches for each week the person applies for benefits.
   (c)  If the number of available jobs is below fifty thousand, the person must complete a minimum of four work searches for each week the person applies for benefits.
   (2)  A work search shall not satisfy the requirements of this paragraph if the individual previously applied for the same position within the most recent four weeks.
   (3)  The department shall provide on a weekly basis to an individual applying for benefits a list of known available jobs within a fifty-mile radius of the applicant’s residence in fields related to the employment the applicant had within the most recent ten years, in fields which the applicant has identified an interest, or that require skills that the applicant claimed to have when applying for benefits.
   (4)  At least half of the individual’s work searches shall be from the list of known available jobs provided by the department pursuant to subparagraph (3).
   (5)  For the purposes of this paragraph, “the number of available jobs” means the number of jobs listed as available as published by the department on the first day of the previous month.
   c.  This subsection is waived if the individual is deemed partially unemployed, while employed at the individual’s regular job, as defined in section 96.1A, subsection 37, paragraph “b”, subparagraph (1), or temporarily unemployed as defined in section 96.1A, subsection 37, paragraph “c”. The work search requirements of this subsection and the disqualification requirement for failure to apply for, or to accept suitable work of section 96.5, subsection 3, are waived if the individual is not disqualified for benefits under section 96.5, subsection 1, paragraph “h”.
   b.  d.  Notwithstanding any provision of this chapter to the contrary, the department may establish by rule a process to waive or alter the work search requirements of this subsection for a claim for benefits if an individual has a reasonable expectation that the individual will be returning to employment and is attached to a regular job or industry or a member in good standing of a union therein eligible for referral for employment. To be considered attached to a regular job or industry, an individual must be on a short-term temporary layoff. If work is not available at the conclusion of the layoff period due to short-term circumstances beyond the employer’s control, the employer may request an extension of the waiver or alteration for up to two weeks from the department. For purposes of this paragraph, “short-term temporary layoff” means a layoff period of sixteen weeks or less due to seasonal weather conditions that impact the ability to perform work related to highway construction, repair, or maintenance with a specific return-to-work date verified by the employer.
    Sec. 5.  Section 96.4, Code 2023, is amended by adding the following new subsection:
   NEW SUBSECTION.  8.  The individual has completed one search activity each week from a list of permissible search activities as designated by the department. This shall be in addition to the requirements under subsection 3. A search activity shall only meet the requirements of this subsection if the individual has not previously performed that type of search activity during the individual’s benefit year in order to remain eligible under this subsection. The department shall adopt rules to implement this subsection. The department shall establish by rule sixteen different types of search activities acceptable to meet the requirements of this subsection.
    Sec. 6.  Section 96.6, subsection 2, Code 2023, is amended to read as follows:
   2.  Initial determination.  A representative designated by the director shall promptly notify all interested parties to the claim of its filing, and the parties have ten fourteen calendar days from the date of issuance of the notice of the filing of the claim to protest payment of benefits to the claimant. All interested parties shall select a format as specified by the department to receive such notifications. The representative shall promptly examine the claim and any protest, take the initiative to ascertain relevant information concerning the claim, and, on the basis of the facts found by the representative, shall determine whether or not the claim is valid, the week with respect to which benefits shall commence, the weekly benefit amount payable and its maximum duration, and whether any disqualification shall be imposed. The claimant has the burden of proving that the claimant meets the basic eligibility conditions of section 96.4. The employer has the burden of proving that the claimant is disqualified for benefits pursuant to section 96.5, except as provided by this subsection. The claimant has the initial burden to produce evidence showing that the claimant is not disqualified for benefits in cases involving section 96.5, subsections 10 and 11, and has the burden of proving that a voluntary quit pursuant to section 96.5, subsection 1, was for good cause attributable to the employer and that the claimant is not disqualified for benefits in cases involving section 96.5, subsection 1, paragraphs “a” through “h”. Unless the claimant or other interested party, after notification or within ten fourteen calendar days after notification was issued, files an appeal from the decision, the decision is final and benefits shall be paid or denied in accordance with the decision. If an administrative law judge affirms a decision of the representative, or the appeal board affirms a decision of the administrative law judge allowing benefits, the benefits shall be paid regardless of any appeal which is thereafter taken, but if the decision is finally reversed, no employer’s account shall be charged with benefits so paid and this relief from charges shall apply to both contributory and reimbursable employers, notwithstanding section 96.8, subsection 5.  The department shall by rule allow an employer to protest a payment of unemployment benefits and to protest and sign a notice of claim electronically using a form created by the department.
    Sec. 7.  NEW SECTION.  96A.1  Definitions.
   For the purposes of this chapter:
   1.  “Nonparticipating workforce rate” means the portion of the population that is not employed or earnestly and actively seeking work as described in section 96.4, subsection 3.
   2.  “Workforce term” means the nonparticipating workforce rate, the state unemployment rate, or the number of known, available jobs in Iowa as published by the department of workforce development.
    Sec. 8.  NEW SECTION.  96A.2  State publications —— unemployment rates.
   1.  When a state agency makes a reference to the state unemployment rate in an official written statement from the agency or in a report or other document that is published and available to the public, the agency shall include a reference to the nonparticipating workforce rate.
   2.  When the department of workforce development makes a reference to a workforce term in an official written statement or in a report or other document that is published and available to the public, the department of workforce development shall also reference each other workforce term.
    Sec. 9.  EFFECTIVE DATE.  This Act takes effect January 1, 2024.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to unemployment benefits.
   The bill strikes language providing that an eligible individual’s maximum weekly benefit amount varies with the number of the individual’s dependents. The bill instead provides that an individual with dependents will have a weekly benefit amount of 1/22 the individual’s highest gross quarterly salary during the individual’s base period, subject to a maximum of 57 percent of the statewide average weekly wage.
   The bill provides that the maximum weekly benefit amount for unemployment benefits shall be rounded to the upper multiple of $1, rather than the lower multiple as provided under current law.
   The bill requires a person applying for unemployment benefits to complete a specified number of work searches, based on the number of jobs listed as available as published by the department of workforce development (IWD) on the first day of the previous month, for each week the person is applying for benefits in order to be eligible for benefits. A work search shall not satisfy an individual’s eligibility requirements if the individual previously applied to the same position within the most recent four weeks.
   The bill defines “work search” as applying for a job by submitting a resume or application to a potential employer in person, through the mail, by electronic means, or by fax transmission; interviewing for a job virtually or in person; taking a civil service exam; or taking a military aptitude exam.
   The bill requires that at least half of the work searches an individual uses to meet eligibility requirements must be from a list of known available jobs within a 50-mile radius of the individual’s residence in fields related to employment the applicant held within the most recent 10 years, in fields which the applicant has identified an interest, or that require skills that the individual claimed to have when applying for benefits. The bill requires IWD to provide the individual a list of these jobs on a weekly basis.
   The bill requires a person applying for unemployment benefits to complete one search activity each week as designated by IWD in order to be eligible for unemployment benefits. The search activities are in addition to other work search requirements to receive unemployment benefits. A search activity shall only meet eligibility requirements if the individual has not previously performed that type of search activity during the individual’s benefit year in order to remain eligible. The bill requires IWD to establish by rule 16 different types of search activities acceptable to meet these requirements.
   The bill strikes language providing that when IWD waives or alters the work search requirements for a claim for benefits if an individual has a reasonable expectation that the individual will be returning to employment and is attached to a regular job or industry on a short-term temporary layoff, the employer may request an extension of the waiver or alteration for up to two weeks if work is not available at the conclusion of the layoff period due to short-term circumstances beyond the employer’s control.
   The bill requires IWD to allow an employer to protest a payment of unemployment benefits and to protest and sign a notice of claim electronically using a form created by IWD.
   The bill increases the periods for parties to protest payment of unemployment benefits to a claimant, and to file an appeal from a decision regarding the eligibility for, or amount or duration of, a claim for unemployment benefits to 14 calendar days.
   The bill requires that, when a state agency makes a reference to the state unemployment rate in an official written statement from the agency or in a report or other document that is published and available to the public, the agency shall include a reference to the nonparticipating workforce rate. The bill also requires that when IWD makes a reference to a workforce term in an official written statement or in a report or other document that is published and available to the public, the IWD must also reference each other workforce term. The bill defines “nonparticipating workforce rate” as the portion of the population that is not employed or earnestly and actively seeking work. The bill defines “workforce term” as the nonparticipating workforce rate, the state unemployment rate, or the number of known, available jobs in Iowa as published by IWD.
   The bill takes effect January 1, 2024.