Senate File 2168 - Introduced SENATE FILE 2168 BY COMMITTEE ON WORKFORCE (SUCCESSOR TO SSB 3044) A BILL FOR An Act relating to programs and procedures of the department 1 of workforce development and including effective date 2 provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5501SV (2) 91 je/js
S.F. 2168 DIVISION I 1 REEMPLOYMENT CASE MANAGEMENT PROGRAM 2 Section 1. Section 96.4, subsection 3, paragraph a, Code 3 2026, is amended to read as follows: 4 a. The individual is able to work, is available for work, 5 and is earnestly and actively seeking work. An individual 6 is considered to be earnestly and actively seeking work if 7 the individual is participating in and compliant with the 8 department’s reemployment case management program under 9 section 96.11, subsection 17. This subsection is waived if 10 the individual is deemed partially unemployed, while employed 11 at the individual’s regular job, as defined in section 96.1A, 12 subsection 37 , paragraph “b” , subparagraph (1), or temporarily 13 unemployed as defined in section 96.1A, subsection 37 , 14 paragraph “c” . The work search requirements of this subsection 15 and the disqualification requirement for failure to apply for, 16 or to accept suitable work of section 96.5, subsection 3 , are 17 waived if the individual is not disqualified for benefits under 18 section 96.5, subsection 1 , paragraph “h” . 19 Sec. 2. Section 96.11, Code 2026, is amended by adding the 20 following new subsection: 21 NEW SUBSECTION . 17. Reemployment case management 22 program. The department, as a required part of its 23 administration of unemployment compensation benefits, shall 24 operate a reemployment case management program. The program 25 shall provide individualized reemployment services to claimants 26 who are no longer attached to work. The services shall 27 begin as soon as the week after, and not later than two weeks 28 after, the filing of an initial claim for benefits. The 29 department shall adopt rules pursuant to chapter 17A regarding 30 participation in the reemployment case management program. 31 DIVISION II 32 UNEMPLOYMENT BENEFITS —— MEANS OF COMMUNICATION 33 Sec. 3. Section 96.6, subsection 2, Code 2026, is amended 34 to read as follows: 35 -1- LSB 5501SV (2) 91 je/js 1/ 9
S.F. 2168 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 the 3 date of issuance of the notice of the filing of the claim to 4 protest payment of benefits to the claimant. All interested 5 parties shall select a format as specified by the department 6 to receive such notifications. The representative shall 7 promptly examine the claim and any protest, take the initiative 8 to ascertain relevant information concerning the claim, and, 9 on the basis of the facts found by the representative, shall 10 determine whether or not the claim is valid, the week with 11 respect to which benefits shall commence, the weekly benefit 12 amount payable and its maximum duration, and whether any 13 disqualification shall be imposed. The claimant has the burden 14 of proving that the claimant meets the basic eligibility 15 conditions of section 96.4 . The employer has the burden of 16 proving that the claimant is disqualified for benefits pursuant 17 to section 96.5 , except as provided by this subsection . The 18 claimant has the initial burden to produce evidence showing 19 that the claimant is not disqualified for benefits in cases 20 involving section 96.5, subsections 10 and 11 , and has the 21 burden of proving that a voluntary quit pursuant to section 22 96.5, subsection 1 , was for good cause attributable to the 23 employer and that the claimant is not disqualified for benefits 24 in cases involving section 96.5, subsection 1 , paragraphs 25 “a” through “h” . Unless the claimant or other interested 26 party, after notification or within ten calendar days after 27 notification was issued, files an appeal from the decision, 28 the decision is final and benefits shall be paid or denied 29 in accordance with the decision. If an administrative law 30 judge affirms a decision of the representative, or the appeal 31 board affirms a decision of the administrative law judge 32 allowing benefits, the benefits shall be paid regardless of any 33 appeal which that is thereafter taken, but if the decision is 34 finally reversed, no employer’s account shall be charged with 35 -2- LSB 5501SV (2) 91 je/js 2/ 9
S.F. 2168 benefits so paid and this relief from charges shall apply to 1 both contributory and reimbursable employers, notwithstanding 2 section 96.8, subsection 5 . 3 Sec. 4. Section 96.6, subsection 3, paragraph a, Code 2026, 4 is amended to read as follows: 5 a. Unless the appeal is withdrawn, an administrative law 6 judge, after affording the parties reasonable opportunity for 7 fair hearing, shall affirm or modify the findings of fact and 8 decision of the representative. The hearing shall be conducted 9 pursuant to the provisions of chapter 17A relating to hearings 10 for contested cases. Before the hearing is scheduled, the 11 parties shall be afforded the opportunity to choose either 12 a telephone hearing or an in-person hearing. A request for 13 an in-person hearing shall be approved unless the in-person 14 hearing would be impractical because of the distance between 15 the parties to the hearing. The notice for a telephone or 16 in-person hearing shall be sent provided to all the parties at 17 least ten calendar days before the hearing date. Reasonable 18 requests for the postponement of a hearing shall be granted. 19 The parties shall be duly notified of the administrative law 20 judge’s decision, together with the administrative law judge’s 21 reasons for the decision, which is the final decision of the 22 department, unless within fifteen days after the date of 23 notification the decision or mailing of the date the decision 24 becomes available in the department’s online portal , further 25 appeal is initiated pursuant to this section . 26 Sec. 5. Section 96.7, subsection 2, paragraph a, 27 subparagraph (6), Code 2026, is amended to read as follows: 28 (6) Within forty days after the close of each calendar 29 quarter, the department shall notify each employer of the 30 amount of benefits charged to the employer’s account during 31 that quarter. The notification shall show the name of each 32 individual to whom benefits were paid, the individual’s 33 social security number, and the amount of benefits paid to 34 the individual. An employer which that has not been notified 35 -3- LSB 5501SV (2) 91 je/js 3/ 9
S.F. 2168 as provided in section 96.6, subsection 2 , of the allowance 1 of benefits to an individual, may within thirty days after 2 the date of mailing of the notification the decision becomes 3 available in the department’s online portal appeal to the 4 department for a hearing to determine the eligibility of the 5 individual to receive benefits. The appeal shall be referred 6 to an administrative law judge for hearing and the employer and 7 the individual shall receive notice of the time and place of 8 the hearing. 9 Sec. 6. Section 96.7, subsection 2, paragraph e, 10 subparagraph (1), Code 2026, is amended to read as follows: 11 (1) The department shall fix the contribution rate for each 12 employer and notify the employer of the rate by regular mail to 13 the last known address of the employer electronic mail stating 14 that the rate is available in the department’s online portal . 15 An employer may appeal to the department for a revision of 16 the contribution rate within thirty days from the date of the 17 notice to the employer. After providing an opportunity for 18 a hearing, the department may affirm, set aside, or modify 19 its former determination and may grant the employer a new 20 contribution rate. The department shall notify the employer 21 of its decision by regular mail electronic mail stating that 22 the decision is available in the department’s online portal . 23 Judicial review of action of the department may be sought 24 pursuant to chapter 17A . 25 Sec. 7. Section 96.7, subsection 4, Code 2026, is amended 26 to read as follows: 27 4. Employer liability determination. 28 a. The department shall initially determine all questions 29 relating to the liability of an employing unit or employer, 30 including the amount of contribution, the contribution rate, 31 and successorship. A copy of the initial determination 32 shall be sent by regular mail to the last address, according 33 to the records of the department, of made available in the 34 department’s online portal for each affected employing unit or 35 -4- LSB 5501SV (2) 91 je/js 4/ 9
S.F. 2168 employer. 1 b. The affected employing unit or employer may appeal in 2 writing to the department from the initial determination. 3 An appeal shall not be entertained for any reason by the 4 department unless the appeal is filed with the department 5 within thirty days from the date on which the initial 6 determination is mailed becomes available in the department’s 7 online portal . If an appeal is not so filed, the initial 8 determination shall with the expiration of the appeal period 9 become final and conclusive in all respects and for all 10 purposes. 11 c. A hearing on an appeal shall be conducted according to 12 rules adopted by the department pursuant to chapter 17A . A 13 copy of the decision of the administrative law judge shall 14 be sent by regular mail to the last address, according to 15 the records of the department, of made available in the 16 department’s online portal for each affected employing unit or 17 employer. 18 d. The department’s decision on the appeal shall be final 19 and conclusive as to the liability of the employing unit or 20 employer unless the employing unit or employer files an appeal 21 for judicial review pursuant to subsection 5 within thirty 22 days after the date of mailing of the decision as provided 23 in subsection 5 becomes available in the department’s online 24 portal . 25 Sec. 8. Section 96.7, subsection 8, paragraph b, 26 subparagraph (2), Code 2026, is amended to read as follows: 27 (2) The nonprofit organization shall pay the bill not 28 later than thirty days after the date the bill was mailed 29 or otherwise delivered to the last known address of the 30 nonprofit organization becomes available in the department’s 31 online portal , unless the nonprofit organization has filed an 32 application for redetermination in accordance with subparagraph 33 (4). 34 Sec. 9. Section 96.7, subsection 8, paragraph b, 35 -5- LSB 5501SV (2) 91 je/js 5/ 9
S.F. 2168 subparagraph (4), Code 2026, is amended to read as follows: 1 (4) The amount due specified in a bill from the department 2 is conclusive unless, not later than fifteen days following the 3 date the bill was mailed or otherwise delivered to the last 4 known address of the nonprofit organization becomes available 5 in the department’s online portal , the nonprofit organization 6 files an application for redetermination with the department 7 setting forth the grounds for the application. The department 8 shall promptly review the amount due specified in the bill 9 and shall issue a redetermination. The redetermination 10 is conclusive on the nonprofit organization unless, within 11 thirty days after the mailing of the notification date the 12 redetermination becomes available in the department’s online 13 portal , the nonprofit organization appeals to the department 14 for a hearing to determine the eligibility of the individual 15 to receive benefits. The appeal shall be referred to an 16 administrative law judge for hearing, and the employer and the 17 individual shall receive notice of the time and place of the 18 hearing. 19 Sec. 10. Section 96.11, Code 2026, is amended by adding the 20 following new subsection: 21 NEW SUBSECTION . 18. Alternative to electronic 22 communications. Notwithstanding the provisions of this chapter 23 that require employers and individuals to provide information 24 to the department by electronic means, and the department 25 to provide notifications to an employer or an individual 26 by electronic means, the director may establish by rule an 27 alternate method or methods for employers and individuals to 28 provide the required information to the department and for the 29 department to provide the required notifications to an employer 30 or an individual in circumstances when it is established, to 31 the satisfaction of the director or the director’s designee, 32 that the employer or individual is unable to provide the 33 information to the department by electronic means or is unable 34 to receive notifications from the department by electronic 35 -6- LSB 5501SV (2) 91 je/js 6/ 9
S.F. 2168 means. 1 DIVISION III 2 SUMMER YOUTH INTERN PILOT PROGRAM —— REPEAL 3 Sec. 11. Section 84A.1B, subsection 3, unnumbered paragraph 4 1, Code 2026, is amended to read as follows: 5 Create, and update as necessary, a list of high-demand jobs 6 statewide for purposes of the future ready Iowa registered 7 apprenticeship programs created in chapter 84F , the summer 8 youth intern pilot program established under section 84A.12 , 9 the Iowa employer innovation program established under section 10 84A.13 , the future ready Iowa skilled workforce last-dollar 11 scholarship program established under section 256.228 , the 12 future ready Iowa skilled workforce grant program established 13 under section 256.229 , and postsecondary summer classes 14 for high school students as provided under section 261E.8, 15 subsection 8 . In addition to the list created by the workforce 16 development board under this subsection , each community 17 college, in consultation with regional career and technical 18 education planning partnerships, and with the approval of the 19 board of directors of the community college, may identify and 20 maintain a list of not more than five regional high-demand jobs 21 in the community college region, and shall share the lists 22 with the workforce development board. The lists submitted by 23 community colleges under the subsection may be used in that 24 community college region for purposes of programs identified 25 under this subsection . The workforce development board 26 shall have full discretion to select and prioritize statewide 27 high-demand jobs after consulting with business and education 28 stakeholders, as appropriate, and seeking public comment. The 29 workforce development board may add to the list of high-demand 30 jobs as it deems necessary. For purposes of this subsection , 31 “high-demand job” means a job in the state that the board, or 32 a community college in accordance with this subsection , has 33 identified in accordance with this subsection . In creating 34 a list under this subsection , the following criteria, at a 35 -7- LSB 5501SV (2) 91 je/js 7/ 9
S.F. 2168 minimum, shall apply: 1 Sec. 12. REPEAL. Section 84A.12, Code 2026, is repealed. 2 Sec. 13. EFFECTIVE DATE. This division of this Act takes 3 effect June 30, 2026. 4 DIVISION IV 5 MEMBERSHIP OF WORKFORCE DEVELOPMENT BOARD 6 Sec. 14. Section 84A.1A, subsection 1, paragraph a, Code 7 2026, is amended by adding the following new subparagraph: 8 NEW SUBPARAGRAPH . (07) The state director of adult 9 education. 10 Sec. 15. Section 84A.1A, subsection 1, paragraph a, 11 subparagraph (7), subparagraph division (a), unnumbered 12 paragraph 1, Code 2026, is amended to read as follows: 13 Ten Twelve members who shall be representatives of 14 businesses in the state to whom each of the following applies, 15 and at least one of whom shall represent small businesses as 16 defined by the United States small business administration: 17 Sec. 16. Section 84A.1A, subsection 1, paragraph a, 18 subparagraph (7), subparagraph division (b), unnumbered 19 paragraph 1, Code 2026, is amended to read as follows: 20 Four Five members who shall be representatives of the 21 workforce in the state and who shall include all of the 22 following: 23 EXPLANATION 24 The inclusion of this explanation does not constitute agreement with 25 the explanation’s substance by the members of the general assembly. 26 This bill relates to programs and procedures of the 27 department of workforce development (department). 28 DIVISION I —— REEMPLOYMENT CASE MANAGEMENT PROGRAM. The 29 bill requires the department, as a required part of its 30 administration of unemployment compensation benefits, to 31 operate a reemployment case management program. The program 32 shall provide individualized reemployment services to claimants 33 who are no longer attached to work. The bill specifies the 34 time period for the services. The bill provides that an 35 -8- LSB 5501SV (2) 91 je/js 8/ 9
S.F. 2168 individual is considered to be earnestly and actively seeking 1 work for purposes of eligibility for benefits if the individual 2 is participating in and compliant with the program. 3 DIVISION II —— UNEMPLOYMENT BENEFITS —— MEANS OF 4 COMMUNICATION. The bill replaces various references to 5 communication by mail with communication in the department’s 6 online portal or by electronic mail. The references relate 7 to determination of eligibility for unemployment benefits and 8 determination of employer contribution rates for such benefits. 9 The bill authorizes the director of the department to 10 establish by rule an alternate method or methods for employers 11 and individuals to provide required information relating to 12 unemployment benefits to the department and for the department 13 to provide required notifications to an employer or an 14 individual in circumstances when it is established that the 15 employer or individual is unable to provide the information 16 to the department by electronic means or is unable to receive 17 notifications from the department by electronic means. 18 DIVISION III —— SUMMER YOUTH INTERN PILOT PROGRAM —— REPEAL. 19 The bill repeals the summer youth intern pilot program. This 20 division takes effect June 30, 2026. 21 DIVISION IV —— MEMBERSHIP OF WORKFORCE DEVELOPMENT BOARD. 22 The bill adds four specified members to the state workforce 23 development board. 24 -9- LSB 5501SV (2) 91 je/js 9/ 9