Senate Study Bill 1086 - IntroducedA Bill ForAn Act 1concerning unemployment insurance and including
2effective date and applicability provisions.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2Unemployment insurance tax and benefits — 2019
3   Section 1.  Section 96.3, subsection 5, paragraph a, Code
42019, is amended to read as follows:
   5a.  Duration of benefits.  The maximum total amount of
6benefits payable to an eligible individual during a benefit
7year shall not exceed the total of the wage credits accrued
8to the individual’s account during the individual’s base
9period, or twenty-six times the individual’s weekly benefit
10amount, whichever is the lesser. The director shall maintain
11a separate account for each individual who earns wages in
12insured work. The director shall compute wage credits for
13each individual by crediting the individual’s account with
14one-third of the wages for insured work paid to the individual
15during the individual’s base period. However, the director
16shall recompute wage credits for an individual who is laid
17off due to the individual’s employer going out of business at
18the factory, establishment, or other premises at which the
19individual was last employed, by crediting the individual’s
20account with one-half, instead of one-third, of the wages for
21insured work paid to the individual during the individual’s
22base period.
Benefits paid to an eligible individual shall
23be charged against the base period wage credits in the
24individual’s account which have not been previously charged,
25in the inverse chronological order as the wages on which the
26wage credits are based were paid. However if the state “off”
27indicator is in effect and if the individual is laid off due to
28the individual’s employer going out of business at the factory,
29establishment, or other premises at which the individual was
30last employed, the maximum benefits payable shall be extended
31to thirty-nine times the individual’s weekly benefit amount,
32but not to exceed the total of the wage credits accrued to the
33individual’s account.

34   Sec. 2.  Section 96.6, subsection 2, Code 2019, is amended
35to read as follows:
-1-   12.  Initial determination.  A representative designated by
2the director shall promptly notify all interested parties to
3the claim of its filing, and the parties have ten days from
4the date of mailing issuing the notice of the filing of the
5claim by ordinary mail to the last known address to protest
6payment of benefits to the claimant. All interested parties
7shall select a format as specified by the department to receive
8such notifications.
The representative shall promptly examine
9the claim and any protest, take the initiative to ascertain
10relevant information concerning the claim, and, on the basis of
11the facts found by the representative, shall determine whether
12or not the claim is valid, the week with respect to which
13benefits shall commence, the weekly benefit amount payable
14and its maximum duration, and whether any disqualification
15shall be imposed. The claimant has the burden of proving
16that the claimant meets the basic eligibility conditions of
17section 96.4. The employer has the burden of proving that the
18claimant is disqualified for benefits pursuant to section 96.5,
19except as provided by this subsection. The claimant has the
20initial burden to produce evidence showing that the claimant
21is not disqualified for benefits in cases involving section
2296.5, subsections 10 and 11, and has the burden of proving
23that a voluntary quit pursuant to section 96.5, subsection 1,
24was for good cause attributable to the employer and that the
25claimant is not disqualified for benefits in cases involving
26section 96.5, subsection 1, paragraphs “a” through “h”. Unless
27the claimant or other interested party, after notification or
28within ten calendar days after notification was mailed issued
29 to the claimant’s last known address, files an appeal from the
30decision, the decision is final and benefits shall be paid or
31denied in accordance with the decision. If an administrative
32law judge affirms a decision of the representative, or the
33appeal board affirms a decision of the administrative law judge
34allowing benefits, the benefits shall be paid regardless of
35any appeal which is thereafter taken, but if the decision is
-2-1finally reversed, no employer’s account shall be charged with
2benefits so paid and this relief from charges shall apply to
3both contributory and reimbursable employers, notwithstanding
4section 96.8, subsection 5.
5   Sec. 3.  Section 96.14, subsection 16, Code 2019, is amended
6to read as follows:
   716.  Injunction upon nonpayment.  Any employer or employing
8unit refusing or failing to make and file required reports,
9records,
or to pay any contributions, interest, or penalty
10under the provisions of this chapter, after ten days’ written
11notice sent by the department to the employer’s or employing
12unit’s last known address by certified mail, may be enjoined
13from operating any business in the state while in violation
14of this chapter upon the complaint of the department in the
15district court of a county in which the employer or employing
16unit has or had a place of business within the state, and
17any temporary injunction enjoining the continuance of such
18business may be granted without notice and without a bond being
19required from the department. Such injunction may enjoin any
20employer or employing unit from operating a business unit
21until the delinquent contributions, interest, or penalties
22shall have been made and filed or paid; or the employer shall
23have furnished a good and sufficient bond conditioned upon the
24payment of such delinquencies in such an amount and containing
25such terms as may be determined by the court; or the employer
26has entered into a plan for the liquidation of the business to
27pay for
such delinquencies as the court may approve, provided
28that such injunction may be reinstated upon the employer’s
29failure to comply with the terms of said plan.
30   Sec. 4.  Section 96.40, subsection 2, paragraphs e and i,
31Code 2019, are amended to read as follows:
   32e.  The reduction in hours and corresponding reduction in
33wages must be applied equally to all employees in the affected
34unit for each week reported.
   35i.  The duration of the shared work plan will not exceed
-3-1fifty-two weeks. The employer shall only be authorized one
2plan during a twenty-four-month period.

3   Sec. 5.  Section 96.40, subsection 2, Code 2019, is amended
4by adding the following new paragraph:
5   NEW PARAGRAPH.  l.  The employer shall notify all affected
6employees and receive consent from each participating employee
7before the plan is authorized.
8   Sec. 6.  Section 96.40, Code 2019, is amended by adding the
9following new subsection:
10   NEW SUBSECTION.  4A.  An employer may file an appeal in
11writing of a denial or approval of a plan or revocation of an
12approved plan by the department within thirty days from the
13date of the decision.
14   Sec. 7.  Section 96.40, subsection 9, paragraph b, Code 2019,
15is amended to read as follows:
   16b.  An employer may provide as part of the plan a training
17program the employees may attend during the hours that have
18been reduced. Such a training program may include a training
19program funded under the Workforce Investment Innovation and
20Opportunity
Act, of 1998, Pub.L. No.105-220 113-128. If the
21employer is able to show that the training program will provide
22a substantive increase in the workplace and employability
23skills of the employee so as to reduce the potential for
24future periods of unemployment, the department shall relieve
25the employer of charges for benefits paid to the individual
26attending training under the plan. The employee may attend
27the training at the work site utilizing internal resources,
28provided the training is outside of the normal course of
29employment, or in conjunction with an educational institution.
30   Sec. 8.  EFFECTIVE DATE.  This division of this Act, being
31deemed of immediate importance, takes effect upon enactment.
32   Sec. 9.  APPLICABILITY.
   331.  The following apply to any week of unemployment benefits
34beginning on or after the first Sunday after the effective date
35of this division of this Act:
-4-
   1a.  The section of this Act amending section 96.3.
   22.  The following apply to all voluntary shared work plans
3approved by the department of workforce development on or after
4the effective date of this division of this Act:
   5a.  The section of this division of this Act amending section
696.40, subsection 2, paragraphs “e” and “i”.
   7b.  The section of this division of this Act enacting section
896.40, subsection 2, paragraph “l”.
   9c.  The section of this division of this Act enacting section
1096.40, subsection 4A.
   11d.  The section of this division of this Act amending section
1296.40, subsection 9, paragraph “b”.
13DIVISION II
14Unemployment insurance tax and benefits — 2020
15   Sec. 10.  Section 96.3, subsection 4, Code 2019, is amended
16to read as follows:
   174.  Determination of benefits.  With respect to benefit years
18beginning on or after July 1, 1983, an
 An eligible individual’s
19weekly benefit amount for a week of total unemployment shall be
20an amount equal to the following fractions of the individual’s
21total wages in insured work paid during that quarter of
22the individual’s base period in which such total wages were
23highest; the director shall determine annually a maximum weekly
24benefit amount equal to the following percentages, to vary with
25the number of
 based on whether the individual has dependents,
26of the statewide average weekly wage paid to employees in
27insured work which shall be effective the first day of the
28first full week in July: July.
29If theThe weeklySubject to
30 number ofbenefit amountthe following
31 dependents shall equalmaximum
32 is:the followingpercentage of
33fraction of highthe statewide
34quarter wages:average
35weekly wage:
-5-1 01/2353%
2or more1/2255% 57%
3 21/2157%
4 31/2060%
5 4 or more1/1965%
   6The maximum weekly benefit amount, if not a multiple of one
7dollar, shall be rounded to the lower multiple of one dollar.
8However, until such time as sixty-five percent of the statewide
9average weekly wage exceeds one hundred ninety dollars, the
10
 The maximum weekly benefit amounts shall be determined using
11the statewide average weekly wage computed on the basis of
12wages reported for the current calendar year 1981. As used in
13this section “dependent” means dependent as defined in section
14422.12, subsection 1, paragraph “a”, as if the individual
15claimant was a taxpayer, except that an individual claimant’s
16nonworking spouse shall be deemed to be a dependent under this
17section. “Nonworking spouse” means a spouse who does not earn
18more than one hundred twenty dollars in gross wages in one
19week.

20   Sec. 11.  Section 96.4, Code 2019, is amended by adding the
21following new subsection:
22   NEW SUBSECTION.  8.  The individual has satisfied a single
23one-week waiting period during the individual’s benefit year.
24To satisfy the one-week waiting period, the individual, with
25respect to the week in question, must be eligible for benefits
26from this state, but must not have received benefits from this
27state, and must not be eligible for benefits from another
28state.
29   Sec. 12.  Section 96.7, subsection 2, paragraph c,
30subparagraph (2), Code 2019, is amended to read as follows:
   31(2)  A construction or landscaping contributory employer,
32as defined under rules adopted by the department pursuant to
33chapter 17A, which is newly subject to this chapter shall pay
34contributions at the rate specified in the twenty-first benefit
35ratio rank until the end of the calendar year in which the
-6-1employer’s account has been chargeable with benefits for twelve
2consecutive calendar quarters.
3   Sec. 13.  Section 96.19, subsection 20, unnumbered paragraph
41, Code 2019, is amended to read as follows:
   5“Exhaustee” means an individual who, with respect to any
6week of unemployment in the individual’s eligibility period
7has received, prior to such week, all of the regular benefits
8that were available to the individual under this chapter or any
9other state law, including dependents’ allowances and benefits
10payable to federal civilian employees and former armed forces
11personnel under 5 U.S.C. ch.85, in the individual’s current
12benefit year that includes such weeks. Provided that for the
13purposes of this subsection an individual shall be deemed to
14have received all of the regular benefits that were available
15to the individual, although as a result of a pending appeal
16with respect to wages that were not considered in the original
17monetary determination in the individual’s benefit year the
18individual may subsequently be determined to be entitled to add
19regular benefits, or:
20   Sec. 14.  EFFECTIVE DATE.  This division of this Act takes
21effect July 1, 2020.
22   Sec. 15.  APPLICABILITY.
   231.  The following apply to any week of unemployment benefits
24beginning on or after July 5, 2020:
   25a.  The section of this division of this Act amending section
2696.3, subsection 4.
   27b.  The section of this division of this Act amending section
2896.19, subsection 20.
   292.  The following apply to any new claim of unemployment
30benefits with an effective date on or after July 5, 2020:
   31a.  The section of this division of this Act enacting section
3296.4, subsection 8.
33EXPLANATION
34The inclusion of this explanation does not constitute agreement with
35the explanation’s substance by the members of the general assembly.
-7-
   1This bill relates to unemployment insurance under Code
2chapter 96.
   3DIVISION I. This division strikes language requiring
4the director of the department of workforce development
5to recompute wage credits for purposes of calculating an
6individual’s maximum total amount of unemployment benefits
7payable during a benefit year. The stricken language applied
8to an individual who is laid off due to the individual’s
9employer going out of business at the factory, establishment,
10or other premises at which the individual was last employed by
11crediting the individual’s account with one-half, instead of
12one-third, of the wages for insured work paid to the individual
13during the individual’s base period. The division also strikes
14language providing an additional 13 weeks of benefits to such
15individuals if the state “off” indicator, which relates to
16the rate of insured unemployment in the state, is in effect.
17This provision applies to any week of unemployment benefits
18beginning on or after the first Sunday after the effective date
19of the division.
   20The division strikes language providing that notifications
21of interested parties that a claim for unemployment benefits
22has been made be sent by ordinary mail. The division instead
23provides that such notifications shall be in a format as
24specified by the department selected by the parties.
   25The division provides that an employer or employing unit
26refusing or failing to make and file required records is
27subject to a possible injunction by the department for the
28violation.
   29The division modifies a reference to plans for liquidation
30of deficiencies under Code chapter 96 by an employer or
31employing unit to specify that such a plan is for the
32liquidation of a business to pay for such deficiencies.
   33The division modifies conditions for approval of a voluntary
34shared work program by the department. The division provides
35that a reduction in hours and corresponding reduction in wages
-8-1that must be applied equally to all employees in the affected
2unit must be applied equally for each week reported. The
3division provides that an employer shall only be authorized
4one plan during a 24-month period. The division requires
5an employer to notify all affected employees and receive
6consent from each participating employee before the plan is
7authorized. The division also permits an employer to file
8an appeal in writing of a denial or approval of a plan or
9revocation of an approved plan by the department within 30 days
10from the date of the decision and replaces a reference to the
11federal Workforce Investment Act of 1998 with a reference to
12the federal Workforce Innovation and Opportunity Act. These
13provisions apply to all voluntary shared work plans approved
14by the department of workforce development on or after the
15effective date of the division.
   16The division takes effect upon enactment.
   17DIVISION II. This division strikes language providing that
18an eligible individual’s maximum weekly benefit amount varies
19with the number of dependents the individual has. The division
20instead provides that an individual with dependents is subject
21to a maximum of 57 percent of the statewide average weekly
22wage. The division strikes language defining “dependent”.
23The division strikes additional obsolete language. These
24provisions apply to any week of unemployment benefits beginning
25on or after July 5, 2020.
   26The division provides that in order to be eligible for
27unemployment benefits, an individual must satisfy a single
28one-week waiting period during the individual’s benefit year.
29To satisfy the one-week waiting period, the individual, with
30respect to the week in question, must be eligible for benefits
31from this state, but must not have received benefits from this
32state, and must not be eligible for benefits from another
33state. This provision applies to any new claim of unemployment
34benefits with an effective date on or after July 5, 2020.
   35The division provides that a landscaping contributory
-9-1employer, as defined by the department by rule, which is newly
2subject to Code chapter 96 shall pay contributions at the rate
3specified in the twenty-first benefit ratio rank until the end
4of the calendar year in which the employer’s account has been
5chargeable with benefits for 12 consecutive calendar quarters.
   6The division takes effect July 1, 2020.
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