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Senate Study Bill 1172 - IntroducedA Bill ForAn Act 1relating to unemployment insurance and including
2applicability provisions.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 96.1A, Code 2021, is amended by adding
2the following new subsections:
3 NEW SUBSECTION. 01. “Able to work” means the individual is
4physically and mentally able to perform work.
5 NEW SUBSECTION. 1A. “Available for work” means the
6individual is ready and willing to accept suitable work.
7 NEW SUBSECTION. 32A. “Severance pay” means any payment
8in connection with separation from employment that is not
9conditioned on the individual giving up any legal right or the
10release of any rights.
11 Sec. 2. Section 96.1A, subsection 18, unnumbered paragraph
121, Code 2021, is amended to read as follows:
13“Exhaustee” means an individual who, with respect to any
14week of unemployment in the individual’s eligibility period
15has received, prior to such week, all of the regular benefits
16that were available to the individual under this chapter or any
17other state law, including dependents’ allowances and benefits
18payable to federal civilian employees and former armed forces
19personnel under 5 U.S.C. ch.85, in the individual’s current
20benefit year that includes such weeks. Provided that for the
21purposes of this subsection an individual shall be deemed to
22have received all of the regular benefits that were available
23to the individual, although as a result of a pending appeal
24with respect to wages that were not considered in the original
25monetary determination in the individual’s benefit year the
26individual may subsequently be determined to be entitled to add
27regular benefits, or:
28 Sec. 3. Section 96.3, subsection 4, Code 2021, is amended
29to read as follows:
304. Determination of benefits.
31a. With respect to benefit years beginning on or after July
321, 1983, an An eligible individual’s weekly benefit amount for
33a week of total unemployment shall be an amount equal to the
34following fractions of the individual’s total wages in insured
35work paid during that quarter of the individual’s base period
-1-1in which such total wages were highest. The director shall
2determine annually a maximum weekly benefit amount equal to
3the following percentages, to vary with the number of based on
4whether the individual has dependents, of the statewide average
5weekly wage paid to employees in insured work which shall be
6effective the first day of the first full week in July: July.
7If theThe weeklySubject to
8 number ofbenefit amountthe following
9 dependents shall equalmaximum
10 is:the followingpercentage of
11fraction of highthe statewide
12quarter wages:average
13weekly wage:
14 01/2353%
15 1 or more1/2255% 57%
16 21/2157%
17 31/2060%
18 4 or more1/1965%
19b. The maximum weekly benefit amount, if not a multiple
20of one dollar, shall be rounded to the lower multiple of one
21dollar. However, until such time as sixty-five percent of
22the statewide average weekly wage exceeds one hundred ninety
23dollars, the The maximum weekly benefit amounts shall be
24determined using the statewide average weekly wage computed on
25the basis of wages reported for the current calendar year 1981.
26As used in this section, “dependent” means dependent as defined
27in section 422.12, subsection 1, paragraph “a”, as if the
28individual claimant was a taxpayer, except that an individual
29claimant’s nonworking spouse shall be deemed to be a dependent
30under this section. “Nonworking spouse” means a spouse who does
31not earn more than one hundred twenty dollars in gross wages
32in one week.
33 Sec. 4. Section 96.3, subsection 5, paragraph a, Code 2021,
34is amended to read as follows:
35a. Duration of benefits. The maximum total amount of
-2-1benefits payable to an eligible individual during a benefit
2year shall not exceed the total of the wage credits accrued
3to the individual’s account during the individual’s base
4period, or twenty-six times the individual’s weekly benefit
5amount, whichever is the lesser. The director shall maintain
6a separate account for each individual who earns wages in
7insured work. The director shall compute wage credits for
8each individual by crediting the individual’s account with
9one-third of the wages for insured work paid to the individual
10during the individual’s base period. However, the director
11shall recompute wage credits for an individual who is laid
12off due to the individual’s employer going out of business at
13the factory, establishment, or other premises at which the
14individual was last employed, by crediting the individual’s
15account with one-half, instead of one-third, of the wages for
16insured work paid to the individual during the individual’s
17base period. Benefits paid to an eligible individual shall
18be charged against the base period wage credits in the
19individual’s account which have not been previously charged,
20in the inverse chronological order as the wages on which the
21wage credits are based were paid. However if the state “off”
22indicator is in effect and if the individual is laid off due to
23the individual’s employer going out of business at the factory,
24establishment, or other premises at which the individual was
25last employed, the maximum benefits payable shall be extended
26to thirty-nine times the individual’s weekly benefit amount,
27but not to exceed the total of the wage credits accrued to the
28individual’s account.
29 Sec. 5. Section 96.4, Code 2021, is amended by adding the
30following new subsection:
31 NEW SUBSECTION. 8. The individual has satisfied a single
32one-week waiting period during the individual’s benefit year.
33To satisfy the one-week waiting period, the individual, with
34respect to the week in question, must be eligible for benefits
35from this state, but must not have received benefits from this
-3-1state, and must not be eligible for benefits from another
2state.
3 Sec. 6. Section 96.5, subsection 3, paragraph a,
4subparagraph (1), subparagraph divisions (a), (b), and (c),
5Code 2021, are amended to read as follows:
6(a) One hundred Eighty percent, if the work is offered
7during the first five four weeks of unemployment.
8(b) Seventy-five Seventy percent, if the work is offered
9during the sixth fifth through the twelfth eighth week of
10unemployment.
11(c) Seventy Sixty percent, if the work is offered during
12the thirteenth through the eighteenth after the ninth week of
13unemployment.
14 Sec. 7. Section 96.5, subsection 3, paragraph a,
15subparagraph (1), subparagraph division (d), Code 2021, is
16amended by striking the subparagraph division.
17 Sec. 8. Section 96.6, subsection 2, Code 2021, is amended
18to read as follows:
192. Initial determination.
20a. A representative designated by the director shall
21promptly notify all interested parties to the claim of its
22filing, and the parties have ten days from the date of issuing
23the notice of the filing of the claim to protest payment
24of benefits to the claimant. All interested parties shall
25select a format as specified by the department to receive such
26notifications. The representative shall promptly examine
27the claim and any protest, take the initiative to ascertain
28relevant information concerning the claim, and, on the basis of
29the facts found by the representative, shall determine whether
30or not the claim is valid, the week with respect to which
31benefits shall commence, the weekly benefit amount payable and
32its maximum duration, and whether any disqualification shall
33be imposed.
34b. The claimant has the burden of proving that the claimant
35meets the basic eligibility conditions of section 96.4. The
-4-1employer has the burden of proving that the claimant is
2disqualified for benefits pursuant to section 96.5, except as
3provided by this subsection. The claimant has the initial
4burden to produce evidence showing that the claimant is not
5disqualified for benefits in cases involving section 96.5,
6subsections 10 and 11, and has the burden of proving that a
7voluntary quit pursuant to section 96.5, subsection 1, was
8for good cause attributable to the employer and that the
9claimant is not disqualified for benefits in cases involving
10section 96.5, subsection 1, paragraphs “a” through “h”. Unless
11the claimant or other interested party, after notification
12or within ten calendar days after notification was issued,
13files an appeal from the decision, the decision is final
14and benefits shall be paid or denied in accordance with the
15decision. If an administrative law judge affirms a decision of
16the representative, or the appeal board affirms a decision of
17the administrative law judge allowing benefits, the benefits
18shall be paid regardless of any appeal which is thereafter
19taken, but if the decision is finally reversed, no employer’s
20account shall be charged with benefits so paid and this relief
21from charges shall apply to both contributory and reimbursable
22employers, notwithstanding section 96.8, subsection 5.
23 Sec. 9. Section 96.6, subsection 4, Code 2021, is amended
24by striking the subsection and inserting in lieu thereof the
25following:
264. Effect of decision — payment of benefits. Unless the
27claimant or other interested party, after notification or
28within ten calendar days after notification was issued, files
29an appeal from the decision of the representative of the
30department, 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
-5-1finally 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. 10. APPLICABILITY.
61. Except as otherwise provided in this section, this Act
7applies to any week of unemployment benefits beginning on or
8after July 4, 2021.
92. The sections of this Act enacting section 96.4,
10subsection 8, and amending section 96.6, subsection 4, apply to
11any new claim of unemployment benefits beginning on or after
12July 4, 2021.
13EXPLANATION
14The inclusion of this explanation does not constitute agreement with
15the explanation’s substance by the members of the general assembly.
16This bill relates to unemployment insurance under Code
17chapter 96.
18The bill defines “able to work”, for purposes of
19unemployment benefits, to mean the individual is physically and
20mentally able to perform work. The bill defines “available
21for work”, for purposes of unemployment benefits, to mean the
22individual is ready and willing to accept suitable work.
23The bill defines “severance pay”, for purposes of Code
24chapter 96, as any payment in connection with separation from
25employment that is not conditioned on the individual giving up
26any legal right or the release of any rights.
27The bill strikes language providing that an eligible
28individual’s maximum weekly benefit amount varies with the
29number of dependents the individual has. The bill instead
30provides that an individual with dependents is subject to a
31maximum of 57 percent of the statewide average weekly wage.
32The division strikes language defining “dependent”. The bill
33strikes additional obsolete language.
34The bill strikes language requiring the director of the
35department of workforce development to recompute wage credits
-6-1for purposes of calculating an individual’s maximum total
2amount of unemployment benefits payable during a benefit year.
3The stricken language applied to an individual who is laid
4off due to the individual’s employer going out of business at
5the factory, establishment, or other premises at which the
6individual was last employed by crediting the individual’s
7account with one-half, instead of one-third, of the wages for
8insured work paid to the individual during the individual’s
9base period. The bill also strikes language providing an
10additional 13 weeks of benefits to such individuals if the
11state “off” indicator, which relates to the rate of insured
12unemployment in the state, is in effect.
13The bill provides that in order to be eligible for
14unemployment benefits, an individual must satisfy a single
15one-week waiting period during the individual’s benefit year.
16To satisfy the one-week waiting period, the individual, with
17respect to the week in question, must be eligible for benefits
18from this state, but must not have received benefits from this
19state, and must not be eligible for benefits from another
20state.
21The bill modifies the percentages of the individual’s
22average weekly wage for insured work paid to the individual
23during the quarter of the individual’s base period in which
24the individual’s wages were highest, which the gross weekly
25wages for new work by the individual must equal or exceed for
26the new work to be considered suitable. Under current law, if
27an individual fails without good cause to apply for or accept
28suitable work, the individual is disqualified from eligibility
29for unemployment benefits. Under current law, the percentages
30are 100 percent, if the work is offered during the first five
31weeks of unemployment; 75 percent, if the work is offered
32during the sixth through the twelfth week of unemployment; 70
33percent, if the work is offered during the thirteenth through
34the eighteenth week of unemployment; and 65 percent, if the
35work is offered after the eighteenth week of unemployment.
-7-1Under the bill, the percentages are 80 percent, if the work
2is offered during the first four weeks of unemployment; 70
3percent, if the work is offered during the fifth through eighth
4week of unemployment; and 60 percent, if the work is offered
5after the ninth week of unemployment.
6The bill strikes language providing that a finding of
7fact or law, judgment, conclusion, or final order regarding
8a determination of eligibility for unemployment benefits is
9binding only upon the parties to proceedings and is not binding
10upon any other proceedings or action involving the same facts
11brought by the same or related parties before the division of
12labor services, division of workers’ compensation, other state
13agency, arbitrator, court, or judge of this state or the United
14States.
15The provisions of the bill providing for a one-week waiting
16period in order to be eligible for unemployment benefits and
17striking language providing that a finding of fact or law,
18judgment, conclusion, or final order regarding a determination
19of eligibility for unemployment benefits is binding only
20upon the parties to proceedings apply to any new claim of
21unemployment benefits beginning on or after July 4, 2021. The
22remainder of the bill applies to any week of unemployment
23benefits beginning on or after July 4, 2021.
-8-je/rn
2applicability provisions.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 96.1A, Code 2021, is amended by adding
2the following new subsections:
3 NEW SUBSECTION. 01. “Able to work” means the individual is
4physically and mentally able to perform work.
5 NEW SUBSECTION. 1A. “Available for work” means the
6individual is ready and willing to accept suitable work.
7 NEW SUBSECTION. 32A. “Severance pay” means any payment
8in connection with separation from employment that is not
9conditioned on the individual giving up any legal right or the
10release of any rights.
11 Sec. 2. Section 96.1A, subsection 18, unnumbered paragraph
121, Code 2021, is amended to read as follows:
13“Exhaustee” means an individual who, with respect to any
14week of unemployment in the individual’s eligibility period
15has received, prior to such week, all of the regular benefits
16that were available to the individual under this chapter or any
17other state law, including dependents’ allowances and benefits
18payable to federal civilian employees and former armed forces
19personnel under 5 U.S.C. ch.85, in the individual’s current
20benefit year that includes such weeks. Provided that for the
21purposes of this subsection an individual shall be deemed to
22have received all of the regular benefits that were available
23to the individual, although as a result of a pending appeal
24with respect to wages that were not considered in the original
25monetary determination in the individual’s benefit year the
26individual may subsequently be determined to be entitled to add
27regular benefits, or:
28 Sec. 3. Section 96.3, subsection 4, Code 2021, is amended
29to read as follows:
304. Determination of benefits.
31a. With respect to benefit years beginning on or after July
321, 1983, an An eligible individual’s weekly benefit amount for
33a week of total unemployment shall be an amount equal to the
34following fractions of the individual’s total wages in insured
35work paid during that quarter of the individual’s base period
-1-1in which such total wages were highest. The director shall
2determine annually a maximum weekly benefit amount equal to
3the following percentages, to vary with the number of based on
4whether the individual has dependents, of the statewide average
5weekly wage paid to employees in insured work which shall be
6effective the first day of the first full week in July: July.
7If theThe weeklySubject to
8 number ofbenefit amountthe following
9 dependents shall equalmaximum
10 is:the followingpercentage of
11fraction of highthe statewide
12quarter wages:average
13weekly wage:
14 01/2353%
15 1 or more1/2255% 57%
16 21/2157%
17 31/2060%
18 4 or more1/1965%
19b. The maximum weekly benefit amount, if not a multiple
20of one dollar, shall be rounded to the lower multiple of one
21dollar. However, until such time as sixty-five percent of
22the statewide average weekly wage exceeds one hundred ninety
23dollars, the The maximum weekly benefit amounts shall be
24determined using the statewide average weekly wage computed on
25the basis of wages reported for the current calendar year 1981.
26As used in this section, “dependent” means dependent as defined
27in section 422.12, subsection 1, paragraph “a”, as if the
28individual claimant was a taxpayer, except that an individual
29claimant’s nonworking spouse shall be deemed to be a dependent
30under this section. “Nonworking spouse” means a spouse who does
31not earn more than one hundred twenty dollars in gross wages
32in one week.
33 Sec. 4. Section 96.3, subsection 5, paragraph a, Code 2021,
34is amended to read as follows:
35a. Duration of benefits. The maximum total amount of
-2-1benefits payable to an eligible individual during a benefit
2year shall not exceed the total of the wage credits accrued
3to the individual’s account during the individual’s base
4period, or twenty-six times the individual’s weekly benefit
5amount, whichever is the lesser. The director shall maintain
6a separate account for each individual who earns wages in
7insured work. The director shall compute wage credits for
8each individual by crediting the individual’s account with
9one-third of the wages for insured work paid to the individual
10during the individual’s base period. However, the director
11shall recompute wage credits for an individual who is laid
12off due to the individual’s employer going out of business at
13the factory, establishment, or other premises at which the
14individual was last employed, by crediting the individual’s
15account with one-half, instead of one-third, of the wages for
16insured work paid to the individual during the individual’s
17base period. Benefits paid to an eligible individual shall
18be charged against the base period wage credits in the
19individual’s account which have not been previously charged,
20in the inverse chronological order as the wages on which the
21wage credits are based were paid. However if the state “off”
22indicator is in effect and if the individual is laid off due to
23the individual’s employer going out of business at the factory,
24establishment, or other premises at which the individual was
25last employed, the maximum benefits payable shall be extended
26to thirty-nine times the individual’s weekly benefit amount,
27but not to exceed the total of the wage credits accrued to the
28individual’s account.
29 Sec. 5. Section 96.4, Code 2021, is amended by adding the
30following new subsection:
31 NEW SUBSECTION. 8. The individual has satisfied a single
32one-week waiting period during the individual’s benefit year.
33To satisfy the one-week waiting period, the individual, with
34respect to the week in question, must be eligible for benefits
35from this state, but must not have received benefits from this
-3-1state, and must not be eligible for benefits from another
2state.
3 Sec. 6. Section 96.5, subsection 3, paragraph a,
4subparagraph (1), subparagraph divisions (a), (b), and (c),
5Code 2021, are amended to read as follows:
6(a) One hundred Eighty percent, if the work is offered
7during the first five four weeks of unemployment.
8(b) Seventy-five Seventy percent, if the work is offered
9during the sixth fifth through the twelfth eighth week of
10unemployment.
11(c) Seventy Sixty percent, if the work is offered during
12the thirteenth through the eighteenth after the ninth week of
13unemployment.
14 Sec. 7. Section 96.5, subsection 3, paragraph a,
15subparagraph (1), subparagraph division (d), Code 2021, is
16amended by striking the subparagraph division.
17 Sec. 8. Section 96.6, subsection 2, Code 2021, is amended
18to read as follows:
192. Initial determination.
20a. A representative designated by the director shall
21promptly notify all interested parties to the claim of its
22filing, and the parties have ten days from the date of issuing
23the notice of the filing of the claim to protest payment
24of benefits to the claimant. All interested parties shall
25select a format as specified by the department to receive such
26notifications. The representative shall promptly examine
27the claim and any protest, take the initiative to ascertain
28relevant information concerning the claim, and, on the basis of
29the facts found by the representative, shall determine whether
30or not the claim is valid, the week with respect to which
31benefits shall commence, the weekly benefit amount payable and
32its maximum duration, and whether any disqualification shall
33be imposed.
34b. The claimant has the burden of proving that the claimant
35meets the basic eligibility conditions of section 96.4. The
-4-1employer has the burden of proving that the claimant is
2disqualified for benefits pursuant to section 96.5, except as
3provided by this subsection. The claimant has the initial
4burden to produce evidence showing that the claimant is not
5disqualified for benefits in cases involving section 96.5,
6subsections 10 and 11, and has the burden of proving that a
7voluntary quit pursuant to section 96.5, subsection 1, was
8for good cause attributable to the employer and that the
9claimant is not disqualified for benefits in cases involving
10section 96.5, subsection 1, paragraphs “a” through “h”. Unless
11the claimant or other interested party, after notification
12or within ten calendar days after notification was issued,
13files an appeal from the decision, the decision is final
14and benefits shall be paid or denied in accordance with the
15decision. If an administrative law judge affirms a decision of
16the representative, or the appeal board affirms a decision of
17the administrative law judge allowing benefits, the benefits
18shall be paid regardless of any appeal which is thereafter
19taken, but if the decision is finally reversed, no employer’s
20account shall be charged with benefits so paid and this relief
21from charges shall apply to both contributory and reimbursable
22employers, notwithstanding section 96.8, subsection 5.
23 Sec. 9. Section 96.6, subsection 4, Code 2021, is amended
24by striking the subsection and inserting in lieu thereof the
25following:
264. Effect of decision — payment of benefits. Unless the
27claimant or other interested party, after notification or
28within ten calendar days after notification was issued, files
29an appeal from the decision of the representative of the
30department, 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
-5-1finally 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. 10. APPLICABILITY.
61. Except as otherwise provided in this section, this Act
7applies to any week of unemployment benefits beginning on or
8after July 4, 2021.
92. The sections of this Act enacting section 96.4,
10subsection 8, and amending section 96.6, subsection 4, apply to
11any new claim of unemployment benefits beginning on or after
12July 4, 2021.
13EXPLANATION
14The inclusion of this explanation does not constitute agreement with
15the explanation’s substance by the members of the general assembly.
16This bill relates to unemployment insurance under Code
17chapter 96.
18The bill defines “able to work”, for purposes of
19unemployment benefits, to mean the individual is physically and
20mentally able to perform work. The bill defines “available
21for work”, for purposes of unemployment benefits, to mean the
22individual is ready and willing to accept suitable work.
23The bill defines “severance pay”, for purposes of Code
24chapter 96, as any payment in connection with separation from
25employment that is not conditioned on the individual giving up
26any legal right or the release of any rights.
27The bill strikes language providing that an eligible
28individual’s maximum weekly benefit amount varies with the
29number of dependents the individual has. The bill instead
30provides that an individual with dependents is subject to a
31maximum of 57 percent of the statewide average weekly wage.
32The division strikes language defining “dependent”. The bill
33strikes additional obsolete language.
34The bill strikes language requiring the director of the
35department of workforce development to recompute wage credits
-6-1for purposes of calculating an individual’s maximum total
2amount of unemployment benefits payable during a benefit year.
3The stricken language applied to an individual who is laid
4off due to the individual’s employer going out of business at
5the factory, establishment, or other premises at which the
6individual was last employed by crediting the individual’s
7account with one-half, instead of one-third, of the wages for
8insured work paid to the individual during the individual’s
9base period. The bill also strikes language providing an
10additional 13 weeks of benefits to such individuals if the
11state “off” indicator, which relates to the rate of insured
12unemployment in the state, is in effect.
13The bill provides that in order to be eligible for
14unemployment benefits, an individual must satisfy a single
15one-week waiting period during the individual’s benefit year.
16To satisfy the one-week waiting period, the individual, with
17respect to the week in question, must be eligible for benefits
18from this state, but must not have received benefits from this
19state, and must not be eligible for benefits from another
20state.
21The bill modifies the percentages of the individual’s
22average weekly wage for insured work paid to the individual
23during the quarter of the individual’s base period in which
24the individual’s wages were highest, which the gross weekly
25wages for new work by the individual must equal or exceed for
26the new work to be considered suitable. Under current law, if
27an individual fails without good cause to apply for or accept
28suitable work, the individual is disqualified from eligibility
29for unemployment benefits. Under current law, the percentages
30are 100 percent, if the work is offered during the first five
31weeks of unemployment; 75 percent, if the work is offered
32during the sixth through the twelfth week of unemployment; 70
33percent, if the work is offered during the thirteenth through
34the eighteenth week of unemployment; and 65 percent, if the
35work is offered after the eighteenth week of unemployment.
-7-1Under the bill, the percentages are 80 percent, if the work
2is offered during the first four weeks of unemployment; 70
3percent, if the work is offered during the fifth through eighth
4week of unemployment; and 60 percent, if the work is offered
5after the ninth week of unemployment.
6The bill strikes language providing that a finding of
7fact or law, judgment, conclusion, or final order regarding
8a determination of eligibility for unemployment benefits is
9binding only upon the parties to proceedings and is not binding
10upon any other proceedings or action involving the same facts
11brought by the same or related parties before the division of
12labor services, division of workers’ compensation, other state
13agency, arbitrator, court, or judge of this state or the United
14States.
15The provisions of the bill providing for a one-week waiting
16period in order to be eligible for unemployment benefits and
17striking language providing that a finding of fact or law,
18judgment, conclusion, or final order regarding a determination
19of eligibility for unemployment benefits is binding only
20upon the parties to proceedings apply to any new claim of
21unemployment benefits beginning on or after July 4, 2021. The
22remainder of the bill applies to any week of unemployment
23benefits beginning on or after July 4, 2021.
-8-je/rn