Bill Text: IA SF617 | 2021-2022 | 89th General Assembly | Introduced


Bill Title: A bill for an act concerning unemployment insurance and including effective date and applicability provisions.(Formerly SSB 1273.)

Spectrum: Committee Bill

Status: (Introduced - Dead) 2022-01-19 - Subcommittee: Dawson, Goodwin, and T. Taylor. S.J. 120. [SF617 Detail]

Download: Iowa-2021-SF617-Introduced.html
Senate File 617 - Introduced SENATE FILE 617 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO SSB 1273) A BILL FOR An Act concerning unemployment insurance and including 1 effective date and applicability provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2826SV (1) 89 je/rn
S.F. 617 Section 1. Section 96.1A, Code 2021, is amended by adding 1 the following new subsections: 2 NEW SUBSECTION . 01. “Able to work” means the individual is 3 physically and mentally able to perform work. 4 NEW SUBSECTION . 1A. “Available for work” means the 5 individual is ready and willing to accept suitable work. 6 NEW SUBSECTION . 32A. “Severance pay” means any payment 7 in connection with separation from employment that is not 8 conditioned on the individual giving up any legal right or the 9 release of any rights. 10 Sec. 2. Section 96.3, subsection 5, paragraph a, Code 2021, 11 is amended to read as follows: 12 a. Duration of benefits. The maximum total amount of 13 benefits payable to an eligible individual during a benefit 14 year shall not exceed the total of the wage credits accrued 15 to the individual’s account during the individual’s base 16 period, or twenty-six times the individual’s weekly benefit 17 amount, whichever is the lesser. The director shall maintain 18 a separate account for each individual who earns wages in 19 insured work. The director shall compute wage credits for 20 each individual by crediting the individual’s account with 21 one-third of the wages for insured work paid to the individual 22 during the individual’s base period. However, the director 23 shall recompute wage credits for an individual who is laid 24 off due to the individual’s employer going out of business at 25 the factory, establishment, or other premises at which the 26 individual was last employed, by crediting the individual’s 27 account with one-half, instead of one-third, of the wages for 28 insured work paid to the individual during the individual’s 29 base period. Benefits paid to an eligible individual shall 30 be charged against the base period wage credits in the 31 individual’s account which have not been previously charged, 32 in the inverse chronological order as the wages on which the 33 wage credits are based were paid. However if the state “off” 34 indicator is in effect and if the individual is laid off due to 35 -1- LSB 2826SV (1) 89 je/rn 1/ 5
S.F. 617 the individual’s employer going out of business at the factory, 1 establishment, or other premises at which the individual was 2 last employed, the maximum benefits payable shall be extended 3 to thirty-nine times the individual’s weekly benefit amount, 4 but not to exceed the total of the wage credits accrued to the 5 individual’s account. 6 Sec. 3. Section 96.4, subsection 3, Code 2021, is amended 7 to read as follows: 8 3. a. The individual is able to work, is available for 9 work, and is earnestly and actively seeking work. This 10 subsection is waived if the individual is deemed partially 11 unemployed, while employed at the individual’s regular job, 12 as defined in section 96.1A, subsection 37 , paragraph “b” , 13 subparagraph (1), or temporarily unemployed as defined in 14 section 96.1A, subsection 37 , paragraph “c” . The work search 15 requirements of this subsection and the disqualification 16 requirement for failure to apply for, or to accept suitable 17 work of section 96.5, subsection 3 , are waived if the 18 individual is not disqualified for benefits under section 96.5, 19 subsection 1 , paragraph “h” . 20 b. Notwithstanding any provision of this chapter to the 21 contrary, the department may establish by rule a process to 22 waive or alter the work search requirements of this subsection 23 for a claim for benefits if an individual has a reasonable 24 expectation that the individual will be returning to employment 25 and is attached to a regular job or industry or a member in 26 good standing of a union therein eligible for referral for 27 employment. To be considered attached to a regular job or 28 industry, an individual must be on a short-term temporary 29 layoff. If work is not available at the conclusion of the 30 layoff period due to short-term circumstances beyond the 31 employer’s control, the employer may request an extension 32 of the waiver or alteration for up to two weeks from the 33 department. For purposes of this paragraph, “short-term 34 temporary layoff” means a layoff period of sixteen weeks or 35 -2- LSB 2826SV (1) 89 je/rn 2/ 5
S.F. 617 less due to seasonal weather conditions that impact the ability 1 to perform work related to highway construction, repair, or 2 maintenance with a specific return-to-work date verified by the 3 employer. 4 Sec. 4. Section 96.4, Code 2021, is amended by adding the 5 following new subsection: 6 NEW SUBSECTION . 8. The individual has satisfied a single 7 one-week waiting period during the individual’s benefit year. 8 To satisfy the one-week waiting period, the individual, with 9 respect to the week in question, must be eligible for benefits 10 from this state, but must not have received benefits from this 11 state, and must not be eligible for benefits from another 12 state. 13 Sec. 5. EFFECTIVE DATE. 14 1. Except as otherwise provided in this section, this Act 15 takes effect July 1, 2022. 16 2. The section of this Act amending section 96.4, subsection 17 3, being deemed of immediate importance, takes effect upon 18 enactment. 19 Sec. 6. APPLICABILITY. 20 1. Except as otherwise provided in this section, this Act 21 applies to any week of unemployment benefits beginning on or 22 after July 3, 2022. 23 2. The section of this Act amending section 96.4, subsection 24 3, applies to any new claim of unemployment benefits beginning 25 on or after the first Sunday after the effective date of that 26 section. 27 3. The section of this Act enacting section 96.4, subsection 28 8, applies to any new claim of unemployment benefits beginning 29 on or after July 3, 2022. 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 concerns unemployment insurance under Code chapter 34 96. 35 -3- LSB 2826SV (1) 89 je/rn 3/ 5
S.F. 617 The bill defines “able to work”, for purposes of 1 unemployment benefits, to mean the individual is physically and 2 mentally able to perform work. The bill defines “available 3 for work”, for purposes of unemployment benefits, to mean the 4 individual is ready and willing to accept suitable work. 5 The bill defines “severance pay”, for purposes of Code 6 chapter 96, as any payment in connection with separation from 7 employment that is not conditioned on the individual giving up 8 any legal right or the release of any rights. 9 The bill strikes language requiring the director of the 10 department of workforce development to recompute wage credits 11 for purposes of calculating an individual’s maximum total 12 amount of unemployment benefits payable during a benefit year. 13 The stricken language applied to an individual who is laid 14 off due to the individual’s employer going out of business at 15 the factory, establishment, or other premises at which the 16 individual was last employed by crediting the individual’s 17 account with one-half, instead of one-third, of the wages for 18 insured work paid to the individual during the individual’s 19 base period. The bill also strikes language providing an 20 additional 13 weeks of benefits to such individuals if the 21 state “off” indicator, which relates to the rate of insured 22 unemployment in the state, is in effect. 23 The bill authorizes the department of workforce development 24 to establish by rule a process to waive or alter the work 25 search requirements for a claim for unemployment benefits if 26 an individual has a reasonable expectation that the individual 27 will be returning to employment and is attached to a regular 28 job or industry or a member in good standing of a union therein 29 eligible for referral for employment. To be considered 30 attached to a regular job or industry, an individual must be 31 on a short-term temporary layoff, as defined in the bill. The 32 bill authorizes an employer to request an extension of the 33 waiver or alteration as specified in the bill. 34 The bill provides that in order to be eligible for 35 -4- LSB 2826SV (1) 89 je/rn 4/ 5
S.F. 617 unemployment benefits, an individual must satisfy a single 1 one-week waiting period during the individual’s benefit year. 2 To satisfy the one-week waiting period, the individual, with 3 respect to the week in question, must be eligible for benefits 4 from this state, but must not have received benefits from this 5 state, and must not be eligible for benefits from another 6 state. 7 The provision of the bill providing for a process to waive or 8 alter the work search requirements for a claim for unemployment 9 benefits takes effect upon enactment. The remainder of the 10 bill takes effect July 1, 2022. 11 The provision of the bill providing for a process to waive or 12 alter the work search requirements for a claim for unemployment 13 benefits applies to any new claim of unemployment benefits 14 beginning on or after the first Sunday after the effective 15 date of that provision. The provision of the bill providing 16 for a one-week waiting period in order to be eligible for 17 unemployment benefits applies to any new claim of unemployment 18 benefits beginning on or after July 3, 2022. The remainder of 19 the bill applies to any week of unemployment benefits beginning 20 on or after July 3, 2022. 21 -5- LSB 2826SV (1) 89 je/rn 5/ 5
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