Proyectos de ley › 89.ª Asamblea General
HSB 203
Temas:Jobs & workers
Dónde está ahora
- Hecho: Presentado11 de febrero de 2021
- Hecho: Subcomité11 de febrero de 2021
- Hecho: Comité de la Cámara23 de febrero de 2021
- Se saltó: Lo aprueba la CámaraSigue como HF 754
- Sigue: Comité del Senado
- Sigue: Lo aprueba el Senado
- Sigue: A gobernador(a)
- Sigue: Firmado como ley
Ahora es HF 754 → Sigue avanzando con el número nuevo. Ir a HF 754 ¿Qué es el embudo (funnel)?
Qué contiene
Resumen con IA This bill changes how unemployment benefits are calculated and defines what it means to be able and available to work. It updates the rules for how much money people with dependents can receive and changes the requirements for accepting suitable work. People applying for benefits would also have to complete a one-week waiting period before they can start receiving payments. (Todavía no está traducido al español.)1
Lea la explicación oficial (en inglés)
This bill relates to unemployment insurance under Code chapter 96. The bill defines “able to work”, for purposes of unemployment benefits, to mean the individual is physically and mentally able to perform work. The bill defines “available for work”, for purposes of unemployment benefits, to mean the individual is ready and willing to accept suitable work. The bill defines “severance pay”, for purposes of Code chapter 96, as any payment in connection with separation from employment that is not conditioned on the individual giving up any legal right or the release of any rights. The bill strikes language providing that an eligible individual’s maximum weekly benefit amount varies with the number of dependents the individual has. The bill instead provides that an individual with dependents is subject to a maximum of percent of the statewide average weekly wage. The division strikes language defining “dependent”. The bill strikes additional obsolete language. _____ for purposes of calculating an individual’s maximum total amount of unemployment benefits payable during a benefit year. The stricken language applied to an individual who is laid off due to the individual’s employer going out of business at the factory, establishment, or other premises at which the individual was last employed by crediting the individual’s account with one-half, instead of one-third, of the wages for insured work paid to the individual during the individual’s base period. The bill also strikes language providing an additional weeks of benefits to such individuals if the state “off” indicator, which relates to the rate of insured unemployment in the state, is in effect. The bill provides that in order to be eligible for unemployment benefits, an individual must satisfy a single one-week waiting period during the individual’s benefit year. To satisfy the one-week waiting period, the individual, with respect to the week in question, must be eligible for benefits from this state, but must not have received benefits from this state, and must not be eligible for benefits from another state. The bill modifies the percentages of the individual’s average weekly wage for insured work paid to the individual during the quarter of the individual’s base period in which the individual’s wages were highest, which the gross weekly wages for new work by the individual must equal or exceed for the new work to be considered suitable. Under current law, if an individual fails without good cause to apply for or accept suitable work, the individual is disqualified from eligibility for unemployment benefits. Under current law, the percentages are 100 percent, if the work is offered during the first five weeks of unemployment; percent, if the work is offered during the sixth through the twelfth week of unemployment; percent, if the work is offered during the thirteenth through the eighteenth week of unemployment; and percent, if the work is offered after the eighteenth week of unemployment. _____ Under the bill, the percentages are percent, if the work is offered during the first four weeks of unemployment; percent, if the work is offered during the fifth through eighth week of unemployment; and percent, if the work is offered after the ninth week of unemployment. The bill strikes language providing that a finding of fact or law, judgment, conclusion, or final order regarding a determination of eligibility for unemployment benefits is binding only upon the parties to proceedings and is not binding upon any other proceedings or action involving the same facts brought by the same or related parties before the division of labor services, division of workers’ compensation, other state agency, arbitrator, court, or judge of this state or the United States. The provisions of the bill providing for a one-week waiting period in order to be eligible for unemployment benefits and striking language providing that a finding of fact or law, judgment, conclusion, or final order regarding a determination of eligibility for unemployment benefits is binding only upon the parties to proceedings apply to any new claim of unemployment benefits beginning on or after July 4, 2021. The remainder of the bill applies to any week of unemployment benefits beginning on or after July 4, 2021.
House subcommittee
Named February 11, 2021. On February 17, 2021 it recommended passage. Vote Total: 2-0.
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
Nota fiscal
Resumen con IA This bill changes how unemployment insurance benefits are calculated for people with dependents, modifies benefits for those whose employers go out of business, reinstates a one-week waiting period, and adjusts requirements for suitable work. It is estimated to reduce payments from the UI Trust Fund by $2,200,000 annually for dependent benefit changes, $4,600,000 annually for business closing changes, and $23,300,000 annually for the reinstated waiting week beginning in fiscal year 2023. Additionally, the bill is expected to reduce federal administrative expenses by an estimated $251,000 beginning in fiscal year 2023 by eliminating three full-time positions. The fiscal impact of the changes to suitable work and employer taxes cannot be estimated. (en inglés)3
Lea la nota fiscal (en inglés)
Description
House File 754 relates to unemployment insurance benefits. The Bill:
- Modifies the weekly benefit amount (WBA) that is subject to the maximum percentage of the statewide average weekly wage for Unemployment Insurance (UI) claimants that is currently based on the number of dependents. The table below shows the change.
- For individuals whose employers have gone out of business, removes language requiring the Director of the Iowa Department of Workforce Development (IWD) to recompute wage credits from 33.0% to 50.0% for purposes of calculating an individual’s maximum total amount of unemployment benefits payable during a benefit year. The Bill also eliminates the ability of these individuals to collect an extra 13 weeks of benefits.
- Reinstates a one-week waiting period for those eligible to collect UI during the individual’s benefit year.
- Modifies the percentages of the individual’s average weekly wage for insured work paid to the individual that is considered suitable for an individual to apply for and accept work in order to remain eligible for UI:
- Removes language making findings binding only on parties to proceedings and not on other proceedings or actions involving the same facts brought by the same or related partiesNumber of
Dependents
Current Weekly
Benefit Amount
(Fraction of High Quarter Wages)
Current Maximum
Percentage of
Weekly Wage
Number of
Dependents
HF 754
Weekly
Benefit
Amount
HF 754
Maximum
Percentage of
Weekly Wage
0 1/23 53.0% 0 1/23 53.0% 1 1/22 55.0% 2 1/21 57.0% 3 1/20 60.0% 4 or More 1/19 65.0% Modifications in Dependent Benefit Structures — HF 754 1 or More 57.0%1/22Current
Weeks
Current Percentage
of Weekly Wages HF 754 Weeks HF 754
Percentage of
Weekly Wages
0-5 100.0% 0-4 80.0% 6-12 75.0% 5-8 70.0% 13-18 70.0% 19+ 65.0% Percentage of Weekly Wages to Apply/Accept Suitable Work — HF 754 9+ 60.0% before IWD’s Division of Labor Services, Division of Workers’ Compensation, other state agencies, arbitrators, courts, or judges of Iowa or the United States.
- The Bill is effective July 1, 2022.
Background
The UI Trust Fund, administered by the U.S. Department of Labor, is used to pay UI benefits to eligible claimants. The balance of the Fund at the end of calendar year (CY) 2016 was $1.006 billion, rising to $1.252 billion at the end of CY 2019. The Fund balance as of February 10, 2021, was $949.6 million. The table below shows historical claims paid from the Fund to Iowans:
The UI Trust Fund is replenished through insurance taxes paid by Iowa employers based on a formula that includes an employer’s five-year average annual benefit payment and the employer’s five-year average annual taxable payroll. This formula results in a benefit ratio, which is compared to every other employer’s benefit ratio in determining the employer tax rate. The lowest employer benefit ratios receive the lowest tax rates. The Contribution Rate Table below shows the tax rates paid by Iowa employers and is set on a scale of 1 (highest tax rate paid) to 8 (lowest tax rate paid). For 2021, the Contribution Rate Table is set at 7, with tax rates ranging from 0.00% for those with the lowest benefit ratios to 7.50% for those with the highest benefit ratios. In 2020, $490.0 million was transferred from federal funds deposited into the Iowa Coronavirus Relief Fund to the UI Trust Fund to keep the Contribution Rate at 7. Unemployment Insurance Taxes Contribution Rates Table Many states currently impose a one-week waiting period for payment of UI benefits because federal funds are not available for the first week after a claim is filed. Iowa does not have aYear 2016 2017 2018 2019 2020 Benefits 423,511,364$ 402,624,842$ 364,712,930$ 381,788,782$ 1,254,245,440$ UI Benefits Paid — Calendar Year (CY) 2016-2020* *Source: U.S. Department of Labor waiting week. The Coronavirus Aid, Relief, and Economic Security (CARES) Act provided 100.0% federal reimbursement to states for the first week of UI for the time period March 29, 2020, through December 16, 2020. The Consolidated Appropriations Act, 2021, provides a 50.0% reimbursement for the first week of all claims paid from December 27, 2020, through March 13, 2021. As of December 2020, $105.5 million was paid to Iowa through the program.
Assumptions
- 2020 UI data was not used as a model due to high claims paid from COVID-19 closures.
- Two percent inflation beginning in FY 2023 was used for salary and benefit savings.
- Projections starting in FY 2023 for claimants with dependents are based on FY 2019 IWD dependent and UI beneficiary data. As many as 8,231 beneficiaries had more than two dependents in FY 2019. Using 2019 data, there would have been a $2.2 million reduction in UI benefits due to the Bill.
- Business failure projections going forward are based on FY 2014 to FY 2019 data from the IWD, as an average of $4.6 million in UI benefits were paid out to 2,741 recipients due to closings.
- Reinstating an initial waiting week would reduce withdrawals to cover UI benefits by 5.5% annually. The annual average in first-week benefit payments from FY 2015 to FY 2019 to 62,000 recipients who would no longer receive them was $23.3 million, according to the IWD.
Fiscal Impact
- The Bill would reduce benefits paid from the UI Trust Fund due to modifying the WBA for those with more than one dependent by an estimated $2.2 million annually beginning in FY 2023.
- The Bill will eliminate the need for 3.0 full-time equivalent (FTE) Workforce Advisor positions within IWD due to elimination of the benefit to claimants when employers go out of business, reducing federal UI administrative expenses by an estimated $251,000 beginning in FY 2023, and increasing via inflation every year thereafter. This provision will also reduce payments from the UI Trust Fund by approximately $4.6 million annually beginning in FY 2023.
- Reinstating the one-week waiting period for payment of UI benefits would reduce withdrawals from the UI Trust Fund by an estimated $23.3 million annually beginning in FY 2023. See chart below for the overall fiscal impact of the Bill.
- The modification of suitable work percentages is expected to reduce benefit payments by an amount that cannot be estimated due to a lack of data.
- Employer taxes paid into the UI Trust Fund would be expected to decrease in later years, absent any other law changes, due to a reduction in benefit payments. These cannot be estimated due to lack of data.Section of Bill FTE Category FY 2022 FY 2023 Funding Source Change in Dependents Benefits to Claimants 0$ -2,200,000$ UI Trust Fund -3.0 IWD Employee Salary and
Benefits 0$ -251,000$ Federal UI
Administrative Funding
Benefits to Claimants 0 -4,600,000 UI Trust Fund Reinstate Waiting Week Benefits to Claimants 0$ -23,300,000$ UI Trust Fund TOTAL REDUCTIONS -3.0 0$ -30,351,000$ Estimated Fiscal Impacts from HF 754
Business Closings -
Wage Credits
Sources
- Legislative Services Agency
- Iowa Department of Workforce Development
- United States Department of Labor
- Iowa Department of Management
El cálculo no cambió
- $251,000 9 de marzo de 2021
- $251,000 11 de marzo de 2021
- $251,000 12 de marzo de 2021
- $251,000 12 de marzo de 2021
- Unemployment Tax · 12 de marzo de 2021 · $251,000
- Unemployment Tax · 12 de marzo de 2021 · $251,000
- Unemployment Tax · 11 de marzo de 2021 · $251,000
- Unemployment Tax · 9 de marzo de 2021 · $251,000
Lo que cambia del Código de Iowa (Iowa Code)
Cabildeo
9 a favor · 23 en contra · 13 indecisos · Quiénes →
Family tree
Study bill
89th General Assembly
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- SF 617 Concerning unemployment insurance and including effective date and applicability provision…89th General Assembly · Approved by committeeSimilar
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