Senate passes bill codifying Iowa Workforce Development reemployment program after amendment fights

The Iowa Senate passed Senate File 2,168 on final passage after floor debate over several amendments, moving the bill to the House. The measure, presented by Senator Dickey, codifies the Iowa Workforce Development (IWD) reemployment case management (RCM) program and updates procedures for unemployment insurance notices and workforce board composition.

Senator Dickey, the bill sponsor, told the chamber the legislation ‘‘codifies the IWD reemployment case management, which we’ll refer to as the RCM program’’ and said the measure amends Iowa Code sections 84.5 and 96.43 to require the program’s existence and to make participation a condition of receiving benefits. He said IWD ‘‘estimates that the RCM program has generated a return on investment of nearly $100 for every dollar that’s been invested into it to this date.’’

On the floor, senators debated four numbered amendments the chair brought up in order. Senator Peterson urged adoption of amendment 50 72, saying ‘‘This amendment restores Iowa’s unemployment insurance back to where it belongs’’ and arguing it would restore 10 weeks of benefits generally and increase plant-closure benefits from 26 to 39 weeks. Senator Dickey questioned whether that amendment was germane to the bill, and no roll-call on 50 72 is recorded in the transcript.

Senator Dickey successfully moved adoption of amendment 50 71, which changes a provision on page 6, line 27 from ‘‘may’’ to ‘‘shall,’’ creating a requirement that the IWD director establish a process for complaints and difficulties. The chair announced the amendment adopted following the sponsor’s motion and a voice vote.

Amendment 50 70—introduced by Senator Dickey—would transfer remaining funds in the Unemployment Compensation Reserve Fund into the unemployment trust fund; the sponsor estimated ‘‘approximately $150,000,000’’ in that reserve. Senator Donahue and Senator Dotzler opposed the transfer, with Dotzler tracing the fund’s origin to federal Reed/Reid Act monies and arguing it was intended to provide added benefits and keep workforce offices open. After debate, the amendment was adopted by voice vote.

Senator Townsend offered amendment 50 73, which would have required employers that lay off more than 25 workers and then create 25 substantially similar jobs in another country within a year to forfeit a prior 50 percent reduction in their unemployment insurance premium (returning them to the full rate). Townsend said the amendment ‘‘is really to try and entice companies to keep their workers here,’’ while Senator Dickey called it ‘‘punitive’’ and predicted it could increase layoffs. A record roll-call was requested; the secretary reported 14 ayes and 28 nays and the amendment was defeated.

Critics of the bill warned that added procedural requirements tied to reemployment could make benefits harder to access. Senator Donoghue said the measure ‘‘expands requirements tied to reemployment and adds additional procedural steps that could result in people losing benefits if they miss appointments, paperwork, deadlines’’ and warned that rural Iowans and those without reliable transportation could face barriers. Senator Townsend urged colleagues to review the IWD filing system in person, saying he found it ‘‘complicated’’ when walking constituents through it.

After final remarks from Senator Dickey—who argued Iowa’s unemployment system ranks among the best and cited maximum weekly benefit comparisons—the Senate moved to final passage. The secretary recorded 28 votes in favor and 14 opposed; the bill received the required constitutional majority and was declared passed. Senator Clemish asked unanimous consent to immediately message the bill to the other chamber; hearing no objections, the consent was granted.

The bill’s key elements based on floor remarks: codification of the RCM program as a condition for benefits (amending Iowa Code §§ 84.5 and 96.43); permitting IWD to post certain notices to the unemployment insurance computer system rather than mailing paper notices (amendments to §§ 96.6 and 96.7); changes to State Workforce Development Board membership; and three floor amendment outcomes (50 71 adopted, 50 70 adopted, 50 73 defeated). The Senate adjourned afterward until the stated date.

Next steps: With unanimous consent to message taken, the bill will proceed to the other chamber for consideration. The record contains voice votes for some amendments and roll-call tallies for amendment 50 73 and final passage.