S.F. _____ DIVISION I 1 FY 2013-2014 WORKFORCE TRAINING PROGRAM APPROPRIATIONS 2 Section 1. DEPARTMENT OF EDUCATION. There is appropriated 3 from the general fund of the state to the department of 4 education for the fiscal year beginning July 1, 2013, and 5 ending June 30, 2014, the following amount, or so much thereof 6 as is necessary, to be used for the purposes designated: 7 1. COMMUNITY COLLEGES. 8 a. For deposit in the statewide work-based learning 9 intermediary network fund created pursuant to section 256.40, 10 subsection 1: 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,000,000 12 b. For deposit in the workforce training and economic 13 development funds created pursuant to section 260C.18A: 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 15,500,000 15 c. For deposit in the pathways for academic career and 16 employment fund established pursuant to section 260H.2, 17 subsection 2: 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,000,000 19 d. For distribution to community colleges for the purposes 20 of administering, providing test materials, scoring of 21 examinations, and issuance of high school equivalency diplomas 22 under chapter 259A; administering adult basic education 23 programs; and implementing an adult literacy for the workforce 24 in Iowa program administered by the department of education: 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,350,000 26 (1) Of the moneys appropriated in this paragraph “d”, the 27 department of education shall distribute $2,000,000 for adult 28 basic education programs for students requiring instruction in 29 English as a second language. 30 (2) The moneys appropriated in this paragraph “d” shall be 31 allocated to community colleges pursuant to the distribution 32 formula used as of July 1, 2014, for the allocation of general 33 state financial aid to merged areas as defined in section 34 260C.2. 35 -1- LSB 2138XC (3) 85 je/rj 1/ 13

S.F. _____ 2. ADULT LITERACY FOR THE WORKFORCE IN IOWA PROGRAM. 1 For implementation of an adult literacy for the workforce in 2 Iowa program and related leadership activities: 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 150,000 4 Sec. 2. WORKFORCE DEVELOPMENT FUND. There is appropriated 5 from the workforce development fund account established in 6 section 15.342A to the workforce development fund created in 7 section 15.343 for the fiscal year beginning July 1, 2013, and 8 ending June 30, 2014, the following amount, for purposes of the 9 workforce development fund: 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,000,000 11 DIVISION II 12 WORKFORCE TRAINING PROGRAMS 13 Sec. 3. Section 15.342A, Code 2013, is amended to read as 14 follows: 15 15.342A Workforce development fund account. 16 A workforce development fund account is established in the 17 office of the treasurer of state under the control of the 18 authority. The account shall receive funds pursuant to section 19 422.16A up to a maximum of four six million dollars per year. 20 The account shall also receive funds pursuant to section 15.251 21 with no dollar limitation. 22 Sec. 4. Section 15.343, subsection 2, paragraphs a and d, 23 Code 2013, are amended by striking the paragraphs. 24 Sec. 5. Section 15.343, subsection 3, paragraph a, Code 25 2013, is amended to read as follows: 26 a. Three Five million dollars shall be used for purposes 27 provided in section 260F.6 . 28 Sec. 6. Section 256.40, Code 2013, is amended to read as 29 follows: 30 256.40 Statewide work-based learning intermediary network —— 31 fund —— steering committee —— regional networks. 32 1. A statewide work-based learning intermediary network 33 program is established in the department and shall be 34 administered by the department. A separate, statewide 35 -2- LSB 2138XC (3) 85 je/rj 2/ 13

S.F. _____ work-based learning intermediary network fund is created in the 1 state treasury under the control of the department. The fund 2 shall consist of all moneys deposited in the fund, including 3 any moneys appropriated by the general assembly and any other 4 moneys available to and obtained or accepted by the department 5 from federal or private sources for purposes of the program. 6 Notwithstanding section 8.33 , moneys in the fund at the end 7 of a fiscal year shall not revert to the general fund of the 8 state. Notwithstanding section 12C.7, subsection 2 , interest 9 or earnings on moneys in the fund shall be credited to the 10 fund. 11 2. The purpose of the program shall be to build a seamless 12 career, future workforce, and economic development system in 13 Iowa to accomplish all of the following prepare students for 14 the workforce by connecting business and the education system 15 and offering relevant, work-based learning activities to 16 students and teachers. The program shall : 17 a. Better prepare students to make informed postsecondary 18 education and career decisions. 19 b. Provide communication and coordination in order to build 20 and sustain relationships between employers and local youth, 21 the education system, and the community at large. 22 c. Connect students to local career opportunities, creating 23 economic capital for the region using a skilled and available 24 workforce. 25 d. Facilitate the sharing of best practices statewide by 26 business and education leaders. 27 e. d. Provide a one-stop contact point for information 28 useful to both educators and employers, including a state-level 29 clearinghouse for information on internships, job shadowing 30 experiences, and other workplace learning opportunities 31 for students that are linked to the state’s economic goals 32 students, particularly related to science, technology, 33 engineering, or mathematics occupations or targeted industries 34 as defined in section 15.102 . 35 -3- LSB 2138XC (3) 85 je/rj 3/ 13

S.F. _____ f. Implement services for all students, staff, and districts 1 within the region and integrate workplace skills into the 2 curriculum. 3 e. Integrate services provided through the program with 4 other career exploration-related activities such as the 5 student core curriculum plan and the career information and 6 decision-making system developed and administered under section 7 279.61, where appropriate. 8 f. Facilitate the attainment of portable credentials of 9 value to employers such as the national career readiness 10 certificate, where appropriate. 11 g. Develop work-based capacity with employers. 12 h. Improve the skills of Iowa’s future workforce. 13 i. h. Provide core services, which may include student job 14 shadowing, student internships, and teacher or student tours. 15 3. The department shall establish and facilitate a steering 16 committee comprised of representatives from the department of 17 workforce development, the economic development authority, 18 the community colleges, the institutions under the control of 19 the state board of regents, accredited private institutions, 20 area education agencies, school districts, and the workplace 21 learning connection. The steering committee shall be 22 responsible for the development and implementation of the 23 statewide work-based learning intermediary network. 24 4. The steering committee shall develop a design for a 25 statewide network comprised of fifteen regional work-based 26 learning intermediary networks. The design shall include 27 network specifications, strategic functions, and desired 28 outcomes. The steering committee shall recommend program 29 parameters and reporting requirements to the department. 30 5. Each regional network shall establish an advisory 31 council to develop and implement provide advice and assistance 32 to the regional network. The advisory council shall include 33 representatives of business and industry and shall meet at 34 least annually. 35 -4- LSB 2138XC (3) 85 je/rj 4/ 13

S.F. _____ 6. Each regional network or consortium of networks shall 1 annually submit a work-based learning plan to the department. 2 Each plan shall include provisions to provide core services 3 referred to in subsection 2, paragraph “h” , to all school 4 districts within the region and for the integration of job 5 shadowing and other work-based learning activities into 6 secondary career and technical education programs. 7 6. 7. a. Funds Moneys deposited in the statewide 8 work-based learning intermediary network fund created in 9 subsection 1 shall be distributed annually to each region 10 for the implementation of the statewide work-based learning 11 intermediary network based upon the distribution of the 12 kindergarten through grade twelve student enrollments in each 13 region. The amount shall not exceed three dollars per student 14 upon approval by the department of the region’s work-based 15 learning plan submitted pursuant to subsection 6 . 16 b. If the balance in the statewide work-based learning 17 intermediary network fund on July 1 of a fiscal year is one 18 million dollars or less, the department shall distribute 19 moneys in the fund to regions or consortium of regions on a 20 competitive basis. If the balance in the statewide work-based 21 learning intermediary network fund on July 1 of a fiscal year 22 is greater than one million dollars, the department shall 23 distribute one hundred thousand dollars to each region and 24 distribute the remaining moneys pursuant to the distribution 25 formula used as of July 1, 2014, for the allocation of general 26 state financial aid to merged areas as defined in section 27 260C.2. 28 7. 8. The department shall provide oversight of the 29 statewide work-based learning intermediary network and shall 30 annually evaluate the statewide and regional network progress 31 toward the outcomes identified by the steering committee 32 pursuant to subsection 4 . The department shall require each 33 region to submit an annual report on its ongoing implementation 34 of the statewide work-based learning intermediary network 35 -5- LSB 2138XC (3) 85 je/rj 5/ 13

S.F. _____ program to the department. 1 8. 9. Each regional network shall match the funds moneys 2 received pursuant to subsection 6 7 with financial resources 3 equal to at least twenty-five percent of the amount of 4 the funds moneys received pursuant to subsection 6 7 . The 5 financial resources used to provide the match may include 6 private donations, in-kind contributions, or public funds 7 moneys other than the funds moneys received pursuant to 8 subsection 6 7 . 9 10. The state board of education shall adopt rules under 10 chapter 17A for the administration of this section. 11 Sec. 7. Section 260C.18A, subsection 2, paragraph e, Code 12 2013, is amended by striking the paragraph. 13 Sec. 8. Section 260F.6, subsection 2, Code 2013, is amended 14 to read as follows: 15 2. To provide funds for the present payment of the costs 16 of a training program by the business, the community college 17 may provide to the business an advance of the moneys to be used 18 to pay for the program costs as provided in the agreement. 19 To receive the funds for this advance from the job training 20 fund established in subsection 1 , the community college shall 21 submit an application to the economic development authority. 22 The amount of the advance shall not exceed twenty-five fifty 23 thousand dollars for any business site, or fifty one hundred 24 thousand dollars within a three-fiscal-year period for any 25 business site. If the project involves a consortium of 26 businesses, the maximum award per project shall not exceed 27 fifty one hundred thousand dollars. Participation in a 28 consortium does not affect a business site’s eligibility for 29 individual project assistance. Prior to approval a business 30 shall agree to match program amounts in accordance with 31 criteria established by the authority. 32 Sec. 9. Section 260H.2, Code 2013, is amended to read as 33 follows: 34 260H.2 Pathways for academic career and employment program 35 -6- LSB 2138XC (3) 85 je/rj 6/ 13

S.F. _____ —— fund . 1 1. A pathways for academic career and employment program 2 is established to provide funding to community colleges for 3 the development of projects in coordination with the economic 4 development authority, the department of education, the 5 department of workforce development, regional advisory boards 6 established pursuant to section 84A.4 , and community partners 7 to implement a simplified, streamlined, and comprehensive 8 process, along with customized support services, to enable 9 eligible participants to acquire effective academic and 10 employment training to secure gainful, quality, in-state 11 employment. 12 2. a. A pathways for academic career and employment fund 13 is created for the community colleges in the state treasury to 14 be administered by the department of education. The moneys 15 in the pathways for academic career and employment fund are 16 appropriated to the department of education for the pathways 17 for academic career and employment program. 18 b. The aggregate total of grants awarded from the pathways 19 for academic career and employment fund during a fiscal year 20 shall not be more than five million dollars. 21 c. Moneys in the fund shall be allocated pursuant to the 22 formula established in section 260C.18C. Notwithstanding 23 section 8.33, moneys in the fund at the close of the fiscal 24 year shall not revert to the general fund of the state but 25 shall remain available for expenditure for the purpose 26 designated for subsequent fiscal years. Notwithstanding 27 section 12C.7, subsection 2, interest or earnings on moneys in 28 the fund shall be credited to the fund. 29 Sec. 10. Section 260H.3, subsection 1, paragraph b, Code 30 2013, is amended to read as follows: 31 b. Persons earning incomes at or below two hundred fifty 32 percent of the federal poverty level as defined by the most 33 recently revised poverty income guidelines published by the 34 United States department of health and human services. 35 -7- LSB 2138XC (3) 85 je/rj 7/ 13

S.F. _____ Sec. 11. Section 260H.4, subsection 2, paragraph b, Code 1 2013, is amended by adding the following new subparagraph: 2 NEW SUBPARAGRAPH . (5) Any other industry designated as 3 in-demand by a regional advisory board established pursuant to 4 section 84A.4. 5 Sec. 12. Section 260H.4, subsection 2, paragraph c, Code 6 2013, is amended by striking the paragraph. 7 Sec. 13. NEW SECTION . 260H.7A Pathway navigators. 8 1. A community college may use moneys for the pathways 9 for academic career and employment program to employ pathway 10 navigators to assist students applying for or enrolled in 11 eligible pathways for academic career and employment projects. 12 2. Pathway navigators shall provide services and support 13 to aid students in selecting pathways for academic career and 14 employment projects that will result in gainful, quality, 15 in-state employment and to ensuring students are successful 16 once enrolled in pathways for academic career and employment 17 projects. Services the pathway navigators may provide include 18 but are not limited to the following: 19 a. Interviewing and selecting students for enrollment in 20 pathways for academic career and employment projects. 21 b. Assessing students’ skills, interests, and previous 22 academic and work experience for purposes of placement in 23 pathways for academic career and employment projects. 24 c. Working with students to develop academic and career 25 plans and to adjust such plans as needed. 26 d. Assisting students in applying for and receiving 27 resources for financial aid and other forms of tuition 28 assistance. 29 e. Assisting students with the admissions process, remedial 30 education, academic credit transfer, meeting assessment 31 requirements, course registration, and other procedures 32 necessary for successful completion of pathways for academic 33 career and employment projects. 34 f. Assisting in identifying and resolving obstacles to 35 -8- LSB 2138XC (3) 85 je/rj 8/ 13

S.F. _____ students’ successful completion of pathways for academic career 1 and employment projects. 2 g. Connecting students with useful college resources 3 or outside support services such as access to child care, 4 transportation, and tutorial assistance, as needed. 5 h. Maintaining ongoing contact with students enrolled 6 in pathways for academic career and employment projects and 7 ensuring students are making satisfactory progress toward the 8 successful completion of projects. 9 i. Providing support to students transitioning from remedial 10 education, short-term training, and classroom experience to 11 employment. 12 j. Coordinating activities with community-based 13 organizations that serve as key recruiters for pathways for 14 academic career and employment projects and assisting students 15 throughout the recruitment process. 16 k. Coordinating adult basic education services. 17 Sec. 14. NEW SECTION . 260H.7B Regional industry sector 18 partnerships. 19 1. A community college may use moneys for the pathways for 20 academic career and employment program to provide staff and 21 support for the development and implementation of regional 22 industry sector partnerships within the region served by the 23 community college. 24 2. Regional, industry sector partnerships may include but 25 are not limited to the following activities: 26 a. Bringing together representatives from industry sectors, 27 government, education, local workforce boards, community-based 28 organizations, labor, economic development organizations, 29 and other stakeholders within the regional labor market to 30 determine how pathways for academic career and employment 31 projects should address workforce skills gaps, occupational 32 shortages, and wage gaps. 33 b. Integrating pathways for academic career and employment 34 projects and other existing supply-side strategies with 35 -9- LSB 2138XC (3) 85 je/rj 9/ 13

S.F. _____ workforce needs within the region served by the community 1 college. 2 c. Developing pathways for academic career and employment 3 projects that focus on the workforce skills, from entry level 4 to advanced, required by industry sectors within the region 5 served by the community college. 6 Sec. 15. Section 260I.4, subsection 6, Code 2013, is amended 7 to read as follows: 8 6. Eligibility for tuition assistance under this chapter 9 shall be limited to persons earning incomes at or below 10 two hundred fifty percent of the federal poverty level as 11 defined by the most recently revised poverty income guidelines 12 published by the United States department of health and human 13 services. 14 Sec. 16. Section 260I.5, Code 2013, is amended by adding the 15 following new subsection: 16 NEW SUBSECTION . 5. Costs of providing direct staff 17 support services including but not limited to marketing, 18 outreach, application, interview, and assessment processes. 19 Eligible costs for this purpose shall be limited to twenty 20 percent of any allocation of moneys to the two smallest 21 community colleges, ten percent of any allocation of moneys 22 to the two largest community colleges, and fifteen percent of 23 any allocation of moneys to the remaining eleven community 24 colleges. Community college size shall be determined based on 25 the most recent three-year rolling average full-time equivalent 26 enrollment. 27 Sec. 17. Section 422.16A, Code 2013, is amended to read as 28 follows: 29 422.16A Job training withholding —— certification and 30 transfer. 31 Upon the completion by a business of its repayment 32 obligation for a training project funded under chapter 33 260E , including a job training project funded under section 34 15A.8 or repaid in whole or in part by the supplemental new 35 -10- LSB 2138XC (3) 85 je/rj 10/ 13

S.F. _____ jobs credit from withholding under section 15A.7 or section 1 15E.197 , the sponsoring community college shall report to 2 the economic development authority the amount of withholding 3 paid by the business to the community college during the 4 final twelve months of withholding payments. The economic 5 development authority shall notify the department of revenue 6 of that amount. The department shall credit to the workforce 7 development fund account established in section 15.342A 8 twenty-five percent of that amount each quarter for a period 9 of ten years. If the amount of withholding from the business 10 or employer is insufficient, the department shall prorate the 11 quarterly amount credited to the workforce development fund 12 account. The maximum amount from all employers which shall be 13 transferred to the workforce development fund account in any 14 year is four six million dollars. 15 EXPLANATION 16 This bill relates to workforce training programs, including 17 making appropriations for workforce training programs for 18 fiscal year 2013-2014. The bill is organized into divisions. 19 FY 2013-2014 WORKFORCE TRAINING APPROPRIATIONS. The bill 20 appropriates moneys from the general fund of the state to the 21 department of education for deposit in the statewide work-based 22 learning intermediary network fund established pursuant to Code 23 section 256.40. 24 The bill appropriates moneys from the general fund of 25 the state to the department of education for deposit in the 26 workforce training and economic development funds created 27 pursuant to Code section 260C.18A. 28 The bill appropriates moneys from the general fund of 29 the state to the department of education for deposit in the 30 pathways for academic career and employment fund established 31 pursuant to Code section 260H.2. 32 The bill appropriates moneys from the general fund of 33 the state to the department of education for distribution 34 to community colleges for the purposes of administering, 35 -11- LSB 2138XC (3) 85 je/rj 11/ 13

S.F. _____ providing test materials, scoring of examinations, and 1 issuance of high school equivalency diplomas under Code 2 chapter 259A; administering adult basic education programs; 3 and implementing an adult literacy for the workforce in Iowa 4 program administered by the department of education. The bill 5 requires the department of education to distribute a portion 6 of such moneys for adult basic education programs for students 7 requiring instruction in English as a second language. The 8 department is required to allocate the moneys pursuant to 9 the distribution formula used as of July 1, 2014, for the 10 allocation of general state financial aid to merged areas, as 11 defined in Code section 260C.2. 12 The bill appropriates moneys from the general fund of the 13 state to the department of education for implementation of an 14 adult literacy for the workforce in Iowa program and related 15 leadership activities. 16 The bill appropriates moneys from the workforce development 17 fund account established pursuant to Code section 15.342A to 18 the workforce development fund created pursuant to Code section 19 15.343. 20 WORKFORCE TRAINING PROGRAMS. The bill increases the maximum 21 amount that can be transferred to the workforce development 22 fund account established pursuant to Code section 15.342A 23 for job training withholding moneys pursuant to Code section 24 422.16A relating to certain job training programs. The bill 25 provides that additional moneys in the workforce development 26 fund can be used for the purposes of job training under Code 27 chapter 260F. The bill makes changes relating to the purposes 28 for which moneys in the workforce development fund can be used. 29 The bill also increases the amount that a community college can 30 advance to a business or consortium of businesses to cover the 31 cost of job training under Code chapter 260F. 32 The bill makes various changes to the statewide work-based 33 learning intermediary network program under Code section 34 256.40, including modifying the purposes of the program and 35 -12- LSB 2138XC (3) 85 je/rj 12/ 13

S.F. _____ the duties of the steering committee, regional networks, and 1 regional advisory councils for the program; establishing 2 requirements for the distribution of funds in the statewide 3 work-based learning intermediary network fund; establishing 4 annual planning and reporting requirements; and establishing 5 rulemaking authority for the program. 6 The bill makes various changes to the pathways for academic 7 career and employment program under Code chapter 260H. The 8 bill establishes a pathways for academic career and employment 9 fund in the state treasury for the community colleges to be 10 administered by the department of education. Moneys in the 11 fund shall be allocated pursuant to the formula established 12 in Code section 260C.18C. The bill makes changes relating 13 to eligibility criteria for the program. The bill provides 14 that funds for the program can be used by community colleges 15 to employ pathway navigators to provide various services to 16 aid students in selecting pathways for academic career and 17 employment projects that will result in gainful, quality, 18 in-state employment and to ensure students are successful once 19 enrolled in such projects. The bill provides that funds for 20 the program can be used by community colleges to establish 21 regional industry sector partnerships. Partnerships may 22 include various activities to further the ability of pathways 23 for academic career and employment projects to meet the 24 workforce needs of industry sectors within the region served 25 by a community college. 26 The bill makes changes to the gap tuition assistance program 27 under Code chapter 260I. The bill modifies eligibility 28 criteria for the program and costs eligible for coverage by 29 tuition assistance under the program. 30 -13- LSB 2138XC (3) 85 je/rj 13/ 13