SF 2353 (LSB 5292SZ (4) 85)

SENATE FILE 2353

BY  COMMITTEE ON APPROPRIATIONS

(SUCCESSOR TO SF 2317)
(SUCCESSOR TO SSB 3052)

(As Amended and Passed by the Senate 2014-04-17)

A BILL FOR

An Act relating to the jobs training and apprenticeship programs and making appropriations.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 15.108, subsection 6, paragraph a, Code 2014, is amended to read as follows:
   a.  Coordinate and perform the duties specified under the Iowa industrial new jobs training Act in chapter 260E, the Iowa jobs training Act in chapter 260F, and the workforce development fund in section 15.341.
    Sec. 2.  NEW SECTION.  256.91  Workforce development fund account.

   A workforce development fund account is established in the office of the treasurer of state under the control of the department. The account shall receive funds pursuant to section 422.16A up to a maximum of six million dollars per year.
    Sec. 3.  NEW SECTION.  256.92  Workforce development fund.
   1.  a.  A workforce development fund is created as a revolving fund in the state treasury under the control of the department consisting of any moneys appropriated by the general assembly for that purpose and any other moneys available to and obtained or accepted by the department from the federal government or private sources for placement in the fund. The fund shall also include moneys appropriated to the fund from the workforce development fund account established in section 256.91.
   b.  Notwithstanding section 8.33, moneys in the workforce development fund at the end of each fiscal year shall not revert to any other fund but shall remain in the workforce development fund for expenditure for subsequent fiscal years.
   2.  The assets of the fund shall be used by the department for the following programs and purposes:
   a.  Projects under chapter 260F.
   b.  Apprenticeship programs under chapter 260J.
   3.  Moneys in the workforce development fund shall be allocated as follows:
   a.  Three million dollars shall be transferred and deposited in the job training fund created in section 260F.6 to be used for the purposes provided in chapter 260F.
   b.  Three million dollars shall be transferred and deposited in the apprenticeship training program fund created in section 260J.3 to be used for the purposes provided in chapter 260J.
    Sec. 4.  Section 260C.18A, subsection 2, paragraph b, Code 2014, is amended to read as follows:
   b.  Projects in which an agreement between a community college and a business meet all the requirements of the Iowa jobs training Act under chapter 260F. However, projects funded by moneys provided by a local workforce training and economic development fund of a community college are not subject to the maximum advance or award limitations contained in section 260F.6, subsection 2, or the allocation limitations contained in section 260F.8, subsection 1.
    Sec. 5.  Section 260F.2, subsection 2, Code 2014, is amended by striking the subsection.
    Sec. 6.  Section 260F.2, subsections 4, 5, 10, and 11, Code 2014, are amended to read as follows:
   4.  “Date of commencement of the project” means the date of the preliminary signed agreement or the date an application for assistance is received by the authority.
   5.  “Eligible business” or “business” means a business training employees which is engaged in interstate or intrastate commerce for the purpose of manufacturing, processing, or assembling products, conducting research and development, commercial construction, or providing services in interstate commerce including electronic commerce, but excludes retail, health, or professional services and which meets the other criteria established by the authority department. “Eligible business” does not include a business whose training costs can be economically funded under chapter 260E, a business which closes or substantially reduces its employment base in order to relocate substantially the same operation to another area of the state, or a business which is involved in a strike, lockout, or other labor dispute in Iowa.
   10.  “Program services” includes but is not limited to the following:
   a.  Training of employees.
   b.  Adult basic education and job-related instruction.
   c.  Vocational and skill-assessment services and testing.
   d.  Training facilities, equipment, materials, and supplies.
   e.  Administrative expenses incurred by community colleges for the jobs training program, in an amount not to exceed five percent of the total project cost.
   f.  Subcontracted services with institutions governed by the state board of regents, private colleges or universities, or other federal, state, or local agencies.
   g.  Contracted or professional services.
   11.  “Project” means a training arrangement which is the subject of an agreement entered into between the community college and a business to provide program services. “Project” also means an authority-sponsored training arrangement which is sponsored by the authority and administered under sections 260F.6A and 260F.6B.
    Sec. 7.  Section 260F.2, Code 2014, is amended by adding the following new subsection:
   NEW SUBSECTION.  4A.  “Department” means the department of education.
    Sec. 8.  Section 260F.3, Code 2014, is amended by adding the following new subsections:
   NEW SUBSECTION.  4A.  Type of training to be delivered.
   NEW SUBSECTION.  4B.  Amount of employer match.
    Sec. 9.  NEW SECTION.  260F.4  Financial assistance —— restrictions.
   1.  The maximum award of financial assistance for any one project is fifty thousand dollars.
   2.  A business may be approved for multiple projects, but the total financial assistance award to a business shall not exceed one hundred thousand dollars within a three-year period.
   3.  An award of financial assistance does not include reimbursement to the business for employee wages while the employee is in training.
   4.  An award of financial assistance is based on the actual cost of services.
   5.  A business’s request for financial assistance shall be commensurate with training needs.
   6.  Community colleges shall provide financial assistance to a business on a reimbursement basis or by directly paying for training expenses from an account administered by the community college.
   7.  a.  A business shall provide a cash match or in-kind match in order to be eligible for financial assistance pursuant to this section.
   b.  A business requesting financial assistance of less than five thousand dollars for a program shall provide an in-kind match.
   c.  A business requesting financial assistance of five thousand dollars or more for a program shall provide cash to pay at least twenty-five percent of the total project cost, including training and administration costs.
   d.  An in-kind match includes employee wages paid by the business during the training period, the value of business-provided facilities and equipment used for training, or the value of any other resource provided by the business to facilitate the training program.
    Sec. 10.  NEW SECTION.  260F.5  Community college annual report.
   1.  Each community college shall submit an annual report to the department by September 1 documenting the job training programs funded during the previous fiscal year.
   2.  The report shall address the performance metrics established by the department for the job training program pursuant to section 260F.8.
   3.  The report shall be submitted in a manner and form prescribed by the department.
    Sec. 11.  Section 260F.6, subsection 1, Code 2014, is amended to read as follows:
   1.  There is established created for the community colleges a job training fund in the economic development authority in the workforce development fund to be administered by the department. The job training fund consists of moneys appropriated for the purposes of this chapter plus the interest and principal from repayment of advances made to businesses for program costs, plus the repayments, including interest, of loans made from that retraining fund, and interest earned from moneys in the job training fund.  Moneys in the fund are appropriated to the department for purposes of this chapter.
    Sec. 12.  Section 260F.6, subsections 2 and 3, Code 2014, are amended by striking the subsections and inserting in lieu thereof the following:
   2.  Moneys in the fund shall be allocated pursuant to the formula established in 260C.18C. Any unexpended or unallocated funds remaining in the job training fund allocated for purposes of the business network training program authorized in section 260F.6A, Code 2014, as of June 30, 2014, shall be distributed to the community colleges in the manner provided for in this subsection.
   3.  Notwithstanding section 8.33, moneys in the fund at the close of the fiscal year shall not revert to the general fund of the state but shall remain available for expenditure for the purpose designated for subsequent fiscal years. Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys in the fund shall be credited to the fund.
    Sec. 13.  Section 260F.7, Code 2014, is amended to read as follows:
   260F.7  Economic development authority Department to coordinate.

   The economic development authority, in consultation with the department of education and the department of workforce development, shall coordinate the jobs training program. A project shall not be funded under this chapter unless the economic development authority approves the project. The authority department shall adopt rules pursuant to chapter 17A governing the program’s operation and eligibility for participation in the program. The authority department shall establish by rule criteria for determining what constitutes an eligible business.
    Sec. 14.  Section 260F.8, Code 2014, is amended by striking the section and inserting in lieu thereof the following:
   260F.8  Program assessment, development, and coordination.
   1.  The department shall establish performance metrics for the job training programs funded under this chapter and assess program outcomes on an annual basis.
   2.  A community college may retain up to ten percent of the total project cost for the following purposes:
   a.  Outreach to employers by community college business and industry outreach staff.
   b.  Monitoring the performance of training agreements and accountability measures.
   c.  Development of training project and program plans.
   d.  Business development activities.
    Sec. 15.  NEW SECTION.  260J.1  Title.

   This chapter shall be known and may be cited as the “Iowa Apprenticeship Act”.
    Sec. 16.  NEW SECTION.  260J.2  Definitions.

   For purposes of this chapter, unless the context otherwise requires:

   1.  “Apprentice” means a person who is at least sixteen years of age, except where a higher minimum age is required by law, who is employed in an apprenticeable occupation, and is registered in Iowa with the United States department of labor, office of apprenticeship.
   2.  “Apprenticeable occupation” means an occupation approved for apprenticeship by the United States department of labor, office of apprenticeship.
   3.  “Apprenticeship program” means a program registered with the United States department of labor, office of apprenticeship, which includes terms and conditions for the qualification, recruitment, selection, employment, and training of apprentices, including the requirement for a written apprenticeship agreement.
   4.  “Apprenticeship sponsor” means an entity operating an apprenticeship program or an entity in whose name an apprenticeship program is being operated, which is registered with or approved by the United States department of labor, office of apprenticeship.
   4A.  “Board” means the apprenticeship training program board established in section 260J.5.
   5.  “Department” means the department of education.
   6.  “Financial assistance” means assistance provided only from the funds, rights, and assets legally available to the department or board and includes but is not limited to assistance in the forms of grants, loans, forgivable loans, and royalty payments.
   7.  “Fund” means the apprenticeship training program fund created in section 260J.3.
   8.  “Lead apprenticeship sponsor” means a trade organization, labor organization, employer association, or other incorporated entity representing a group of apprenticeship sponsors.
    Sec. 17.  NEW SECTION.  260J.3  Apprenticeship training program —— fund.
   1.  An apprenticeship training program fund is created in the state treasury under the control of the department with direction from the board.
   2.  The fund shall consist of moneys deposited in the fund pursuant to section 256.92, moneys appropriated for purposes of the apprenticeship training program, and any other moneys lawfully available to the department for purposes of this chapter.
   3.  Moneys in the fund are appropriated to the department for the purposes of this chapter.
   4.  No more than two percent of the total moneys deposited in the fund on July 1 of a fiscal year is appropriated to the department for the purposes of assisting the apprenticeship training program board in administering this chapter.
   5.  Notwithstanding section 8.33, moneys in the fund at the close of the fiscal year shall not revert but shall remain available for expenditure for the purposes designated for subsequent fiscal years. Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys in the fund shall be credited to the fund.
    Sec. 18.  NEW SECTION.  260J.4  Financial assistance for an apprenticeship program.
   1.  a.  An apprenticeship sponsor or lead apprenticeship sponsor conducting apprenticeship programs in Iowa for apprentices who will be employed at Iowa worksites may apply to the board for a training grant or an infrastructure grant, or both a training grant and an infrastructure grant under this section.
   b.  Financial assistance received by an apprenticeship sponsor or lead apprenticeship sponsor under this section shall be used only for the cost of conducting and maintaining an apprenticeship program.
   2.  The board shall provide financial assistance in the form of training grants or infrastructure grants to apprenticeship sponsors or lead apprenticeship sponsors in the following manner:
   a.  By determining the total amount of funding allocated for purposes of training grants or infrastructure grants for apprenticeship programs pursuant to section 260J.3.
   b.  By adding together all of the following:
   (1)  The total number of apprentices trained by all applying apprenticeship sponsors or lead apprenticeship sponsors during the most recent training year as calculated on the last day of the training year.
   (2)  The total number of contact hours that apprenticeship instructors for all applying apprenticeship sponsors or lead apprenticeship sponsors spent in contact with apprentices during the most recent training year. For purposes of this subparagraph, “contact hours” includes the time spent instructing apprentices in person or, in the case of a lead apprenticeship sponsor with programs totaling one hundred or more total instructional hours, “contact hours” includes the time spent in online training if the total amount of online instruction does not account for more than thirty percent of the total instructional hours.
   c.  By adding together all of the following:
   (1)  The total number of apprentices trained by a single applying apprenticeship sponsor or lead apprenticeship sponsor during the most recent training year as calculated on the last day of the training year.
   (2)  The total number of contact hours that apprenticeship instructors for a single applying apprenticeship sponsor or lead apprenticeship sponsor spent in contact with apprentices during the most recent training year. For purposes of this subparagraph, “contact hours” includes the time spent instructing apprentices in person or, in the case of a lead apprenticeship sponsor with programs totaling one hundred or more total instructional hours, “contact hours” includes the time spent in online training if the total amount of online instruction does not account for more than thirty percent of the total instructional hours.
   d.  By determining the proportion, stated as a percentage, that a single applying apprenticeship sponsor’s or lead apprenticeship sponsor’s total calculated pursuant to paragraph “c” bears to all applying apprenticeship sponsors’ or lead apprenticeship sponsors’ total calculated pursuant to paragraph “b”.
   e.  By multiplying the percentage calculated in paragraph “d” by the amount determined in paragraph “a”.
   3.  An apprenticeship sponsor or lead apprenticeship sponsor seeking financial assistance under this section shall provide the following information to the board:
   a.  The federal apprentice registration number of each apprentice in the apprenticeship program.
   b.  The address and a description of the physical location where in-person training is conducted.
   c.  A certification of the apprenticeship sponsor’s training standards as most recently approved by the United States department of labor, office of apprenticeship or, in the case of a lead apprenticeship sponsor, a representative sample of participating members’ training standards.
   d.  A certification of the apprenticeship sponsor’s compliance review or quality assessment as most recently conducted by the United States department of labor, office of apprenticeship, unless the apprenticeship sponsor has not been subjected to a compliance review or quality assessment. In the case of a lead apprenticeship sponsor, a sampling of compliance reviews or quality assessments from participating members shall be sufficient.
   e.  Any other information the board reasonably determines is necessary.
   4.  The apprenticeship sponsor or lead apprenticeship sponsor and the board shall enter into an agreement regarding the provision of any financial assistance to the apprenticeship sponsor or lead apprenticeship sponsor.
   5.  Notwithstanding the provisions of this section, an apprenticeship program receiving funds from section 260F.6 or other community college funding sources in the fiscal year beginning July 1, 2013, and ending June 30, 2014, shall receive no less than that amount from the fund in the fiscal year beginning July 1, 2014, and ending June 30, 2015. 
    Sec. 19.  NEW SECTION.  260J.5  Apprenticeship training program board.
   1.  An apprenticeship training program board is established to administer the apprenticeship training program and to provide funding to apprenticeship programs for apprentices who will be employed at Iowa worksites.
   2.  The board shall consist of the following members:
   a.  One member of the master builders of Iowa.
   b.  One member of the associated builders and contractors of Iowa.
   c.  One member of the Iowa heavy highway contractors association.
   d.  One member of the associated general contractors of Iowa.
   e.  One member of the technology association of Iowa.
   f.  One member of the Iowa association of business and industry.
   g.  Five members, one member each from different labor organizations that are apprenticeship sponsors or lead apprenticeship sponsors. Five members representing labor organizations shall serve at a time, but the labor organizations represented shall rotate with every term.
   h.  One member from the Iowa federation of labor.
   i.  One member representing community college apprenticeship programs.
   j.  One member representing the Iowa economic development authority.
   k.  One member representing the department.
   l.  One member of the United States department of labor, office of apprenticeship, serving as an ex-officio, nonvoting member.
   m.  Four members of the general assembly serving as ex officio, nonvoting members, one representative to be appointed by the speaker of the house of representatives, one representative to be appointed by the minority leader of the house of representatives, one senator to be appointed by the majority leader of the senate, and one senator to be appointed by the minority leader of the senate.
   3.  a.  The voting members of the board and the member from the United States department of labor, office of apprenticeship, shall be selected by the named entity or entities. The members from the labor organizations shall be selected by the labor organization being represented. The member representing the community college apprenticeship programs shall be selected by the Iowa association of community college trustees.
   b.  The voting members of the board and the member from the United States department of labor, office of apprenticeship, shall serve three-year staggered terms. If a vacancy occurs a successor shall be selected in the same manner and subject to the same qualifications as the original selection to serve the remainder of the term.
   c.  The legislative members of the board shall serve terms as provided in section 69.16B. A legislative member may designate another person to attend a board meeting if the member is unavailable.
   4.  The voting members shall elect a chairperson and vice chairperson annually from the voting membership of the board. A majority of the voting members of the board constitute a quorum. If the chairperson and vice chairperson are unable to preside over the board due to absence or disability, a majority of the voting members present may elect a temporary chairperson providing a quorum is present.
   5.  The apprenticeship training program board shall do all of the following:
   a.  Administer the apprenticeship training program and approve expenditures from the apprenticeship training program fund.
   b.  Review and award apprenticeship program training grants and infrastructure grants pursuant to section 260J.4.
   c.  Monitor the performance of apprenticeship program training grants and infrastructure grants.
   d.  Promote the development of new and the expansion of existing apprenticeship programs in Iowa.
   e.  In collaboration with the department, educate students about apprenticeship training opportunities and promote apprenticeship training in middle school and high school.
   6.  The department shall provide administrative support to the board.
   7.  The board shall adopt rules to administer this chapter.
    Sec. 20.  Section 403.21, subsections 1 and 3, Code 2014, are amended to read as follows:
   1.  In order to promote communication and cooperation among cities, counties, and community colleges with respect to the allocation and division of taxes, no jobs training projects as defined in chapter 260E or 260F shall be undertaken within the area of operation of a municipality after July 1, 1995, unless the municipality and the community college have entered into an agreement or have jointly adopted a plan relating to a community college’s new jobs training program which shall provide for a procedure for advance notification to each affected municipality, for exchange of information, for mutual consultation, and for procedural guidelines for all such new jobs training projects, including related project financing to be undertaken within the area of operation of the municipality. The joint agreement or the plan shall state its precise duration and shall be binding on the community college and the municipality with respect to all new jobs training projects, including related project financing undertaken during its existence. The joint agreement or plan shall be effective upon adoption and shall be placed on file in the office of the secretary of the board of directors of the community college and such other location as may be stated in the joint agreement or plan. The joint agreement or plan shall also be sent to each school district which levied or certified for levy a property tax on any portion of the taxable property located in the area of operation of the municipality in the fiscal year beginning prior to the calendar year in which the plan is adopted or the agreement is reached. If no such agreement is reached or plan adopted, the community college shall not use incremental property tax revenues to fund jobs training projects within the area of operation of the municipality. Agreements entered into between a community college and a city or county pursuant to chapter 28E shall not apply.
   3.  The community college shall send a copy of the final agreement prepared pursuant to section 260F.3 to the economic development authority. For each year in which incremental property taxes are used to retire debt service on a jobs training advance issued for a project creating new jobs, the community college shall provide to the economic development authority a report of the incremental property taxes and new jobs credits from withholding generated for that year, a specific description of the training conducted, the number of employees provided program services under the project, the median wage of employees in the new jobs in the project, and the administrative costs directly attributable to the project.
    Sec. 21.  Section 422.16A, Code 2014, is amended to read as follows:
   422.16A  Job training withholding —— certification and transfer.

   Upon the completion by a business of its repayment obligation for a training project funded under chapter 260E, including a job training project funded under section 15A.8 or repaid in whole or in part by the supplemental new jobs credit from withholding under section 15A.7 or section 15E.197, the sponsoring community college shall report to the economic development authority the amount of withholding paid by the business to the community college during the final twelve months of withholding payments. The economic development authority shall notify the department of revenue of that amount. The department shall credit to the workforce development fund account established in section 15.342A 256.91 twenty-five percent of that amount each quarter for a period of ten years. If the amount of withholding from the business or employer is insufficient, the department shall prorate the quarterly amount credited to the workforce development fund account. The maximum amount from all employers which shall be transferred to the workforce development fund account in any year is four six million dollars.
    Sec. 22.  Section 558.1, Code 2014, is amended to read as follows:
   558.1  “Instruments affecting real estate” defined —— revocation.

   All instruments containing a power to convey, or in any manner relating to real estate, including certified copies of petitions in bankruptcy with or without the schedules appended, of decrees of adjudication in bankruptcy, and of orders approving trustees’ bonds in bankruptcy, and a jobs training agreement entered into under chapter 260E or 260F between an employer and community college which contains a description of the real estate affected, shall be held to be instruments affecting the same; and no such instrument, when acknowledged or certified and recorded as in this chapter prescribed, can be revoked as to third parties by any act of the parties by whom it was executed, until the instrument containing such revocation is acknowledged and filed for record in the same office in which the instrument containing such power is recorded, except that uniform commercial code financing statements and financing statement changes as provided in chapter 554 need not be thus acknowledged.
    Sec. 23.  REPEAL.  Sections 15.341, 15.342, 15.342A, 15.343, 15.344, 260F.6A, and 260F.6B, Code 2014, are repealed.
    Sec. 24.  RULES.  The department of education shall adopt rules to administer this Act.
    Sec. 25.  TRANSFER OF FUNDS.
   1.  All moneys in the workforce development fund account, established in section 15.342A, as of the effective date of this Act and any moneys accruing to the workforce development fund account, established in section 15.342A, after the effective date of this Act, shall be transferred to the workforce development fund account established in section 256.91, as enacted in this Act.
   2.  All moneys in the workforce development fund, created in section 15.343, as of the effective date of this Act and any moneys accruing to the workforce development fund, created in section 15.343, after the effective date of this Act, shall be transferred to the workforce development fund established in section 256.92, as enacted in this Act.
    Sec. 26.  TRANSITION PROVISIONS.
   1.  A financial assistance award made or provided for in an agreement entered into pursuant to section 260F.3 prior to the effective date of this Act shall continue as provided in such agreement.
   2.  Loan payments or repayments and recaptures of principal, interest, or other moneys accruing on or after July 1, 2014, pursuant to an agreement under section 260F.3, as in effect prior to July 1, 2014, shall be transferred to the job training fund created in section 260F.6, as amended by this Act.