Text: HSB00319 Text: HSB00321 Text: HSB00300 - HSB00399 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. NEW SECTION. 15.341 WORKFORCE DEVELOPMENT 1 2 FUND PROGRAM. 1 3 This part shall be known as the "Workforce Development 1 4 Fund" program. 1 5 Sec. 2. NEW SECTION. 15.342 PURPOSE. 1 6 The purpose of this part shall be to provide a mechanism 1 7 for funding workforce development programs listed in section 1 8 15.343, subsection 2, in order to more efficiently meet the 1 9 needs identified within those individual programs. 1 10 Sec. 3. NEW SECTION. 15.343 WORKFORCE DEVELOPMENT FUND. 1 11 1. A workforce development fund is created as a revolving 1 12 fund in the state treasury under the control of the department 1 13 consisting of any moneys appropriated by the general assembly 1 14 for that purpose and any other moneys available to and 1 15 obtained or accepted by the department from the federal 1 16 government or private sources for placement in the fund. The 1 17 fund shall also include all of the following: 1 18 a. Notwithstanding section 8.33, all unencumbered and 1 19 unobligated funds from 1994 Iowa Acts, chapter 1201, section 1 20 1, subsection 6, except paragraph "d", section 3, subsections 1 21 1 and 3, and section 10, remaining on July 1, 1995, and all 1 22 unencumbered and unobligated funds in the Iowa conservation 1 23 corps escrow account established in section 15.229 and the job 1 24 training fund established in section 260F.6. 1 25 b. The loan loss reserve account created in sections 1 26 15.345 and 15.346. 1 27 c. Repayment moneys pursuant to section 422.16A. 1 28 Notwithstanding section 8.33, moneys in the workforce 1 29 development fund at the end of each fiscal year shall not 1 30 revert to any other fund but shall remain in the workforce 1 31 development fund for expenditure for subsequent fiscal years. 1 32 2. The assets of the fund shall be used by the department 1 33 for the following programs and purposes: 1 34 a. The Iowa conservation corps created in sections 15.224 1 35 through 15.230. 2 1 b. Apprenticeship programs under section 260C.44. 2 2 c. The job training programs created in chapter 260F. 2 3 d. The loan loss reserve program. 2 4 e. For employee development grants under section 15.349. 2 5 f. For the workforce investment program under section 2 6 15.348. 2 7 3. The director shall submit annually at a regular or 2 8 special meeting preceding the beginning of the fiscal year, 2 9 for approval by the economic development board, the proposed 2 10 allocation of funds from the workforce development fund to be 2 11 made for that fiscal year for the programs and purposes 2 12 contained in subsection 2. The plans may provide for 2 13 increased or decreased allocations if the demand for a program 2 14 indicates that the need is greater or lesser than the 2 15 allocation for that program. The director shall report on a 2 16 monthly basis to the board on the status of the funds and may 2 17 present proposed revisions for approval by the board in 2 18 January and April of each year. Unobligated and unencumbered 2 19 moneys remaining in the workforce development fund or any of 2 20 its accounts on June 30 of each year shall be considered part 2 21 of the fund for purposes of the next year's allocation. 2 22 Sec. 4. NEW SECTION. 15.345 LOAN LOSS RESERVE ACCOUNT 2 23 ESTABLISHED. 2 24 A loan loss reserve account is created within the workforce 2 25 development fund to be used by the department to encourage 2 26 private businesses to invest in training for their existing 2 27 employees. 2 28 Sec. 5. NEW SECTION. 15.346 PURPOSE &endash; AUTHORIZED LOANS. 2 29 1. Funds in the loan loss reserve account shall be used to 2 30 guarantee the payment of the principal, interest, and other 2 31 amounts outstanding under each loan for which a guarantee was 2 32 given under this section if the loan is made by an approved 2 33 financial institution to an employer that is or will be 2 34 located wholly or partially within the state. The account 2 35 funds shall be used to pay the principal, interest, and other 3 1 amounts outstanding if the loan delinquency extends for the 3 2 number of days specified in the applicable guarantee agreement 3 3 between the department and any third party with which the 3 4 department may enter into a contract pursuant to this section, 3 5 or if any other loan default remains uncured. 3 6 2. Loans for which a guarantee is given under this section 3 7 may be used for any of the following educational or job 3 8 training purposes: 3 9 a. Training program administration and development 3 10 expenses. 3 11 b. Training course material development, acquisition, and 3 12 installation costs. 3 13 c. All wages, salaries, benefits, and other expenses of 3 14 trainer-employees, and the wages, salaries, benefits, travel, 3 15 and lodging expenses of other employees while receiving or 3 16 performing training. 3 17 d. Tuition, fees, and expenses relating to seminars, 3 18 conferences, and other outside training events. 3 19 e. Third-party training provider salaries, fees, or 3 20 contract amounts. 3 21 f. Tuition and fees paid to postsecondary institutions or 3 22 trade or technical schools. 3 23 g. Books, videos, and other training materials. 3 24 h. Training-related equipment rental or acquisition. 3 25 i. Training-related facilities' rental, remodeling, or 3 26 renovation. 3 27 j. The cost of registered apprenticeship programs and 3 28 other education-related or job training expenses. 3 29 3. The department may enter into contracts with employers, 3 30 financial or other entities, and other state agencies or 3 31 instrumentalities as it determines are appropriate to carry 3 32 out the purpose of the account. The department shall 3 33 coordinate this program with the Iowa college aid student 3 34 commission and the Iowa finance authority. 3 35 Sec. 6. NEW SECTION. 15.347 WORKFORCE INVESTMENT PROGRAM 4 1 ESTABLISHED. 4 2 A workforce investment program is established to enable 4 3 more Iowans to enter or reenter the workforce. 4 4 Sec. 7. NEW SECTION. 15.348 PURPOSE. 4 5 1. The workforce investment program shall provide training 4 6 and support services to population groups that have 4 7 historically faced barriers to employment and which have been 4 8 difficult to serve in traditional training programs due to 4 9 such factors as eligibility guidelines, gaps in services 4 10 available, or other constraints. 4 11 2. Program funds shall be used to contract with local 4 12 entities through a competitive procurement process that 4 13 emphasizes strong collaboration between existing local 4 14 programs and organizations. 4 15 3. Priority shall be given to training programs that will 4 16 target displaced homemakers and welfare recipients in order to 4 17 enable them to achieve self-sufficiency. 4 18 4. The department shall administer the workforce 4 19 investment program and shall adopt rules governing its 4 20 operation and eligibility guidelines for participation. 4 21 Sec. 8. NEW SECTION. 15.349 EMPLOYEE DEVELOPMENT GRANTS. 4 22 1. A business which provides worker retraining shall be 4 23 eligible for an employee development grant of up to two 4 24 hundred fifty dollars per employee retrained. 4 25 2. An employer shall apply to the department for an 4 26 employee development grant. The department shall determine 4 27 whether the employer is eligible for a grant and in what 4 28 amount. 4 29 3. The department shall administer and market the program 4 30 in coordination with the community colleges. 4 31 4. The department shall develop eligibility criteria based 4 32 upon such factors as the following: 4 33 a. Whether the employer is in a targeted industry. 4 34 b. The long-term value to the employee and employer of the 4 35 retraining. 5 1 c. Wages and benefits paid and provided to the employee. 5 2 d. The following employers are not eligible to receive the 5 3 employee development grant: agricultural services, mining, 5 4 wholesale and retail trade, and health and professional 5 5 services industries. 5 6 e. A business receiving funds from a jobs training 5 7 agreement under chapter 260E or 260F shall be eligible for an 5 8 employee development grant except for those employees not 5 9 covered under a chapter 260E or 260F training agreement. 5 10 f. The employer must have paid taxes in Iowa for the 5 11 previous year at least equal in amount to the amount of the 5 12 grant. However, an employer shall receive a grant only once 5 13 per each employee within a five-year period. 5 14 5. The board shall certify annually the amount of a grant 5 15 available to an employer. 5 16 6. The department shall monitor employers receiving grants 5 17 to ensure the amount available to the grant program is not 5 18 exceeded in total and on a per employer basis. 5 19 Sec. 9. Section 260F.6, subsection 1, Code 1995, is 5 20 amended to read as follows: 5 21 1. There is established for the community colleges a 5 22community collegejob training fund in the department of 5 23 economic development in the workforce development fund. The 5 24community collegejob training fund consists of moneys 5 25 appropriatedfor the fiscal year beginning July 1, 1987, and5 26for succeeding fiscal yearsfor the purposes of this chapter 5 27 plus the interest and principal from repayment of advances 5 28 made to businesses for program costs,moneys transferred from5 29the Iowa employment retraining fund to the community college5 30job training fund on July 1, 1992,plus the repayments, 5 31 including interest, of loans made from that retraining fund, 5 32 and interest earned from moneys in thecommunity collegejob 5 33 training fund. 5 34 Sec. 10. NEW SECTION. 422.16A JOB TRAINING WITHHOLDING 5 35 &endash; CERTIFICATION AND TRANSFER. 6 1 Upon payment in full of a certificate of participation or 6 2 other obligation issued to fund a job training program under 6 3 chapter 260E, the community college providing the job training 6 4 program shall notify the department of economic development of 6 5 the amount paid by the employer or business to the community 6 6 college to retire the certificate during the previous twelve 6 7 months. The department of economic development shall notify 6 8 the department of revenue and finance of that amount. The 6 9 department shall credit to the workforce development fund 6 10 established in section 15.343 twenty-five percent of that 6 11 amount each quarter for a period of ten years. If the amount 6 12 of withholding from the business or employer is insufficient, 6 13 the department shall prorate the quarterly amount credited to 6 14 the workforce development fund. 6 15 For the fiscal year beginning July 1, 1995, seventy-five 6 16 percent of the amount designated for the workforce development 6 17 fund under this section shall be allocated for retraining 6 18 activities under chapter 260F. For succeeding years, the 6 19 proportion of funds designated for the workforce development 6 20 fund under this section and allocated for retraining 6 21 activities under chapter 260F shall be fifty percent, or three 6 22 million dollars, whichever is less. 6 23 EXPLANATION 6 24 This bill establishes a workforce development fund as a 6 25 revolving fund under the control of the department of economic 6 26 development to be used for the Iowa conservation corps, 6 27 apprenticeship programs, job training programs, and the loan 6 28 loss reserve program. The fund will consist of moneys 6 29 appropriated to it, funds authorized for the employee 6 30 development grant, and moneys for employer or business 6 31 withholding which formerly had been used to repay job training 6 32 program certificates or other obligations. 6 33 The bill creates a loan loss reserve account to encourage 6 34 private businesses to invest in employee training. Funds in 6 35 the account will be used to guarantee the amounts outstanding 7 1 under loans made by financial institutions for the purpose of 7 2 employee training. 7 3 In addition, the bill provides that withholding amounts 7 4 from employers or businesses which had been used to repay job 7 5 training program expenses under chapter 260E shall be 7 6 transferred by the department of revenue and finance to the 7 7 workforce development fund for a period of 10 years. 7 8 The bill also creates the workforce investment program to 7 9 provide workforce training and support to segments of the 7 10 population which have historically faced barriers to 7 11 employment and which have not been served by existing 7 12 programs. 7 13 Furthermore, the bill provides for the payment of employee 7 14 development grants of up to $250 per worker retrained through 7 15 the workforce development fund. Criteria for determining the 7 16 eligibility of a business for a grant include whether the 7 17 business is a targeted industry or not, the long-term value of 7 18 the training, and the wages and benefits paid by the business. 7 19 The bill also provides that in fiscal year 1995-1996, 75 7 20 percent of the moneys allocated to the workforce development 7 21 fund shall be used for the purposes of chapter 260F (Iowa 7 22 small business new jobs training Act). For fiscal year 1996- 7 23 1997 and succeeding fiscal years, 50 percent or $3,000,000, 7 24 whichever is lower, will be used for the purposes of chapter 7 25 260F. 7 26 LSB 1596XL 76 7 27 mk/jj/8.3
Text: HSB00319 Text: HSB00321 Text: HSB00300 - HSB00399 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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