Text: SSB00346 Text: SSB00348 Text: SSB00300 - SSB00399 Text: SSB 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 the workforce investment program under section 2 5 15.348. 2 6 3. The director shall submit annually at a regular or 2 7 special meeting preceding the beginning of the fiscal year, 2 8 for approval by the economic development board, the proposed 2 9 allocation of funds from the workforce development fund to be 2 10 made for that fiscal year for the programs and purposes 2 11 contained in subsection 2. The plans may provide for 2 12 increased or decreased allocations if the demand for a program 2 13 indicates that the need is greater or lesser than the 2 14 allocation for that program. The director shall report on a 2 15 monthly basis to the board on the status of the funds and may 2 16 present proposed revisions for approval by the board in 2 17 January and April of each year. Unobligated and unencumbered 2 18 moneys remaining in the workforce development fund or any of 2 19 its accounts on June 30 of each year shall be considered part 2 20 of the fund for purposes of the next year's allocation. 2 21 Sec. 4. NEW SECTION. 15.345 LOAN LOSS RESERVE ACCOUNT 2 22 ESTABLISHED. 2 23 A loan loss reserve account is created within the workforce 2 24 development fund to be used by the department to encourage 2 25 private businesses to invest in training for their existing 2 26 employees. 2 27 Sec. 5. NEW SECTION. 15.346 PURPOSE &endash; AUTHORIZED LOANS. 2 28 1. Funds in the loan loss reserve account shall be used to 2 29 guarantee the payment of the principal, interest, and other 2 30 amounts outstanding under each loan for which a guarantee was 2 31 given under this section if the loan is made by an approved 2 32 financial institution to an employer that is or will be 2 33 located wholly or partially within the state. The account 2 34 funds shall be used to pay the principal, interest, and other 2 35 amounts outstanding if the loan delinquency extends for the 3 1 number of days specified in the applicable guarantee agreement 3 2 between the department and any third party with which the 3 3 department may enter into a contract pursuant to this section, 3 4 or if any other loan default remains uncured. 3 5 2. Loans for which a guarantee is given under this section 3 6 may be used for any of the following educational or job 3 7 training purposes: 3 8 a. Training program administration and development 3 9 expenses. 3 10 b. Training course material development, acquisition, and 3 11 installation costs. 3 12 c. All wages, salaries, benefits, and other expenses of 3 13 trainer-employees, and the wages, salaries, benefits, travel, 3 14 and lodging expenses of other employees while receiving or 3 15 performing training. 3 16 d. Tuition, fees, and expenses relating to seminars, 3 17 conferences, and other outside training events. 3 18 e. Third-party training provider salaries, fees, or 3 19 contract amounts. 3 20 f. Tuition and fees paid to postsecondary institutions or 3 21 trade or technical schools. 3 22 g. Books, videos, and other training materials. 3 23 h. Training-related equipment rental or acquisition. 3 24 i. Training-related facilities' rental, remodeling, or 3 25 renovation. 3 26 j. The cost of registered apprenticeship programs and 3 27 other education-related or job training expenses. 3 28 3. The department may enter into contracts with employers, 3 29 financial or other entities, and other state agencies or 3 30 instrumentalities as it determines are appropriate to carry 3 31 out the purpose of the account. The department shall 3 32 coordinate this program with the Iowa college aid student 3 33 commission and the Iowa finance authority. 3 34 Sec. 6. NEW SECTION. 15.347 WORKFORCE INVESTMENT PROGRAM 3 35 ESTABLISHED. 4 1 A workforce investment program is established to enable 4 2 more Iowans to enter or reenter the workforce. 4 3 Sec. 7. NEW SECTION. 15.348 PURPOSE. 4 4 1. The workforce investment program shall provide training 4 5 and support services to population groups that have 4 6 historically faced barriers to employment and which have been 4 7 difficult to serve in traditional training programs due to 4 8 such factors as eligibility guidelines, gaps in services 4 9 available, or other constraints. 4 10 2. Program funds shall be used to contract with local 4 11 entities through a competitive procurement process that 4 12 emphasizes strong collaboration between existing local 4 13 programs and organizations. 4 14 3. Priority shall be given to training programs that will 4 15 target displaced homemakers and welfare recipients in order to 4 16 enable them to achieve self-sufficiency. 4 17 4. The department shall administer the workforce 4 18 investment program and shall adopt rules governing its 4 19 operation and eligibility guidelines for participation. 4 20 Sec. 8. Section 260F.6, subsection 1, Code 1995, is 4 21 amended to read as follows: 4 22 1. There is established for the community colleges a 4 23community collegejob training fund in the department of 4 24 economic development in the workforce development fund. The 4 25community collegejob training fund consists of moneys 4 26 appropriatedfor the fiscal year beginning July 1, 1987, and4 27for succeeding fiscal yearsfor the purposes of this chapter 4 28 plus the interest and principal from repayment of advances 4 29 made to businesses for program costs,moneys transferred from4 30the Iowa employment retraining fund to the community college4 31job training fund on July 1, 1992,plus the repayments, 4 32 including interest, of loans made from that retraining fund, 4 33 and interest earned from moneys in thecommunity collegejob 4 34 training fund. 4 35 Sec. 9. NEW SECTION. 422.16A JOB TRAINING WITHHOLDING &endash; 5 1 CERTIFICATION AND TRANSFER. 5 2 Upon payment in full of a certificate of participation or 5 3 other obligation issued to fund a job training program under 5 4 chapter 260E, the community college providing the job training 5 5 program shall notify the department of economic development of 5 6 the amount paid by the employer or business to the community 5 7 college to retire the certificate during the previous twelve 5 8 months. The department of economic development shall notify 5 9 the department of revenue and finance of that amount. The 5 10 department shall credit to the workforce development fund 5 11 established in section 15.343 twenty-five percent of that 5 12 amount each quarter for a period of ten years. If the amount 5 13 of withholding from the business or employer is insufficient, 5 14 the department shall prorate the quarterly amount credited to 5 15 the workforce development fund. 5 16 Ninety percent of the amount designated for the workforce 5 17 development fund under this section shall be allocated 5 18 annually for retraining activities under chapter 260F. 5 19 EXPLANATION 5 20 This bill establishes a workforce development fund as a 5 21 revolving fund under the control of the department of economic 5 22 development to be used for the Iowa conservation corps, 5 23 apprenticeship programs, job training programs, and the loan 5 24 loss reserve program. The fund will consist of moneys 5 25 appropriated to it and moneys for employer or business 5 26 withholding which formerly had been used to repay job training 5 27 program certificates or other obligations. 5 28 The bill creates a loan loss reserve account to encourage 5 29 private businesses to invest in employee training. Funds in 5 30 the account will be used to guarantee the amounts outstanding 5 31 under loans made by financial institutions for the purpose of 5 32 employee training. 5 33 In addition, the bill provides that withholding amounts 5 34 from employers or businesses which had been used to repay job 5 35 training program expenses under chapter 260E shall be 6 1 transferred by the department of revenue and finance to the 6 2 workforce development fund for a period of 10 years. 6 3 The bill also creates the workforce investment program to 6 4 provide workforce training and support to segments of the 6 5 population which have historically faced barriers to 6 6 employment and which have not been served by existing 6 7 programs. 6 8 The bill also provides that 90 percent of the moneys 6 9 allocated to the workforce development fund shall be used for 6 10 the purposes of chapter 260F (Iowa small business new jobs 6 11 training Act). 6 12 LSB 2618SC 76 6 13 mk/jj/8
Text: SSB00346 Text: SSB00348 Text: SSB00300 - SSB00399 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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