Text: HF02555 Text: HF02557 Text: HF02500 - HF02599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 15.342A, Code Supplement 1999, is 1 2 amended to read as follows: 1 3 15.342A WORKFORCE DEVELOPMENT FUND ACCOUNT. 1 4 A workforce development fund account is established in the 1 5 office of the treasurer of state under the control of the 1 6 department. The account shall receive funds pursuant to 1 7 section 422.16A up to a maximum oftennine million dollars 1 8 per year. The account shall also receive funds pursuant to 1 9 section 15.251 with no dollar limitation. 1 10 Sec. 2. Section 260G.2, Code Supplement 1999, is amended 1 11 by adding the following new subsection: 1 12 NEW SUBSECTION. 12A. "Program job credit" means the 1 13 credit as provided in section 260G.4A. 1 14 Sec. 3. Section 260G.3, subsection 2, Code Supplement 1 15 1999, is amended to read as follows: 1 16 2. An agreement may include reasonable and necessary 1 17 provisions to implement the accelerated career education 1 18 program. If an agreement is entered into, the community 1 19 college and the employer shall notify the department of 1 20 revenue and finance as soon as possible. The community 1 21 college shall also file a copy of the agreement with the 1 22 department of economic development as required in section 1 23 260G.4B. The agreement shall provide for program costs, 1 24 including deferred costs, which may be paid from any of the 1 25 following sources: 1 26 a. Program job credits which the employer receives based 1 27 on the number of program job positions agreed to by the 1 28 employer to be available under the agreement. 1 29a.b. Cash or in-kind contributions by the employer toward 1 30 the program cost. At a minimum, the employer contribution 1 31 shall be twenty percent of the program costs. 1 32b.c. Tuition, student fees, or special charges fixed by 1 33 the board of directors to defray program costs. 1 34c.d. Guarantee by the employer of payments to be received 1 35 underparagraphparagraphs "a" and "b". 2 1 Sec. 4. NEW SECTION. 260G.4A PROGRAM JOB CREDITS FROM 2 2 WITHHOLDING. 2 3 In order to develop and retain program jobs within the 2 4 state, an agreement entered into under section 260G.3 may 2 5 include a provision for program job credits based on program 2 6 jobs identified in the agreement. If a program provides that 2 7 part of the program costs are to be met by receipt of program 2 8 job credits, the method to be used shall be as follows: 2 9 1. Program job credits shall be based upon the program job 2 10 positions identified and agreed to in the agreement. 2 11 2. Eligibility for program job credits shall be based on 2 12 certification of program job positions and program job wages 2 13 by the employer at the time established in the agreement. An 2 14 amount up to ten percent of the gross program job wage as 2 15 certified by the employer in the agreement shall be credited 2 16 from the total payment made by an employer pursuant to section 2 17 422.16. The employer shall receive a credit against all 2 18 withholding taxes due by the employer regardless of whether or 2 19 not the withholding by the employer of current program job 2 20 wages is less than ten percent. The employer shall remit the 2 21 amount of the credit quarterly in the same manner as 2 22 withholding payments are reported to the department of revenue 2 23 and finance, to the community college to be allocated to and 2 24 when collected paid into a special fund of the community 2 25 college to pay, in part, the program costs. When the program 2 26 costs have been paid, the employer credits shall cease and any 2 27 moneys received after the program costs have been paid shall 2 28 be remitted to the treasurer of state to be deposited in the 2 29 general fund of the state. 2 30 3. The employer shall certify to the department of revenue 2 31 and finance that the program job credit is in accordance with 2 32 the agreement and shall provide other information the 2 33 department may require. 2 34 4. A community college shall certify to the department of 2 35 revenue and finance that the amount of the program job credit 3 1 is in accordance with an agreement and shall provide other 3 2 information the department may require. 3 3 5. Employees from an employer participating in an 3 4 agreement shall receive full credit for the amount withheld as 3 5 provided in section 422.16. 3 6 Sec. 5. NEW SECTION. 260G.4B MAXIMUM STATEWIDE PROGRAM 3 7 JOB CREDIT. 3 8 1. The total amount of program job credits from all 3 9 employers which shall be allocated for all accelerated career 3 10 education programs in the state in any one fiscal year shall 3 11 not exceed the sum of three million dollars in the fiscal year 3 12 beginning July 1, 2000, six million dollars in the fiscal year 3 13 beginning July 1, 2001, and six million dollars in the fiscal 3 14 year beginning July 1, 2002, and every fiscal year thereafter. 3 15 Any increase in program job credits above the six-million- 3 16 dollar limitation per fiscal year shall be developed, based on 3 17 recommendations in a study which shall be conducted by the 3 18 department of economic development of the needs and 3 19 performance of approved programs in the fiscal years beginning 3 20 July 1, 2000, and July 1, 2001. The study's findings and 3 21 recommendations shall be submitted to the general assembly by 3 22 the department by December 31, 2002. The study shall include 3 23 but not be limited to an examination of the quality of the 3 24 programs, the number of program participant placements, the 3 25 wages and benefits in program jobs, the level of employer 3 26 contributions, the size of participating employers, and 3 27 employer locations. A community college shall file a copy of 3 28 each agreement with the department of economic development. 3 29 The department shall maintain an annual record of the proposed 3 30 program job credits under each agreement for each fiscal year. 3 31 Upon receiving a copy of an agreement, the department shall 3 32 allocate any available amount of program job credits to the 3 33 community college according to the agreement sufficient for 3 34 the fiscal year and for the term of the agreement. When the 3 35 total available program job credits are allocated for a fiscal 4 1 year, the department shall notify all community colleges that 4 2 the maximum amount has been allocated and that further program 4 3 job credits will not be available for the remainder of the 4 4 fiscal year. Once program job credits have been allocated to 4 5 a community college, the full allocation shall be received by 4 6 the community college throughout the fiscal year and for the 4 7 term of the agreement even if the statewide program job credit 4 8 maximum amount is subsequently allocated and used. 4 9 2. For the fiscal years beginning July 1, 2000, and July 4 10 1, 2001, the department of economic development shall allocate 4 11 eighty thousand dollars of the first one million two hundred 4 12 thousand dollars of program job credits authorized and 4 13 available for that fiscal year to each community college. 4 14 This allocation shall be used by each community college to 4 15 provide funding for approved programs. For the fiscal year 4 16 beginning July 1, 2002, and for every fiscal year thereafter, 4 17 the department of economic development shall divide equally 4 18 among the community colleges thirty percent of the program job 4 19 credits available for that fiscal year for allocation to each 4 20 community college to be used to provide funding for approved 4 21 programs. If any portion of the allocation to a community 4 22 college under this subsection has not been committed by April 4 23 1 of the fiscal year for which the allocation is made, the 4 24 uncommitted portion is available for use by other community 4 25 colleges. Once a community college has committed its 4 26 allocation for any fiscal year under this subsection, the 4 27 community college may receive additional program job credit 4 28 allocations from those program job credits authorized and 4 29 still available for that fiscal year. 4 30 Sec. 6. NEW SECTION. 260G.4C FACILITATOR. 4 31 The department of economic development shall administer the 4 32 statewide allocations of program job credits to accelerated 4 33 career education programs. The department shall collect data 4 34 related to the programs and prepare an annual report regarding 4 35 the activities of the programs during the previous fiscal 5 1 year. The report shall be submitted to the governor and the 5 2 general assembly by December 31 of each year. 5 3 Sec. 7. NEW SECTION. 260G.7 FUTURE PROGRAM 5 4 DISCONTINUANCE. 5 5 The general assembly shall act on or before March 1, 2006, 5 6 to discontinue the program job credits from withholding 5 7 provided for in section 260G.4A. 5 8 Sec. 8. NEW SECTION. 261.22 ACCELERATED CAREER EDUCATION 5 9 GRANTS. 5 10 1. An accelerated career education grant program is 5 11 established to be administered by the college student aid 5 12 commission. An individual is eligible for the grant program 5 13 if the individual is a resident of this state who is enrolled 5 14 at a community college as a participant in an accelerated 5 15 career education program in accordance with the provisions of 5 16 chapter 260G. The college student aid commission shall adopt 5 17 rules pursuant to chapter 17A for determining financial need 5 18 and to administer this section. 5 19 2. To be eligible to receive a grant under this section, 5 20 an applicant shall, in accordance with the rules of the 5 21 commission, do the following: 5 22 a. Complete and file an application for an accelerated 5 23 career education grant. The individual shall be responsible 5 24 for the prompt submission of any information required by the 5 25 commission. 5 26 b. File a new application and submit information as 5 27 required by the commission annually on the basis of which the 5 28 applicant's eligibility for the renewed grant will be 5 29 evaluated and determined. 5 30 3. If a student receives financial aid from any source 5 31 other than the program established under this section, the 5 32 full amount of such financial aid shall be considered part of 5 33 the student's financial resources available in determining the 5 34 amount of the student's financial need for the period of the 5 35 financial aid. Grant moneys received by a student in 6 1 accordance with this section shall be used to pay the 6 2 student's cost of attendance, which includes community college 6 3 tuition and fees, materials, textbooks and supplies, 6 4 transportation, room and board, dependent care during the time 6 5 the person is in class, and the purchase or rental of a 6 6 computer. 6 7 4. The amount of the grant shall not exceed a student's 6 8 annual financial need or two thousand dollars, whichever is 6 9 less. The commission may provide for proration of funds if 6 10 the available funds are insufficient to pay all approved 6 11 grants. Such proration shall take primary account of the 6 12 financial need of the applicant. 6 13 5. An accelerated career education grant fund is created 6 14 in the state treasury as a separate fund under the control of 6 15 the commission. Moneys in the fund shall be used for 6 16 accelerated career education grants. The fund shall consist 6 17 of any moneys appropriated by the general assembly and any 6 18 other moneys available to and obtained or accepted by the 6 19 commission from the federal government or private sources for 6 20 placement in the fund. Notwithstanding section 8.33, any 6 21 balance in the fund on June 30 of each fiscal year shall not 6 22 revert to the general fund of the state, but shall be 6 23 available for the purposes of this section in subsequent 6 24 fiscal years. 6 25 6. By December 15 of each year, the commission shall 6 26 submit a report to the general assembly, the department of 6 27 management, and the legislative fiscal bureau including, but 6 28 not limited to, all of the following data: 6 29 a. The total funding of the grant program for the previous 6 30 fiscal year itemized by type of funding including state, 6 31 federal, or other funding. The information shall also be 6 32 provided according to each community college. 6 33 b. The expenditures under the grant program and related 6 34 information of the grant program including, but not limited 6 35 to, all of the following: 7 1 (1) The number of participants in the accelerated career 7 2 education program receiving moneys under the grant program. 7 3 (2) The number of participants in the accelerated career 7 4 education program receiving moneys under the grant program who 7 5 remain in the state upon completion of a program agreement. 7 6 (3) The number of participants in the accelerated career 7 7 education program receiving moneys under the grant program who 7 8 successfully complete a program agreement and the number who 7 9 fail to successfully complete a program agreement. 7 10 c. Any other information requested by the general 7 11 assembly. 7 12 Sec. 9. Section 422.16A, Code 1999, is amended to read as 7 13 follows: 7 14 422.16A JOB TRAINING WITHHOLDING – CERTIFICATION AND 7 15 TRANSFER. 7 16 Upon the completion by a business of its repayment 7 17 obligation for a training project funded under chapter 260E, 7 18 including a job training project funded under section 15A.8 or 7 19 repaid in whole or in part by the supplemental new jobs credit 7 20 from withholding under section 15A.7 or section 15.331, the 7 21 sponsoring community college shall report to the department of 7 22 economic development the amount of withholding paid by the 7 23 business to the community college during the final twelve 7 24 months of withholding payments. The department of economic 7 25 development shall notify the department of revenue and finance 7 26 of that amount. The department shall credit to the workforce 7 27 development fund account established in section 15.342A 7 28 twenty-five percent of that amount each quarter for a period 7 29 of ten years. If the amount of withholding from the business 7 30 or employer is insufficient, the department shall prorate the 7 31 quarterly amount credited to the workforce development fund 7 32 account. The maximum amount from all employers which shall be 7 33 transferred to the workforce development fund account in any 7 34 year istennine million dollars. 7 35 Sec. 10. EFFECTIVE DATE. This Act, being deemed of 8 1 immediate importance, takes effect upon enactment. 8 2 EXPLANATION 8 3 This bill amends the accelerated career education program 8 4 which was enacted in 1999. The bill restores all of the 8 5 language that was item vetoed by the governor and adds an 8 6 accelerated career education grant program. 8 7 The bill provides that a possible funding source which 8 8 could be used to pay for program costs includes tax credits 8 9 from withholding. 8 10 The bill provides that the method for using the tax credit 8 11 from withholding, which is one option for paying for the 8 12 program costs. The bill provides that an amount up to 10 8 13 percent of the gross wages of the program jobs in an agreement 8 14 shall be credited from the total payment made by the employer. 8 15 The credit shall be against all withholding taxes due by the 8 16 employer. The bill provides that the employer and community 8 17 college must make certain certifications to the department of 8 18 revenue and finance regarding how the credits are in 8 19 accordance with the program agreement. 8 20 The bill provides that the total amount of tax credits from 8 21 withholding which shall be allocated for statewide accelerated 8 22 career education programs in any one fiscal year shall not 8 23 exceed $3 million in fiscal year 2000-2001, $6 million in 8 24 fiscal year 2001-2002, and $6 million in fiscal year 2002- 8 25 2003, and every fiscal year thereafter. The bill requires 8 26 that any increase in the $6 million maximum shall be developed 8 27 based on recommendations in a study which shall be conducted 8 28 by the department of economic development and submitted to the 8 29 general assembly by December 31, 2002. The bill provides that 8 30 the department of economic development shall maintain an 8 31 annual record of tax credits allocated and shall allocate any 8 32 available credits to community colleges in accordance with any 8 33 agreements. The bill provides that once the maximum statewide 8 34 amount has been allocated, the department shall notify all 8 35 community colleges in the state of this fact and that further 9 1 credits will not be allocated during the fiscal year. 9 2 The bill provides that for fiscal years 2000-2001 and 2001- 9 3 2002, the department of economic development shall allocate 9 4 $80,000 of the first $1,200,000 of program job credits 9 5 authorized and available to each community college in the 9 6 state for use to provide funding for approved programs. The 9 7 bill provides that for fiscal year 2002-2003, and every fiscal 9 8 year thereafter, the department shall divide equally among the 9 9 community colleges 30 percent of the program job credits 9 10 available for that fiscal year for allocation to each 9 11 community college to be used to provide funding for approved 9 12 programs. The bill provides that, by April 1 of the fiscal 9 13 year, any uncommitted portion is available for use by other 9 14 community colleges. The bill provides that once a community 9 15 college has committed its allocation for any fiscal year, the 9 16 community college may receive additional program job credit 9 17 allocations from those program job credits authorized and 9 18 still available for that fiscal year. 9 19 The bill provides that the department of economic 9 20 development shall administer the statewide allocations of 9 21 program job credits and shall collect data related to the 9 22 programs and prepare an annual report regarding the activities 9 23 of the programs for submission to the governor and the general 9 24 assembly. 9 25 The bill provides that the general assembly shall act on or 9 26 before March 1, 2006, to discontinue the program job credits 9 27 from withholding. 9 28 The bill establishes an accelerated career education grant 9 29 program to be administered by the college student aid 9 30 commission. The bill creates an accelerated career education 9 31 grant fund consisting of moneys appropriated by the general 9 32 assembly and any other moneys available to and obtained or 9 33 accepted by the commission. To be eligible for an accelerated 9 34 career education grant, an individual must be a resident of 9 35 Iowa and enrolled at a community college as a participant in 10 1 an accelerated career education program. 10 2 The bill provides that grant moneys received by a student 10 3 shall be used to pay the student's cost of attendance, 10 4 including community college tuition and fees, materials, 10 5 textbooks and supplies, transportation, room and board, 10 6 dependent care during the time the person is in class, and the 10 7 purchase or rental of a computer. The amount of the grant 10 8 shall not exceed a student's annual financial need or $2,000, 10 9 whichever is less. 10 10 The bill provides that, by December 15 of each year, the 10 11 commission shall submit a report to the general assembly, the 10 12 department of management, and the legislative fiscal bureau 10 13 relating to the total funding of the grant program, the 10 14 expenditures under the program, and related information. 10 15 The bill reduces the maximum amount of job training 10 16 withholding that shall be transferred from all employers to 10 17 the workforce development fund account from $10 million per 10 18 year to $9 million per year. 10 19 The bill becomes effective upon enactment. 10 20 LSB 7215HV 78 10 21 tm/gg/8
Text: HF02555 Text: HF02557 Text: HF02500 - HF02599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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