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PAG LIN 1 1 SENATE FILE 465 1 2 1 3 AN ACT 1 4 AUTHORIZING THE ESTABLISHMENT OF AN ACCELERATED CAREER EDUCATION 1 5 PROGRAM, PROVIDING A TAX CREDIT FROM WITHHOLDING, RELATING TO 1 6 THE TRANSFER OF JOB TRAINING WITHHOLDING TO THE WORKFORCE DE- 1 7 VELOPMENT FUND ACCOUNT, AND PROVIDING AN EFFECTIVE DATE. 1 8 1 9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 10 1 11 Section 1. NEW SECTION. 260G.1 TITLE. 1 12 This chapter shall be known and may be cited as the 1 13 "Accelerated Career Education Program Act". 1 14 Sec. 2. NEW SECTION. 260G.2 DEFINITIONS. 1 15 When used in this chapter, unless the context otherwise 1 16 requires: 1 17 1. "Accelerated career education program" means the a 1 18 program established pursuant to section 260G.3. 1 19 2. "Agreement" means a program agreement referred to in 1 20 section 260G.3 between an employer and a community college. 1 21 3. "Board of directors" means the board of directors of a 1 22 community college. 1 23 4. "Community college" means a community college 1 24 established under chapter 260C or a consortium of two or more 1 25 community colleges. 1 26 5. "Employee" means a person employed in a program job. 1 27 6. "Employer" means a business or consortium of businesses 1 28 engaged in interstate or intrastate commerce for the purpose 1 29 of manufacturing, processing, or assembling products, 1 30 construction, conducting research and development, or 1 31 providing services in interstate or intrastate commerce, but 1 32 excludes retail services. 1 33 7. "Highly skilled job" means a job with a broadly based, 1 34 high performance skill profile including advanced computation 1 35 and communication skills, technology skills, and workplace 2 1 behavior skills, and for which an applied technical education 2 2 is required. 2 3 8. "Participant" means an individual who is enrolled in an 2 4 accelerated career education program at a community college. 2 5 9. "Participant position" means the individual student 2 6 enrollment position available in an accelerated career 2 7 education program. 2 8 10. "Program capital costs" includes, but is not limited 2 9 to, costs related to any or all of the following: 2 10 a. Classroom and laboratory renovation. 2 11 b. New classroom and laboratory construction. 2 12 c. Site acquisition or preparation. 2 13 d. Instructional equipment and technology. 2 14 11. "Program costs" means all necessary and incidental 2 15 costs of providing program services. 2 16 12. "Program job" means a highly skilled job available 2 17 from an employer pursuant to a program agreement. 2 18 13. "Program job credit" means the credit as provided in 2 19 section 260G.5. 2 20 14. "Program job position" means a job position which is 2 21 planned or available for an employee by the employer pursuant 2 22 to a program agreement. 2 23 15. "Program services" includes, but is not limited to, 2 24 all of the following provided they are pursuant to a program 2 25 agreement: 2 26 a. Program needs assessment and development. 2 27 b. Job task analysis. 2 28 c. Curriculum development and revision. 2 29 d. Instruction. 2 30 e. Instructional materials and supplies. 2 31 f. Computer software and upgrades. 2 32 g. Instructional support. 2 33 h. Administrative and student services. 2 34 i. Related school to career training programs. 2 35 j. Skill or career interest assessment services and 3 1 testing. 3 2 k. Contracted services. 3 3 Sec. 3. NEW SECTION. 260G.3 PROGRAM AGREEMENTS. 3 4 1. A community college may enter into an agreement with an 3 5 employer in the community college's merged area to establish 3 6 an accelerated career education program. The program shall be 3 7 developed by an employer, a community college, and any 3 8 employee of an employer who represents a program job. If a 3 9 bargaining agreement is in place, a representative of the 3 10 employee bargaining unit shall also take part in the 3 11 development of the program. 3 12 2. An agreement may include reasonable and necessary 3 13 provisions to implement the accelerated career education 3 14 program. If an agreement is entered into, the community 3 15 college and the employer shall notify the department of 3 16 revenue and finance as soon as possible. The community 3 17 college shall also file a copy of the agreement with the 3 18 department of economic development as required in section 3 19 260G.6. The agreement shall provide for program costs, 3 20 including deferred costs, which may be paid from any of the 3 21 following sources: 3 22 a. Program job credits which the employer receives based 3 23 on the number of program job positions agreed to by the 3 24 employer to be available under an agreement. 3 25 b. Cash or in-kind contributions by the employer toward 3 26 the program cost. At a minimum, the employer contribution 3 27 shall be twenty percent of the program costs. 3 28 c. Tuition, student fees, or special charges fixed by the 3 29 board of directors to defray program costs. 3 30 d. Guarantee by the employer of payments to be received 3 31 under paragraphs "a" and "b". 3 32 3. An agreement shall include a provision which specifies 3 33 the type and amount of funding sources which shall be used to 3 34 pay for program costs. 3 35 4. An agreement shall describe program services and 4 1 schedules for implementation. 4 2 5. The term of an agreement shall not exceed five years 4 3 from the date of the agreement. However, the agreement may be 4 4 renewed. 4 5 6. As part of the agreement, the employer shall agree to 4 6 interview graduating participants for full-time positions with 4 7 the employer and to provide future hiring preferences to 4 8 graduates of the accelerated career education program provided 4 9 for in the agreement. 4 10 7. As part of an agreement, if an employer has more than 4 11 four sponsored participants in the program, the employer shall 4 12 agree to offer a program job position of full-time employment 4 13 to at least twenty-five percent of those participants who 4 14 successfully complete the program. 4 15 8. An agreement shall provide for a wage level of no less 4 16 than two hundred percent of the federal poverty level for a 4 17 family of two as defined by the most recently revised poverty 4 18 income guidelines as published by the United States department 4 19 of health and human services at the time the agreement is 4 20 entered into. The wage level shall be recertified for each 4 21 year provided in the agreement on the anniversary of the 4 22 effective date of the agreement. 4 23 9. An agreement shall allow an employer to decline to 4 24 satisfy any provisions in the agreement relating to 4 25 subsections 6 and 7 if an employer experiences an economic 4 26 downturn. For purposes of this subsection, "economic 4 27 downturn" may include a layoff of existing employees, reduced 4 28 employment levels, increased inventories, or reduced sales, if 4 29 specified in the agreement. 4 30 10. Participants shall agree to interview with the 4 31 employer following completion of the accelerated career 4 32 education program. 4 33 11. An agreement shall provide for employer default 4 34 procedures. 4 35 Sec. 4. NEW SECTION. 260G.4 PROGRAM ELIGIBILITY AND 5 1 DESIGNATION. 5 2 1. Any of the following community college programs are 5 3 eligible for designation and approval as an accelerated career 5 4 education program by the board of directors: 5 5 a. A credit career, vocational, or technical education 5 6 program resulting in the conferring of a certificate, diploma, 5 7 associate of science degree, or associate of applied science 5 8 degree, which increases program capacity to enroll added 5 9 participants. 5 10 b. A credit equivalent career, vocational, or technical 5 11 educational program consisting of not less than five hundred 5 12 forty contact hours of classroom and laboratory instruction 5 13 and resulting in the conferring of a certificate or other 5 14 recognized, competency-based credential, which increases 5 15 program capacity to enroll added participants. 5 16 2. Program costs shall be calculated or recalculated on an 5 17 annual basis based on the required program services and for a 5 18 specific number of participant positions. 5 19 Sec. 5. NEW SECTION. 260G.5 PROGRAM JOB CREDITS FROM 5 20 WITHHOLDING. 5 21 In order to develop and retain program jobs within the 5 22 state, an agreement entered into under section 260G.3 may 5 23 include a provision for program job credits based on program 5 24 jobs identified in the agreement. If a program provides that 5 25 part of the program costs are to be met by receipt of program 5 26 job credits, the method to be used shall be as follows: 5 27 1. Program job credits shall be based upon the program job 5 28 positions identified and agreed to in the agreement. 5 29 2. Eligibility for program job credits shall be based on 5 30 certification of program job positions and program job wages 5 31 by the employer at the time established in the agreement. An 5 32 amount up to twelve percent of the gross program job wage as 5 33 certified by the employer in the agreement shall be credited 5 34 from the total payment made by an employer pursuant to section 5 35 422.16. The employer shall receive a credit against all 6 1 withholding taxes due by the employer regardless of whether or 6 2 not the withholding by the employer of current program job 6 3 wages is less than twelve percent. The employer shall remit 6 4 the amount of the credit quarterly in the same manner as 6 5 withholding payments are reported to the department of revenue 6 6 and finance, to the community college to be allocated to and 6 7 when collected paid into a special fund of the community 6 8 college to pay, in part, the program costs. When the program 6 9 costs have been paid, the employer credits shall cease and any 6 10 moneys received after the program costs have been paid shall 6 11 be remitted to the treasurer of state to be deposited in the 6 12 general fund of the state. 6 13 3. The employer shall certify to the department of revenue 6 14 and finance that the program job credit is in accordance with 6 15 the agreement and shall provide other information the 6 16 department may require. 6 17 4. A community college shall certify to the department of 6 18 revenue and finance that the amount of the program job credit 6 19 is in accordance with an agreement and shall provide other 6 20 information the department may require. 6 21 5. Employees from an employer participating in an 6 22 agreement shall receive full credit for the amount withheld as 6 23 provided in section 422.16. 6 24 Sec. 6. NEW SECTION. 260G.6 MAXIMUM STATEWIDE PROGRAM 6 25 JOB CREDIT. 6 26 1. The total amount of program job credits from all 6 27 employers which shall be allocated for all accelerated career 6 28 education programs in the state in any one fiscal year shall 6 29 not exceed the sum of five million dollars in the fiscal year 6 30 beginning July 1, 1999, ten million dollars in the fiscal year 6 31 beginning July 1, 2000, and ten million dollars in the fiscal 6 32 year beginning July 1, 2001, and every fiscal year thereafter. 6 33 Any increase in program job credits above the ten-million- 6 34 dollar limitation per fiscal year shall be developed, based on 6 35 recommendations in a study which shall be conducted by the 7 1 department of economic development of the needs and 7 2 performance of approved programs in the fiscal years beginning 7 3 July 1, 1999, and July 1, 2000. The study's findings and 7 4 recommendations shall be submitted to the general assembly by 7 5 the department by December 31, 2001. The study shall include 7 6 but not be limited to an examination of the quality of the 7 7 programs, the number of program participant placements, the 7 8 wages and benefits in program jobs, the level of employer 7 9 contributions, the size of participating employers, and 7 10 employer locations. A community college shall file a copy of 7 11 each agreement with the department of economic development. 7 12 The department shall maintain an annual record of the proposed 7 13 program job credits under each agreement for each fiscal year. 7 14 Upon receiving a copy of an agreement, the department shall 7 15 allocate any available amount of program job credits to the 7 16 community college according to the agreement sufficient for 7 17 the fiscal year and for the term of the agreement. When the 7 18 total available program job credits are allocated for a fiscal 7 19 year, the department shall notify all community colleges that 7 20 the maximum amount has been allocated and that further program 7 21 job credits will not be available for the remainder of the 7 22 fiscal year. Once program job credits have been allocated to 7 23 a community college, the full allocation shall be received by 7 24 the community college throughout the fiscal year and for the 7 25 term of the agreement even if the statewide program job credit 7 26 maximum amount is subsequently allocated and used. 7 27 2. For the fiscal years beginning July 1, 1999, and July 7 28 1, 2000, the department of economic development shall allocate 7 29 one hundred thirty-five thousand dollars of the first two 7 30 million twenty-five thousand dollars of program job credits 7 31 authorized and available for that fiscal year to each 7 32 community college. This allocation shall be used by each 7 33 community college to provide funding for approved programs. 7 34 For the fiscal year beginning July 1, 2001, and for every 7 35 fiscal year thereafter, the department of economic development 8 1 shall divide equally among the community colleges thirty 8 2 percent of the program job credits available for that fiscal 8 3 year for allocation to each community college to be used to 8 4 provide funding for approved programs. If any portion of the 8 5 allocation to a community college under this subsection has 8 6 not been committed by April 1 of the fiscal year for which the 8 7 allocation is made, the uncommitted portion is available for 8 8 use by other community colleges. Once a community college has 8 9 committed its allocation for any fiscal year under this 8 10 subsection, the community college may receive additional 8 11 program job credit allocations from those program job credits 8 12 authorized and still available for that fiscal year. 8 13 Sec. 7. NEW SECTION. 260G.7 FACILITATOR. 8 14 The department of economic development shall administer the 8 15 statewide allocations of program job credits to accelerated 8 16 career education programs. The department shall collect data 8 17 related to the programs and prepare an annual report regarding 8 18 the activities of the programs during the previous fiscal 8 19 year. The report shall be submitted to the governor and the 8 20 general assembly by December 31 of each year. 8 21 Sec. 8. NEW SECTION. 260G.8 CUSTOMER TRACKING SYSTEM. 8 22 All participants in an accelerated career education program 8 23 shall be included in the customer tracking system implemented 8 24 by the department of workforce development pursuant to section 8 25 84A.5 following program completion. 8 26 Sec. 9. NEW SECTION. 260G.9 PROGRAM CAPITAL FUNDS 8 27 ALLOCATION. 8 28 If moneys are appropriated by the general assembly to 8 29 support program capital costs, the moneys shall be allocated 8 30 according to rules adopted by the department pursuant to 8 31 chapter 17A. In order to receive such moneys a program 8 32 agreement approved by the community college board of directors 8 33 must be in place, program capital cost requests shall be 8 34 approved by the Iowa economic development board created in 8 35 section 15.103, program capital cost requests shall be 9 1 approved or denied not later than sixty days following receipt 9 2 of the request by the department, and employer contributions 9 3 toward program capital costs shall be certified and agreed to 9 4 in the agreement. 9 5 Sec. 10. Section 15.342A, Code 1999, is amended to read as 9 6 follows: 9 7 15.342A WORKFORCE DEVELOPMENT FUND ACCOUNT. 9 8 A workforce development fund account is established in the 9 9 office of the treasurer of state under the control of the 9 10 department. The account shall receive funds pursuant to 9 11 section 422.16A up to a maximum oftennine million dollars 9 12 per year. 9 13 Sec. 11. Section 422.16A, Code 1999, is amended to read as 9 14 follows: 9 15 422.16A JOB TRAINING WITHHOLDING – CERTIFICATION AND 9 16 TRANSFER. 9 17 Upon the completion by a business of its repayment 9 18 obligation for a training project funded under chapter 260E, 9 19 including a job training project funded under section 15A.8 or 9 20 repaid in whole or in part by the supplemental new jobs credit 9 21 from withholding under section 15A.7 or section 15.331, the 9 22 sponsoring community college shall report to the department of 9 23 economic development the amount of withholding paid by the 9 24 business to the community college during the final twelve 9 25 months of withholding payments. The department of economic 9 26 development shall notify the department of revenue and finance 9 27 of that amount. The department shall credit to the workforce 9 28 development fund account established in section 15.342A 9 29 twenty-five percent of that amount each quarter for a period 9 30 of ten years. If the amount of withholding from the business 9 31 or employer is insufficient, the department shall prorate the 9 32 quarterly amount credited to the workforce development fund 9 33 account. The maximum amount from all employers which shall be 9 34 transferred to the workforce development fund account in any 9 35 year istennine million dollars. 10 1 Sec. 12. EFFECTIVE DATE. This Act, being deemed of 10 2 immediate importance, takes effect upon enactment. 10 3 10 4 10 5 10 6 MARY E. KRAMER 10 7 President of the Senate 10 8 10 9 10 10 10 11 BRENT SIEGRIST 10 12 Speaker of the House 10 13 10 14 I hereby certify that this bill originated in the Senate and 10 15 is known as Senate File 465, Seventy-eighth General Assembly. 10 16 10 17 10 18 10 19 MICHAEL E. MARSHALL 10 20 Secretary of the Senate 10 21 Approved , 1999 10 22 10 23 10 24 10 25 THOMAS J. VILSACK 10 26 Governor
Text: SF00464 Text: SF00466 Text: SF00400 - SF00499 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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