Text: SSB03186 Text: SSB03188 Text: SSB03100 - SSB03199 Text: SSB 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 five million dollars in the fiscal year 3 12 beginning July 1, 2000, ten million dollars in the fiscal year 3 13 beginning July 1, 2001, and ten 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 ten-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 one hundred thirty-five thousand dollars of the first two 4 12 million twenty-five thousand dollars of program job credits 4 13 authorized and available for that fiscal year to each 4 14 community college. This allocation shall be used by each 4 15 community college to provide funding for approved programs. 4 16 For the fiscal year beginning July 1, 2002, and for every 4 17 fiscal year thereafter, the department of economic development 4 18 shall divide equally among the community colleges thirty 4 19 percent of the program job credits available for that fiscal 4 20 year for allocation to each community college to be used to 4 21 provide funding for approved programs. If any portion of the 4 22 allocation to a community college under this subsection has 4 23 not been committed by April 1 of the fiscal year for which the 4 24 allocation is made, the uncommitted portion is available for 4 25 use by other community colleges. Once a community college has 4 26 committed its allocation for any fiscal year under this 4 27 subsection, the community college may receive additional 4 28 program job credit allocations from those program job credits 4 29 authorized and 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. 261.22 ACCELERATED CAREER EDUCATION 5 4 GRANTS. 5 5 1. An accelerated career education grant program is 5 6 established to be administered by the college student aid 5 7 commission. An individual is eligible for the grant program 5 8 if the individual is a resident of this state who is enrolled 5 9 at a community college as a participant in an accelerated 5 10 career education program in accordance with the provisions of 5 11 chapter 260G. The college student aid commission shall adopt 5 12 rules pursuant to chapter 17A for determining financial need 5 13 and to administer this section. 5 14 2. To be eligible to receive a grant under this section, 5 15 an applicant shall, in accordance with the rules of the 5 16 commission, do the following: 5 17 a. Complete and file an application for an accelerated 5 18 career education grant. The individual shall be responsible 5 19 for the prompt submission of any information required by the 5 20 commission. 5 21 b. File a new application and submit information as 5 22 required by the commission annually on the basis of which the 5 23 applicant's eligibility for the renewed grant will be 5 24 evaluated and determined. 5 25 3. If a student receives financial aid from any source 5 26 other than the program established under this section, the 5 27 full amount of such financial aid shall be considered part of 5 28 the student's financial resources available in determining the 5 29 amount of the student's financial need for the period of the 5 30 financial aid. Grant moneys received by a student in 5 31 accordance with this section shall be used to pay the 5 32 student's cost of attendance, which includes community college 5 33 tuition and fees, materials, textbooks and supplies, 5 34 transportation, room and board, dependent care during the time 5 35 the person is in class, and the purchase or rental of a 6 1 computer. 6 2 4. The amount of the grant shall not exceed a student's 6 3 annual financial need or two thousand dollars, whichever is 6 4 less. The commission may provide for proration of funds if 6 5 the available funds are insufficient to pay all approved 6 6 grants. Such proration shall take primary account of the 6 7 financial need of the applicant. 6 8 5. An accelerated career education grant fund is created 6 9 in the state treasury as a separate fund under the control of 6 10 the commission. Moneys in the fund shall be used for 6 11 accelerated career education grants. The fund shall consist 6 12 of any moneys appropriated by the general assembly and any 6 13 other moneys available to and obtained or accepted by the 6 14 commission from the federal government or private sources for 6 15 placement in the fund. Notwithstanding section 8.33, any 6 16 balance in the fund on June 30 of each fiscal year shall not 6 17 revert to the general fund of the state, but shall be 6 18 available for the purposes of this section in subsequent 6 19 fiscal years. 6 20 6. By December 15 of each year, the commission shall 6 21 submit a report to the general assembly, the department of 6 22 management, and the legislative fiscal bureau including, but 6 23 not limited to, all of the following data: 6 24 a. The total funding of the grant program for the previous 6 25 fiscal year itemized by type of funding including state, 6 26 federal, or other funding. The information shall also be 6 27 provided according to each community college. 6 28 b. The expenditures under the grant program and related 6 29 information of the grant program including, but not limited 6 30 to, all of the following: 6 31 (1) The number of participants in the accelerated career 6 32 education program receiving moneys under the grant program. 6 33 (2) The number of participants in the accelerated career 6 34 education program receiving moneys under the grant program who 6 35 remain in the state upon completion of a program agreement. 7 1 (3) The number of participants in the accelerated career 7 2 education program receiving moneys under the grant program who 7 3 successfully complete a program agreement and the number who 7 4 fail to successfully complete a program agreement. 7 5 c. Any other information requested by the general 7 6 assembly. 7 7 Sec. 8. Section 422.16A, Code 1999, is amended to read as 7 8 follows: 7 9 422.16A JOB TRAINING WITHHOLDING – CERTIFICATION AND 7 10 TRANSFER. 7 11 Upon the completion by a business of its repayment 7 12 obligation for a training project funded under chapter 260E, 7 13 including a job training project funded under section 15A.8 or 7 14 repaid in whole or in part by the supplemental new jobs credit 7 15 from withholding under section 15A.7 or section 15.331, the 7 16 sponsoring community college shall report to the department of 7 17 economic development the amount of withholding paid by the 7 18 business to the community college during the final twelve 7 19 months of withholding payments. The department of economic 7 20 development shall notify the department of revenue and finance 7 21 of that amount. The department shall credit to the workforce 7 22 development fund account established in section 15.342A 7 23 twenty-five percent of that amount each quarter for a period 7 24 of ten years. If the amount of withholding from the business 7 25 or employer is insufficient, the department shall prorate the 7 26 quarterly amount credited to the workforce development fund 7 27 account. The maximum amount from all employers which shall be 7 28 transferred to the workforce development fund account in any 7 29 year istennine million dollars. 7 30 Sec. 9. EFFECTIVE DATE. This Act, being deemed of 7 31 immediate importance, takes upon enactment. 7 32 EXPLANATION 7 33 This bill amends the accelerated career education program 7 34 which was enacted in 1999. The bill restores all of the 7 35 language that was item vetoed by the governor. 8 1 The bill provides that a possible funding source which 8 2 could be used to pay for program costs includes tax credits 8 3 from withholding. 8 4 The bill provides that the method for using the tax credit 8 5 from withholding, which is one option for paying for the 8 6 program costs. The bill provides that an amount up to 10 8 7 percent of the gross wages of the program jobs in an agreement 8 8 shall be credited from the total payment made by the employer. 8 9 The credit shall be against all withholding taxes due by the 8 10 employer. The bill provides that the employer and community 8 11 college must make certain certifications to the department of 8 12 revenue and finance regarding how the credits are in 8 13 accordance with the program agreement. 8 14 The bill provides that the total amount of tax credits from 8 15 withholding which shall be allocated for statewide accelerated 8 16 career education programs in any one fiscal year shall not 8 17 exceed $5 million in fiscal year 2000-2001, $10 million in 8 18 fiscal year 2001-2002, and $10 million in fiscal year 2002- 8 19 2003, and every fiscal year thereafter. The bill requires 8 20 that any increase in the $10 million maximum shall be 8 21 developed based on recommendations in a study which shall be 8 22 conducted by the department of economic development and 8 23 submitted to the general assembly by December 31, 2002. The 8 24 bill provides that the department of economic development 8 25 shall maintain an annual record of tax credits allocated and 8 26 shall allocate any available credits to community colleges in 8 27 accordance with any agreements. The bill provides that once 8 28 the maximum statewide amount has been allocated, the 8 29 department shall notify all community colleges in the state of 8 30 this fact and that further credits will not be allocated 8 31 during the fiscal year. 8 32 The bill provides that for fiscal years 2000-2001 and 2001- 8 33 2002, the department of economic development shall allocate 8 34 $135,000 of the first $2,025,000 of program job credits 8 35 authorized and available to each community college in the 9 1 state for use to provide funding for approved programs. The 9 2 bill provides that for fiscal year 2002-2003, and every fiscal 9 3 year thereafter, the department shall divide equally among the 9 4 community colleges 30 percent of the program job credits 9 5 available for that fiscal year for allocation to each 9 6 community college to be used to provide funding for approved 9 7 programs. The bill provides that, by April 1 of the fiscal 9 8 year, any uncommitted portion is available for use by other 9 9 community colleges. The bill provides that once a community 9 10 college has committed its allocation for any fiscal year, the 9 11 community college may receive additional program job credit 9 12 allocations from those program job credits authorized and 9 13 still available for that fiscal year. 9 14 The bill provides that the department of economic 9 15 development shall administer the statewide allocations of 9 16 program job credits and shall collect data related to the 9 17 programs and prepare an annual report regarding the activities 9 18 of the programs for submission to the governor and the general 9 19 assembly. 9 20 The bill establishes an accelerated career education grant 9 21 program to be administered by the college student aid 9 22 commission. The bill creates an accelerated career education 9 23 grant fund consisting of moneys appropriated by the general 9 24 assembly and any other moneys available to and obtained or 9 25 accepted by the commission. To be eligible for an accelerated 9 26 career education grant, an individual must be a resident of 9 27 Iowa and enrolled at a community college as a participant in 9 28 an accelerated career education program. 9 29 The bill provides that grant moneys received by a student 9 30 shall be used to pay the student's cost of attendance, 9 31 including community college tuition and fees, materials, 9 32 textbooks and supplies, transportation, room and board, 9 33 dependent care during the time the person is in class, and the 9 34 purchase or rental of a computer. The amount of the grant 9 35 shall not exceed a student's annual financial need or $2,000, 10 1 whichever is less. 10 2 The bill provides that, by December 15 of each year, the 10 3 commission shall submit a report to the general assembly, the 10 4 department of management, and the legislative fiscal bureau 10 5 relating to the total funding of the grant program, the 10 6 expenditures under the program, and related information. 10 7 The bill reduces the maximum amount of job training 10 8 withholding that shall be transferred from all employers to 10 9 the workforce development fund account from $10 million per 10 10 year to $9 million per year. 10 11 The bill becomes effective upon enactment. 10 12 LSB 5394XC 78 10 13 tm/cls/14.2
Text: SSB03186 Text: SSB03188 Text: SSB03100 - SSB03199 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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