Senate File 2353 S-5158 Amend Senate File 2353 as follows: 1 1. By striking everything after the enacting clause 2 and inserting: 3 < Section 1. SHORT TITLE. This Act shall be known 4 and may be cited as the “Iowa Apprenticeship and Job 5 Training Act”. 6 Sec. 2. Section 15.108, subsection 6, paragraph a, 7 Code 2014, is amended to read as follows: 8 a. Coordinate and perform the duties specified 9 under the Iowa industrial new jobs training Act in 10 chapter 260E , the Iowa jobs job training Act in chapter 11 260F , and the workforce development fund in section 12 15.341 . 13 Sec. 3. Section 15.343, subsection 2, paragraph a, 14 Code 2014, is amended to read as follows: 15 a. Projects under chapter 260F . The authority 16 shall may require a match from all businesses 17 participating in a training project under chapter 260F . 18 Sec. 4. Section 15.343, subsection 3, Code 2014, 19 is amended by striking the subsection and inserting in 20 lieu thereof the following: 21 3. a. The authority shall transfer not more than 22 five million dollars of the moneys in the workforce 23 development fund to the job training fund established 24 pursuant to section 260F.6. 25 b. Moneys in the job training fund shall be 26 allocated as provided in section 260F.6, subsection 3. 27 Sec. 5. Section 260C.18A, subsection 2, paragraph 28 b, Code 2014, is amended by striking the paragraph and 29 inserting in lieu thereof the following: 30 b. Projects that would meet all the requirements 31 of a project under chapter 260F, whether or not the 32 project is actually being funded under chapter 260F. 33 The authority may advise a community college on how a 34 project would be treated for purposes of chapter 260F. 35 Sec. 6. Section 260F.1, Code 2014, is amended to 36 read as follows: 37 260F.1 Title. 38 This chapter shall be known and may be cited as the 39 “Iowa Jobs Job Training Act” . 40 Sec. 7. Section 260F.2, subsections 1, 5, 6, 8, and 41 11, Code 2014, are amended to read as follows: 42 1. “Agreement” is the agreement means a contract 43 between a business and a community college the 44 authority concerning a project. 45 5. “Eligible business” or “business” means a 46 business training employees which is engaged in 47 interstate or intrastate commerce for the purpose of 48 manufacturing, processing, or assembling products, 49 conducting research and development, or providing 50 -1- SF2353.4069 (1) 85 ad/rj 1/ 10 #1.

services in interstate commerce, but excludes retail, 1 health, or professional services and which meets the 2 other criteria established by the authority. “Eligible 3 business” does not include a business whose training 4 costs can be economically funded under chapter 260E , 5 a business which closes or substantially reduces its 6 employment base in order to relocate substantially 7 the same operation to another area of the state, or a 8 business which is involved in a strike, lockout, or 9 other labor dispute in Iowa that proposes to train 10 employees as part of a project and that meets all the 11 conditions of section 260F.3 . 12 6. “Employee” means a person currently employed by 13 a an eligible business or who will be employed upon 14 successful completion of a project and who is to be 15 trained as part of a project . However, “employee” does 16 not include a person with executive responsibilities or 17 a replacement workers who are worker hired as a result 18 of a strike, lockout, or other labor dispute in Iowa. 19 8. “Participating business” means a business 20 training employees which enters that has entered into 21 an agreement with the community college . 22 11. “Project” means a training arrangement which 23 that is the subject of an agreement entered into 24 between the community college and a business to 25 provide program services. “Project” also means an 26 authority-sponsored training arrangement which is 27 sponsored by the authority and administered under 28 sections 260F.6A and 260F.6B and that is primarily 29 focused on meeting the workforce needs of an eligible 30 business . A project includes but is not limited 31 to training or retraining of employees, adult basic 32 education, job-related instruction, vocation and 33 skill-assessment services and testing, tuition and 34 classroom instruction for coursework at a community 35 college or a regents institution, and training 36 equipment, supplies, and materials. A project does 37 not include coursework that will be counted toward an 38 advanced or graduate degree earned by an employee. 39 Sec. 8. Section 260F.2, Code 2014, is amended by 40 adding the following new subsections: 41 NEW SUBSECTION . 1A. “Apprentice” means a person 42 who is at least sixteen years of age, except where a 43 higher minimum age is required by law, who is employed 44 in an apprenticeable occupation, and is registered in 45 Iowa with the United States department of labor, office 46 of apprenticeship. 47 NEW SUBSECTION . 1B. “Apprenticeable occupation” 48 means an occupation approved for apprenticeship by 49 the United States department of labor, office of 50 -2- SF2353.4069 (1) 85 ad/rj 2/ 10

apprenticeship. 1 NEW SUBSECTION . 1C. “Apprenticeship program” means 2 a program registered with the United States department 3 of labor, office of apprenticeship, which includes 4 the terms and conditions for the qualification, 5 recruitment, selection, employment, and training of 6 apprentices, including the requirement for a written 7 apprenticeship agreement. 8 NEW SUBSECTION . 1D. “Apprenticeship sponsor” means 9 an entity operating an apprenticeship program or an 10 entity in whose name an apprenticeship program is 11 being operated, which is registered with or approved 12 by the United States department of labor, office of 13 apprenticeship. 14 NEW SUBSECTION . 2A. “Commencement date” means the 15 date on which a proposed project is scheduled to begin. 16 NEW SUBSECTION . 5A. “Eligible research and 17 development” means activities that meet the definition 18 of research activities under section 422.10 even if the 19 business has not actually claimed a research activities 20 tax credit. 21 NEW SUBSECTION . 6A. “Financial assistance” means 22 assistance provided only from the funds, rights, and 23 assets legally available to the authority and includes 24 but is not limited to assistance in the form of grants, 25 loans, forgivable loans, and royalty payments. 26 NEW SUBSECTION . 6B. “Fund” means the job training 27 fund created in section 260F.6. 28 NEW SUBSECTION . 7A. “Lead apprenticeship sponsor” 29 means a trade organization, labor organization, 30 employer association, or other incorporated entity 31 representing a group of apprenticeship sponsors. 32 NEW SUBSECTION . 11A. “Providing services in 33 interstate commerce” means the provision of the 34 majority of a business’s sales to customers located 35 outside of Iowa. 36 Sec. 9. Section 260F.2, subsections 4, 7, 9, and 37 10, Code 2014, are amended by striking the subsections. 38 Sec. 10. Section 260F.3, Code 2014, is amended by 39 striking the section and inserting in lieu thereof the 40 following: 41 260F.3 Eligible business. 42 To be eligible for financial assistance for a 43 project under this chapter, a business shall meet all 44 of the following conditions: 45 1. Is manufacturing, processing, or assembling 46 products for sale in interstate or intrastate commerce, 47 is conducting eligible research and development in 48 this state, is engaged in the business of commercial 49 construction, or is providing services in interstate 50 -3- SF2353.4069 (1) 85 ad/rj 3/ 10

commerce. 1 2. Is not a retail business, a health care 2 business, or a business engaged in the provision of 3 professional services. 4 3. Is proposing training for a project that cannot 5 be economically funded under the industrial new jobs 6 training program pursuant to chapter 260E. 7 4. Demonstrates a need for certain job skills not 8 adequately represented among the business’s existing 9 workforce. 10 5. Has not closed or substantially reduced 11 operations in one area of the state in order to locate 12 substantially the same operations to another area of 13 the state. 14 6. Is not actively engaged in a strike, lockout, or 15 other labor dispute in Iowa. 16 7. Is not eligible to receive funding under section 17 260F.5 either directly as an apprenticeship sponsor or 18 as an entity participating under a lead apprenticeship 19 sponsor. 20 8. Meets any other conditions as established by the 21 authority by rule. 22 Sec. 11. NEW SECTION . 260F.4 Financial assistance 23 for an eligible business. 24 1. a. An eligible business may apply to the 25 authority for financial assistance for a project. 26 b. The authority may establish by rule a maximum 27 benefit amount for any one project and a maximum 28 aggregate benefit amount that may be awarded to any one 29 eligible business. 30 2. Financial assistance to eligible businesses 31 shall be provided under the following terms and 32 conditions: 33 a. For training that is conducted by community 34 college faculty or staff, at a community college 35 facility, and according to a curriculum that complies 36 with industry-recognized standards, the financial 37 assistance shall be in the form of a grant or a 38 forgivable loan in an amount equal to one hundred 39 percent of the cost of the project. 40 b. If training in accordance with 41 industry-recognized standards that results in a 42 portable credential needed for a skilled trade is 43 not available through a community college in close 44 proximity to a business, the business can utilize a 45 statewide industry association to facilitate training 46 that utilizes industry-recognized standards, resulting 47 in portable credentials for the specific skilled trade. 48 For this type of training, the financial assistance 49 shall be in the form of a grant or a forgivable loan in 50 -4- SF2353.4069 (1) 85 ad/rj 4/ 10

an amount equal to one hundred percent of the training 1 costs incurred. 2 c. For a project other than one described in 3 paragraph “a” or “b” , the financial assistance shall be 4 in the form of a loan in an amount equal to one hundred 5 percent of the cost of the project to be disbursed 6 initially but with a required future repayment of fifty 7 percent of the cost of the project at an interest of 8 zero percent. 9 d. Any other terms and conditions typically 10 required by the authority when providing financial 11 assistance. 12 3. The authority shall deposit all repayments 13 collected pursuant to this section in the fund and 14 shall make the moneys available to other eligible 15 businesses for purposes of this section. 16 4. An eligible business applying for financial 17 assistance under this section shall provide the 18 following information to the authority: 19 a. A detailed description of the proposed project, 20 an explanation of how the project would meet the 21 business’s skilled workforce needs, and an assessment 22 regarding the feasibility of meeting the training needs 23 through a community college. The authority may require 24 any information reasonably necessary to determine the 25 necessity, suitability, and feasibility of the proposed 26 project. 27 b. The date or dates on which the proposed project 28 will be conducted. 29 c. The number of employees to be trained and the 30 title and position description of each employee to be 31 trained. 32 d. The estimated cost to the business of the 33 proposed project. 34 e. Any other information the authority reasonably 35 determines is necessary. 36 5. An eligible business receiving financial 37 assistance pursuant to this section shall enter 38 into an agreement with the authority regarding the 39 project. The agreement shall include all provisions 40 necessary for the implementation of this section and 41 any provisions the authority typically includes in a 42 contract for the provision of financial assistance. 43 Sec. 12. NEW SECTION . 260F.5 Financial assistance 44 for an apprenticeship program. 45 1. a. An apprenticeship sponsor or lead 46 apprenticeship sponsor conducting apprenticeship 47 programs registered with the United States department 48 of labor, office of apprenticeship, through Iowa, for 49 apprentices who will be employed at Iowa worksites may 50 -5- SF2353.4069 (1) 85 ad/rj 5/ 10

apply to the authority for financial assistance under 1 this section. 2 b. Financial assistance received by an 3 apprenticeship sponsor or lead apprenticeship sponsor 4 under this section shall be used only for the cost of 5 conducting and maintaining an apprenticeship program. 6 2. The authority shall provide financial assistance 7 to apprenticeship sponsors or lead apprenticeship 8 sponsors in the following manner: 9 a. By determining the total amount of funding 10 allocated for purposes of apprenticeship programs 11 pursuant to section 260F.6. 12 b. By adding together all of the following: 13 (1) The total number of apprentices trained by all 14 applying apprenticeship sponsors or lead apprenticeship 15 sponsors during the most recent training year as 16 calculated on the last day of the training year. 17 (2) The total number of contact hours that 18 apprenticeship instructors for all applying 19 apprenticeship sponsors or lead apprenticeship 20 sponsors spent in contact with apprentices during 21 the most recent training year. For purposes of this 22 subparagraph, “contact hours” includes the time spent 23 instructing apprentices in person or, in the case of 24 a lead apprenticeship sponsor with programs totaling 25 one hundred or more total instructional hours, “contact 26 hours” includes the time spent in online training if 27 the total amount of online instruction does not account 28 for more than thirty percent of the total instructional 29 hours. 30 c. By adding together all of the following: 31 (1) The total number of apprentices trained by 32 a single applying apprenticeship sponsor or lead 33 apprenticeship sponsor during the most recent training 34 year as calculated on the last day of the training 35 year. 36 (2) The total number of contact hours that 37 apprenticeship instructors for a single applying 38 apprenticeship sponsor or lead apprenticeship 39 sponsor spent in contact with apprentices during 40 the most recent training year. For purposes of this 41 subparagraph, “contact hours” includes the time spent 42 instructing apprentices in person or, in the case of 43 a lead apprenticeship sponsor with programs totaling 44 one hundred or more total instructional hours, “contact 45 hours” includes the time spent in online training if 46 the total amount of online instruction does not account 47 for more than thirty percent of the total instructional 48 hours. 49 d. By determining the proportion, stated as a 50 -6- SF2353.4069 (1) 85 ad/rj 6/ 10

percentage, that a single applying apprenticeship 1 sponsor’s or lead apprenticeship sponsor’s total 2 calculated pursuant to paragraph “c” bears to 3 all applying apprenticeship sponsors’ or lead 4 apprenticeship sponsors’ total calculated pursuant to 5 paragraph “b” . 6 e. By multiplying the percentage calculated in 7 paragraph “d” by the amount determined in paragraph 8 “a” . 9 3. An apprenticeship sponsor or lead apprenticeship 10 sponsor seeking financial assistance under this 11 section shall provide the following information to the 12 authority: 13 a. The federal apprentice registration number of 14 each apprentice in the apprenticeship program. 15 b. The address and a description of the physical 16 location where in-person training is conducted. 17 c. A certification of the apprenticeship sponsor’s 18 training standards as most recently approved by 19 the United States department of labor, office of 20 apprenticeship or, in the case of a lead apprenticeship 21 sponsor, a representative sample of participating 22 members’ training standards. 23 d. A certification of the apprenticeship sponsor’s 24 compliance review or quality assessment as most 25 recently conducted by the United States department 26 of labor, office of apprenticeship, unless the 27 apprenticeship sponsor has not been subjected to 28 a compliance review or quality assessment. In the 29 case of a lead apprenticeship sponsor, a sampling 30 of compliance reviews or quality assessments from 31 participating members shall be sufficient. 32 e. Any other information the authority reasonably 33 determines is necessary. 34 4. The apprenticeship sponsor or lead 35 apprenticeship sponsor and the authority shall 36 enter into an agreement regarding the provision of any 37 financial assistance to the apprenticeship sponsor or 38 lead apprenticeship sponsor. 39 Sec. 13. Section 260F.6, subsection 1, Code 2014, 40 is amended to read as follows: 41 1. There is established for the community colleges 42 a A job training fund is created in the state treasury 43 under the control of the economic development authority 44 in the workforce development fund. The job training 45 fund consists consisting of any moneys appropriated for 46 the purposes of this chapter , plus the any interest and 47 principal from repayment of advances made to businesses 48 for program costs, plus the or earnings on moneys in 49 the fund, any repayments , including interest, of loans 50 -7- SF2353.4069 (1) 85 ad/rj 7/ 10

made from that retraining fund, and interest earned 1 from moneys in the job training fund or recaptures of 2 financial assistance provided from the fund, and any 3 other moneys lawfully available to the authority that 4 may be deposited in the fund . 5 Sec. 14. Section 260F.6, subsections 2 and 3, Code 6 2014, are amended by striking the subsections and 7 inserting in lieu thereof the following: 8 2. Moneys in the fund are appropriated to the 9 authority for purposes of providing financial 10 assistance for job training pursuant to this chapter. 11 3. a. Of the moneys transferred or appropriated to 12 the fund pursuant to section 15.343 or pursuant to any 13 other appropriation, the authority shall allocate forty 14 percent of the moneys for purposes of section 260F.4 15 and sixty percent of the moneys for purposes of section 16 260F.5. 17 b. Notwithstanding paragraph “a” , moneys from 18 repayments and recaptures of funds loaned pursuant 19 to section 260F.4 shall be allocated for purposes of 20 section 260F.4. 21 Sec. 15. Section 260F.6, Code 2014, is amended by 22 adding the following new subsection: 23 NEW SUBSECTION . 4. The authority may annually 24 expend not more than two percent of moneys in the 25 fund for administrative purposes. If the authority’s 26 administrative costs are less than two percent of the 27 moneys in the fund, the authority shall expend the 28 unused moneys for purposes of financial assistance. 29 Sec. 16. Section 403.21, subsections 1 and 3, Code 30 2014, are amended to read as follows: 31 1. In order to promote communication and 32 cooperation among cities, counties, and community 33 colleges with respect to the allocation and division 34 of taxes, no jobs training projects as defined in 35 chapter 260E or 260F shall be undertaken within the 36 area of operation of a municipality after July 1, 1995, 37 unless the municipality and the community college 38 have entered into an agreement or have jointly adopted 39 a plan relating to a community college’s new jobs 40 training program which shall provide for a procedure 41 for advance notification to each affected municipality, 42 for exchange of information, for mutual consultation, 43 and for procedural guidelines for all such new jobs 44 training projects, including related project financing 45 to be undertaken within the area of operation of the 46 municipality. The joint agreement or the plan shall 47 state its precise duration and shall be binding on the 48 community college and the municipality with respect 49 to all new jobs training projects, including related 50 -8- SF2353.4069 (1) 85 ad/rj 8/ 10

project financing undertaken during its existence. 1 The joint agreement or plan shall be effective upon 2 adoption and shall be placed on file in the office 3 of the secretary of the board of directors of the 4 community college and such other location as may be 5 stated in the joint agreement or plan. The joint 6 agreement or plan shall also be sent to each school 7 district which levied or certified for levy a property 8 tax on any portion of the taxable property located 9 in the area of operation of the municipality in the 10 fiscal year beginning prior to the calendar year in 11 which the plan is adopted or the agreement is reached. 12 If no such agreement is reached or plan adopted, the 13 community college shall not use incremental property 14 tax revenues to fund jobs training projects within the 15 area of operation of the municipality. Agreements 16 entered into between a community college and a city or 17 county pursuant to chapter 28E shall not apply. 18 3. The community college shall send a copy of the 19 final agreement prepared pursuant to section 260F.3 to 20 the economic development authority. For each year in 21 which incremental property taxes are used to retire 22 debt service on a jobs training advance issued for 23 a project creating new jobs, the community college 24 shall provide to the economic development authority a 25 report of the incremental property taxes and new jobs 26 credits from withholding generated for that year, a 27 specific description of the training conducted, the 28 number of employees provided program services under the 29 project, the median wage of employees in the new jobs 30 in the project, and the administrative costs directly 31 attributable to the project. 32 Sec. 17. Section 558.1, Code 2014, is amended to 33 read as follows: 34 558.1 “Instruments affecting real estate” defined —— 35 revocation. 36 All instruments containing a power to convey, or in 37 any manner relating to real estate, including certified 38 copies of petitions in bankruptcy with or without the 39 schedules appended, of decrees of adjudication in 40 bankruptcy, and of orders approving trustees’ bonds 41 in bankruptcy, and a jobs training agreement entered 42 into under chapter 260E or 260F between an employer 43 and community college which contains a description 44 of the real estate affected, shall be held to be 45 instruments affecting the same; and no such instrument, 46 when acknowledged or certified and recorded as in this 47 chapter prescribed, can be revoked as to third parties 48 by any act of the parties by whom it was executed, 49 until the instrument containing such revocation is 50 -9- SF2353.4069 (1) 85 ad/rj 9/ 10

acknowledged and filed for record in the same office 1 in which the instrument containing such power is 2 recorded, except that uniform commercial code financing 3 statements and financing statement changes as provided 4 in chapter 554 need not be thus acknowledged. 5 Sec. 18. REPEAL. Sections 260F.6A, 260F.6B, 6 260F.7, and 260F.8, Code 2014, are repealed. 7 Sec. 19. TRANSITION PROVISIONS. 8 1. A financial assistance award made or provided 9 for in an agreement entered into pursuant to section 10 260F.3 prior to the effective date of this Act shall 11 continue as provided in such agreement. 12 2. Loan payments or repayments and recaptures of 13 principal, interest, or other moneys accruing on or 14 after July 1, 2014, pursuant to an agreement under 15 section 260F.3, as in effect prior to July 1, 2014, 16 shall be transferred to the job training fund created 17 in section 260F.6, as amended by this Act. > 18 ______________________________ JAKE CHAPMAN -10- SF2353.4069 (1) 85 ad/rj 10/ 10