S-5158

   Amend Senate File 2353 as follows:
   1.  By striking everything after the enacting clause and inserting: 
   Section 1.  SHORT TITLE.  This Act shall be known and may be cited as the “Iowa Apprenticeship and Job Training Act”.
   Sec. 2.  Section 15.108, subsection 6, paragraph a, Code 2014, is amended to read as follows:
   a.  Coordinate and perform the duties specified under the Iowa industrial new jobs training Act in chapter 260E, the Iowa jobs job training Act in chapter 260F, and the workforce development fund in section 15.341.
   Sec. 3.  Section 15.343, subsection 2, paragraph a, Code 2014, is amended to read as follows:
   a.  Projects under chapter 260F. The authority shall may require a match from all businesses participating in a training project under chapter 260F.
   Sec. 4.  Section 15.343, subsection 3, Code 2014, is amended by striking the subsection and inserting in lieu thereof the following:
   3.  a.  The authority shall transfer not more than five million dollars of the moneys in the workforce development fund to the job training fund established pursuant to section 260F.6.
   b.  Moneys in the job training fund shall be allocated as provided in section 260F.6, subsection 3.
   Sec. 5.  Section 260C.18A, subsection 2, paragraph b, Code 2014, is amended by striking the paragraph and inserting in lieu thereof the following:
   b.  Projects that would meet all the requirements of a project under chapter 260F, whether or not the project is actually being funded under chapter 260F.  The authority may advise a community college on how a project would be treated for purposes of chapter 260F.
   Sec. 6.  Section 260F.1, Code 2014, is amended to read as follows:
   260F.1  Title.

   This chapter shall be known and may be cited as the “Iowa Jobs Job Training Act”.
   Sec. 7.  Section 260F.2, subsections 1, 5, 6, 8, and 11, Code 2014, are amended to read as follows:
   1.  “Agreement” is the agreement means a contract between a business and a community college the authority concerning a project.
   5.  “Eligible business” or “business” means a business training employees which is engaged in interstate or intrastate commerce for the purpose of manufacturing, processing, or assembling products, conducting research and development, or providing services in interstate commerce, but excludes retail, health, or professional services and which meets the other criteria established by the authority. “Eligible business” does not include a business whose training costs can be economically funded under chapter 260E, a business which closes or substantially reduces its employment base in order to relocate substantially the same operation to another area of the state, or a business which is involved in a strike, lockout, or other labor dispute in Iowa that proposes to train employees as part of a project and that meets all the conditions of section 260F.3.
   6.  “Employee” means a person currently employed by a an eligible business or who will be employed upon successful completion of a project and who is to be trained as part of a project. However, “employee” does not include a person with executive responsibilities or a replacement workers who are worker hired as a result of a strike, lockout, or other labor dispute in Iowa.
   8.  “Participating business” means a business training employees which enters that has entered into an agreement with the community college.
   11.  “Project” means a training arrangement which that is the subject of an agreement entered into between the community college and a business to provide program services. “Project” also means an authority-sponsored training arrangement which is sponsored by the authority and administered under sections 260F.6A and 260F.6B and that is primarily focused on meeting the workforce needs of an eligible business.  A project includes but is not limited to training or retraining of employees, adult basic education, job-related instruction, vocation and skill-assessment services and testing, tuition and classroom instruction for coursework at a community college or a regents institution, and training equipment, supplies, and materials. A project does not include coursework that will be counted toward an advanced or graduate degree earned by an employee.
   Sec. 8.  Section 260F.2, Code 2014, is amended by adding the following new subsections:
   NEW SUBSECTION.  1A.  “Apprentice” means a person who is at least sixteen years of age, except where a higher minimum age is required by law, who is employed in an apprenticeable occupation, and is registered in Iowa with the United States department of labor, office of apprenticeship.
   NEW SUBSECTION.  1B.  “Apprenticeable occupation” means an occupation approved for apprenticeship by the United States department of labor, office of apprenticeship.
   NEW SUBSECTION.  1C.  “Apprenticeship program” means a program registered with the United States department of labor, office of apprenticeship, which includes the terms and conditions for the qualification, recruitment, selection, employment, and training of apprentices, including the requirement for a written apprenticeship agreement.
   NEW SUBSECTION.  1D.  “Apprenticeship sponsor” means an entity operating an apprenticeship program or an entity in whose name an apprenticeship program is being operated, which is registered with or approved by the United States department of labor, office of apprenticeship.
   NEW SUBSECTION.  2A.  “Commencement date” means the date on which a proposed project is scheduled to begin.
   NEW SUBSECTION.  5A.  “Eligible research and development” means activities that meet the definition of research activities under section 422.10 even if the business has not actually claimed a research activities tax credit.
   NEW SUBSECTION.  6A.  “Financial assistance” means assistance provided only from the funds, rights, and assets legally available to the authority and includes but is not limited to assistance in the form of grants, loans, forgivable loans, and royalty payments.
   NEW SUBSECTION.  6B.  “Fund” means the job training fund created in section 260F.6.
   NEW SUBSECTION.  7A.  “Lead apprenticeship sponsor” means a trade organization, labor organization, employer association, or other incorporated entity representing a group of apprenticeship sponsors.
   NEW SUBSECTION.  11A.  “Providing services in interstate commerce” means the provision of the majority of a business’s sales to customers located outside of Iowa.
   Sec. 9.  Section 260F.2, subsections 4, 7, 9, and 10, Code 2014, are amended by striking the subsections.
   Sec. 10.  Section 260F.3, Code 2014, is amended by striking the section and inserting in lieu thereof the following:
   260F.3  Eligible business.

   To be eligible for financial assistance for a project under this chapter, a business shall meet all of the following conditions:

   1.  Is manufacturing, processing, or assembling products for sale in interstate or intrastate commerce, is conducting eligible research and development in this state, is engaged in the business of commercial construction, or is providing services in interstate commerce.
   2.  Is not a retail business, a health care business, or a business engaged in the provision of professional services.
   3.  Is proposing training for a project that cannot be economically funded under the industrial new jobs training program pursuant to chapter 260E.
   4.  Demonstrates a need for certain job skills not adequately represented among the business’s existing workforce.
   5.  Has not closed or substantially reduced operations in one area of the state in order to locate substantially the same operations to another area of the state.
   6.  Is not actively engaged in a strike, lockout, or other labor dispute in Iowa.
   7.  Is not eligible to receive funding under section 260F.5 either directly as an apprenticeship sponsor or as an entity participating under a lead apprenticeship sponsor.
   8.  Meets any other conditions as established by the authority by rule.
   Sec. 11.  NEW SECTION.  260F.4  Financial assistance for an eligible business.
   1.  a.  An eligible business may apply to the authority for financial assistance for a project.
   b.  The authority may establish by rule a maximum benefit amount for any one project and a maximum aggregate benefit amount that may be awarded to any one eligible business.
   2.  Financial assistance to eligible businesses shall be provided under the following terms and conditions:
   a.  For training that is conducted by community college faculty or staff, at a community college facility, and according to a curriculum that complies with industry-recognized standards, the financial assistance shall be in the form of a grant or a forgivable loan in an amount equal to one hundred percent of the cost of the project.
   b.  If training in accordance with industry-recognized standards that results in a portable credential needed for a skilled trade is not available through a community college in close proximity to a business, the business can utilize a statewide industry association to facilitate training that utilizes industry-recognized standards, resulting in portable credentials for the specific skilled trade. For this type of training, the financial assistance shall be in the form of a grant or a forgivable loan in an amount equal to one hundred percent of the training costs incurred.
   c.  For a project other than one described in paragraph “a” or “b”, the financial assistance shall be in the form of a loan in an amount equal to one hundred percent of the cost of the project to be disbursed initially but with a required future repayment of fifty percent of the cost of the project at an interest of zero percent.
   d.  Any other terms and conditions typically required by the authority when providing financial assistance.
   3.  The authority shall deposit all repayments collected pursuant to this section in the fund and shall make the moneys available to other eligible businesses for purposes of this section.
   4.  An eligible business applying for financial assistance under this section shall provide the following information to the authority:
   a.  A detailed description of the proposed project, an explanation of how the project would meet the business’s skilled workforce needs, and an assessment regarding the feasibility of meeting the training needs through a community college. The authority may require any information reasonably necessary to determine the necessity, suitability, and feasibility of the proposed project.
   b.  The date or dates on which the proposed project will be conducted.
   c.  The number of employees to be trained and the title and position description of each employee to be trained.
   d.  The estimated cost to the business of the proposed project.
   e.  Any other information the authority reasonably determines is necessary.
   5.  An eligible business receiving financial assistance pursuant to this section shall enter into an agreement with the authority regarding the project. The agreement shall include all provisions necessary for the implementation of this section and any provisions the authority typically includes in a contract for the provision of financial assistance.
   Sec. 12.  NEW SECTION.  260F.5  Financial assistance for an apprenticeship program.
   1.  a.  An apprenticeship sponsor or lead apprenticeship sponsor conducting apprenticeship programs registered with the United States department of labor, office of apprenticeship, through Iowa, for apprentices who will be employed at Iowa worksites may apply to the authority for financial assistance under this section.
   b.  Financial assistance received by an apprenticeship sponsor or lead apprenticeship sponsor under this section shall be used only for the cost of conducting and maintaining an apprenticeship program.
   2.  The authority shall provide financial assistance to apprenticeship sponsors or lead apprenticeship sponsors in the following manner:
   a.  By determining the total amount of funding allocated for purposes of apprenticeship programs pursuant to section 260F.6.
   b.  By adding together all of the following:
   (1)  The total number of apprentices trained by all applying apprenticeship sponsors or lead apprenticeship sponsors during the most recent training year as calculated on the last day of the training year.
   (2)  The total number of contact hours that apprenticeship instructors for all applying apprenticeship sponsors or lead apprenticeship sponsors spent in contact with apprentices during the most recent training year. For purposes of this subparagraph, “contact hours” includes the time spent instructing apprentices in person or, in the case of a lead apprenticeship sponsor with programs totaling one hundred or more total instructional hours, “contact hours” includes the time spent in online training if the total amount of online instruction does not account for more than thirty percent of the total instructional hours.
   c.  By adding together all of the following:
   (1)  The total number of apprentices trained by a single applying apprenticeship sponsor or lead apprenticeship sponsor during the most recent training year as calculated on the last day of the training year.
   (2)  The total number of contact hours that apprenticeship instructors for a single applying apprenticeship sponsor or lead apprenticeship sponsor spent in contact with apprentices during the most recent training year. For purposes of this subparagraph, “contact hours” includes the time spent instructing apprentices in person or, in the case of a lead apprenticeship sponsor with programs totaling one hundred or more total instructional hours, “contact hours” includes the time spent in online training if the total amount of online instruction does not account for more than thirty percent of the total instructional hours.
   d.  By determining the proportion, stated as a percentage, that a single applying apprenticeship sponsor’s or lead apprenticeship sponsor’s total calculated pursuant to paragraph “c” bears to all applying apprenticeship sponsors’ or lead apprenticeship sponsors’ total calculated pursuant to paragraph “b”.
   e.  By multiplying the percentage calculated in paragraph “d” by the amount determined in paragraph “a”.
   3.  An apprenticeship sponsor or lead apprenticeship sponsor seeking financial assistance under this section shall provide the following information to the authority:
   a.  The federal apprentice registration number of each apprentice in the apprenticeship program.
   b.  The address and a description of the physical location where in-person training is conducted.
   c.  A certification of the apprenticeship sponsor’s training standards as most recently approved by the United States department of labor, office of apprenticeship or, in the case of a lead apprenticeship sponsor, a representative sample of participating members’ training standards.
   d.  A certification of the apprenticeship sponsor’s compliance review or quality assessment as most recently conducted by the United States department of labor, office of apprenticeship, unless the apprenticeship sponsor has not been subjected to a compliance review or quality assessment. In the case of a lead apprenticeship sponsor, a sampling of compliance reviews or quality assessments from participating members shall be sufficient.
   e.  Any other information the authority reasonably determines is necessary.
   4.  The apprenticeship sponsor or lead apprenticeship sponsor and the authority shall enter into an agreement regarding the provision of any financial assistance to the apprenticeship sponsor or lead apprenticeship sponsor.
   Sec. 13.  Section 260F.6, subsection 1, Code 2014, is amended to read as follows:
   1.  There is established for the community colleges a A job training fund is created in the state treasury under the control of the economic development authority in the workforce development fund. The job training fund consists consisting of any moneys appropriated for the purposes of this chapter, plus the any interest and principal from repayment of advances made to businesses for program costs, plus the or earnings on moneys in the fund, any repayments, including interest, of loans made from that retraining fund, and interest earned from moneys in the job training fund or recaptures of financial assistance provided from the fund, and any other moneys lawfully available to the authority that may be deposited in the fund.
   Sec. 14.  Section 260F.6, subsections 2 and 3, Code 2014, are amended by striking the subsections and inserting in lieu thereof the following:
   2.  Moneys in the fund are appropriated to the authority for purposes of providing financial assistance for job training pursuant to this chapter.
   3.  a.  Of the moneys transferred or appropriated to the fund pursuant to section 15.343 or pursuant to any other appropriation, the authority shall allocate forty percent of the moneys for purposes of section 260F.4 and sixty percent of the moneys for purposes of section 260F.5.
   b.  Notwithstanding paragraph “a”, moneys from repayments and recaptures of funds loaned pursuant to section 260F.4 shall be allocated for purposes of section 260F.4.
   Sec. 15.  Section 260F.6, Code 2014, is amended by adding the following new subsection:
   NEW SUBSECTION.  4.  The authority may annually expend not more than two percent of moneys in the fund for administrative purposes. If the authority’s administrative costs are less than two percent of the moneys in the fund, the authority shall expend the unused moneys for purposes of financial assistance.
   Sec. 16.  Section 403.21, subsections 1 and 3, Code 2014, are amended to read as follows:
   1.  In order to promote communication and cooperation among cities, counties, and community colleges with respect to the allocation and division of taxes, no jobs training projects as defined in chapter 260E or 260F shall be undertaken within the area of operation of a municipality after July 1, 1995, unless the municipality and the community college have entered into an agreement or have jointly adopted a plan relating to a community college’s new jobs training program which shall provide for a procedure for advance notification to each affected municipality, for exchange of information, for mutual consultation, and for procedural guidelines for all such new jobs training projects, including related project financing to be undertaken within the area of operation of the municipality. The joint agreement or the plan shall state its precise duration and shall be binding on the community college and the municipality with respect to all new jobs training projects, including related project financing undertaken during its existence. The joint agreement or plan shall be effective upon adoption and shall be placed on file in the office of the secretary of the board of directors of the community college and such other location as may be stated in the joint agreement or plan. The joint agreement or plan shall also be sent to each school district which levied or certified for levy a property tax on any portion of the taxable property located in the area of operation of the municipality in the fiscal year beginning prior to the calendar year in which the plan is adopted or the agreement is reached. If no such agreement is reached or plan adopted, the community college shall not use incremental property tax revenues to fund jobs training projects within the area of operation of the municipality. Agreements entered into between a community college and a city or county pursuant to chapter 28E shall not apply.
   3.  The community college shall send a copy of the final agreement prepared pursuant to section 260F.3 to the economic development authority. For each year in which incremental property taxes are used to retire debt service on a jobs training advance issued for a project creating new jobs, the community college shall provide to the economic development authority a report of the incremental property taxes and new jobs credits from withholding generated for that year, a specific description of the training conducted, the number of employees provided program services under the project, the median wage of employees in the new jobs in the project, and the administrative costs directly attributable to the project.
   Sec. 17.  Section 558.1, Code 2014, is amended to read as follows:
   558.1  “Instruments affecting real estate” defined —— revocation.

   All instruments containing a power to convey, or in any manner relating to real estate, including certified copies of petitions in bankruptcy with or without the schedules appended, of decrees of adjudication in bankruptcy, and of orders approving trustees’ bonds in bankruptcy, and a jobs training agreement entered into under chapter 260E or 260F between an employer and community college which contains a description of the real estate affected, shall be held to be instruments affecting the same; and no such instrument, when acknowledged or certified and recorded as in this chapter prescribed, can be revoked as to third parties by any act of the parties by whom it was executed, until the instrument containing such revocation is acknowledged and filed for record in the same office in which the instrument containing such power is recorded, except that uniform commercial code financing statements and financing statement changes as provided in chapter 554 need not be thus acknowledged.
   Sec. 18.  REPEAL.  Sections 260F.6A, 260F.6B, 260F.7, and 260F.8, Code 2014, are repealed.
   Sec. 19.  TRANSITION PROVISIONS.
   1.  A financial assistance award made or provided for in an agreement entered into pursuant to section 260F.3 prior to the effective date of this Act shall continue as provided in such agreement.
   2.  Loan payments or repayments and recaptures of principal, interest, or other moneys accruing on or after July 1, 2014, pursuant to an agreement under section 260F.3, as in effect prior to July 1, 2014, shall be transferred to the job training fund created in section 260F.6, as amended by this Act.>

______________________________
JAKE CHAPMAN