Senate File 2168 H-8344 Amend Senate File 2168, as amended, passed, and reprinted by 1 the Senate, as follows: 2 1. Page 1, before line 1 by inserting: 3 < DIVISION I 4 IOWA REGISTERED APPRENTICESHIP ACT 5 Section 1. Section 84D.2, subsection 5, Code 2026, is 6 amended to read as follows: 7 5. “Apprenticeship sponsor” means an entity operating 8 an apprenticeship program or an entity in whose name an 9 apprenticeship program is being operated, which entity is 10 registered with or approved by the United States department 11 of labor, office of apprenticeship, or the Iowa office of 12 apprenticeship. “Apprenticeship sponsor” includes a lead 13 apprenticeship sponsor, sponsor, or intermediary sponsor , and 14 an employer who provides training through a lead apprenticeship 15 sponsor, sponsor, or intermediary sponsor . 16 Sec. ___. Section 84D.2, Code 2026, is amended by adding the 17 following new subsections: 18 NEW SUBSECTION . 11A. “Employer partner” means an employer 19 who trains the employer’s employees through an intermediary 20 sponsor. 21 NEW SUBSECTION . 12A. “Intermediary sponsor” means 22 an entity that provides related training instruction to 23 apprentices for multiple employers, serves as the sponsor of 24 the apprentices, and registers the program with the Iowa office 25 of apprenticeship, and may also provide technical assistance to 26 employers and assist with developing occupational standards. 27 Sec. ___. Section 84D.2, subsection 12, Code 2026, is 28 amended by striking the subsection. 29 Sec. ___. Section 84D.2, subsection 19, paragraph a, 30 subparagraph (2), subparagraph division (c), Code 2026, is 31 amended to read as follows: 32 (c) Related training instruction from a lead apprenticeship 33 sponsor, sponsor, or intermediary sponsor . 34 Sec. ___. Section 84D.4, subsection 2, Code 2026, is amended 35 -1- SF 2168.3907 (3) 91 je/js 1/ 14 #1.

by adding the following new paragraph: 1 NEW PARAGRAPH . c. An intermediary sponsor has the sole 2 discretion for approving employer partners, provided that such 3 employer partners are compliant with the employer partners’ 4 responsibilities outlined in the intermediary sponsor’s 5 standards. 6 Sec. ___. Section 84D.4, subsection 8, Code 2026, is amended 7 to read as follows: 8 8. a. The office shall develop a plan providing a procedure 9 for the cancellation or deregistration, or both, of programs 10 and for temporary suspension, cancellation, deregistration, or 11 any of these, of apprenticeship agreements. 12 b. Prior to any order to cancel or suspend an employer 13 partner, the office must provide a comprehensive list of the 14 grounds for cancellation or suspension and allow at least sixty 15 days for the employer partner to become compliant. If the 16 office orders cancellation or suspension of an employer partner 17 after the sixty-day period, the order shall be considered final 18 agency action, and the intermediary sponsor may seek judicial 19 review as provided in section 17A.19. 20 c. (1) Prior to any permanent or temporary cancellation, 21 suspension, or deregistration, the office must provide a 22 comprehensive list of the grounds of the alleged violation 23 of the apprenticeship program standards in writing to the 24 approved apprenticeship sponsor, intermediary sponsor, or lead 25 apprenticeship sponsor and allow at least ninety days to become 26 compliant. 27 (2) A decision by the office to cancel, suspend, or 28 deregister an approved apprenticeship sponsor, intermediary 29 sponsor, or lead apprenticeship sponsor must be issued 30 in writing and must state the reasons for the office’s 31 decision. The office shall not issue such a decision before 32 the conclusion of the ninety-day period or later than thirty 33 days after the conclusion of the period. The decision shall 34 be considered final agency action subject to judicial review 35 -2- SF 2168.3907 (3) 91 je/js 2/ 14

as provided in section 17A.19. However, notwithstanding 1 section 17A.19, the office shall have the burden to prove that 2 the approved apprenticeship sponsor, intermediary sponsor, 3 or lead apprenticeship sponsor violated the standards of the 4 apprenticeship program and that the violation continued past 5 the ninety-day period. 6 d. If an apprenticeship sponsor, intermediary sponsor, 7 or lead apprenticeship sponsor is canceled, suspended, or 8 deregistered, the apprenticeship sponsor, intermediary sponsor, 9 or lead apprenticeship sponsor shall have the right to reapply 10 for a registration after sixty days. 11 Sec. ___. Section 84D.7, Code 2026, is amended to read as 12 follows: 13 84D.7 Requirements for sponsors and employers. 14 A sponsor of a quality pre-apprenticeship program, 15 youth apprenticeship program, registered apprenticeship 16 program, or apprenticeship program is responsible for the 17 administration and supervision of on-the-job training and 18 related technical instruction for each apprentice in the 19 quality pre-apprenticeship program, youth apprenticeship 20 program, registered apprenticeship program, or apprenticeship 21 program. When training is provided by a lead apprenticeship 22 sponsor or intermediary sponsor , the employer of the apprentice 23 is responsible for the administration and supervision of 24 on-the-job training, and the lead apprenticeship sponsor or 25 intermediary sponsor is responsible for related technical 26 instruction for each apprenticeship. 27 DIVISION ___ 28 IOWA PLUMBER, MECHANICAL PROFESSIONAL, AND CONTRACTOR LICENSING 29 ACT —— APPRENTICESHIPS 30 Sec. ___. Section 105.18, Code 2026, is amended by adding 31 the following new subsection: 32 NEW SUBSECTION . 5. Regulation of apprenticeships. 33 a. A licensed journeyperson or master may employ or 34 supervise licensed apprentices at a ratio not to exceed three 35 -3- SF 2168.3907 (3) 91 je/js 3/ 14

apprentices to one licensee. 1 b. The requirements of this section do not apply to 2 apprenticeship classroom training. 3 DIVISION ___ 4 IOWA APPRENTICESHIP ACT 5 Sec. ___. Section 84E.2, Code 2026, is amended by adding the 6 following new subsection: 7 NEW SUBSECTION . 8A. “Intermediary sponsor” means the same 8 as defined in section 84D.2. 9 Sec. ___. Section 84E.4, subsections 1, 2, 3, and 4, Code 10 2026, are amended to read as follows: 11 1. a. An apprenticeship sponsor , intermediary sponsor, or 12 lead apprenticeship sponsor that conducts an apprenticeship 13 program that is registered with the United States department of 14 labor, office of apprenticeship, through Iowa, for apprentices 15 who will be employed at worksites located in this state may 16 apply to the department for financial assistance under this 17 section if the apprenticeship program includes a minimum of one 18 hundred contact hours per apprentice for each training year of 19 the apprenticeship program. 20 b. Financial assistance received by an apprenticeship 21 sponsor , intermediary sponsor, or lead apprenticeship 22 sponsor under this section shall be used only for the cost of 23 conducting and maintaining an apprenticeship program. 24 c. An apprenticeship sponsor whose apprentices receive 25 contact hours from a lead apprenticeship sponsor is not 26 eligible for financial assistance under this chapter. 27 2. The department shall provide financial assistance in the 28 form of training grants to eligible apprenticeship sponsors , 29 intermediary sponsors, or lead apprenticeship sponsors in the 30 following manner: 31 a. By determining the total amount of funding allocated 32 for purposes of training grants for apprenticeship programs 33 pursuant to section 84E.3 . 34 b. By determining the total number of apprentices trained 35 -4- SF 2168.3907 (3) 91 je/js 4/ 14

during the most recent training year, as calculated on the 1 last day of the training year, in all apprenticeship programs 2 conducted by all applying apprenticeship sponsors , intermediary 3 sponsors, or lead apprenticeship sponsors eligible to apply for 4 financial assistance under subsection 1 . 5 c. By determining the total number of apprentices trained 6 during the most recent training year, as calculated on the 7 last day of the training year, in each apprenticeship program 8 conducted by each apprenticeship sponsor , intermediary 9 sponsor, or lead apprenticeship sponsor eligible to apply under 10 subsection 1 , and that applied for financial assistance under 11 subsection 1 . 12 d. By determining the proportion, stated as a percentage, 13 that each applying apprenticeship sponsor’s , intermediary 14 sponsor’s, or lead apprenticeship sponsor’s total calculated 15 pursuant to paragraph “c” bears to all applying apprenticeship 16 sponsors’ , intermediary sponsors’, or lead apprenticeship 17 sponsors’ total calculated pursuant to paragraph “b” . 18 e. By multiplying the percentage calculated in paragraph “d” 19 by the amount determined in paragraph “a” . 20 3. An apprenticeship sponsor , intermediary sponsor, or 21 lead apprenticeship sponsor seeking financial assistance under 22 this section shall provide the following information to the 23 department: 24 a. The federal apprentice registration number of each 25 apprentice in the apprenticeship program. 26 b. The address and a description of the physical location 27 where in-person training is conducted. 28 c. A certification of the apprenticeship sponsor’s or 29 intermediary sponsor’s training standards as most recently 30 approved by the United States department of labor, office 31 of apprenticeship or, in the case of a lead apprenticeship 32 sponsor, a representative sample of participating members’ 33 training standards. 34 d. A certification of the apprenticeship sponsor’s or 35 -5- SF 2168.3907 (3) 91 je/js 5/ 14

intermediary sponsor’s compliance review or quality assessment 1 as most recently conducted by the United States department of 2 labor, office of apprenticeship, unless the apprenticeship 3 sponsor has not been subjected to a compliance review or 4 quality assessment. In the case of a lead apprenticeship 5 sponsor, a sampling of compliance reviews or quality 6 assessments from participating members shall be sufficient. 7 e. Any other information the department reasonably 8 determines is necessary. 9 4. The apprenticeship sponsor , intermediary sponsor, or 10 lead apprenticeship sponsor and the department shall enter 11 into an agreement regarding the provision of any financial 12 assistance to the apprenticeship sponsor , intermediary sponsor, 13 or lead apprenticeship sponsor. 14 Sec. ___. Section 84G.3, subsection 2, Code 2026, is amended 15 to read as follows: 16 2. For the fiscal year beginning July 1, 2023 2026 , 17 and for each fiscal year thereafter, there is annually 18 appropriated from the workforce development fund account to 19 the apprenticeship training program fund created in section 20 84E.3 three four million five hundred thousand dollars for the 21 purposes of chapter 84E . 22 Sec. ___. Section 422.16A, Code 2026, is amended to read as 23 follows: 24 422.16A Job training withholding —— certification and 25 transfer. 26 Upon the completion by a business of its repayment 27 obligation for a training project funded under chapter 260E , 28 including a job training project funded under section 260J.2 29 or repaid in whole or in part by the supplemental new jobs 30 credit from withholding under section 260J.1 or section 31 15E.197, Code 2014 , the sponsoring community college shall 32 report to the department of workforce development the amount 33 of withholding paid by the business to the community college 34 during the final twelve months of withholding payments. The 35 -6- SF 2168.3907 (3) 91 je/js 6/ 14

department of workforce development shall notify the department 1 of revenue of that amount. The department of revenue shall 2 credit to the workforce development fund account established in 3 section 84G.3 twenty-five percent of that amount each quarter 4 for a period of ten years. If the amount of withholding from 5 the business or employer is insufficient, the department of 6 revenue shall prorate the quarterly amount credited to the 7 workforce development fund account. The maximum amount from 8 all employers which shall be transferred to the workforce 9 development fund account in any year is seven nine million 10 seven two hundred fifty thousand dollars. 11 DIVISION ___ 12 CAREER TRAINING PHYSICAL EXPANSION PROGRAM 13 Sec. ___. Section 84A.5, subsection 5, Code 2026, is amended 14 by adding the following new paragraph: 15 NEW PARAGRAPH . m. The career training physical expansion 16 program under chapter 84J. 17 Sec. ___. NEW SECTION . 84J.1 Definition. 18 As used in this chapter, “department” means the department of 19 workforce development. 20 Sec. ___. NEW SECTION . 84J.2 Career training physical 21 expansion program. 22 1. A career training physical expansion program is created 23 that shall be administered by the department. The purpose of 24 the program is to provide financial assistance for construction 25 of new facilities and procurement of equipment that will 26 expand the capacity of community colleges and unionized and 27 nonunionized private sector apprenticeship programs to provide 28 education and training for workers in high-demand fields in 29 this state. 30 2. The department shall establish eligibility requirements, 31 award criteria, and application and other necessary procedures 32 for the program. To be eligible for financial assistance, a 33 community college or apprenticeship program must demonstrate 34 to the department that construction of the new facility or 35 -7- SF 2168.3907 (3) 91 je/js 7/ 14

procurement of equipment will directly result in an increase 1 in the number of workers in high-demand fields in this state 2 by expanding the physical capacity of the community college or 3 apprenticeship program to train more students or apprentices in 4 such fields. The community college or apprenticeship program 5 must also demonstrate that there is employer demand in this 6 state for the training to be provided. Projects to increase 7 internet-based education or training shall be ineligible for 8 financial assistance. 9 3. The department shall give priority for financial 10 assistance to community colleges or apprenticeship programs 11 that demonstrate the training for which the physical capacity 12 will be expanded is nonduplicative of training offered by other 13 community colleges or apprenticeship programs in this state. 14 Sec. ___. NEW SECTION . 84J.3 Career training physical 15 expansion program fund —— appropriation. 16 1. A career training physical expansion program fund is 17 created as a fund in the state treasury under the control of 18 the department. 19 2. The fund shall consist of moneys appropriated for 20 purposes of the career training physical expansion program, 21 and any other moneys lawfully available to the department for 22 purposes of this chapter. 23 3. Moneys in the fund are appropriated to the department for 24 the purposes of this chapter. 25 4. For the fiscal year beginning July 1, 2026, and each 26 fiscal year thereafter, there is appropriated from the general 27 fund of the state to the department nine million five hundred 28 thousand dollars for deposit in the career training physical 29 expansion program fund. 30 5. Notwithstanding section 8.33, moneys in the fund at 31 the close of the fiscal year shall not revert but shall 32 remain available for expenditure for the purposes designated 33 for subsequent fiscal years. Notwithstanding section 12C.7, 34 subsection 2, interest or earnings on moneys in the fund shall 35 -8- SF 2168.3907 (3) 91 je/js 8/ 14

be credited to the fund. 1 Sec. ___. NEW SECTION . 84J.4 Rules. 2 The department of workforce development shall adopt rules 3 pursuant to chapter 17A to administer this chapter. 4 DIVISION ___ 5 APPRENTICESHIP TRAINING IN SCHOOL DISTRICTS 6 Sec. ___. NEW SECTION . 279.89 Increasing access to 7 apprenticeship training. 8 1. As used in this section, unless the context otherwise 9 requires: 10 a. “Apprenticeship sponsor” , “registered apprenticeship 11 program” , “work-based learning” , and “youth apprenticeship” mean 12 the same as defined in section 84D.2. 13 b. “HVAC” means the same as defined in section 105.2. 14 2. The board of directors of each school district is 15 encouraged to establish or expand quality pre-apprenticeship 16 opportunities and youth apprenticeship programs at secondary 17 schools in partnership with apprenticeship sponsors and the 18 Iowa office of apprenticeship. Activities boards may pursue 19 in furtherance of this goal include but are not limited to all 20 of the following: 21 a. Aligning existing industrial technology, construction, 22 electronics, metalwork, and related coursework with 23 requirements of registered apprenticeship programs. 24 b. Establishing new coursework in subjects such as plumbing, 25 HVAC, and math for skilled trades as well as an introductory 26 course on apprenticeships to prepare students for a wide 27 variety of opportunities in registered apprenticeship programs. 28 c. Construction, improvement, or expansion of skilled trade 29 extension centers to provide additional work-based learning 30 opportunities. 31 d. Partnering with apprenticeship sponsors to ensure 32 curricula for coursework described in paragraphs “a” , “b” , and 33 “c” are industry-aligned so that such coursework can be credited 34 toward completion of an apprenticeship. 35 -9- SF 2168.3907 (3) 91 je/js 9/ 14

3. The board of directors of each school district is 1 encouraged to establish a work-based learning program at 2 each secondary school. The work-based learning program 3 shall facilitate implementation of this section and other 4 pre-apprenticeship, apprenticeship, and work-based learning 5 initiatives at the school. The work-based learning program 6 shall be a program that is recognized as a work-based learning 7 program by the department of education and shall be operated 8 by trained and credentialed staff who have prior experience 9 relevant to implementation of quality pre-apprenticeships, 10 youth apprenticeships, or other work-based learning 11 initiatives. 12 4. The board of directors of each school district is 13 encouraged to pursue funding sources and in-kind contributions 14 through private sector partnerships and from apprenticeship 15 sponsors and nonprofit sources to implement this section. 16 DIVISION ___ 17 HIGH-DEMAND AND HIGH-NEED JOBS AND SCHOLARSHIP ELIGIBILITY 18 Sec. ___. Section 84A.1B, subsection 3, Code 2026, is 19 amended to read as follows: 20 3. Create, and update as necessary every five years , a 21 list of high-demand jobs statewide for purposes of the future 22 ready Iowa registered apprenticeship programs created in 23 chapter 84F , the summer youth intern pilot program established 24 under section 84A.12 , the Iowa employer innovation program 25 established under section 84A.13, the future ready Iowa skilled 26 workforce last-dollar scholarship program established under 27 section 256.228, the future ready Iowa skilled workforce grant 28 program established under section 256.229 , and postsecondary 29 summer classes for high school students as provided under 30 section 261E.8, subsection 8 . In addition to the list created 31 by the workforce development board under this subsection , 32 each community college, in consultation with regional career 33 and technical education planning partnerships, and with the 34 approval of the board of directors of the community college, 35 -10- SF 2168.3907 (3) 91 je/js 10/ 14

may identify and maintain a list of not more than five regional 1 high-demand jobs in the community college region, and shall 2 share the lists with the workforce development board. The 3 lists submitted by community colleges under the subsection 4 may be used in that community college region for purposes of 5 programs identified under this subsection . The workforce 6 development board shall have full discretion collaborate 7 with community colleges to select and prioritize statewide 8 high-demand jobs after consulting with business and education 9 stakeholders, as appropriate, and seeking public comment. The 10 workforce development board may add to the list of high-demand 11 jobs as it deems necessary. For purposes of this subsection , 12 “high-demand job” means a job in the state that the board, or 13 a community college in accordance with this subsection , has 14 identified in accordance with this subsection . In creating 15 a list under this subsection , the following criteria, at a 16 minimum, shall apply: 17 a. An A competitive entry-level hourly wage of not less than 18 fourteen dollars . 19 b. Educational attainment of a qualifying credential up to a 20 bachelor’s degree. 21 c. One or both of the following criteria: 22 (1) Projected annual job openings of at least two hundred 23 fifty or more during the next five years. 24 (2) Annual job growth of at least one percent. 25 Sec. ___. Section 256.228, subsection 1, paragraphs d and f, 26 Code 2026, are amended to read as follows: 27 d. “Credential” means a postsecondary certificate, diploma, 28 or degree, conferring no more than an associate degree, awarded 29 by an eligible institution and earned in a program of study 30 that leads to a high-demand high-need job and is authorized 31 for federal student aid under Tit. IV of the federal Higher 32 Education Act of 1965, as amended. 33 f. “Eligible program” means a program of study or an 34 academic major jointly approved by the commission and the 35 -11- SF 2168.3907 (3) 91 je/js 11/ 14

department of workforce development, in consultation with 1 an eligible institution, that leads to a credential aligned 2 with a high-demand high-need job designated by the workforce 3 development board or a community college and verified by the 4 department of workforce development pursuant to this section 5 84A.1B, subsection 3 . If the board or a community college 6 removes a high-demand high-need job from a list created under 7 this section 84A.1B, subsection 3 , an eligible student who 8 received a scholarship for a program based on that high-demand 9 high-need job shall continue to receive the scholarship until 10 achieving a postsecondary credential, up to an associate 11 degree, as long as the student continues to meet all other 12 eligibility requirements. 13 Sec. ___. Section 256.228, subsection 1, paragraph g, 14 subparagraph (5), Code 2026, is amended to read as follows: 15 (5) Has a student aid index of less than or equal to 16 twenty thousand dollars at the time of initial application, 17 as determined by the application forms submitted pursuant to 18 subparagraph (2), including the free application for federal 19 student aid Meets financial need criteria as established by the 20 commission . 21 Sec. ___. Section 256.228, subsection 1, Code 2026, is 22 amended by adding the following new paragraph: 23 NEW PARAGRAPH . 0i. “High-need job” means an occupation in 24 Iowa to which at least two of the following apply: 25 (1) An occupation in which state, local, or regional labor 26 market forecasting shows occupational demand exceeds the 27 overall state, local, or regional employer demand metrics, 28 including job openings, numeric change in the number of persons 29 in the occupation, and job growth. 30 (2) An occupation with education or training requirements, 31 including the completion of an apprenticeship program, 32 an industry-recognized credential, a short-term college 33 credential such as a certificate or diploma, a noncredit 34 college credential or certification, on-the-job training for an 35 -12- SF 2168.3907 (3) 91 je/js 12/ 14

associate degree or higher degree, or an on-the-job credential 1 or certification. 2 (3) An occupation for which at least three of five hourly 3 wage or annual salary measurements for the occupation exceed 4 the hourly wage or annual salary for all occupations in the 5 state or community college region. 6 Sec. ___. Section 256.228, subsection 4, paragraph b, Code 7 2026, is amended to read as follows: 8 b. Adopt rules under chapter 17A , in collaboration with 9 the department of workforce development, for administration of 10 this section , including but not limited to establishing the 11 duties and responsibilities of eligible institutions under 12 the program; defining residence and satisfactory academic 13 progress for purposes of the program; defining financial need 14 for purposes of the program; and establishing procedures 15 for scholarship application, processing, and approval. The 16 rules shall provide for determining the priority awarding of 17 scholarships if funds available for purposes of this section 18 are insufficient to pay all eligible students. Priority shall 19 be given to fully awarding each eligible student approved for a 20 scholarship rather than to prorating scholarship awards among 21 all eligible students. 22 Sec. ___. Section 256.228, subsection 4, paragraph d, Code 23 2026, is amended by striking the paragraph and inserting in 24 lieu thereof the following: 25 d. Transmit to the department of workforce development the 26 compilation of information, data, and statistics compiled under 27 subsection 1, paragraph “e” , subparagraph (6). 28 Sec. ___. Section 256.228, Code 2026, is amended by adding 29 the following new subsection: 30 NEW SUBSECTION . 4A. List of high-need jobs. Beginning July 31 1, 2026, and every five years thereafter, a community college 32 shall create a list of high-need jobs in the community college 33 region, subject to approval of the community college board 34 of directors, for purposes of the future ready Iowa skilled 35 -13- SF 2168.3907 (3) 91 je/js 13/ 14

workforce last-dollar scholarship program. The community 1 college shall create the list in consultation with regional 2 career and technical education planning partnerships. The 3 board of directors shall submit the list to the state workforce 4 development board, which shall verify that the jobs in the list 5 meet the definition of high-need jobs under this section. 6 DIVISION ___ 7 CAREER AND TECHNICAL SECONDARY AUTHORIZATIONS 8 Sec. ___. Section 256.146, subsection 26, Code 2026, is 9 amended to read as follows: 10 26. a. Adopt rules pursuant to chapter 17A that allow 11 an individual seeking a career and technical secondary 12 authorization to apply, and, if eligible, be issued the 13 secondary authorization prior to accepting an offer of 14 employment with a school. 15 b. The board shall limit qualifications for an applicant 16 for a career and technical secondary authorization to three 17 thousand hours of recent and relevant experience. The board 18 shall limit training requirements for an initial authorization 19 to ethics training. > 20 2. Title page, by striking lines 1 and 2 and inserting < An 21 Act relating to workforce matters including apprenticeships 22 and other career training, unemployment insurance, and 23 membership of the state workforce development board, making 24 appropriations, and including effective date > 25 3. By renumbering as necessary. 26 ______________________________ COMMITTEE ON APPROPRIATIONS MOHR of Scott, Chairperson -14- SF 2168.3907 (3) 91 je/js 14/ 14 #2. #3.