House File 629
HOUSE FILE
BY COMMITTEE ON ECONOMIC GROWTH
(SUCCESSOR TO HSB 253)
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act creating workforce training and economic development funds
2 for community colleges and making related appropriations.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN
1 1 Section 1. NEW SECTION. 260C.18A WORKFORCE TRAINING AND
1 2 ECONOMIC DEVELOPMENT FUNDS.
1 3 1. a. A workforce training and economic development fund
1 4 is created for each community college. Moneys shall be
1 5 deposited and expended from a fund as provided under this
1 6 section.
1 7 b. Moneys in the funds shall consist of any moneys
1 8 appropriated by the general assembly and any other moneys
1 9 available to and obtained or accepted by the department of
1 10 economic development from federal sources or private sources
1 11 for placement in the funds. Notwithstanding section 8.33,
1 12 moneys in the funds at the end of each fiscal year shall not
1 13 revert to any other fund but shall remain in the funds for
1 14 expenditure in subsequent fiscal years.
1 15 c. The department of economic development shall not
1 16 approve or deny any individual projects, programs, or courses
1 17 for which moneys from a workforce training and economic
1 18 development fund are expended. The department of economic
1 19 development shall consult with the department of education
1 20 regarding activities under this section.
1 21 2. On July 1 of each year for the fiscal year beginning
1 22 July 1, 2003, through the fiscal year beginning July 1, 2006,
1 23 moneys from a fund enacted by the general assembly during the
1 24 2003 legislative session and funded with bond sale proceeds
1 25 totaling more than five hundred million dollars are
1 26 appropriated to the department of economic development for
1 27 deposit in the workforce training and economic development
1 28 funds in amounts determined pursuant to subsection 3. On July
1 29 1 of each year for fiscal years beginning on or after July 1,
1 30 2007, moneys from the general fund of the state are
1 31 appropriated to the department of economic development for
1 32 deposit in the workforce training and economic development
1 33 funds in amounts determined pursuant to subsection 3. Moneys
1 34 deposited in the funds and disbursed to community colleges for
1 35 a fiscal year shall be expended for the following purposes,
2 1 provided seventy percent of the moneys shall be used on
2 2 projects in the areas of advanced manufacturing, information
2 3 technology and insurance, and life sciences which include the
2 4 areas of biotechnology, health care technology, and nursing
2 5 care technology:
2 6 a. Projects in which an agreement between a community
2 7 college and an employer located within the community college's
2 8 merged area meet all of the requirements of the accelerated
2 9 career education program under chapter 260G.
2 10 b. Projects in which an agreement between a community
2 11 college and a business meet all the requirements of the Iowa
2 12 jobs training Act under chapter 260F. However, when moneys
2 13 are provided through a workforce training and economic
2 14 development fund for such projects, section 260F.6,
2 15 subsections 1 and 2, and section 260F.8 shall not apply.
2 16 c. For the development and implementation of career
2 17 academies designed to provide new career preparation
2 18 opportunities for high school students that are formally
2 19 linked with postsecondary career and technical education
2 20 programs. For purposes of this section, "career academy"
2 21 means a program of study that combines a minimum of two years
2 22 of secondary education with an associate degree, or the
2 23 equivalent, career preparatory program in a nonduplicative,
2 24 sequential course of study that is standards based, integrates
2 25 academic and technical instruction, utilizes work=based and
2 26 worksite learning where appropriate and available, utilizes an
2 27 individual career planning process with parent involvement,
2 28 and leads to an associate degree or postsecondary diploma or
2 29 certificate in a career field that prepares an individual for
2 30 entry and advancement in a high=skill and reward career field
2 31 and further education. The state board of education, in
2 32 conjunction with the division of community colleges and
2 33 workforce preparation of the department of education, shall
2 34 adopt administrative rules for the development and
2 35 implementation of such career academies pursuant to section
3 1 256.11, subsection 5, paragraph "h", section 260C.1, and Title
3 2 II of Pub. L. No. 105=332, Carl D. Perkins Vocational and
3 3 Technical Education Act of 1998.
3 4 d. Programs and courses that provide vocational and
3 5 technical training, and programs for in=service training and
3 6 retraining under section 260C.1, subsections 2 and 3.
3 7 3. The maximum cumulative total amount of moneys that may
3 8 be deposited in all the workforce training and economic
3 9 development funds for distribution to community colleges in a
3 10 fiscal year shall be determined as follows:
3 11 a. Ten million dollars for the fiscal year beginning July
3 12 1, 2003.
3 13 b. Twenty million dollars for the fiscal year beginning
3 14 July 1, 2004.
3 15 c. Thirty million dollars for the fiscal year beginning
3 16 July 1, 2005.
3 17 d. Forty million dollars for the fiscal year beginning
3 18 July 1, 2006.
3 19 e. For the fiscal year beginning July 1, 2007, and each
3 20 succeeding fiscal year, the maximum cumulative total amount
3 21 shall be calculated by multiplying the maximum cumulative
3 22 total amount of the previous fiscal year by the amount of the
3 23 sum of one plus the state growth percentage established
3 24 pursuant to section 257.8 calculated for the budget year
3 25 beginning that July 1 of the fiscal year.
3 26 4. The department of economic development shall allocate
3 27 the moneys appropriated pursuant to this section to the
3 28 community college workforce training and economic development
3 29 funds utilizing the same distribution formula used for the
3 30 allocation of state general aid to the community colleges.
3 31 Sec. 2. Section 260G.3, subsection 2, Code 2003, is
3 32 amended to read as follows:
3 33 2. An agreement may include reasonable and necessary
3 34 provisions to implement the accelerated career education
3 35 program. If an agreement that utilizes program job credits is
4 1 entered into, the community college and the employer shall
4 2 notify the department of revenue and finance as soon as
4 3 possible. The community college shall also file a copy of the
4 4 agreement with the department of economic development as
4 5 required in section 260G.4B. The agreement shall provide for
4 6 program costs, including deferred costs, which may be paid
4 7 from any of the following sources:
4 8 a. Program job credits which the employer receives based
4 9 on the number of program job positions agreed to by the
4 10 employer to be available under the agreement.
4 11 b. Cash or in=kind contributions by the employer toward
4 12 the program cost. At a minimum, the employer contribution
4 13 shall be twenty percent of the program costs.
4 14 c. Tuition, student fees, or special charges fixed by the
4 15 board of directors to defray program costs.
4 16 d. Guarantee by the employer of payments to be received
4 17 under paragraphs "a" and "b".
4 18 e. Moneys from a workforce training and economic
4 19 development fund created in section 260C.18A, based on the
4 20 number of program job positions agreed to by the employer to
4 21 be available under the agreement, the amount of which shall be
4 22 calculated in the same manner as the program job credits
4 23 provided for in section 260G.4A.
4 24 EXPLANATION
4 25 This bill relates to workforce training and economic
4 26 development funds for community colleges and makes related
4 27 appropriations.
4 28 The bill creates one workforce training and economic
4 29 development fund for each community college. The bill
4 30 provides that moneys in the funds shall consist of any moneys
4 31 appropriated by the general assembly and any other moneys
4 32 available to and obtained or accepted by the department of
4 33 economic development from federal sources or private sources
4 34 for placement in the funds.
4 35 The bill provides that the department of economic
5 1 development shall not approve or deny any individual projects,
5 2 programs, or courses for which moneys from a workforce
5 3 training and economic development fund are expended. The bill
5 4 provides that the department of economic development shall
5 5 consult with the department of education regarding the
5 6 activities under the bill.
5 7 The bill provides that, on July 1 of each year for the
5 8 fiscal year beginning July 1, 2003, through the fiscal year
5 9 beginning July 1, 2006, moneys from a fund enacted by the
5 10 general assembly during the 2003 legislative session and
5 11 funded with bond sale proceeds totaling more than $500 million
5 12 are appropriated to the department of management for deposit
5 13 in the separate workforce training and economic development
5 14 funds. The bill provides that, on July 1 of each year for
5 15 fiscal years beginning on or after July 1, 2007, moneys from
5 16 the general fund of the state are appropriated to the
5 17 department of economic development for deposit in the
5 18 workforce training and economic development funds.
5 19 The bill provides that moneys deposited in the funds and
5 20 disbursed to community colleges for a fiscal year shall be
5 21 expended for the following purposes, provided 70 percent of
5 22 the moneys shall be used on projects in the areas of advanced
5 23 manufacturing, information technology and insurance, and life
5 24 sciences which include the areas of biotechnology, health care
5 25 technology, and nursing care technology:
5 26 1. Projects in which an agreement between a community
5 27 college and an employer located within the community college's
5 28 merged area meet all of the requirements of the accelerated
5 29 career education program under Code chapter 260G. The bill
5 30 makes conforming amendments to Code chapter 260G.
5 31 2. Projects in which an agreement between a community
5 32 college and a business meet all the requirements of the Iowa
5 33 jobs training Act under Code chapter 260F.
5 34 3. Career academies.
5 35 4. Programs and courses that provide vocational and
6 1 technical training, and programs for in=service training and
6 2 retraining.
6 3 The bill provides a method for calculating the maximum
6 4 cumulative total amount of moneys that may be deposited in all
6 5 the workforce training and economic development funds for
6 6 distribution to community colleges in a fiscal year. The bill
6 7 provides that the department of economic development shall
6 8 allocate the appropriated moneys to the community college
6 9 workforce training and economic development funds utilizing
6 10 the same distribution formula used for the allocation of state
6 11 general aid to community colleges.
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