Senate File 2099 - Introduced
SENATE FILE
BY HATCH
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act to establish an individual training account fund within
2 the department of workforce development for the training of
3 unemployed persons and making an appropriation.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 5411SS 81
6 kk/cf/24
PAG LIN
1 1 Section 1. LEGISLATIVE INTENT. It is the intent of the
1 2 general assembly to provide for additional job training and
1 3 retraining for basic skill development and vocational or
1 4 technical training by community colleges in this state. It is
1 5 the intent of the general assembly to provide funding for an
1 6 individual training account fund by reducing the rates of
1 7 unemployment tax contributions payable into the unemployment
1 8 compensation fund for all employers required to make
1 9 contributions to the unemployment compensation fund and by
1 10 depositing the amount realized through the rate reduction in
1 11 the individual training account fund. It is the intent of the
1 12 general assembly that the department of workforce development
1 13 administer the individual training account program and
1 14 establish guidelines to provide greater financial assistance
1 15 to those persons who are employed by employers who contribute
1 16 to the unemployment compensation fund.
1 17 Sec. 2. NEW SECTION. 84A.11 INDIVIDUAL TRAINING ACCOUNT
1 18 PROGRAM == FUND.
1 19 1. a. There is created in the state treasury a special
1 20 fund known as the Iowa individual training account fund. The
1 21 fund is separate and distinct from the unemployment
1 22 compensation fund. The fund consists of all moneys deposited
1 23 in the fund as provided in section 96.7, subsection 12.
1 24 Moneys in the fund are not subject to section 8.33.
1 25 Notwithstanding section 12C.7, interest on and earnings from
1 26 moneys in the fund shall be credited to the fund.
1 27 b. The director of the department of workforce development
1 28 shall serve as trustee of the fund and shall administer the
1 29 fund. Any loss to the fund shall be charged against the fund
1 30 and the director shall not be personally liable for such loss.
1 31 All moneys which are paid or deposited into this fund are
1 32 hereby appropriated and made available to the department of
1 33 workforce development to be used only for the purposes
1 34 provided in this section.
1 35 2. The department of workforce development shall implement
2 1 and administer an individual training account program for
2 2 eligible recipients. Eligible recipients are employees whose
2 3 employers contribute to the unemployment compensation fund
2 4 created in section 96.9 or persons who are unemployed and
2 5 eligible for unemployment compensation from the fund. The
2 6 program shall provide vouchers to eligible recipients to
2 7 obtain eligible job training and retraining for both basic
2 8 skill development and vocational or technical training from a
2 9 community college as defined in section 260C.2. Vouchers
2 10 shall be provided through workforce development centers as
2 11 established in section 84B.1. To obtain a voucher under this
2 12 program, an eligible recipient shall provide at least a
2 13 dollar=per=dollar match. The department shall establish
2 14 guidelines concerning the maximum dollar amount of assistance
2 15 available to eligible recipients which guidelines shall
2 16 provide greater financial assistance to persons with a greater
2 17 number of years of employment with employers who contribute to
2 18 the unemployment compensation fund. The department shall
2 19 adopt rules pursuant to chapter 17A to administer the program,
2 20 including rules relating to eligibility criteria, eligible
2 21 training programs, and services.
2 22 Sec. 3. Section 96.7, Code Supplement 2005, is amended by
2 23 adding the following new subsection:
2 24 NEW SUBSECTION. 12. INDIVIDUAL TRAINING ACCOUNT FUND
2 25 DEPOSITS. From contributions owed pursuant to this chapter,
2 26 an amount equal to five hundredths percent of the taxable
2 27 wages paid by an employer subject to this chapter shall not
2 28 become part of the unemployment compensation fund but shall be
2 29 deemed to be reserve contributions for the following calendar
2 30 year, shall be referred to as the reserve contribution
2 31 training tax rate, and shall be deposited in the individual
2 32 training account fund established in section 84A.11. The cost
2 33 of collection shall be paid from moneys deposited in the
2 34 individual training account fund. The deposit requirement
2 35 under this subsection shall apply to all employers except
3 1 governmental entities, nonprofit organizations, and employers
3 2 assigned a zero contribution rate. As used in this paragraph,
3 3 "taxable wages" means as defined in section 96.19, subsection
3 4 37, paragraph "b".
3 5 EXPLANATION
3 6 This bill establishes an individual training account
3 7 program and fund within the department of workforce
3 8 development. The program shall provide vouchers to eligible
3 9 recipients to obtain job training and retraining services from
3 10 a community college. Eligible recipients are defined to
3 11 include employed and unemployed workers covered by the
3 12 unemployment compensation trust fund. The program provides
3 13 that employees seeking assistance from the program are
3 14 required to match assistance received on at least a dollar=
3 15 for=dollar basis with the dollar amount of assistance based,
3 16 in part, on the number of years the recipient has been
3 17 employed. Funding for the program is provided through an
3 18 appropriation from an individual training account fund which
3 19 consists of moneys deposited into the fund from a portion of
3 20 unemployment compensation taxes collected during a year which
3 21 represents an amount equal to .05 percent of the taxable wages
3 22 paid by each employer who has a contribution rate above zero
3 23 and who is not a governmental entity or nonprofit
3 24 organization.
3 25 LSB 5411SS 81
3 26 kk:rj/cf/24.1