S.F. 2024 Section 1. Section 84A.6, Code Supplement 2011, is amended 1 by adding the following new subsection: 2 NEW SUBSECTION . 4. The department of workforce 3 development, in consultation with the college student aid 4 commission, shall issue a quarterly report identifying 5 industries in which the department finds a shortage of skilled 6 workers in this state for the purposes of the skilled workforce 7 shortage tuition grant program established in section 261.130. 8 Sec. 2. Section 260I.2, Code Supplement 2011, is amended to 9 read as follows: 10 260I.2 Gap tuition assistance program —— fund —— 11 appropriation . 12 1. A gap tuition assistance program is established to 13 provide funding to community colleges for need-based tuition 14 assistance to applicants to enable completion of continuing 15 education certificate training programs for in-demand 16 occupations. 17 2. There is established for the community colleges a 18 gap tuition assistance fund in the state treasury to be 19 administered by the department of education. There is 20 appropriated from the general fund of the state to the gap 21 tuition assistance fund for each fiscal year until the close 22 of the fiscal year that begins July 1, 2016, the sum of two 23 million dollars for the purpose of implementing the gap tuition 24 assistance program. The aggregate total of grants awarded 25 shall not be more than two million dollars during a fiscal 26 year. Notwithstanding section 8.33, moneys in the fund at the 27 close of the fiscal year shall not revert to the general fund 28 of the state but shall remain available for expenditure for 29 the purpose designated until the close of the fiscal year that 30 begins July 1, 2016. Notwithstanding section 12C.7, subsection 31 2, interest or earnings on moneys in the fund shall be credited 32 to the fund. 33 Sec. 3. NEW SECTION . 261.130 Skilled workforce shortage 34 tuition grant program —— appropriation. 35 -1- LSB 5208XS (4) 84 je/nh 1/ 7

S.F. 2024 1. A skilled workforce shortage tuition grant may be awarded 1 to any resident of Iowa who is admitted and in attendance as 2 a full-time or part-time student in a vocational-technical 3 or career option program to pursue an associate’s degree or 4 other training at a community college in the state, and who 5 establishes financial need. 6 2. Skilled workforce shortage tuition grants shall be 7 awarded only to students pursuing a vocational-technical or 8 career option program in an industry identified as having 9 a shortage of skilled workers by a community college after 10 conducting a regional skills gap analysis or by the department 11 of workforce development in the department’s most recent 12 quarterly report pursuant to section 84A.6, subsection 4. 13 3. The amount of a skilled workforce shortage tuition grant 14 shall not exceed the lesser of one-half of a student’s tuition 15 and fees for an approved vocational-technical or career option 16 program or the amount of the student’s established financial 17 need. 18 4. All classes identified by the community college 19 as required for completion of the student’s approved 20 vocational-technical or career option program shall be 21 considered a part of the student’s vocational-technical or 22 career option program for the purpose of determining the 23 student’s eligibility for a grant. Notwithstanding subsection 24 5, if a student is making satisfactory academic progress but 25 the student cannot complete a vocational-technical or career 26 option program in the time frame allowed for a student to 27 receive a skilled workforce shortage tuition grant as provided 28 in subsection 5 because additional classes are required to 29 complete the program, the student may continue to receive a 30 skilled workforce shortage tuition grant for not more than one 31 additional enrollment period. 32 5. a. A qualified full-time student may receive skilled 33 workforce shortage tuition grants for not more than four 34 semesters or the trimester or quarter equivalent of two full 35 -2- LSB 5208XS (4) 84 je/nh 2/ 7

S.F. 2024 years of study. A qualified part-time student enrolled in a 1 course of study including at least three semester hours but 2 fewer than twelve semester hours or the trimester or quarter 3 equivalent may receive skilled workforce shortage tuition 4 grants for not more than eight semesters or the trimester or 5 quarter equivalent of two full years of full-time study. 6 b. However, if a student resumes study after at least a 7 two-year absence, the student may again be eligible for the 8 specified amount of time, except that the student shall not 9 receive assistance for courses for which credit was previously 10 received. 11 6. A skilled workforce shortage tuition grant shall be 12 awarded on an annual basis, requiring reapplication by the 13 student for each year. Payments under the grant shall be 14 allocated equally among the semesters or quarters of the year 15 upon certification by the community college that the student is 16 in full-time or part-time attendance in a vocational-technical 17 or career option program consistent with the requirements of 18 this section. If the student discontinues attendance before 19 the end of any term after receiving payment of the grant, the 20 entire amount of any refund due that student, up to the amount 21 of any payments made under the annual grant, shall be paid by 22 the community college to the state. 23 7. If a student receives financial aid under any other 24 program, the full amount of that financial aid shall be 25 considered part of the student’s financial resources available 26 in determining the amount of the student’s financial need for 27 that period. 28 8. The commission shall administer this program and shall: 29 a. Provide application forms for distribution to students by 30 Iowa high schools and community colleges. 31 b. Adopt rules for approving vocational-technical or career 32 option programs in industries identified by the department of 33 workforce development pursuant to section 84A.6, subsection 4; 34 determining financial need; defining residence for the purposes 35 -3- LSB 5208XS (4) 84 je/nh 3/ 7

S.F. 2024 of this section; processing and approving applications for 1 grants; and determining priority for grants. 2 c. Approve and award grants on an annual basis. 3 d. Make an annual report to the governor and general 4 assembly. The report shall include the number of students 5 receiving assistance and the industries identified by 6 the community colleges and by the department of workforce 7 development pursuant to section 84A.6, subsection 4, for which 8 students were admitted to a vocational-technical or career 9 option program. 10 9. Each applicant, in accordance with the rules established 11 by the commission, shall: 12 a. Complete and file an application for a skilled workforce 13 shortage tuition grant. 14 b. Be responsible for the submission of the financial 15 information required for evaluation of the applicant’s need for 16 a grant, on forms determined by the commission. 17 c. Report promptly to the commission any information 18 requested. 19 d. Submit a new application for reevaluation of the 20 applicant’s eligibility to receive a second-year renewal of the 21 grant. 22 10. There is appropriated from the general fund of the 23 state to the commission for each fiscal year until the close 24 of the fiscal year that begins July 1, 2016, the sum of 25 eighteen million dollars for the skilled workforce shortage 26 tuition grant program. Notwithstanding section 8.33, moneys 27 appropriated in this subsection that remain unencumbered or 28 unobligated at the close of the fiscal year shall not revert 29 but shall remain available for expenditure for the purposes 30 designated until the close of the fiscal year that begins July 31 1, 2016. 32 EXPLANATION 33 This bill establishes a skilled workforce shortage tuition 34 grant program to be administered by the college student aid 35 -4- LSB 5208XS (4) 84 je/nh 4/ 7

S.F. 2024 commission. A skilled workforce shortage tuition grant may be 1 awarded by the commission to an Iowa resident who is admitted 2 and in attendance as a full-time or part-time student in a 3 vocational-technical or career option program to pursue an 4 associate’s degree or other training at a community college 5 in the state and who establishes financial need. Grants are 6 limited to students pursuing a vocational-technical or career 7 option program in an industry identified as having a shortage 8 of skilled workers by a community college after conducting a 9 regional skills gap analysis or by the department of workforce 10 development. The bill directs the department, in consultation 11 with the college student aid commission, to issue a quarterly 12 report identifying industries in which the department finds 13 a shortage of skilled workers in this state for the purposes 14 of the program. A grant is not to exceed the lesser of 15 one-half of a student’s tuition and fees for an approved 16 vocational-technical or career option program or the amount of 17 the student’s established financial need. 18 The bill provides that all classes identified by a community 19 college as required for completion of the student’s program are 20 considered a part of the student’s program for the purpose of 21 determining the student’s eligibility for a skilled workforce 22 shortage tuition grant. The bill allows a student to continue 23 to receive a grant for one additional enrollment period if 24 additional classes are required to complete the program. 25 The bill provides that a qualified full-time student can 26 receive skilled workforce shortage tuition grants for up to 27 four semesters or the trimester or quarter equivalent of two 28 full years of study. A qualified part-time student can receive 29 grants for not more than eight semesters or the trimester or 30 quarter equivalent of two full years of full-time study. The 31 bill provides that if a student resumes study after at least a 32 two-year absence, the student may regain eligibility for the 33 specified amount of time, but cannot receive assistance for 34 courses for which credit was previously received. 35 -5- LSB 5208XS (4) 84 je/nh 5/ 7

S.F. 2024 The bill provides that a skilled workforce shortage 1 tuition grant is to be awarded on an annual basis, requiring 2 reapplication by students for each year. Grants are to be 3 allocated equally among the semesters or quarters of the year 4 upon certification by a community college that a student is 5 in attendance in a vocational-technical or career option 6 program consistent with the requirements of the bill. If the 7 student discontinues attendance before the end of a term after 8 receiving payment of the grant, the entire amount of any refund 9 due that student, up to the amount of any payments made under 10 the annual grant, is to be paid by the community college to the 11 state. 12 The bill provides that if a student receives financial aid 13 under any other program, the full amount of that financial aid 14 is to be considered part of the student’s financial resources 15 available in determining the amount of the student’s financial 16 need. 17 The bill directs the college student aid commission to carry 18 out certain duties to administer the skilled workforce shortage 19 tuition grant program, including distributing grant application 20 forms, adopting necessary rules, approving and awarding grants, 21 and making an annual report to the governor and the general 22 assembly on the program. The bill provides that each applicant 23 for a grant must complete and file an application, submit 24 information for the determination of financial need, report 25 promptly to the commission any information requested, and 26 submit a new application for reevaluation of the applicant’s 27 eligibility to receive a second-year renewal of the grant. 28 The bill appropriates $18 million from the general fund to 29 the college student aid commission for the skilled workforce 30 shortage tuition grant program for each fiscal year until 31 the close of the fiscal year that begins July 1, 2016. 32 Moneys appropriated by the bill that remain unencumbered or 33 unobligated at the close of the fiscal year do not revert to 34 the general fund but remain available for expenditure for the 35 -6- LSB 5208XS (4) 84 je/nh 6/ 7

S.F. 2024 purposes designated by the bill until the close of the fiscal 1 year that begins July 1, 2016. 2 The bill establishes a gap tuition assistance fund in the 3 state treasury for the community colleges. The fund is to 4 be administered by the department of education. The bill 5 appropriates $2 million from the general fund to the gap 6 tuition assistance fund to implement the gap tuition assistance 7 program for each fiscal year until the close of the fiscal 8 year that begins July 1, 2016. The aggregate total of grants 9 awarded shall not be more than $2 million during a fiscal year. 10 -7- LSB 5208XS (4) 84 je/nh 7/ 7