H.F. 2407 Section 1. SHORT TITLE. This Act shall be known and may be 1 cited as the “Iowa Apprenticeship and Job Training Act”. 2 Sec. 2. Section 15.108, subsection 6, paragraph a, Code 3 2014, is amended to read as follows: 4 a. Coordinate and perform the duties specified under the 5 Iowa industrial new jobs training Act in chapter 260E , the 6 Iowa jobs job training Act in chapter 260F , and the workforce 7 development fund in section 15.341 . 8 Sec. 3. Section 15.343, subsection 2, paragraph a, Code 9 2014, is amended to read as follows: 10 a. Projects under chapter 260F . The authority shall may 11 require a match from all businesses participating in a training 12 project under chapter 260F . 13 Sec. 4. Section 15.343, subsection 3, Code 2014, is amended 14 by striking the subsection and inserting in lieu thereof the 15 following: 16 3. a. The authority shall transfer any appropriation 17 provided for purposes of this chapter to the job training fund 18 created in section 260F.6. 19 b. Moneys in the job training fund shall be allocated as 20 provided in section 260F.6, subsection 3. 21 Sec. 5. Section 260C.18A, subsection 2, paragraph b, Code 22 2014, is amended by striking the paragraph and inserting in 23 lieu thereof the following: 24 b. Projects that would meet all the requirements of a 25 project under chapter 260F, whether or not the project is 26 actually being funded under chapter 260F. The authority may 27 advise a community college on how a project would be treated 28 for purposes of chapter 260F. 29 Sec. 6. Section 260F.1, Code 2014, is amended to read as 30 follows: 31 260F.1 Title. 32 This chapter shall be known and may be cited as the “Iowa 33 Jobs Job Training Act” . 34 Sec. 7. Section 260F.2, subsections 1, 5, 6, and 11, Code 35 -1- LSB 5292HV (2) 85 ad/rj 1/ 16

H.F. 2407 2014, are amended to read as follows: 1 1. “Agreement” is the agreement means a contract between a 2 business and a community college or the authority concerning 3 a project. 4 5. “Eligible business” or “business” means a business 5 training employees which is engaged in interstate or intrastate 6 commerce for the purpose of manufacturing, processing, or 7 assembling products, conducting research and development, 8 or providing services in interstate commerce, but excludes 9 retail, health, or professional services and which meets 10 the other criteria established by the authority. “Eligible 11 business” does not include a business whose training costs can 12 be economically funded under chapter 260E , a business which 13 closes or substantially reduces its employment base in order 14 to relocate substantially the same operation to another area 15 of the state, or a business which is involved in a strike, 16 lockout, or other labor dispute in Iowa that proposes to 17 train employees as part of a project and that meets all the 18 conditions of section 260F.3 . 19 6. “Employee” means a person currently employed by a an 20 eligible business or who will be employed upon successful 21 completion of a project and who is to be trained as part of a 22 project . However, “employee” does not include a person with 23 executive responsibilities or a replacement workers who are 24 worker hired as a result of a strike, lockout, or other labor 25 dispute in Iowa. 26 11. “Project” means a training arrangement which that is 27 the subject of an agreement entered into between the community 28 college and a business to provide program services. “Project” 29 also means an authority-sponsored training arrangement 30 which is sponsored by the authority and administered under 31 sections 260F.6A and 260F.6B and that is primarily focused 32 on meeting the workforce needs of an eligible business . A 33 project includes but is not limited to training or retraining 34 of employees, adult basic education, on-the-job training, 35 -2- LSB 5292HV (2) 85 ad/rj 2/ 16

H.F. 2407 job-related instruction, vocation and skill-assessment services 1 and testing, tuition and classroom instruction for coursework 2 at a community college or a regents institution, and training 3 equipment, supplies, and materials. A project does not include 4 coursework that will be counted toward an advanced or graduate 5 degree earned by an employee. 6 Sec. 8. Section 260F.2, Code 2014, is amended by adding the 7 following new subsections: 8 NEW SUBSECTION . 1A. “Apprentice” means a person who is 9 at least sixteen years of age, except where a higher minimum 10 age is required by law, who is employed in an apprenticeable 11 occupation, and is registered in Iowa with the United States 12 department of labor, office of apprenticeship. 13 NEW SUBSECTION . 1B. “Apprenticeable occupation” means an 14 occupation approved for apprenticeship by the United States 15 department of labor, office of apprenticeship. 16 NEW SUBSECTION . 1C. “Apprenticeship program” means a 17 program registered with the United States department of 18 labor, office of apprenticeship, which contains the terms and 19 conditions for the qualification, recruitment, selection, 20 employment, and training of apprentices, including the 21 requirement for a written apprenticeship agreement. 22 NEW SUBSECTION . 1D. “Apprenticeship sponsor” means an 23 entity operating an apprenticeship program or an entity in 24 whose name an apprenticeship program is being operated, which 25 is registered with or approved by the United States department 26 of labor, office of apprenticeship. 27 NEW SUBSECTION . 2A. “Commencement date” means the date on 28 which a proposed project is scheduled to begin. 29 NEW SUBSECTION . 5A. “Eligible research and development” 30 means activities that meet the definition of research 31 activities under section 422.10 even if the business has not 32 actually claimed a research activities tax credit. 33 NEW SUBSECTION . 6A. “Financial assistance” means assistance 34 provided only from the funds, rights, and assets legally 35 -3- LSB 5292HV (2) 85 ad/rj 3/ 16

H.F. 2407 available to the authority and includes but is not limited to 1 assistance in the form of grants, loans, forgivable loans, and 2 royalty payments. 3 NEW SUBSECTION . 6B. “Fund” means the job training fund 4 created in section 260F.6. 5 NEW SUBSECTION . 7A. “Lead apprenticeship sponsor” 6 means a trade organization, labor organization, employer 7 association, or other incorporated entity representing a group 8 of apprenticeship sponsors. 9 NEW SUBSECTION . 11A. “Providing services in interstate 10 commerce” means the provision of the majority of a business’s 11 sales to customers located outside of Iowa. 12 Sec. 9. Section 260F.2, subsections 4, 7, 8, 9, and 10, Code 13 2014, are amended by striking the subsections. 14 Sec. 10. Section 260F.3, Code 2014, is amended by striking 15 the section and inserting in lieu thereof the following: 16 260F.3 Eligible business. 17 To be eligible for financial assistance for a project under 18 this chapter, a business shall meet all of the following 19 conditions: 20 1. Is manufacturing, processing, or assembling products 21 for sale in interstate or intrastate commerce, is conducting 22 eligible research and development in this state, is engaged 23 in the business of commercial construction, or is providing 24 services in interstate commerce. 25 2. Is not a retail business, a health care business, or a 26 business engaged in the provision of professional services. 27 3. Is proposing training for a project that cannot be 28 economically funded under the industrial new jobs training 29 program pursuant to chapter 260E. 30 4. Demonstrates a need for certain job skills not adequately 31 represented among the business’s existing workforce. 32 5. Has not closed or substantially reduced operations in 33 one area of the state in order to locate substantially the same 34 operations to another area of the state. 35 -4- LSB 5292HV (2) 85 ad/rj 4/ 16

H.F. 2407 6. Is not actively engaged in a strike, lockout, or other 1 labor dispute in Iowa. 2 7. Is not currently receiving funding as an apprenticeship 3 sponsor pursuant to section 260F.5. An entity participating 4 as a member of a lead apprenticeship sponsor is eligible for 5 purposes of this subsection if the entity has not already 6 received training funds for an apprentice pursuant to section 7 260F.5. 8 8. Meets any other conditions as established by the 9 authority by rule. 10 Sec. 11. NEW SECTION . 260F.4 Financial assistance for an 11 eligible business. 12 1. For each fiscal year, the authority shall make funds 13 available to community colleges. The authority shall allocate, 14 by formula, from the moneys in the fund an amount for each 15 community college to be used to provide financial assistance 16 to businesses whose applications have been approved by the 17 authority. The financial assistance shall be provided by the 18 authority from the amount set aside for that community college. 19 If any portion of the moneys set aside for a community college 20 have not been used or committed by May 1 of the fiscal year, 21 that portion is available for use by the authority to provide 22 financial assistance to businesses applying to other community 23 colleges or directly to the authority. The authority shall 24 adopt rules regarding the formula for moneys set aside for 25 community colleges. 26 2. a. An eligible business may apply to the authority for 27 financial assistance for a project. 28 b. The authority may establish by rule a maximum benefit 29 amount for any one project and a maximum aggregate benefit 30 amount that may be awarded to any one eligible business. 31 3. Financial assistance to eligible businesses shall be 32 provided under the following terms and conditions: 33 a. For training that is conducted by community college 34 faculty or staff, at a community college facility, 35 -5- LSB 5292HV (2) 85 ad/rj 5/ 16

H.F. 2407 and according to a curriculum that complies with 1 industry-recognized standards, the financial assistance shall 2 be in the form of a grant or a forgivable loan in an amount 3 equal to one hundred percent of the cost of the project. 4 b. If training in accordance with industry-recognized 5 standards that results in a portable credential needed for a 6 skilled trade is not available through a community college 7 in close proximity to a business, the business can utilize a 8 statewide industry association to facilitate training that 9 utilizes industry-recognized standards, resulting in portable 10 credentials for the specific skilled trade. For this type of 11 training, the financial assistance shall be in the form of a 12 grant or a forgivable loan in an amount equal to one hundred 13 percent of the training costs incurred. 14 c. For a project other than one described in paragraph “a” 15 or “b” , the financial assistance shall be in the form of a loan 16 in an amount equal to one hundred percent of the cost of the 17 project to be disbursed initially but with a required future 18 repayment of fifty percent of the cost of the project at an 19 interest of zero percent. 20 d. Any other terms and conditions typically required by the 21 authority when providing financial assistance. 22 4. Repayments shall be made to the authority. The authority 23 shall deposit all repayments collected pursuant to this 24 section in the fund and shall retain the moneys in the fund for 25 redistribution for the purposes of this section. The authority 26 shall adopt rules regarding repayment collection. 27 5. An eligible business applying for financial assistance 28 under this section shall provide the following information to a 29 community college, and a community college shall provide the 30 following information to the authority: 31 a. A detailed description of the proposed project, an 32 explanation of how the project would meet the business’s 33 skilled workforce needs, and an assessment regarding the 34 feasibility of meeting the training needs through a community 35 -6- LSB 5292HV (2) 85 ad/rj 6/ 16

H.F. 2407 college. The authority may require any information reasonably 1 necessary to determine the necessity, suitability, and 2 feasibility of the proposed project. 3 b. The date or dates on which the proposed project will be 4 conducted. 5 c. The number of employees to be trained and the title and 6 position description of each employee to be trained. 7 d. The estimated cost to the business of the proposed 8 project. 9 e. Any other information the authority reasonably determines 10 is necessary. 11 6. An eligible business receiving financial assistance 12 pursuant to this section shall enter into an agreement with a 13 community college regarding the project. The agreement shall 14 include all provisions necessary for the implementation of this 15 section and any provisions the authority typically includes in 16 a contract for the provision of financial assistance. 17 Sec. 12. NEW SECTION . 260F.5 Financial assistance for an 18 apprenticeship program. 19 1. a. An apprenticeship sponsor or lead apprenticeship 20 sponsor conducting apprenticeship programs in Iowa for 21 apprentices who will be employed at Iowa worksites may apply to 22 the authority for financial assistance under this section. 23 b. Financial assistance received by an apprenticeship 24 sponsor or lead apprenticeship sponsor under this section shall 25 be used only for the cost of conducting and maintaining an 26 apprenticeship program. 27 2. The authority shall provide financial assistance to 28 apprenticeship sponsors or lead apprenticeship sponsors in the 29 following manner: 30 a. By determining the total amount of funding allocated for 31 purposes of apprenticeship programs pursuant to section 260F.6. 32 b. By adding together all of the following: 33 (1) The total number of apprentices trained by all applying 34 apprenticeship sponsors or lead apprenticeship sponsors during 35 -7- LSB 5292HV (2) 85 ad/rj 7/ 16

H.F. 2407 the most recent training year as calculated on the last day of 1 the training year. 2 (2) The total number of contact hours that apprenticeship 3 instructors for all applying apprenticeship sponsors or lead 4 apprenticeship sponsors spent in contact with apprentices 5 during the most recent training year. For purposes of 6 this subparagraph, “contact hours” includes the time spent 7 instructing apprentices in-person or, in the case of a lead 8 apprenticeship sponsor with programs totaling one hundred or 9 more total instructional hours, “contact hours” includes the 10 time spent in online training if the total amount of online 11 instruction does not account for more than thirty percent of 12 the total instructional hours. 13 c. By adding together all of the following: 14 (1) The total number of apprentices trained by a single 15 applying apprenticeship sponsor or lead apprenticeship sponsor 16 during the most recent training year as calculated on the last 17 day of the training year. 18 (2) The total number of contact hours that apprenticeship 19 instructors for a single applying apprenticeship sponsor or 20 lead apprenticeship sponsor spent in contact with apprentices 21 during the most recent training year. For purposes of 22 this subparagraph, “contact hours” includes the time spent 23 instructing apprentices in-person or, in the case of a lead 24 apprenticeship sponsor with programs totaling one hundred or 25 more total instructional hours, “contact hours” includes the 26 time spent in online training if the total amount of online 27 instruction does not account for more than thirty percent of 28 the total instructional hours. 29 d. By determining the proportion, stated as a percentage, 30 that a single applying apprenticeship sponsor’s or lead 31 apprenticeship sponsor’s total calculated pursuant to paragraph 32 “c” bears to all applying apprenticeship sponsors’ or lead 33 apprenticeship sponsors’ total calculated pursuant to paragraph 34 “b” . 35 -8- LSB 5292HV (2) 85 ad/rj 8/ 16

H.F. 2407 e. By multiplying the percentage calculated in paragraph “d” 1 by the amount determined in paragraph “a” . 2 3. An apprenticeship sponsor or lead apprenticeship sponsor 3 seeking financial assistance under this section shall provide 4 the following information to the authority: 5 a. The federal apprentice registration number of each 6 apprentice in the apprenticeship program. 7 b. The address and a description of the physical location 8 where in-person training is conducted. 9 c. A copy of the apprenticeship sponsor’s training 10 standards as most recently approved by the United States 11 department of labor, office of apprenticeship or, in the case 12 of a lead apprenticeship sponsor, a representative sample of 13 participating members’ training standards. 14 d. A copy of the apprenticeship sponsor’s compliance audit 15 as most recently conducted by the United States department of 16 labor, office of apprenticeship, unless the apprenticeship 17 sponsor has not been subjected to a compliance audit. In the 18 case of a lead apprenticeship sponsor, a sampling of audits 19 from participating members shall be sufficient. 20 e. Any other information the authority reasonably determines 21 is necessary. 22 4. The apprenticeship sponsor or lead apprenticeship 23 sponsor and the authority shall enter into an agreement 24 regarding the provision of any financial assistance to the 25 apprenticeship sponsor or lead apprenticeship sponsor. 26 Sec. 13. Section 260F.6, subsection 1, Code 2014, is amended 27 to read as follows: 28 1. There is established for the community colleges a A 29 job training fund is created in the state treasury under the 30 control of the economic development authority in the workforce 31 development fund. The job training fund consists consisting of 32 any moneys appropriated for the purposes of this chapter , plus 33 the any interest and principal from repayment of advances made 34 to businesses for program costs, plus the or earnings on moneys 35 -9- LSB 5292HV (2) 85 ad/rj 9/ 16

H.F. 2407 in the fund, any repayments , including interest, of loans made 1 from that retraining fund, and interest earned from moneys in 2 the job training fund or recaptures of financial assistance 3 provided from the fund, and any other moneys lawfully available 4 to the authority that may be deposited in the fund . 5 Sec. 14. Section 260F.6, subsections 2 and 3, Code 2014, 6 are amended by striking the subsections and inserting in lieu 7 thereof the following: 8 2. Moneys in the fund are appropriated to the authority for 9 purposes of providing financial assistance for job training 10 pursuant to this chapter. 11 3. a. Of the moneys transferred or appropriated to the 12 fund pursuant to section 15.343 or pursuant to any other 13 appropriation, the authority shall allocate fifty percent of 14 the moneys for purposes of section 260F.4 and fifty percent of 15 the moneys for purposes of section 260F.5. 16 b. Notwithstanding paragraph “a” , moneys from repayments and 17 recaptures of funds loaned pursuant to section 260F.4 shall be 18 allocated for purposes of section 260F.4. 19 Sec. 15. Section 260F.6, Code 2014, is amended by adding the 20 following new subsections: 21 NEW SUBSECTION . 4. The authority may annually expend not 22 more than two percent of moneys in the fund for administrative 23 purposes. If the authority’s administrative costs are less 24 than two percent of the moneys in the fund, the authority shall 25 expend the unused moneys for purposes of financial assistance. 26 NEW SUBSECTION . 5. A community college may retain not more 27 than five percent of the disbursed amount for the purposes of 28 administrative costs related to section 260F.4. 29 Sec. 16. Section 403.21, subsections 1 and 3, Code 2014, are 30 amended to read as follows: 31 1. In order to promote communication and cooperation among 32 cities, counties, and community colleges with respect to the 33 allocation and division of taxes, no jobs training projects 34 as defined in chapter 260E or 260F shall be undertaken within 35 -10- LSB 5292HV (2) 85 ad/rj 10/ 16

H.F. 2407 the area of operation of a municipality after July 1, 1995, 1 unless the municipality and the community college have entered 2 into an agreement or have jointly adopted a plan relating 3 to a community college’s new jobs training program which 4 shall provide for a procedure for advance notification to 5 each affected municipality, for exchange of information, for 6 mutual consultation, and for procedural guidelines for all 7 such new jobs training projects, including related project 8 financing to be undertaken within the area of operation of the 9 municipality. The joint agreement or the plan shall state its 10 precise duration and shall be binding on the community college 11 and the municipality with respect to all new jobs training 12 projects, including related project financing undertaken during 13 its existence. The joint agreement or plan shall be effective 14 upon adoption and shall be placed on file in the office of the 15 secretary of the board of directors of the community college 16 and such other location as may be stated in the joint agreement 17 or plan. The joint agreement or plan shall also be sent to each 18 school district which levied or certified for levy a property 19 tax on any portion of the taxable property located in the area 20 of operation of the municipality in the fiscal year beginning 21 prior to the calendar year in which the plan is adopted or 22 the agreement is reached. If no such agreement is reached or 23 plan adopted, the community college shall not use incremental 24 property tax revenues to fund jobs training projects within the 25 area of operation of the municipality. Agreements entered into 26 between a community college and a city or county pursuant to 27 chapter 28E shall not apply. 28 3. The community college shall send a copy of the final 29 agreement prepared pursuant to section 260F.3 to the economic 30 development authority. For each year in which incremental 31 property taxes are used to retire debt service on a jobs 32 training advance issued for a project creating new jobs, the 33 community college shall provide to the economic development 34 authority a report of the incremental property taxes and new 35 -11- LSB 5292HV (2) 85 ad/rj 11/ 16

H.F. 2407 jobs credits from withholding generated for that year, a 1 specific description of the training conducted, the number of 2 employees provided program services under the project, the 3 median wage of employees in the new jobs in the project, and 4 the administrative costs directly attributable to the project. 5 Sec. 17. Section 558.1, Code 2014, is amended to read as 6 follows: 7 558.1 “Instruments affecting real estate” defined —— 8 revocation. 9 All instruments containing a power to convey, or in any 10 manner relating to real estate, including certified copies of 11 petitions in bankruptcy with or without the schedules appended, 12 of decrees of adjudication in bankruptcy, and of orders 13 approving trustees’ bonds in bankruptcy, and a jobs training 14 agreement entered into under chapter 260E or 260F between an 15 employer and community college which contains a description 16 of the real estate affected, shall be held to be instruments 17 affecting the same; and no such instrument, when acknowledged 18 or certified and recorded as in this chapter prescribed, can be 19 revoked as to third parties by any act of the parties by whom it 20 was executed, until the instrument containing such revocation 21 is acknowledged and filed for record in the same office in 22 which the instrument containing such power is recorded, except 23 that uniform commercial code financing statements and financing 24 statement changes as provided in chapter 554 need not be thus 25 acknowledged. 26 Sec. 18. REPEAL. Sections 260F.6A, 260F.6B, 260F.7, and 27 260F.8, Code 2014, are repealed. 28 Sec. 19. TRANSITION PROVISIONS. 29 1. A financial assistance award made or provided for in an 30 agreement entered into pursuant to section 260F.3 prior to the 31 effective date of this Act shall continue as provided in such 32 agreement. 33 2. Loan payments or repayments and recaptures of principal, 34 interest, or other moneys accruing on or after July 1, 2014, 35 -12- LSB 5292HV (2) 85 ad/rj 12/ 16

H.F. 2407 pursuant to an agreement under section 260F.3, as in effect 1 prior to July 1, 2014, shall be transferred to the job training 2 fund created in section 260F.6, as amended by this Act. 3 EXPLANATION 4 The inclusion of this explanation does not constitute agreement with 5 the explanation’s substance by the members of the general assembly. 6 This bill relates to changes to the job training program and 7 fund under Code chapter 260F. The bill amends the transfer of 8 moneys from the workforce development fund to the job training 9 fund and makes an appropriation. The bill is titled the “Iowa 10 Apprenticeship and Job Training Act”. 11 The bill amends the parties to the agreements under the job 12 training program and the distribution of funds from the job 13 training fund. Currently, a community college and a business 14 enter into an agreement concerning a training arrangement. The 15 bill provides instead that a community college or the economic 16 development authority shall enter into an agreement with an 17 eligible business concerning the training arrangement focused 18 on meeting the workforce needs of the eligible business. 19 This training may occur through adult basic education, 20 on-the-job training, job-related instruction, vocation and 21 skill-assessment services and testing, tuition and classroom 22 instruction for coursework at community colleges or regents 23 institutions, and training equipment, supplies and materials. 24 The job training fund currently is established in the 25 authority in the workforce development fund and the authority 26 makes funds available to the community colleges by formula. 27 The bill provides that the job training fund is created in the 28 state treasury rather than within the workforce development 29 fund. The bill transfers any appropriation provided for 30 purposes of the chapter from the workforce development fund 31 to the job training fund rather than allocating $4 million 32 for the purposes of Code chapter 260F. The bill also changes 33 language from mandatory to permissive regarding the requirement 34 of a match from all businesses participating in a job training 35 -13- LSB 5292HV (2) 85 ad/rj 13/ 16

H.F. 2407 project pursuant to Code chapter 260F. The bill also states 1 that 50 percent of the moneys in the job training fund is 2 allocated for financial assistance to eligible businesses 3 and 50 percent of the moneys in the job training fund is 4 allocated for financial assistance to apprenticeship programs. 5 However, repayments or recaptures of financial assistance to 6 eligible businesses must be allocated for purposes of providing 7 financial assistance for eligible businesses. The bill 8 provides that the authority may not expend more than 2 percent 9 of moneys in the fund for administrative purposes. The bill 10 also provides that a community college may retain not more than 11 5 percent of moneys disbursed for administrative costs. 12 In the job training Code chapter, the bill transfers the 13 substance of the definition of an eligible business into its 14 own Code section. In this Code chapter, the bill also adds 15 definitions for “apprentice”, “apprenticeable occupation”, 16 “apprenticeship program”, “apprenticeship sponsor”, 17 “commencement date”, “eligible research and development”, 18 “financial assistance”, “fund”, “lead apprenticeship sponsor”, 19 and “providing services in interstate commerce”. The bill also 20 strikes definitions for “date of commencement of the project”, 21 “jobs training program”, “participating business”, “program 22 costs”, and “program services” under the job training program 23 Code chapter. 24 The bill requires the authority to allocate moneys to 25 community colleges to be used to provide financial assistance 26 to businesses whose applications for financial assistance have 27 been approved by the authority. The authority shall adopt 28 rules to establish the formula for allocating the moneys to the 29 community colleges. 30 The bill provides that an eligible business may apply to 31 the authority for financial assistance and the authority may 32 establish a maximum benefit amount for any one project and a 33 maximum benefit amount for an eligible business. To receive 34 financial assistance, an eligible business must enter into an 35 -14- LSB 5292HV (2) 85 ad/rj 14/ 16

H.F. 2407 agreement with the authority. The bill also provides what type 1 of financial assistance may be offered dependent upon the type 2 of training provided. Financial assistance is generally in the 3 form of a loan in an amount equal to 100 percent of the cost 4 of the project with required future repayment of 50 percent 5 at 0 percent interest. However, if the training is provided 6 by a statewide industry association that facilitates training 7 utilizing industry-recognized standards resulting in portable 8 credentials for the skilled trade, the financial assistance is 9 in the form of a grant or forgivable loan in an amount equal 10 to 100 percent of the cost of the training costs incurred. 11 Financial assistance for a project conducted by community 12 college faculty or staff at the community college is also in 13 the form of a grant or forgivable loan in an amount equal to 100 14 percent of the cost of the project. 15 The bill also provides that an apprenticeship sponsor or 16 lead apprenticeship sponsor, as defined in the bill, may apply 17 for financial assistance when that sponsor is conducting 18 apprenticeship programs in Iowa for apprentices who will be 19 employed at Iowa worksites. The bill specifies that financial 20 assistance is to be allocated to apprenticeship sponsors or 21 lead apprenticeship sponsors by the ratio of the total number 22 of apprentices trained and number of contact hours for an 23 apprenticeship sponsor or lead apprenticeship sponsor divided 24 by the total number of apprentices trained and contact hours 25 for all the apprenticeship sponsors or lead apprenticeship 26 sponsors in the previous training year, then multiplied by the 27 moneys allocated for financial assistance to apprenticeship 28 sponsors. The bill provides that in order to receive financial 29 assistance, the apprenticeship sponsor or lead apprenticeship 30 sponsor and the authority must enter into an agreement. 31 The bill repeals Code sections relating to the authority’s 32 duty to coordinate the job training program and allocation of 33 funding to community colleges as that no longer applies to the 34 newly required agreements and available funding. The bill also 35 -15- LSB 5292HV (2) 85 ad/rj 15/ 16

H.F. 2407 repeals Code sections relating to the business network training 1 and the high technology apprenticeship program. The bill makes 2 other related changes. 3 The bill provides transition provisions stating that 4 financial assistance awards through the job training program 5 made or provided for under agreements between community 6 colleges and businesses entered into prior to July 1, 2014, 7 remain in effect. The bill also states that loan payments, 8 repayments, recaptures, and any other moneys accruing pursuant 9 to those agreements shall be transferred to the job training 10 fund, as amended by the bill. 11 -16- LSB 5292HV (2) 85 ad/rj 16/ 16