S.F. 2353 Section 1. Section 15.108, subsection 6, paragraph a, Code 1 2014, is amended to read as follows: 2 a. Coordinate and perform the duties specified under the 3 Iowa industrial new jobs training Act in chapter 260E , the 4 Iowa jobs training Act in chapter 260F , and the workforce 5 development fund in section 15.341 . 6 Sec. 2. NEW SECTION . 256.91 Workforce development fund 7 account. 8 A workforce development fund account is established in 9 the office of the treasurer of state under the control of 10 the department. The account shall receive funds pursuant to 11 section 422.16A up to a maximum of six million dollars per 12 year. 13 Sec. 3. NEW SECTION . 256.92 Workforce development fund. 14 1. a. A workforce development fund is created as a 15 revolving fund in the state treasury under the control of the 16 department consisting of any moneys appropriated by the general 17 assembly for that purpose and any other moneys available to 18 and obtained or accepted by the department from the federal 19 government or private sources for placement in the fund. The 20 fund shall also include moneys appropriated to the fund from 21 the workforce development fund account established in section 22 256.91. 23 b. Notwithstanding section 8.33, moneys in the workforce 24 development fund at the end of each fiscal year shall not 25 revert to any other fund but shall remain in the workforce 26 development fund for expenditure for subsequent fiscal years. 27 2. The assets of the fund shall be used by the department 28 for the following programs and purposes: 29 a. Projects under chapter 260F. 30 b. Apprenticeship programs under chapter 260J. 31 3. Moneys in the workforce development fund shall be 32 allocated as follows: 33 a. Three million dollars shall be transferred and deposited 34 in the job training fund created in section 260F.6 to be used 35 -1- LSB 5292SZ (3) 85 ad/rj 1/ 19

S.F. 2353 for the purposes provided in chapter 260F. 1 b. Three million dollars shall be transferred and deposited 2 in the apprenticeship training program fund created in section 3 260J.3 to be used for the purposes provided in chapter 260J. 4 Sec. 4. Section 260C.18A, subsection 2, paragraph b, Code 5 2014, is amended to read as follows: 6 b. Projects in which an agreement between a community 7 college and a business meet all the requirements of the Iowa 8 jobs training Act under chapter 260F . However, projects funded 9 by moneys provided by a local workforce training and economic 10 development fund of a community college are not subject to 11 the maximum advance or award limitations contained in section 12 260F.6, subsection 2 , or the allocation limitations contained 13 in section 260F.8, subsection 1 . 14 Sec. 5. Section 260F.2, subsection 2, Code 2014, is amended 15 by striking the subsection. 16 Sec. 6. Section 260F.2, subsections 4, 5, 10, and 11, Code 17 2014, are amended to read as follows: 18 4. “Date of commencement of the project” means the date of 19 the preliminary signed agreement or the date an application for 20 assistance is received by the authority . 21 5. “Eligible business” or “business” means a business 22 training employees which is engaged in interstate or intrastate 23 commerce for the purpose of manufacturing, processing, or 24 assembling products, conducting research and development, 25 commercial construction, or providing services in interstate 26 commerce including electronic commerce , but excludes retail, 27 health, or professional services and which meets the other 28 criteria established by the authority department . “Eligible 29 business” does not include a business whose training costs can 30 be economically funded under chapter 260E , a business which 31 closes or substantially reduces its employment base in order 32 to relocate substantially the same operation to another area 33 of the state, or a business which is involved in a strike, 34 lockout, or other labor dispute in Iowa. 35 -2- LSB 5292SZ (3) 85 ad/rj 2/ 19

S.F. 2353 10. “Program services” includes but is not limited to the 1 following: 2 a. Training of employees. 3 b. Adult basic education and job-related instruction. 4 c. Vocational and skill-assessment services and testing. 5 d. Training facilities, equipment, materials, and supplies. 6 e. Administrative expenses incurred by community colleges 7 for the jobs training program , in an amount not to exceed five 8 percent of the total project cost . 9 f. Subcontracted services with institutions governed by the 10 state board of regents, private colleges or universities, or 11 other federal, state, or local agencies. 12 g. Contracted or professional services. 13 11. “Project” means a training arrangement which is the 14 subject of an agreement entered into between the community 15 college and a business to provide program services. “Project” 16 also means an authority-sponsored training arrangement which 17 is sponsored by the authority and administered under sections 18 260F.6A and 260F.6B . 19 Sec. 7. Section 260F.2, Code 2014, is amended by adding the 20 following new subsection: 21 NEW SUBSECTION . 4A. “Department” means the department of 22 education. 23 Sec. 8. Section 260F.3, Code 2014, is amended by adding the 24 following new subsections: 25 NEW SUBSECTION . 4A. Type of training to be delivered. 26 NEW SUBSECTION . 4B. Amount of employer match. 27 Sec. 9. NEW SECTION . 260F.4 Financial assistance —— 28 restrictions. 29 1. The maximum award of financial assistance for any one 30 project is fifty thousand dollars. 31 2. A business may be approved for multiple projects, but the 32 total financial assistance award to a business shall not exceed 33 one hundred thousand dollars within a three-year period. 34 3. An award of financial assistance does not include 35 -3- LSB 5292SZ (3) 85 ad/rj 3/ 19

S.F. 2353 reimbursement to the business for employee wages while the 1 employee is in training. 2 4. An award of financial assistance is based on the actual 3 cost of services. 4 5. A business’s request for financial assistance shall be 5 commensurate with training needs. 6 6. Community colleges shall provide financial assistance to 7 a business on a reimbursement basis or by directly paying for 8 training expenses from an account administered by the community 9 college. 10 7. a. A business shall provide a cash match or in-kind 11 match in order to be eligible for financial assistance pursuant 12 to this section. 13 b. A business requesting financial assistance of less than 14 five thousand dollars for a program shall provide an in-kind 15 match. 16 c. A business requesting financial assistance of five 17 thousand dollars or more for a program shall provide cash to 18 pay at least twenty-five percent of the total project cost, 19 including training and administration costs. 20 d. An in-kind match includes employee wages paid by 21 the business during the training period, the value of 22 business-provided facilities and equipment used for training, 23 or the value of any other resource provided by the business to 24 facilitate the training program. 25 Sec. 10. NEW SECTION . 260F.5 Community college annual 26 report. 27 1. Each community college shall submit an annual report 28 to the department by September 1 documenting the job training 29 programs funded during the previous fiscal year. 30 2. The report shall address the performance metrics 31 established by the department for the job training program 32 pursuant to section 260F.8. 33 3. The report shall be submitted in a manner and form 34 prescribed by the department. 35 -4- LSB 5292SZ (3) 85 ad/rj 4/ 19

S.F. 2353 Sec. 11. Section 260F.6, subsection 1, Code 2014, is amended 1 to read as follows: 2 1. There is established created for the community colleges 3 a job training fund in the economic development authority 4 in the workforce development fund to be administered by 5 the department . The job training fund consists of moneys 6 appropriated for the purposes of this chapter plus the interest 7 and principal from repayment of advances made to businesses 8 for program costs, plus the repayments, including interest, 9 of loans made from that retraining fund, and interest earned 10 from moneys in the job training fund . Moneys in the fund are 11 appropriated to the department for purposes of this chapter. 12 Sec. 12. Section 260F.6, subsections 2 and 3, Code 2014, 13 are amended by striking the subsections and inserting in lieu 14 thereof the following: 15 2. Moneys in the fund shall be allocated pursuant to the 16 formula established in 260C.18C. Any unexpended or unallocated 17 funds remaining in the job training fund allocated for purposes 18 of the business network training program authorized in section 19 260F.6A, Code 2014, as of June 30, 2014, shall be distributed 20 to the community colleges in the manner provided for in this 21 subsection. 22 3. Notwithstanding section 8.33, moneys in the fund at 23 the close of the fiscal year shall not revert to the general 24 fund of the state but shall remain available for expenditure 25 for the purpose designated for subsequent fiscal years. 26 Notwithstanding section 12C.7, subsection 2, interest or 27 earnings on moneys in the fund shall be credited to the fund. 28 Sec. 13. Section 260F.7, Code 2014, is amended to read as 29 follows: 30 260F.7 Economic development authority Department to 31 coordinate. 32 The economic development authority, in consultation with 33 the department of education and the department of workforce 34 development, shall coordinate the jobs training program. A 35 -5- LSB 5292SZ (3) 85 ad/rj 5/ 19

S.F. 2353 project shall not be funded under this chapter unless the 1 economic development authority approves the project. The 2 authority department shall adopt rules pursuant to chapter 3 17A governing the program’s operation and eligibility for 4 participation in the program. The authority department shall 5 establish by rule criteria for determining what constitutes an 6 eligible business. 7 Sec. 14. Section 260F.8, Code 2014, is amended by striking 8 the section and inserting in lieu thereof the following: 9 260F.8 Program assessment, development, and coordination. 10 1. The department shall establish performance metrics for 11 the job training programs funded under this chapter and assess 12 program outcomes on an annual basis. 13 2. A community college may retain up to ten percent of the 14 total project cost for the following purposes: 15 a. Outreach to employers by community college business and 16 industry outreach staff. 17 b. Monitoring the performance of training agreements and 18 accountability measures. 19 c. Development of training project and program plans. 20 d. Business development activities. 21 Sec. 15. NEW SECTION . 260J.1 Title. 22 This chapter shall be known and may be cited as the “Iowa 23 Apprenticeship Act” . 24 Sec. 16. NEW SECTION . 260J.2 Definitions. 25 For purposes of this chapter, unless the context otherwise 26 requires: 27 1. “Apprentice” means a person who is at least sixteen 28 years of age, except where a higher minimum age is required by 29 law, who is employed in an apprenticeable occupation, and is 30 registered in Iowa with the United States department of labor, 31 office of apprenticeship. 32 2. “Apprenticeable occupation” means an occupation approved 33 for apprenticeship by the United States department of labor, 34 office of apprenticeship. 35 -6- LSB 5292SZ (3) 85 ad/rj 6/ 19

S.F. 2353 3. “Apprenticeship program” means a program registered 1 with the United States department of labor, office of 2 apprenticeship, which includes terms and conditions for the 3 qualification, recruitment, selection, employment, and training 4 of apprentices, including the requirement for a written 5 apprenticeship agreement. 6 4. “Apprenticeship sponsor” means an entity operating 7 an apprenticeship program or an entity in whose name an 8 apprenticeship program is being operated, which is registered 9 with or approved by the United States department of labor, 10 office of apprenticeship. 11 5. “Department” means the department of education. 12 6. “Financial assistance” means assistance provided only 13 from the funds, rights, and assets legally available to the 14 department and includes but is not limited to assistance in the 15 forms of grants, loans, forgivable loans, and royalty payments. 16 7. “Fund” means the apprenticeship training program fund 17 created in section 260J.3. 18 8. “Lead apprenticeship sponsor” means a trade organization, 19 labor organization, employer association, or other incorporated 20 entity representing a group of apprenticeship sponsors. 21 Sec. 17. NEW SECTION . 260J.3 Apprenticeship training 22 program —— fund. 23 1. An apprenticeship training program fund is created in the 24 state treasury under the control of the department. 25 2. The fund shall consist of moneys deposited in the fund 26 pursuant to section 256.92, moneys appropriated for purposes 27 of the apprenticeship training program, and any other moneys 28 lawfully available to the department for purposes of this 29 chapter. 30 3. Moneys in the fund are appropriated to the department for 31 the purposes of this chapter. 32 4. No more than two percent of the total moneys deposited 33 in the fund on July 1 of a fiscal year is appropriated to the 34 department for the purposes of administering this chapter. 35 -7- LSB 5292SZ (3) 85 ad/rj 7/ 19

S.F. 2353 5. Notwithstanding section 8.33, moneys in the fund at 1 the close of the fiscal year shall not revert but shall 2 remain available for expenditure for the purposes designated 3 for subsequent fiscal years. Notwithstanding section 12C.7, 4 subsection 2, interest or earnings on moneys in the fund shall 5 be credited to the fund. 6 Sec. 18. NEW SECTION . 260J.4 Financial assistance for an 7 apprenticeship program. 8 1. a. An apprenticeship sponsor or lead apprenticeship 9 sponsor conducting apprenticeship programs in Iowa for 10 apprentices who will be employed at Iowa worksites may apply to 11 the department for a training grant or an infrastructure grant, 12 or both a training grant and an infrastructure grant under this 13 section. 14 b. Financial assistance received by an apprenticeship 15 sponsor or lead apprenticeship sponsor under this section shall 16 be used only for the cost of conducting and maintaining an 17 apprenticeship program. 18 2. The department shall provide financial assistance 19 in the form of training grants or infrastructure grants to 20 apprenticeship sponsors or lead apprenticeship sponsors in the 21 following manner: 22 a. By determining the total amount of funding allocated 23 for purposes of training grants or infrastructure grants for 24 apprenticeship programs pursuant to section 260J.3. 25 b. By adding together all of the following: 26 (1) The total number of apprentices trained by all applying 27 apprenticeship sponsors or lead apprenticeship sponsors during 28 the most recent training year as calculated on the last day of 29 the training year. 30 (2) The total number of contact hours that apprenticeship 31 instructors for all applying apprenticeship sponsors or lead 32 apprenticeship sponsors spent in contact with apprentices 33 during the most recent training year. For purposes of 34 this subparagraph, “contact hours” includes the time spent 35 -8- LSB 5292SZ (3) 85 ad/rj 8/ 19

S.F. 2353 instructing apprentices in person or, in the case of a lead 1 apprenticeship sponsor with programs totaling one hundred or 2 more total instructional hours, “contact hours” includes the 3 time spent in online training if the total amount of online 4 instruction does not account for more than thirty percent of 5 the total instructional hours. 6 c. By adding together all of the following: 7 (1) The total number of apprentices trained by a single 8 applying apprenticeship sponsor or lead apprenticeship sponsor 9 during the most recent training year as calculated on the last 10 day of the training year. 11 (2) The total number of contact hours that apprenticeship 12 instructors for a single applying apprenticeship sponsor or 13 lead apprenticeship sponsor spent in contact with apprentices 14 during the most recent training year. For purposes of 15 this subparagraph, “contact hours” includes the time spent 16 instructing apprentices in person or, in the case of a lead 17 apprenticeship sponsor with programs totaling one hundred or 18 more total instructional hours, “contact hours” includes the 19 time spent in online training if the total amount of online 20 instruction does not account for more than thirty percent of 21 the total instructional hours. 22 d. By determining the proportion, stated as a percentage, 23 that a single applying apprenticeship sponsor’s or lead 24 apprenticeship sponsor’s total calculated pursuant to paragraph 25 “c” bears to all applying apprenticeship sponsors’ or lead 26 apprenticeship sponsors’ total calculated pursuant to paragraph 27 “b” . 28 e. By multiplying the percentage calculated in paragraph “d” 29 by the amount determined in paragraph “a” . 30 3. An apprenticeship sponsor or lead apprenticeship sponsor 31 seeking financial assistance under this section shall provide 32 the following information to the department: 33 a. The federal apprentice registration number of each 34 apprentice in the apprenticeship program. 35 -9- LSB 5292SZ (3) 85 ad/rj 9/ 19

S.F. 2353 b. The address and a description of the physical location 1 where in-person training is conducted. 2 c. A certification of the apprenticeship sponsor’s training 3 standards as most recently approved by the United States 4 department of labor, office of apprenticeship or, in the case 5 of a lead apprenticeship sponsor, a representative sample of 6 participating members’ training standards. 7 d. A certification of the apprenticeship sponsor’s 8 compliance review or quality assessment as most recently 9 conducted by the United States department of labor, office of 10 apprenticeship, unless the apprenticeship sponsor has not been 11 subjected to a compliance review or quality assessment. In the 12 case of a lead apprenticeship sponsor, a sampling of compliance 13 reviews or quality assessments from participating members shall 14 be sufficient. 15 e. Any other information the department reasonably 16 determines is necessary. 17 4. The apprenticeship sponsor or lead apprenticeship 18 sponsor and the department shall enter into an agreement 19 regarding the provision of any financial assistance to the 20 apprenticeship sponsor or lead apprenticeship sponsor. 21 5. Notwithstanding the provisions of this section, an 22 apprenticeship program receiving funds from section 260F.6 or 23 other community college funding sources in the fiscal year 24 beginning July 1, 2013, and ending June 30, 2014, shall receive 25 no less than that amount from the fund in the fiscal year 26 beginning July 1, 2014, and ending June 30, 2015. 27 Sec. 19. NEW SECTION . 260J.5 Apprenticeship training 28 program advisory board. 29 1. An apprenticeship training program advisory board is 30 established to advise the department on issues related to 31 apprenticeship programs supported pursuant to this chapter and 32 to promote the development of new and the expansion of existing 33 apprenticeship programs for apprentices who will be employed 34 at Iowa worksites. 35 -10- LSB 5292SZ (3) 85 ad/rj 10/ 19

S.F. 2353 2. The advisory board shall consist of the following 1 members: 2 a. One member of the master builders of Iowa. 3 b. One member of the associated builders and contractors of 4 Iowa. 5 c. One member of the technology association of Iowa. 6 d. One member of the Iowa association of business and 7 industry. 8 e. Five members, one member each from different labor 9 organizations that are apprenticeship sponsors or lead 10 apprenticeship sponsors. Five members representing 11 labor organizations shall serve at a time, but the labor 12 organizations represented shall rotate with every term. 13 f. One member from the Iowa federation of labor. 14 g. One member representing community college apprenticeship 15 programs. 16 h. One member representing the Iowa economic development 17 authority. 18 i. One member representing the department. 19 j. One member of the United States department of labor, 20 office of apprenticeship, serving as an ex-officio, nonvoting 21 member. 22 k. Four members of the general assembly serving as 23 ex officio, nonvoting members, one representative to be 24 appointed by the speaker of the house of representatives, one 25 representative to be appointed by the minority leader of the 26 house of representatives, one senator to be appointed by the 27 majority leader of the senate, and one senator to be appointed 28 by the minority leader of the senate. 29 3. a. The voting members of the advisory board and the 30 member from the United States department of labor, office 31 of apprenticeship, shall be selected by the named entity or 32 entities. The members from the labor organizations shall be 33 selected by the labor organization being represented. The 34 member representing the community college apprenticeship 35 -11- LSB 5292SZ (3) 85 ad/rj 11/ 19

S.F. 2353 programs shall be selected by the Iowa association of community 1 college trustees. 2 b. The voting members of the advisory board and the 3 member from the United States department of labor, office of 4 apprenticeship, shall serve three-year staggered terms. If 5 a vacancy occurs a successor shall be selected in the same 6 manner and subject to the same qualifications as the original 7 selection to serve the remainder of the term. 8 c. The legislative members of the advisory board shall serve 9 terms as provided in section 69.16B. A legislative member 10 may designate another person to attend a board meeting if the 11 member is unavailable. 12 4. The voting members shall elect a chairperson and 13 vice chairperson annually from the voting membership of the 14 advisory board. A majority of the voting members of the board 15 constitute a quorum. If the chairperson and vice chairperson 16 are unable to preside over the board due to absence or 17 disability, a majority of the voting members present may elect 18 a temporary chairperson providing a quorum is present. 19 Sec. 20. Section 403.21, subsections 1 and 3, Code 2014, are 20 amended to read as follows: 21 1. In order to promote communication and cooperation among 22 cities, counties, and community colleges with respect to the 23 allocation and division of taxes, no jobs training projects 24 as defined in chapter 260E or 260F shall be undertaken within 25 the area of operation of a municipality after July 1, 1995, 26 unless the municipality and the community college have entered 27 into an agreement or have jointly adopted a plan relating 28 to a community college’s new jobs training program which 29 shall provide for a procedure for advance notification to 30 each affected municipality, for exchange of information, for 31 mutual consultation, and for procedural guidelines for all 32 such new jobs training projects, including related project 33 financing to be undertaken within the area of operation of the 34 municipality. The joint agreement or the plan shall state its 35 -12- LSB 5292SZ (3) 85 ad/rj 12/ 19

S.F. 2353 precise duration and shall be binding on the community college 1 and the municipality with respect to all new jobs training 2 projects, including related project financing undertaken during 3 its existence. The joint agreement or plan shall be effective 4 upon adoption and shall be placed on file in the office of the 5 secretary of the board of directors of the community college 6 and such other location as may be stated in the joint agreement 7 or plan. The joint agreement or plan shall also be sent to each 8 school district which levied or certified for levy a property 9 tax on any portion of the taxable property located in the area 10 of operation of the municipality in the fiscal year beginning 11 prior to the calendar year in which the plan is adopted or 12 the agreement is reached. If no such agreement is reached or 13 plan adopted, the community college shall not use incremental 14 property tax revenues to fund jobs training projects within the 15 area of operation of the municipality. Agreements entered into 16 between a community college and a city or county pursuant to 17 chapter 28E shall not apply. 18 3. The community college shall send a copy of the final 19 agreement prepared pursuant to section 260F.3 to the economic 20 development authority. For each year in which incremental 21 property taxes are used to retire debt service on a jobs 22 training advance issued for a project creating new jobs, the 23 community college shall provide to the economic development 24 authority a report of the incremental property taxes and new 25 jobs credits from withholding generated for that year, a 26 specific description of the training conducted, the number of 27 employees provided program services under the project, the 28 median wage of employees in the new jobs in the project, and 29 the administrative costs directly attributable to the project. 30 Sec. 21. Section 422.16A, Code 2014, is amended to read as 31 follows: 32 422.16A Job training withholding —— certification and 33 transfer. 34 Upon the completion by a business of its repayment 35 -13- LSB 5292SZ (3) 85 ad/rj 13/ 19

S.F. 2353 obligation for a training project funded under chapter 1 260E , including a job training project funded under section 2 15A.8 or repaid in whole or in part by the supplemental new 3 jobs credit from withholding under section 15A.7 or section 4 15E.197 , the sponsoring community college shall report to 5 the economic development authority the amount of withholding 6 paid by the business to the community college during the 7 final twelve months of withholding payments. The economic 8 development authority shall notify the department of revenue 9 of that amount. The department shall credit to the workforce 10 development fund account established in section 15.342A 256.91 11 twenty-five percent of that amount each quarter for a period 12 of ten years. If the amount of withholding from the business 13 or employer is insufficient, the department shall prorate the 14 quarterly amount credited to the workforce development fund 15 account. The maximum amount from all employers which shall be 16 transferred to the workforce development fund account in any 17 year is four six million dollars. 18 Sec. 22. Section 558.1, Code 2014, is amended to read as 19 follows: 20 558.1 “Instruments affecting real estate” defined —— 21 revocation. 22 All instruments containing a power to convey, or in any 23 manner relating to real estate, including certified copies of 24 petitions in bankruptcy with or without the schedules appended, 25 of decrees of adjudication in bankruptcy, and of orders 26 approving trustees’ bonds in bankruptcy, and a jobs training 27 agreement entered into under chapter 260E or 260F between an 28 employer and community college which contains a description 29 of the real estate affected, shall be held to be instruments 30 affecting the same; and no such instrument, when acknowledged 31 or certified and recorded as in this chapter prescribed, can be 32 revoked as to third parties by any act of the parties by whom it 33 was executed, until the instrument containing such revocation 34 is acknowledged and filed for record in the same office in 35 -14- LSB 5292SZ (3) 85 ad/rj 14/ 19

S.F. 2353 which the instrument containing such power is recorded, except 1 that uniform commercial code financing statements and financing 2 statement changes as provided in chapter 554 need not be thus 3 acknowledged. 4 Sec. 23. REPEAL. Sections 15.341, 15.342, 15.342A, 15.343, 5 15.344, 260F.6A, and 260F.6B, Code 2014, are repealed. 6 Sec. 24. RULES. The department of education shall adopt 7 rules to administer this Act. 8 Sec. 25. TRANSFER OF FUNDS. 9 1. All moneys in the workforce development fund account, 10 established in section 15.342A, as of the effective date of 11 this Act and any moneys accruing to the workforce development 12 fund account, established in section 15.342A, after the 13 effective date of this Act, shall be transferred to the 14 workforce development fund account established in section 15 256.91, as enacted in this Act. 16 2. All moneys in the workforce development fund, created in 17 section 15.343, as of the effective date of this Act and any 18 moneys accruing to the workforce development fund, created in 19 section 15.343, after the effective date of this Act, shall be 20 transferred to the workforce development fund established in 21 section 256.92, as enacted in this Act. 22 Sec. 26. TRANSITION PROVISIONS. 23 1. A financial assistance award made or provided for in an 24 agreement entered into pursuant to section 260F.3 prior to the 25 effective date of this Act shall continue as provided in such 26 agreement. 27 2. Loan payments or repayments and recaptures of principal, 28 interest, or other moneys accruing on or after July 1, 2014, 29 pursuant to an agreement under section 260F.3, as in effect 30 prior to July 1, 2014, shall be transferred to the job training 31 fund created in section 260F.6, as amended by this Act. 32 EXPLANATION 33 The inclusion of this explanation does not constitute agreement with 34 the explanation’s substance by the members of the general assembly. 35 -15- LSB 5292SZ (3) 85 ad/rj 15/ 19

S.F. 2353 This bill relates to changes to the job training program and 1 fund under Code chapter 260F and establishes an apprenticeship 2 program under new Code chapter 260J. 3 WORKFORCE DEVELOPMENT FUND. The bill amends the workforce 4 development fund account and the workforce development fund by 5 eliminating the funds as the funds exist under the economic 6 development authority (“authority”) and transferring the moneys 7 remaining in the fund and moneys accruing to the fund after 8 the effective date of the bill into the newly established 9 workforce development fund account and workforce development 10 fund, respectively, controlled by the department of education. 11 The job training withholding moneys currently transferred to 12 the workforce development account under the authority will 13 be transferred pursuant to the bill to the newly established 14 workforce development fund account under the department of 15 education. The bill also raises the cap on the withholding 16 amount to be transferred from $4 million to $6 million. The 17 moneys in the workforce development fund under the department 18 of education shall be used for purposes of funding projects for 19 jobs training under Code chapter 260F as amended by the bill 20 and for apprenticeship programs under new Code chapter 260J 21 under the bill. Three million dollars is allocated to each 22 purpose and shall be transferred to the job training fund and 23 the apprenticeship training program fund. 24 The bill repeals provisions related to the workforce 25 development fund program operated by the authority. 26 JOBS TRAINING PROGRAM. The bill amends the jobs training 27 program and job training fund under Code chapter 260F. 28 Currently, a business and the community college enter into an 29 agreement to establish a project and the authority accepts 30 applications for assistance, sets the criteria for whether a 31 business is eligible for assistance under the program, and 32 coordinates the jobs training program. The bill amends these 33 provisions by no longer requiring the business to submit 34 an application to the authority, allowing the department 35 -16- LSB 5292SZ (3) 85 ad/rj 16/ 19

S.F. 2353 of education to set the criteria for whether a business is 1 eligible for assistance, and requiring the department of 2 education to coordinate the jobs training program. 3 The bill amends the job training fund by establishing 4 the fund under the state treasury rather than within the 5 workforce development fund and transferring the authority over 6 the fund from the authority to the department of education. 7 The bill provides that the moneys in the jobs training fund 8 are appropriated to and shall be allocated to community 9 colleges through a formula established in the chapter related 10 to community colleges. The bill also provides that moneys 11 remaining in the job training fund for the business network 12 training program shall be distributed through this same 13 formula. 14 The bill strikes the definition of “authority” and defines 15 “department” as the department of education in Code chapter 16 260F. The bill amends the definition of “eligible business” 17 in the Code chapter to include commercial construction or a 18 business providing services through electronic commerce in 19 interstate commerce. 20 The bill provides that the maximum financial assistance 21 under the jobs training program is $50,000 for any one project 22 and $100,000 for any business during a three-year period. The 23 bill also requires a business to provide a cash match or an 24 in-kind match to be eligible for financial assistance under the 25 jobs training program. 26 The bill requires each community college to submit an 27 annual report about the jobs training programs funded during 28 the previous fiscal year to the department of education by 29 September 1. The bill requires the department of education to 30 establish performance metrics for the jobs training programs 31 funded and assess the programs funded. The bill also allows 32 community colleges to retain up to 10 percent of the total cost 33 of a project for outreach to employers, monitoring the training 34 agreements, development of training projects and program plans, 35 -17- LSB 5292SZ (3) 85 ad/rj 17/ 19

S.F. 2353 and business development activities. 1 The bill provides transition provisions stating that 2 financial assistance awards through the jobs training program 3 made or provided for under agreements between community 4 colleges and businesses entered into prior to July 1, 2014, 5 remain in effect. The bill also states that loan payments, 6 repayments, recaptures, and any other moneys accruing pursuant 7 to those agreements shall be transferred to the job training 8 fund, as amended by the bill. 9 APPRENTICESHIP TRAINING PROGRAM. The bill creates the 10 Iowa apprenticeship Act in Code chapter 260J. The chapter 11 provides definitions for “apprentice”, “apprenticeable 12 occupation”, “apprenticeship program”, “apprenticeship 13 sponsor”, “department”, “financial assistance”, “fund”, and 14 “lead apprenticeship sponsor”. 15 The bill establishes an apprenticeship training program fund 16 under the control of the department of education in the state 17 treasury for purposes of providing financial assistance for 18 apprenticeship training under the Code chapter. Moneys in the 19 fund are appropriated to the department for the apprenticeship 20 training program. The bill limits the department of education 21 to 2 percent of the total moneys deposited in the fund for the 22 cost of administering the apprenticeship training program. 23 The bill provides that an apprenticeship sponsor or 24 lead apprenticeship sponsor may apply to the department 25 for financial assistance in the form of a training grant, 26 infrastructure training grant, or both a training grant and 27 infrastructure grant. 28 The bill specifies that financial assistance is to be 29 allocated to apprenticeship sponsors or lead apprenticeship 30 sponsors by the ratio of the total number of apprentices 31 trained and number of contact hours of instruction for an 32 apprenticeship sponsor or lead apprenticeship sponsor divided 33 by the total number of apprentices trained and contact hours 34 of instruction for all the apprenticeship sponsors or lead 35 -18- LSB 5292SZ (3) 85 ad/rj 18/ 19

S.F. 2353 apprenticeship sponsors in the previous training year, then 1 multiplied by the moneys allocated for financial assistance to 2 apprenticeship sponsors. 3 The bill provides that in order to receive financial 4 assistance, the apprenticeship sponsor or lead apprenticeship 5 sponsor and the department must enter into an agreement. 6 The bill establishes an apprenticeship training program 7 advisory board to advise the department on issues related to 8 apprenticeship programs and promote the development of new and 9 the expansion of existing apprenticeship programs in Iowa. 10 RULES AND REPEALS. The bill requires the department of 11 education to adopt rules to administer the bill. 12 The bill repeals Code sections relating to the business 13 network training and the high technology apprenticeship 14 program. 15 -19- LSB 5292SZ (3) 85 ad/rj 19/ 19