SSB 1203 (LSB 2138XC (3) 85)

SENATE FILE _____

BY  (PROPOSED COMMITTEE ON EDUCATION BILL BY CHAIRPERSON QUIRMBACH)

A BILL FOR

An Act relating to workforce training programs and making appropriations.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

DIVISION I

FY 2013-2014 WORKFORCE TRAINING PROGRAM APPROPRIATIONS
    Section 1.  DEPARTMENT OF EDUCATION.  There is appropriated from the general fund of the state to the department of education for the fiscal year beginning July 1, 2013, and ending June 30, 2014, the following amount, or so much thereof as is necessary, to be used for the purposes designated:
   1.  COMMUNITY COLLEGES.
   a.  For deposit in the statewide work-based learning intermediary network fund created pursuant to section 256.40, subsection 1:
.................................................. $  3,000,000
   b.  For deposit in the workforce training and economic development funds created pursuant to section 260C.18A: 
.................................................. $ 15,500,000
   c.  For deposit in the pathways for academic career and employment fund established pursuant to section 260H.2, subsection 2:
.................................................. $  5,000,000
   d.  For distribution to community colleges for the purposes of administering, providing test materials, scoring of examinations, and issuance of high school equivalency diplomas under chapter 259A; administering adult basic education programs; and implementing an adult literacy for the workforce in Iowa program administered by the department of education:
.................................................. $  7,350,000
   (1)  Of the moneys appropriated in this paragraph “d”, the department of education shall distribute $2,000,000 for adult basic education programs for students requiring instruction in English as a second language.
   (2)  The moneys appropriated in this paragraph “d” shall be allocated to community colleges pursuant to the distribution formula used as of July 1, 2014, for the allocation of general state financial aid to merged areas as defined in section 260C.2.

   2.  ADULT LITERACY FOR THE WORKFORCE IN IOWA PROGRAM.
   For implementation of an adult literacy for the workforce in Iowa program and related leadership activities:
.................................................. $    150,000
    Sec. 2.  WORKFORCE DEVELOPMENT FUND.  There is appropriated from the workforce development fund account established in section 15.342A to the workforce development fund created in section 15.343 for the fiscal year beginning July 1, 2013, and ending June 30, 2014, the following amount, for purposes of the workforce development fund:
.................................................. $  6,000,000

DIVISION II

WORKFORCE TRAINING PROGRAMS
    Sec. 3.  Section 15.342A, Code 2013, is amended to read as follows:
   15.342A  Workforce development fund account.
   A workforce development fund account is established in the office of the treasurer of state under the control of the authority. The account shall receive funds pursuant to section 422.16A up to a maximum of four
 
six million dollars per year. The account shall also receive funds pursuant to section 15.251 with no dollar limitation.
    Sec. 4.  Section 15.343, subsection 2, paragraphs a and d, Code 2013, are amended by striking the paragraphs.
    Sec. 5.  Section 15.343, subsection 3, paragraph a, Code 2013, is amended to read as follows:
   a.  Three
 
Five million dollars shall be used for purposes provided in section 260F.6.
    Sec. 6.  Section 256.40, Code 2013, is amended to read as follows:
   256.40  Statewide work-based learning intermediary network —— fund —— steering committee —— regional networks.
   1.  A statewide work-based learning intermediary network program is established in the department and shall be administered by the department. A separate, statewide work-based learning intermediary network fund is created in the state treasury under the control of the department. The fund shall consist of all moneys deposited in the fund, including any moneys appropriated by the general assembly and any other moneys available to and obtained or accepted by the department from federal or private sources for purposes of the program. Notwithstanding section 8.33, moneys in the fund at the end of a fiscal year shall not revert to the general fund of the state. Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys in the fund shall be credited to the fund.
   2.  The purpose of the program shall be to build a seamless career, future workforce, and economic development system in Iowa to accomplish all of the following
 
prepare students for the workforce by connecting business and the education system and offering relevant, work-based learning activities to students and teachers. The program shall:
   a.  Better prepare students to make informed postsecondary education and career decisions.
   b.  Provide communication and coordination in order to build and sustain relationships between employers and local youth, the education system, and the community at large.
   c.  Connect students to local career opportunities, creating economic capital for the region using a skilled and available workforce.
   d.  Facilitate the sharing of best practices statewide by business and education leaders.
   e.

d.  Provide a one-stop contact point for information useful to both educators and employers, including a state-level clearinghouse for
 
information on internships, job shadowing experiences, and other workplace learning opportunities for students that are linked to the state’s economic goals
 
students, particularly related to science, technology, engineering, or mathematics occupations or targeted industries as defined in section 15.102.

   f.  Implement services for all students, staff, and districts within the region and integrate workplace skills into the curriculum.
   e.  Integrate services provided through the program with other career exploration-related activities such as the student core curriculum plan and the career information and decision-making system developed and administered under section 279.61, where appropriate.
   f.  Facilitate the attainment of portable credentials of value to employers such as the national career readiness certificate, where appropriate.
   g.  Develop work-based capacity with employers.
   h.  Improve the skills of Iowa’s future workforce.
   i.

h.  Provide core services, which may include student job shadowing, student internships, and teacher or student tours.
   3.  The department shall establish and facilitate a steering committee comprised of representatives from the department of workforce development, the economic development authority, the community colleges, the institutions under the control of the state board of regents, accredited private institutions, area education agencies, school districts, and the workplace learning connection. The steering committee shall be responsible for the development and implementation of the statewide work-based learning intermediary network.
   4.  The steering committee shall develop a design for a statewide network comprised of fifteen regional work-based learning intermediary networks. The design shall include network specifications, strategic functions, and desired outcomes.

The steering committee shall recommend program parameters and reporting requirements to the department.
   5.  Each regional network shall establish an advisory council to develop and implement
 
provide advice and assistance to the regional network.

The advisory council shall include representatives of business and industry and shall meet at least annually.

   6.  Each regional network or consortium of networks shall annually submit a work-based learning plan to the department. Each plan shall include provisions to provide core services referred to in subsection 2, paragraph “h”, to all school districts within the region and for the integration of job shadowing and other work-based learning activities into secondary career and technical education programs.
   6.
  7.  a.  Funds
 
Moneys deposited in the statewide work-based learning intermediary network fund created in subsection 1 shall be distributed
 
annually to each region for the implementation of the statewide work-based learning intermediary network based upon the distribution of the kindergarten through grade twelve student enrollments in each region. The amount shall not exceed three dollars per student
 
upon approval by the department of the region’s work-based learning plan submitted pursuant to subsection 6.
   b.  If the balance in the statewide work-based learning intermediary network fund on July 1 of a fiscal year is one million dollars or less, the department shall distribute moneys in the fund to regions or consortium of regions on a competitive basis. If the balance in the statewide work-based learning intermediary network fund on July 1 of a fiscal year is greater than one million dollars, the department shall distribute one hundred thousand dollars to each region and distribute the remaining moneys pursuant to the distribution formula used as of July 1, 2014, for the allocation of general state financial aid to merged areas as defined in section 260C.2.
   7.

8.  The department shall provide oversight of the statewide work-based learning intermediary network and shall annually evaluate the statewide and regional network progress toward the outcomes identified by the steering committee pursuant to subsection 4.

The department shall require each region to submit an annual report on its ongoing implementation of the statewide work-based learning intermediary network program to the department.
   8.

9.  Each regional network shall match the funds
 
moneys received pursuant to subsection 6
 
7 with financial resources equal to at least twenty-five percent of the amount of the funds
 
moneys received pursuant to subsection 6
 
7. The financial resources used to provide the match may include private donations, in-kind contributions, or public funds
 
moneys other than the funds
 
moneys received pursuant to subsection 6
 
7.
   10.  The state board of education shall adopt rules under chapter 17A for the administration of this section.
    Sec. 7.  Section 260C.18A, subsection 2, paragraph e, Code 2013, is amended by striking the paragraph.
    Sec. 8.  Section 260F.6, subsection 2, Code 2013, is amended to read as follows:
   2.  To provide funds for the present payment of the costs of a training program by the business, the community college may provide to the business an advance of the moneys to be used to pay for the program costs as provided in the agreement. To receive the funds for this advance from the job training fund established in subsection 1, the community college shall submit an application to the economic development authority. The amount of the advance shall not exceed twenty-five
 
fifty thousand dollars for any business site, or fifty
 
one hundred thousand dollars within a three-fiscal-year period for any business site. If the project involves a consortium of businesses, the maximum award per project shall not exceed fifty
 
one hundred thousand dollars. Participation in a consortium does not affect a business site’s eligibility for individual project assistance. Prior to approval a business shall agree to match program amounts in accordance with criteria established by the authority.
    Sec. 9.  Section 260H.2, Code 2013, is amended to read as follows:
   260H.2  Pathways for academic career and employment program
 
—— fund.
   1.  A pathways for academic career and employment program is established to provide funding to community colleges for the development of projects in coordination with the economic development authority, the department of education, the department of workforce development, regional advisory boards established pursuant to section 84A.4, and community partners to implement a simplified, streamlined, and comprehensive process, along with customized support services, to enable eligible participants to acquire effective academic and employment training to secure gainful, quality, in-state employment.
   2.
  a.  A pathways for academic career and employment fund is created for the community colleges in the state treasury to be administered by the department of education. The moneys in the pathways for academic career and employment fund are appropriated to the department of education for the pathways for academic career and employment program.
   b.  The aggregate total of grants awarded from the pathways for academic career and employment fund during a fiscal year shall not be more than five million dollars.
   c.  Moneys in the fund shall be allocated pursuant to the formula established in section 260C.18C. Notwithstanding section 8.33, moneys in the fund at the close of the fiscal year shall not revert to the general fund of the state but shall remain available for expenditure for the purpose designated for subsequent fiscal years. Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys in the fund shall be credited to the fund.
    Sec. 10.  Section 260H.3, subsection 1, paragraph b, Code 2013, is amended to read as follows:
   b.  Persons earning incomes at or below two hundred
 
fifty percent of the federal poverty level as defined by the most recently revised poverty income guidelines published by the United States department of health and human services.
    Sec. 11.  Section 260H.4, subsection 2, paragraph b, Code 2013, is amended by adding the following new subparagraph:
   NEW SUBPARAGRAPH.  (5)  Any other industry designated as in-demand by a regional advisory board established pursuant to section 84A.4.
    Sec. 12.  Section 260H.4, subsection 2, paragraph c, Code 2013, is amended by striking the paragraph.
    Sec. 13.  NEW SECTION.  260H.7A  Pathway navigators.
   1.  A community college may use moneys for the pathways for academic career and employment program to employ pathway navigators to assist students applying for or enrolled in eligible pathways for academic career and employment projects.
   2.  Pathway navigators shall provide services and support to aid students in selecting pathways for academic career and employment projects that will result in gainful, quality, in-state employment and to ensuring students are successful once enrolled in pathways for academic career and employment projects. Services the pathway navigators may provide include but are not limited to the following:
   a.  Interviewing and selecting students for enrollment in pathways for academic career and employment projects.
   b.  Assessing students’ skills, interests, and previous academic and work experience for purposes of placement in pathways for academic career and employment projects.
   c.  Working with students to develop academic and career plans and to adjust such plans as needed.
   d.  Assisting students in applying for and receiving resources for financial aid and other forms of tuition assistance.
   e.  Assisting students with the admissions process, remedial education, academic credit transfer, meeting assessment requirements, course registration, and other procedures necessary for successful completion of pathways for academic career and employment projects.
   f.  Assisting in identifying and resolving obstacles to students’ successful completion of pathways for academic career and employment projects.
   g.  Connecting students with useful college resources or outside support services such as access to child care, transportation, and tutorial assistance, as needed.
   h.  Maintaining ongoing contact with students enrolled in pathways for academic career and employment projects and ensuring students are making satisfactory progress toward the successful completion of projects.
   i.  Providing support to students transitioning from remedial education, short-term training, and classroom experience to employment.
   j.  Coordinating activities with community-based organizations that serve as key recruiters for pathways for academic career and employment projects and assisting students throughout the recruitment process.
   k.  Coordinating adult basic education services. 
    Sec. 14.  NEW SECTION.  260H.7B  Regional industry sector partnerships.
   1.  A community college may use moneys for the pathways for academic career and employment program to provide staff and support for the development and implementation of regional industry sector partnerships within the region served by the community college.
   2.  Regional, industry sector partnerships may include but are not limited to the following activities:
   a.  Bringing together representatives from industry sectors, government, education, local workforce boards, community-based organizations, labor, economic development organizations, and other stakeholders within the regional labor market to determine how pathways for academic career and employment projects should address workforce skills gaps, occupational shortages, and wage gaps.
   b.  Integrating pathways for academic career and employment projects and other existing supply-side strategies with workforce needs within the region served by the community college.
   c.  Developing pathways for academic career and employment projects that focus on the workforce skills, from entry level to advanced, required by industry sectors within the region served by the community college.
    Sec. 15.  Section 260I.4, subsection 6, Code 2013, is amended to read as follows:
   6.  Eligibility for tuition assistance under this chapter shall be limited to persons earning incomes at or below two hundred
 
fifty percent of the federal poverty level as defined by the most recently revised poverty income guidelines published by the United States department of health and human services.
    Sec. 16.  Section 260I.5, Code 2013, is amended by adding the following new subsection:
   NEW SUBSECTION.  5.  Costs of providing direct staff support services including but not limited to marketing, outreach, application, interview, and assessment processes. Eligible costs for this purpose shall be limited to twenty percent of any allocation of moneys to the two smallest community colleges, ten percent of any allocation of moneys to the two largest community colleges, and fifteen percent of any allocation of moneys to the remaining eleven community colleges. Community college size shall be determined based on the most recent three-year rolling average full-time equivalent enrollment.
    Sec. 17.  Section 422.16A, Code 2013, is amended to read as follows:
   422.16A  Job training withholding —— certification and transfer.
   Upon the completion by a business of its repayment obligation for a training project funded under chapter 260E, including a job training project funded under section 15A.8 or repaid in whole or in part by the supplemental new jobs credit from withholding under section 15A.7 or section 15E.197, the sponsoring community college shall report to the economic development authority the amount of withholding paid by the business to the community college during the final twelve months of withholding payments. The economic development authority shall notify the department of revenue of that amount. The department shall credit to the workforce development fund account established in section 15.342A twenty-five percent of that amount each quarter for a period of ten years. If the amount of withholding from the business or employer is insufficient, the department shall prorate the quarterly amount credited to the workforce development fund account. The maximum amount from all employers which shall be transferred to the workforce development fund account in any year is four
 
six million dollars.
EXPLANATION
   This bill relates to workforce training programs, including making appropriations for workforce training programs for fiscal year 2013-2014. The bill is organized into divisions.
   FY 2013-2014 WORKFORCE TRAINING APPROPRIATIONS. The bill appropriates moneys from the general fund of the state to the department of education for deposit in the statewide work-based learning intermediary network fund established pursuant to Code section 256.40.
   The bill appropriates moneys from the general fund of the state to the department of education for deposit in the workforce training and economic development funds created pursuant to Code section 260C.18A.
   The bill appropriates moneys from the general fund of the state to the department of education for deposit in the pathways for academic career and employment fund established pursuant to Code section 260H.2.
   The bill appropriates moneys from the general fund of the state to the department of education for distribution to community colleges for the purposes of administering, providing test materials, scoring of examinations, and issuance of high school equivalency diplomas under Code chapter 259A; administering adult basic education programs; and implementing an adult literacy for the workforce in Iowa program administered by the department of education. The bill requires the department of education to distribute a portion of such moneys for adult basic education programs for students requiring instruction in English as a second language. The department is required to allocate the moneys pursuant to the distribution formula used as of July 1, 2014, for the allocation of general state financial aid to merged areas, as defined in Code section 260C.2.
   The bill appropriates moneys from the general fund of the state to the department of education for implementation of an adult literacy for the workforce in Iowa program and related leadership activities.
   The bill appropriates moneys from the workforce development fund account established pursuant to Code section 15.342A to the workforce development fund created pursuant to Code section 15.343.
   WORKFORCE TRAINING PROGRAMS. The bill increases the maximum amount that can be transferred to the workforce development fund account established pursuant to Code section 15.342A for job training withholding moneys pursuant to Code section 422.16A relating to certain job training programs. The bill provides that additional moneys in the workforce development fund can be used for the purposes of job training under Code chapter 260F. The bill makes changes relating to the purposes for which moneys in the workforce development fund can be used. The bill also increases the amount that a community college can advance to a business or consortium of businesses to cover the cost of job training under Code chapter 260F.
   The bill makes various changes to the statewide work-based learning intermediary network program under Code section 256.40, including modifying the purposes of the program and the duties of the steering committee, regional networks, and regional advisory councils for the program; establishing requirements for the distribution of funds in the statewide work-based learning intermediary network fund; establishing annual planning and reporting requirements; and establishing rulemaking authority for the program.
   The bill makes various changes to the pathways for academic career and employment program under Code chapter 260H. The bill establishes a pathways for academic career and employment fund in the state treasury for the community colleges to be administered by the department of education. Moneys in the fund shall be allocated pursuant to the formula established in Code section 260C.18C. The bill makes changes relating to eligibility criteria for the program. The bill provides that funds for the program can be used by community colleges to employ pathway navigators to provide various services to aid students in selecting pathways for academic career and employment projects that will result in gainful, quality, in-state employment and to ensure students are successful once enrolled in such projects. The bill provides that funds for the program can be used by community colleges to establish regional industry sector partnerships. Partnerships may include various activities to further the ability of pathways for academic career and employment projects to meet the workforce needs of industry sectors within the region served by a community college.
   The bill makes changes to the gap tuition assistance program under Code chapter 260I. The bill modifies eligibility criteria for the program and costs eligible for coverage by tuition assistance under the program.