H.F. 590 Section 1. Section 84A.1A, Code 2015, is amended to read as 1 follows: 2 84A.1A Workforce development Human capital enrichment board. 3 1. An Iowa workforce development human capital enrichment 4 board is created, consisting of nine nineteen voting members 5 appointed by the governor and twelve sixteen ex officio, 6 nonvoting members. 7 a. The governor shall appoint the nine The nineteen voting 8 members of the board shall consist of the following: 9 (1) The governor, or the governor’s designee. 10 (2) Eighteen voting members of the workforce development 11 human capital enrichment board to be appointed by the governor 12 for a term of four years beginning and ending as provided 13 by section 69.19 , subject to confirmation by the senate , 14 and the . The governor’s appointments shall include persons 15 knowledgeable in the area of workforce development. Of the 16 nine eighteen voting members appointed by the governor , one 17 member shall represent chief elected officials of cities and 18 counties, one member shall represent a nonprofit organization 19 involved in workforce development services, four ten members 20 shall represent employers, and four six members shall represent 21 nonsupervisory employees. Of the members appointed by the 22 governor to represent nonsupervisory employees, two members 23 shall be from statewide labor organizations, one member shall 24 be an employee representative of a labor management council, 25 and one member shall be a person with experience in worker 26 training programs. The governor shall consider recommendations 27 from state business organizations and state trade associations 28 for members representing employers, and from statewide labor 29 organizations for the members representing nonsupervisory 30 employees. Not more than five nine of the voting members shall 31 be from the same political party. 32 b. The ex officio, nonvoting members are four legislative 33 members; one president, or the president’s designee, of the 34 university of northern Iowa, the university of Iowa, or Iowa 35 -1- LSB 2367HV (3) 86 ec/rj 1/ 12

H.F. 590 state university of science and technology, designated by the 1 state board of regents on a rotating basis; one representative 2 from the largest statewide public employees’ organization 3 representing state employees; one president, or the president’s 4 designee, of an independent Iowa college, appointed by the 5 Iowa association of independent colleges and universities; 6 one superintendent, or the superintendent’s designee, of 7 a community college, appointed by the Iowa association of 8 community college presidents; one representative of the 9 vocational rehabilitation community appointed by the state 10 rehabilitation council in the division of Iowa vocational 11 rehabilitation services; one representative of the department 12 of education appointed by the state board of education; one 13 representative for primary and secondary education appointed 14 by the state board of education; one representative appointed 15 by the governor’s science, technology, engineering, and 16 mathematics advisory council; one representative of the 17 economic development authority appointed by the director; the 18 director of the department of workforce development or the 19 director’s designee; the executive director of the college 20 student aid commission or the executive director’s designee; 21 and one representative of the United States department of 22 labor, office of apprenticeship. The legislative members are 23 two state senators, one appointed by the president of the 24 senate after consultation with the majority leader of the 25 senate, and one appointed by the minority leader of the senate 26 from their respective parties; and two state representatives, 27 one appointed by the speaker of the house of representatives 28 after consultation with the majority leader of the house of 29 representatives, and one appointed by the minority leader of 30 the house of representatives from their respective parties. 31 The legislative members shall serve for terms as provided in 32 section 69.16B . 33 2. A vacancy on the workforce development human capital 34 enrichment board shall be filled in the same manner as regular 35 -2- LSB 2367HV (3) 86 ec/rj 2/ 12

H.F. 590 appointments are made for the unexpired portion of the regular 1 term. 2 3. The workforce development board shall meet in May of each 3 year for the purpose of electing one of its voting members as 4 chairperson and one of its voting members as vice chairperson. 5 However, the chairperson and the vice chairperson shall not 6 be from the same political party. The workforce development 7 human capital enrichment board shall meet at the call of the 8 chairperson or when any five a majority of the voting members 9 of the workforce development human capital enrichment board 10 file a written request with the chairperson for a meeting. 11 Written notice of the time and place of each meeting shall be 12 given to each member of the workforce development human capital 13 enrichment board. A majority of the voting members constitutes 14 a quorum. The governor shall designate the chairperson of the 15 board from one of the voting members representing employers and 16 a vice chairperson from any of the voting members of the board 17 who shall serve for a two-year term. 18 4. Members of the workforce development human capital 19 enrichment board, the director of the department of workforce 20 development, and other employees of the department of workforce 21 development shall be allowed their actual and necessary 22 expenses incurred in the performance of their duties. All 23 expenses shall be paid from appropriations for those purposes 24 and the department of workforce development is subject to the 25 budget requirements of chapter 8 . Each member of the workforce 26 development human capital enrichment board may also be eligible 27 to receive compensation as provided in section 7E.6 . 28 5. If a member of the workforce development human capital 29 enrichment board has an interest, either direct or indirect, 30 in a contract to which the department of workforce development 31 is or is to be a party, the interest shall be disclosed to 32 the workforce development human capital enrichment board in 33 writing and shall be set forth in the minutes of a meeting of 34 the workforce development human capital enrichment board. The 35 -3- LSB 2367HV (3) 86 ec/rj 3/ 12

H.F. 590 member having the interest shall not participate in action by 1 the workforce development human capital enrichment board with 2 respect to the contract. This subsection does not limit the 3 right of a member of the workforce development human capital 4 enrichment board to acquire an interest in bonds, or limit 5 the right of a member to have an interest in a bank or other 6 financial institution in which the funds of the department 7 of workforce development are deposited or which is acting as 8 trustee or paying agent under a trust indenture to which the 9 department of workforce development is a party. 10 Sec. 2. Section 84A.1B, unnumbered paragraph 1, Code 2015, 11 is amended to read as follows: 12 The workforce development human capital enrichment board 13 shall do all of the following: 14 Sec. 3. Section 84A.1B, subsections 1, 2, and 3, Code 2015, 15 are amended by striking the subsections and inserting in lieu 16 thereof the following: 17 1. Develop strategies to support the use of career 18 pathways for the purpose of making available to individuals, 19 including low-skilled adults, youth, individuals with barriers 20 to employment, and individuals with disabilities, workforce 21 investment activities, education, and supportive services to 22 allow them to enter or retain employment. 23 2. Develop and expand strategies for meeting the needs 24 of employers, workers, and jobseekers, particularly through 25 industry or sector partnerships related to in-demand industry 26 sectors and occupations; and develop a comprehensive strategic 27 workforce plan for implementing specific policies that further 28 these strategies. 29 3. Develop and continuously improve the one-stop delivery 30 system in local areas, including providing assistance to local 31 boards, one-stop operators, one-stop partners, and providers 32 with planning and delivering services, including training 33 services and supportive services, in order to support effective 34 delivery of services to workers, jobseekers, and employers. 35 -4- LSB 2367HV (3) 86 ec/rj 4/ 12

H.F. 590 Sec. 4. Section 84A.1B, Code 2015, is amended by adding the 1 following new subsection: 2 NEW SUBSECTION . 3A. Perform duties related to human capital 3 enrichment as provided in section 84A.2. 4 Sec. 5. Section 84A.1B, subsections 7 and 8, Code 2015, are 5 amended to read as follows: 6 7. Review grants or contracts awarded by the department 7 of workforce development, with respect to the department’s 8 adherence to the guidelines and procedures and the impact on 9 the five-year strategic plan for workforce development. 10 8. Make recommendations concerning the use of federal 11 funds received by the department of workforce development with 12 respect to the five-year and twenty-year workforce development 13 plans. 14 Sec. 6. Section 84A.1C, subsections 1, 2, and 3, Code 2015, 15 are amended to read as follows: 16 1. Nonprofit corporation for receiving and disbursing 17 funds. The Iowa workforce development human capital enrichment 18 board may organize a corporation under the provisions of 19 chapter 504 for the purpose of receiving and disbursing funds 20 from public or private sources to be used to further workforce 21 development in this state and to accomplish the mission of the 22 board. 23 2. Incorporators. The incorporators of the corporation 24 organized pursuant to this section shall be the chairperson 25 of the Iowa workforce development human capital enrichment 26 board, the director of the department of workforce development, 27 and a member of the Iowa workforce development human capital 28 enrichment board selected by the chairperson. 29 3. Board of directors. The board of directors of the 30 corporation organized pursuant to this section shall be 31 the members of the Iowa workforce development human capital 32 enrichment board or their successors in office. 33 Sec. 7. NEW SECTION . 84A.2 Human capital enrichment. 34 1. Findings and purpose. 35 -5- LSB 2367HV (3) 86 ec/rj 5/ 12

H.F. 590 a. The general assembly finds all of the following: 1 (1) That aligning education, workforce, and economic 2 development policies will result in a holistic, career-focused 3 approach that will help the state meet the needs of employers, 4 grow family incomes, improve the skills of both individuals and 5 the workforce generally, and make communities more vibrant and 6 attractive places to live. 7 (2) That the alignment of education, workforce, and 8 economic development policies can be more effectively achieved 9 by building on the state’s foundation of innovative workforce 10 and education programs to further improve collaboration between 11 the public and private sectors. 12 b. Therefore, it is the purpose of this section to 13 implement the better alignment of education, workforce, and 14 economic development policies through the collaboration of 15 representatives from the public and private sectors through 16 the human capital enrichment board and by establishing a human 17 capital enrichment operations team as provided in this section. 18 2. Human capital enrichment board. 19 a. The human capital enrichment board, in conjunction with 20 the human capital enrichment operations team, shall do all of 21 the following as it relates to human capital enrichment: 22 (1) Review, on a continuing basis, all of the education, 23 workforce training, and economic development programs 24 administered by state government. A program is subject to 25 review by the human capital enrichment board upon majority 26 vote of the members of the human capital enrichment board. In 27 reviewing programs, the human capital enrichment board shall, 28 to the greatest extent possible, utilize data and research in 29 order to make objective, data-driven recommendations. 30 (2) Act as a forum where issues affecting the business, 31 education, workforce, and economic development communities 32 can be discussed and addressed, and where collaborative 33 relationships can be formed. In addition, assist in the 34 development of networks to further the purposes of the human 35 -6- LSB 2367HV (3) 86 ec/rj 6/ 12

H.F. 590 capital enrichment board as it relates to human capital 1 enrichment. 2 (3) Assist in advising state agencies, community colleges, 3 regents institutions, and political subdivisions on the 4 administration and improvement of education, workforce 5 training, and economic development programs they administer. 6 (4) Study and recommend strategies and tactics for aligning 7 economic development, workforce, and education policies 8 that can be implemented by state government, including 9 comprehensively communicating a shared vision to relevant 10 stakeholders. 11 (5) Make recommendations to the general assembly as 12 necessary for changes to law or public policy in order to help 13 better align economic development, workforce, and education 14 programs. 15 (6) Coordinate with personnel of the division of vocational 16 rehabilitation services of the department of education and 17 other departments or agencies, and other relevant stakeholders, 18 as deemed appropriate, to further the purposes of the human 19 capital enrichment board as it relates to human capital 20 enrichment. 21 (7) In conjunction with the operations team, conduct 22 research, compile data, and draft documents that provide 23 background information for use in decision making by the 24 general assembly, the governor, state agencies, community 25 colleges, the state board of regents, and other policymaking 26 bodies within state government. Prior to the human capital 27 enrichment operations team engaging in any of the activities 28 described in this subparagraph, the board shall vote by a 29 majority vote to approve these activities. Additionally, once 30 the research activities are completed, the board shall review 31 and approve by a majority vote the findings of these activities 32 before the findings are shared with the decision makers listed 33 in this subparagraph. 34 b. In performing its duties as it relates to human capital 35 -7- LSB 2367HV (3) 86 ec/rj 7/ 12

H.F. 590 enrichment, the board shall only recommend those policies 1 and alignment strategies that are designed to do all of the 2 following: 3 (1) Provide workers the skills they need to have rewarding 4 careers in a dynamic, global economy. 5 (2) Improve the state’s talent supply to provide employers 6 with more and better trained workers. 7 (3) Deliver programs and services efficiently and in a 8 manner that provides taxpayers with the best return for the tax 9 dollars spent. 10 3. Human capital enrichment operations team. 11 a. The directors of the economic development authority 12 and the departments of management, education, and workforce 13 development shall establish a human capital enrichment 14 operations team to assist the human capital enrichment board as 15 it relates to human capital enrichment. 16 b. (1) The operations team shall be comprised of staff 17 members appointed by the directors of the economic development 18 authority and the departments of management, education, and 19 workforce development. 20 (2) The director of the department of workforce development 21 shall designate the person to coordinate and lead the 22 operations team. 23 c. The operations team shall do all of the following: 24 (1) Coordinate and staff the activities of the human capital 25 enrichment board as it relates to human capital enrichment. 26 (2) Facilitate and coordinate all research, reports, data, 27 analysis, and recommendations associated with the operations 28 team and its purposes. 29 (3) Provide regular updates to the human capital enrichment 30 board on the status of activities of the operations team and 31 the progress made in aligning programs pursuant to the purposes 32 of this section. 33 d. Staffing and administrative costs for the operations 34 team shall be provided by the department of management, 35 -8- LSB 2367HV (3) 86 ec/rj 8/ 12

H.F. 590 the department of education, the department of workforce 1 development, and the economic development authority. 2 Sec. 8. Section 84A.4, subsection 2, Code 2015, is amended 3 to read as follows: 4 2. Each regional advisory board shall identify workforce 5 development needs in its region, assist the workforce 6 development human capital enrichment board and the department 7 of workforce development in the awarding of grants or contracts 8 administered by the department of workforce development in that 9 region and in monitoring the performance of the grants and 10 contracts awarded, make annual reports as required by section 11 84A.1B , and make recommendations to the workforce development 12 human capital enrichment board and department of workforce 13 development concerning workforce development. 14 Sec. 9. Section 84A.5, unnumbered paragraph 1, Code 2015, 15 is amended to read as follows: 16 The department of workforce development, in consultation 17 with the workforce development human capital enrichment 18 board and the regional advisory boards, has the primary 19 responsibilities set out in this section . 20 Sec. 10. Section 84A.5, subsection 9, unnumbered paragraph 21 1, Code 2015, is amended to read as follows: 22 The department of workforce development, in consultation 23 with the applicable regional advisory board, shall select 24 service providers, subject to approval by the workforce 25 development human capital enrichment board for each service 26 delivery area. A service provider in each service delivery 27 area shall be identified to coordinate the services throughout 28 the service delivery area. The department of workforce 29 development shall select service providers that, to the extent 30 possible, meet or have the ability to meet the following 31 criteria: 32 Sec. 11. Section 84A.6, subsection 1, Code 2015, is amended 33 to read as follows: 34 1. The department of workforce development, in consultation 35 -9- LSB 2367HV (3) 86 ec/rj 9/ 12

H.F. 590 with the workforce development human capital enrichment 1 board and the regional advisory boards, the department of 2 education, and the economic development authority shall work 3 together to develop policies encouraging coordination between 4 skill development, labor exchange, and economic development 5 activities. 6 Sec. 12. Section 84B.2, Code 2015, is amended to read as 7 follows: 8 84B.2 Workforce development centers —— location. 9 A workforce development center, as provided in section 10 84B.1 , shall be located in each service delivery area. Each 11 workforce development center shall also maintain a presence, 12 through satellite offices or electronic means, in each county 13 located within that service delivery area. For purposes of 14 this section , “service delivery area” means the area included 15 within a merged area, as defined in section 260C.2 , realigned 16 to the closest county border as determined by the department 17 of workforce development. However, if the state workforce 18 development human capital enrichment board determines that 19 an area of the state would be adversely affected by the 20 designation of the service delivery areas by the department, 21 the department may, after consultation with the applicable 22 regional advisory boards and with the approval of the state 23 workforce development human capital enrichment board, make 24 accommodations in determining the service delivery areas, 25 including, but not limited to, the creation of a new service 26 delivery area. In no event shall the department create more 27 than sixteen service delivery areas. 28 EXPLANATION 29 The inclusion of this explanation does not constitute agreement with 30 the explanation’s substance by the members of the general assembly. 31 This bill concerns the workforce development board, by 32 renaming the board the human capital enrichment board, 33 modifying the membership and duties of the board, and creating 34 a human capital enrichment operations team. 35 -10- LSB 2367HV (3) 86 ec/rj 10/ 12

H.F. 590 Code section 84A.1, establishing the workforce development 1 board, is amended by renaming the board as the Iowa human 2 capital enrichment board. The bill increases the voting 3 members of the board from nine to 19. Additional members 4 include the governor or the governor’s designee and one 5 member who represents chief elected officials of cities and 6 counties. In addition, the number of members representing 7 employers is increased from four to 10 and the number of 8 members representing nonsupervisory employees is increased from 9 four to six. The bill also provides that the governor consider 10 recommendations from state business organizations and state 11 trade associations for members representing employers. The 12 bill also increases the number of ex officio, nonvoting members 13 of the board from 12 to 16. The four additional nonvoting 14 members are one representative for primary and secondary 15 education appointed by the state board of education, one 16 representative appointed by the governor’s science, technology, 17 engineering, and mathematics advisory council, the director 18 of the department of workforce development or the director’s 19 designee, and the executive director of the college student 20 aid commission or the executive director’s designee. The bill 21 requires that the governor designate the chairperson of the 22 board from the voting members representing employers and a vice 23 chairperson from any of the voting members of the board, each 24 for a two-year term. 25 Code section 84A.1B, concerning the duties of the renamed 26 board, is amended. Current provisions requiring the board 27 to develop a 20-year comprehensive workforce development 28 plan and a five-year strategic plan for state workforce 29 development are stricken. Instead, the bill directs the board 30 to develop strategies to support the use of career pathways for 31 low-skilled adults, youth, and other individuals with barriers 32 to employment. In addition, the bill requires the board to 33 develop strategies to meet the needs of employers, workers, and 34 jobseekers, and to develop and improve the one-stop delivery 35 -11- LSB 2367HV (3) 86 ec/rj 11/ 12

H.F. 590 system in local areas to support the effective delivery of 1 services to employers, workers, and jobseekers. 2 New Code section 84A.2 establishes the duties of the renamed 3 board relating to human capital enrichment and establishes a 4 human capital enrichment operations team. Such duties require 5 the board to review education, workforce training, and economic 6 development programs administered by state government; act 7 as a forum for discussing education, workforce training, and 8 economic development issues; assist state agencies; study and 9 recommend strategies for aligning education, workforce, and 10 economic development policies; make recommendations to the 11 general assembly; and, in conjunction with the operations team, 12 conduct research on human capital enrichment issues. 13 The bill also directs the directors of the economic 14 development authority and the departments of management, 15 education, and workforce development to establish a human 16 capital enrichment operations team to assist the human capital 17 enrichment board as it relates to human capital enrichment. 18 The operations team shall be directed by a person designated by 19 the director of the department of workforce development. The 20 bill requires that the operations team, as it relates to human 21 capital enrichment, coordinate and staff the activities of the 22 board; facilitate and coordinate all research, reports, data, 23 analysis, and recommendations associated with the board; and 24 provide updates to the board on the status of activities of the 25 operations team and the progress made in aligning programs as 26 it relates to the purposes of the new Code section. 27 -12- LSB 2367HV (3) 86 ec/rj 12/ 12