House File 572 - Introduced HOUSE FILE 572 BY COMMITTEE ON ECONOMIC GROWTH (SUCCESSOR TO HSB 168) A BILL FOR An Act relating to employment services programs administered 1 by the department of workforce development by modifying the 2 membership requirements and duties of the Iowa workforce 3 development board and authorizing the department to carry 4 out unemployment insurance systems modernization, making 5 appropriations, and including effective date provisions. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 1321HV (2) 87 je/rj

H.F. 572 DIVISION I 1 IOWA WORKFORCE DEVELOPMENT BOARD 2 Section 1. Section 84A.1A, subsection 1, Code 2017, is 3 amended by striking the subsection and inserting in lieu 4 thereof the following: 5 1. An Iowa workforce development board is created, 6 consisting of thirty-three voting members and thirteen 7 nonvoting members. 8 a. The voting members of the Iowa workforce development 9 board shall include the following: 10 (1) The governor. 11 (2) One state senator appointed by the president of the 12 senate after consultation with the majority leader of the 13 senate, who shall serve a term as provided in section 69.16B. 14 (3) One state representative appointed by the speaker of the 15 house of representatives after consultation with the majority 16 leader of the house of representatives, who shall serve a term 17 as provided in section 69.16B. 18 (4) The director of the department of workforce development 19 or the director’s designee. 20 (5) The director of the department of education or the 21 director’s designee. 22 (6) The director of the department for the blind or the 23 director’s designee. 24 (7) The administrator of the division of Iowa vocational 25 rehabilitation services of the department of education or the 26 administrator’s designee. 27 (8) The following twenty-six members who shall be appointed 28 by the governor for staggered terms of four years beginning and 29 ending as provided in section 69.19, subject to confirmation 30 by the senate: 31 (a) Seventeen members who shall be representatives of 32 businesses in the state to whom each of the following applies: 33 (i) The members shall be owners of businesses, chief 34 executives or operating officers of businesses, or other 35 -1- LSB 1321HV (2) 87 je/rj 1/ 10

H.F. 572 business executives or employers with optimum policymaking or 1 hiring authority, and may, in addition, be members of a local 2 workforce development board described in section 84A.4. 3 (ii) The members shall represent businesses, including 4 small businesses, or organizations representing businesses 5 described in this subparagraph (a), that provide employment 6 opportunities that, at a minimum, include high quality, 7 work-relevant training and development in in-demand industry 8 sectors or occupations in the state. 9 (iii) The members shall be appointed from among individuals 10 nominated by state business organizations and business trade 11 associations. 12 (b) Seven members who shall be representatives of the 13 workforce in the state and who shall include all of the 14 following: 15 (i) Four representatives of labor organizations who have 16 been nominated by state labor federations. 17 (ii) One representative of a joint labor-management 18 apprenticeship program in the state who shall be a member of 19 a labor organization or a training director. If such a joint 20 program does not exist in the state, the member shall instead 21 be a representative of an apprenticeship program in the state. 22 (iii) Two representatives of community-based organizations 23 that have demonstrated experience and expertise in addressing 24 the employment, training, or education needs of individuals 25 with barriers to employment as defined in the federal Workforce 26 Innovation and Opportunity Act, Pub. L. No. 113-128, §3(24), 27 including but not limited to organizations that serve veterans, 28 that provide or support competitive, integrated employment for 29 individuals with disabilities; or that serve eligible youth, 30 as defined in the federal Workforce Innovation and Opportunity 31 Act, Pub. L. No. 113-128, §3(18), including representatives of 32 organizations that serve out-of-school youth, as defined in the 33 federal Workforce Innovation and Opportunity Act, Pub. L. No. 34 113-128, §129(a)(1)(B). 35 -2- LSB 1321HV (2) 87 je/rj 2/ 10

H.F. 572 (c) One city chief elected official, as defined in the 1 federal Workforce Innovation and Opportunity Act, Pub. L. No. 2 113-128, §3(9). 3 (d) One county chief elected official, as defined in the 4 federal Workforce Innovation and Opportunity Act, Pub. L. No. 5 113-128, §3(9). 6 b. The nonvoting members of the Iowa workforce development 7 board shall include the following: 8 (1) One state senator appointed by the minority leader of 9 the senate, who shall serve for a term as provided in section 10 69.16B. 11 (2) One state representative appointed by the minority 12 leader of the house of representatives, who shall serve for a 13 term as provided in section 69.16B. 14 (3) One president, or the president’s designee, of the 15 university of northern Iowa, the university of Iowa, or Iowa 16 state university of science and technology, designated by the 17 state board of regents on a rotating basis. 18 (4) One president, or the president’s designee, of an 19 independent Iowa college, appointed by the Iowa association of 20 independent colleges and universities. 21 (5) One president or president’s designee, of a community 22 college, appointed by the Iowa association of community college 23 presidents. 24 (6) One representative of the economic development 25 authority, appointed by the director. 26 (7) One representative of the department on aging, 27 appointed by the director. 28 (8) One representative of the department of corrections, 29 appointed by the director. 30 (9) One representative of the department of human services, 31 appointed by the director. 32 (10) One representative of the United States department of 33 labor, office of apprenticeship. 34 (11) One representative from the largest statewide public 35 -3- LSB 1321HV (2) 87 je/rj 3/ 10

H.F. 572 employees’ organization representing state employees. 1 (12) One representative of a statewide labor organization 2 representing employees in the construction industry. 3 (13) One representative of a statewide labor organization 4 representing employees in the manufacturing industry. 5 c. The terms of members of the board described in paragraph 6 “a” , subparagraph (8), shall be staggered so that the terms of 7 no more than nine members expire in a calendar year. 8 d. The members of the board shall represent diverse 9 geographic areas of the state, including urban, rural, and 10 suburban areas. 11 e. An individual shall not serve as a member of the board in 12 more than one capacity described in paragraph “a” . 13 Sec. 2. Section 84A.1A, subsections 3 and 4, Code 2017, are 14 amended to read as follows: 15 3. The workforce development board shall meet in May of each 16 year for the purpose of electing one of its voting members as 17 chairperson and one of its voting members as vice chairperson. 18 However, the chairperson and the vice chairperson shall not 19 be from the same political party. The governor shall select 20 a chairperson for the workforce development board from among 21 the members who are representatives of business described in 22 subsection 1, paragraph “a” , subparagraph (8), subparagraph 23 division (a). The workforce development board shall meet 24 at the call of the chairperson or when any five a majority 25 of voting members of the workforce development board file a 26 written request with the chairperson for a meeting. Written 27 notice of the time and place of each meeting shall be given to 28 each member of the workforce development board. A majority of 29 the voting members constitutes a quorum. 30 4. Members of the workforce development board , the 31 director of the department of workforce development, and other 32 employees of the department of workforce development shall 33 be allowed their actual and necessary expenses incurred in 34 the performance of their duties. All expenses shall be paid 35 -4- LSB 1321HV (2) 87 je/rj 4/ 10

H.F. 572 from appropriations for those purposes and the department of 1 workforce development is subject to the budget requirements of 2 chapter 8 . Each member of the workforce development board may 3 also be eligible to receive compensation as provided in section 4 7E.6 . 5 Sec. 3. Section 84A.1B, subsections 5, 6, and 9, Code 2017, 6 are amended by striking the subsections. 7 Sec. 4. Section 84A.1B, subsection 17, Code 2017, is amended 8 to read as follows: 9 17. Make recommendations to the general assembly and 10 governor regarding workforce development services, programs, 11 and activities , including but not limited to allocation of 12 resources . 13 Sec. 5. INITIAL BOARD APPOINTMENTS —— TRANSITION 14 PROVISIONS. 15 1. The governor shall appoint initial members of the Iowa 16 workforce development board described in section 84A.1A, 17 subsection 1, paragraph “a”, subparagraph (8), as enacted by 18 this division of this Act, to terms of less than four years as 19 necessary to ensure that the terms of no more than nine members 20 expire in a calendar year. 21 2. The governor may appoint members serving on the Iowa 22 workforce development board prior to the effective date of this 23 division of this Act pursuant to section 84A.1A, subsection 24 1, paragraph “a”, Code 2017, for membership on the board on 25 and after the effective date of this division of this Act if 26 such individuals continue to be eligible for membership on the 27 board pursuant to section 84A.1A, subsection 1, paragraph “a”, 28 subparagraph (8), as enacted by this division of this Act. 29 3. The members serving on the Iowa workforce development 30 board prior to the effective date of this division of this Act 31 pursuant to section 84A.1A, subsection 1, paragraph “a”, Code 32 2017, shall continue to constitute the membership of the board 33 until a meeting of the board is held at which a majority of 34 the voting members of the board appointed pursuant to section 35 -5- LSB 1321HV (2) 87 je/rj 5/ 10

H.F. 572 84A.1A, subsection 1, paragraph “a”, subparagraph (8), as 1 enacted by this division of this Act, are present. 2 Sec. 6. EFFECTIVE UPON ENACTMENT. This division of this 3 Act, being deemed of immediate importance, takes effect upon 4 enactment. 5 DIVISION II 6 UNEMPLOYMENT INSURANCE SYSTEMS MODERNIZATION 7 Sec. 7. 2016 Iowa Acts, chapter 1118, section 22, is amended 8 to read as follows: 9 SEC. 22. AUTHORIZATION TO JOIN CONSORTIUM USE FEDERAL 10 FUNDS . The department of workforce development is hereby 11 authorized to join a consortium with the states of Idaho and 12 Vermont for the purpose of modifying the Idaho unemployment 13 benefit payment software system so that it can be used to 14 pay unemployment insurance benefits by the state of Iowa use 15 federal funds distributed to the department for the purpose of 16 unemployment insurance systems modernization . 17 Sec. 8. 2016 Iowa Acts, chapter 1118, section 23, 18 subsections 1 and 2, are amended to read as follows: 19 1. There is hereby appropriated out of funds made available 20 to the state of Iowa under section 903 of the Social Security 21 Act, as amended, the sum of one million seventy-six thousand 22 dollars, or so much thereof as may be necessary, to be used 23 under the direction of the department of workforce development, 24 for the purpose of modifying the Idaho unemployment insurance 25 benefit payment software system so that it can be used to 26 pay unemployment insurance benefits by the state of Iowa 27 unemployment insurance systems modernization and for the 28 acquisition of programing, software, and equipment required 29 to provide an administrative and payment system for the Iowa 30 unemployment insurance program. 31 2. The funds hereby appropriated shall not be obligated 32 after the expiration of the two-year period beginning on the 33 date of the enactment of this section July 1, 2017 . 34 Sec. 9. 2016 Iowa Acts, chapter 1118, section 24, is amended 35 -6- LSB 1321HV (2) 87 je/rj 6/ 10

H.F. 572 to read as follows: 1 SEC. 24. AUTHORIZATION OF USE OF FUNDS —— UNEMPLOYMENT 2 INSURANCE BENEFIT PAYMENT SOFTWARE SYSTEM —— SYSTEMS 3 MODERNIZATION . 4 1. Four million eight hundred twenty-five thousand dollars, 5 or so much thereof as may be necessary, of incentive payment 6 funds credited with respect to the Assistance for Unemployed 7 Workers and Struggling Families Act, Pub. L. No. 111-5, 8 Division B, Tit. II, §2003, as codified in 42 U.S.C. §1103, 9 as a special transfer made under section 903(g) of the Social 10 Security Act, may be used under the direction of the department 11 of workforce development for the purpose of modifying the Idaho 12 unemployment insurance benefit payment system so that it can 13 be used to pay unemployment insurance benefits by the state of 14 Iowa unemployment insurance systems modernization and for the 15 acquisition of programing, software, and equipment required 16 to provide an administrative and payment system for the Iowa 17 unemployment insurance program. 18 2. The funds hereby authorized for use shall not be 19 obligated after the expiration of the two-year period beginning 20 on the date of the enactment of this section July 1, 2017 . 21 Sec. 10. EFFECTIVE UPON ENACTMENT. This division of this 22 Act, being deemed of immediate importance, takes effect upon 23 enactment. 24 EXPLANATION 25 The inclusion of this explanation does not constitute agreement with 26 the explanation’s substance by the members of the general assembly. 27 This bill relates to employment services programs 28 administered by the department of workforce development by 29 modifying the membership requirements and duties of the Iowa 30 workforce development board and authorizing the department to 31 carry out unemployment insurance systems modernization. 32 DIVISION I —— IOWA WORKFORCE DEVELOPMENT BOARD. This 33 division strikes Code language providing for the membership of 34 the Iowa workforce development board, including nine voting 35 -7- LSB 1321HV (2) 87 je/rj 7/ 10

H.F. 572 members and 16 nonvoting members, and provides new membership 1 requirements. The division provides that the membership of the 2 board shall include 33 voting members and 13 nonvoting members. 3 Changes to the membership of the board are required by the 4 federal Workforce Innovation and Opportunity Act, Pub. L. No. 5 113-128. 6 The division provides that the voting members of the 7 board include the governor; a state senator appointed by the 8 president of the senate after consultation with the majority 9 leader of the senate; a state representative appointed by the 10 speaker of the house of representatives after consultation 11 with the majority leader of the house of representatives; 12 the directors of the departments of workforce development, 13 education, and for the blind or their designees; the 14 administrator of the division of Iowa vocational rehabilitation 15 services of the department of education or the administrator’s 16 designee; 17 members who shall be representatives of businesses 17 in the state who must have certain specific qualifications; 18 seven members who shall be representatives of the workforce 19 in the state who must have certain specific qualifications; 20 and a chief city elected official and a chief county elected 21 official. The division specifies the 13 nonvoting members of 22 the board. 23 The division provides for terms of board members as 24 applicable. The division provides that the members of the 25 board shall represent diverse geographic areas of the state, 26 including urban, rural, and suburban areas. The division 27 prohibits individuals from serving as a member of the board in 28 more than one capacity as described in the division. 29 The division provides that the governor shall select a 30 chairperson for the board from among the members who are 31 representatives of business. The division provides that the 32 board shall meet if a majority of voting members file a written 33 request for a meeting. 34 The division requires the governor to appoint initial 35 -8- LSB 1321HV (2) 87 je/rj 8/ 10

H.F. 572 members of the Iowa workforce development board described in 1 the division to terms of less than four years as necessary to 2 ensure that the terms of no more than nine members expire in a 3 calendar year. 4 The division permits the governor to appoint voting members 5 serving on the Iowa workforce development board prior to the 6 effective date of the division for membership on the board 7 on and after the effective date of the division if such 8 individuals continue to be eligible for membership on the 9 board. 10 The division provides that voting members serving on the 11 Iowa workforce development board prior to the effective date of 12 the division shall continue to constitute the membership of the 13 board until a meeting of the board is held at which a majority 14 of the voting members of the board appointed pursuant to the 15 division are present. 16 The bill strikes duties of the board relating to approval 17 of certain budgetary matters; establishment of guidelines, 18 procedures, and policies for the awarding of certain grants; 19 and certain rulemaking matters. The bill specifies that 20 certain recommendations by the board to the general assembly 21 and governor shall include recommendations regarding allocation 22 of resources. 23 The division takes effect upon enactment. 24 DIVISION II —— UNEMPLOYMENT INSURANCE SYSTEMS MODERNIZATION. 25 This division modifies language in 2016 Iowa Acts, Senate File 26 2313, division II, which authorized the department of workforce 27 development to join a consortium with the states of Idaho and 28 Vermont for the purpose of modifying the Idaho unemployment 29 benefit payment software system so that it could be used to 30 pay unemployment insurance benefits by the state of Iowa and 31 appropriated funds for that purpose. 32 The division strikes language referring to a consortium 33 of states and instead authorizes the department to carry out 34 unemployment insurance systems modernization. The division 35 -9- LSB 1321HV (2) 87 je/rj 9/ 10

H.F. 572 provides that funds previously appropriated for purposes of the 1 consortium of states are instead appropriated for unemployment 2 insurance systems modernization. The funds appropriated are 3 $1,076,000, or so much thereof as may be necessary, out of 4 funds made available to the state of Iowa under section 903 of 5 the federal Social Security Act, as amended, and $4,825,000, or 6 so much thereof as may be necessary, of incentive payment funds 7 credited with respect to the Assistance for Unemployed Workers 8 and Struggling Families Act, Pub. L. No. 111-5, Division B, 9 Tit. II, §2003, as a special transfer made under section 903(g) 10 of the federal Social Security Act. The funds appropriated 11 and authorized for use by the division shall not be obligated 12 after the expiration of the two-year period beginning on July 13 1, 2017. 14 The division takes effect upon enactment. 15 -10- LSB 1321HV (2) 87 je/rj 10/ 10