Senate File 2327 - Introduced SENATE FILE 2327 BY COMMITTEE ON COMMERCE (SUCCESSOR TO SSB 3087) (COMPANION TO LSB 5471HV BY COMMITTEE ON COMMERCE) A BILL FOR An Act creating a future ready Iowa Act to strengthen workforce 1 development by establishing a registered apprenticeship 2 development program, a volunteer mentoring program, a summer 3 youth intern program, summer postsecondary courses for high 4 school students that are aligned with high-demand career 5 pathways, an employer innovation fund, and future ready Iowa 6 skilled workforce scholarship and grant programs and funds, 7 and including effective date provisions. 8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 9 TLSB 5471SV (1) 87 kh/rj

S.F. 2327 DIVISION I 1 TITLE OF ACT 2 Section 1. TITLE OF ACT. This Act shall be known and may be 3 cited as the “Future Ready Iowa Act”. 4 DIVISION II 5 ECONOMIC DEVELOPMENT AUTHORITY —— FUTURE READY IOWA REGISTERED 6 APPRENTICESHIP DEVELOPMENT PROGRAM 7 Sec. 2. Section 15.106A, subsection 2, paragraph a, Code 8 2018, is amended to read as follows: 9 a. That through this section and section 15.106B , the 10 authority has been granted broad general powers and specific 11 program powers over all of the authority’s statutory programs, 12 including but not limited to the programs created pursuant to 13 chapters 15 , 15A , 15B , 15C, 15E , and 15J . 14 Sec. 3. Section 15B.4, Code 2018, is amended by adding the 15 following new subsection: 16 NEW SUBSECTION . 5. An apprenticeship sponsor receiving 17 financial assistance under this chapter is ineligible for 18 financial assistance under section 15C.1 during the same fiscal 19 year. 20 Sec. 4. NEW SECTION . 15C.1 Future ready Iowa registered 21 apprenticeship development program. 22 1. Definitions. For purposes of this section, unless the 23 context otherwise requires: 24 a. “Applicant” means a new or existing apprenticeship 25 sponsor located in Iowa that has established an apprenticeship 26 program involving an eligible apprenticeable occupation that is 27 located in Iowa and approved by the United States department of 28 labor, office of apprenticeship. 29 b. “Apprentice” means a person who is at least sixteen 30 years of age, except where a higher minimum age is required by 31 law, who is employed in an apprenticeable occupation, and is 32 registered in Iowa with the United States department of labor, 33 office of apprenticeship. 34 c. “Apprenticeable occupation” means an occupation approved 35 -1- LSB 5471SV (1) 87 kh/rj 1/ 27

S.F. 2327 for apprenticeship by the United States department of labor, 1 office of apprenticeship. 2 d. “Apprenticeship program” means a program registered 3 with the United States department of labor, office of 4 apprenticeship, which includes terms and conditions for the 5 qualification, recruitment, selection, employment, and training 6 of apprentices, including the requirement for a written 7 apprenticeship agreement. 8 e. “Apprenticeship sponsor” means an entity operating 9 an apprenticeship program or an entity in whose name an 10 apprenticeship program is being operated, which is registered 11 with or approved by the United States department of labor, 12 office of apprenticeship. 13 f. “Authority” means the economic development authority 14 created in section 15.105. 15 g. “Eligible apprenticeable occupation” means an 16 apprenticeable occupation identified by the workforce 17 development board pursuant to section 84A.1B, subsection 13A, 18 as a high-demand job, after consultation with the authority. 19 h. “Financial assistance” means assistance provided only 20 from the funds, rights, and assets legally available to the 21 authority and includes but is not limited to assistance in the 22 form of a reimbursement grant to support the costs associated 23 with establishing a new eligible apprenticeable occupation 24 or an additional eligible apprenticeable occupation in an 25 applicant’s apprenticeship program. 26 2. Program created. Subject to an appropriation of funds 27 by the general assembly for this purpose, a future ready Iowa 28 registered apprenticeship development program is created which 29 shall be administered by the authority. The purpose of the 30 program is to provide financial assistance to incentivize 31 small and medium-sized apprenticeship sponsors to establish 32 new or additional eligible apprenticeable occupations in the 33 apprenticeship sponsor’s apprenticeship program in order to 34 support the growth of apprenticeship programs and expand 35 -2- LSB 5471SV (1) 87 kh/rj 2/ 27

S.F. 2327 high-quality work-based learning experiences in high-demand 1 fields and careers for persons who are employed in eligible 2 apprenticeable occupations in Iowa. 3 3. Application requirements —— restriction. An 4 apprenticeship sponsor may apply to the authority, on 5 forms provided by the authority and in accordance with the 6 authority’s instructions, to receive financial assistance under 7 the program. The authority shall provide upon request and on 8 the authority’s internet site information about the program, 9 the application, application instructions, and the application 10 period established each year for funding available under the 11 program. The application shall include a description of how 12 the financial assistance awarded under this section would be 13 used to establish an apprenticeship program or add new or 14 additional apprenticeable occupations to the apprenticeship 15 sponsor’s apprenticeship program and the anticipated program 16 expenses identified by the applicant. 17 a. An apprenticeship sponsor is eligible to apply for 18 financial assistance for a new or additional eligible 19 apprenticeable occupation, in addition to existing 20 apprenticeship occupations in the apprenticeship sponsor’s 21 apprenticeship program, if all of the following conditions are 22 met: 23 (1) Twenty or fewer apprentices are registered in the 24 existing apprenticeship program as of December 31 of the 25 calendar year prior to the date the authority receives the 26 apprenticeship sponsor’s application. 27 (2) More than seventy percent of the applicant’s 28 apprentices shall be residents of Iowa. In determining the 29 number of apprentices in an applicant’s apprenticeship program, 30 the authority may calculate the average number of apprentices 31 in the program within the most recent two-year period. 32 b. An apprenticeship sponsor receiving financial assistance 33 under chapter 15B is ineligible for financial assistance under 34 this section during the same fiscal year. 35 -3- LSB 5471SV (1) 87 kh/rj 3/ 27

S.F. 2327 4. Rules. The authority shall adopt rules pursuant to 1 chapter 17A establishing a staff review and application 2 approval process, application scoring criteria, the minimum 3 score necessary for approval of financial assistance, 4 procedures for notification of an award of financial 5 assistance, the terms of agreement between the apprenticeship 6 sponsor and the authority, and any other rules deemed necessary 7 for the implementation and administration of this section. 8 5. Agreement. Prior to distributing financial assistance 9 under this section, the authority shall enter into an agreement 10 with the apprenticeship sponsor awarded financial assistance 11 in accordance with this section, and the financial assistance 12 recipient shall confirm the expenses for establishing the 13 program or adding the additional occupations as identified in 14 the approved application, and shall meet all terms established 15 by the authority for receipt of financial assistance under this 16 section. 17 6. Use of moneys appropriated —— administration. 18 a. The annual administrative expenditures as a percent of 19 the moneys appropriated for a fiscal year for purposes of this 20 section shall not exceed two percent. 21 b. Notwithstanding section 8.33, moneys appropriated to 22 the authority by the general assembly for purposes of this 23 section that remain unencumbered or unobligated at the end of 24 the fiscal year shall not revert to the general fund but shall 25 remain available for expenditure for the purposes designated in 26 subsequent fiscal years. 27 DIVISION III 28 FUTURE READY IOWA —— VARIOUS PROGRAMS 29 Sec. 5. Section 15H.1A, Code 2018, is amended by adding the 30 following new subsection: 31 NEW SUBSECTION . 1A. “Commission” means the Iowa commission 32 on volunteer service created in section 15H.2. 33 Sec. 6. NEW SECTION . 15H.9 Volunteer mentor program. 34 1. Subject to an appropriation of funds by the general 35 -4- LSB 5471SV (1) 87 kh/rj 4/ 27

S.F. 2327 assembly for this purpose, the commission shall establish a 1 volunteer mentor program to support implementation of the 2 future ready Iowa skilled workforce last-dollar scholarship 3 and the future ready Iowa skilled workforce grant programs 4 created in sections 261.130 and 261.131. The commission, in 5 collaboration with the department of workforce development and 6 the college student aid commission, shall adopt rules pursuant 7 to chapter 17A to implement and administer the volunteer 8 mentor program, and shall establish standards, guidelines, and 9 expectations for a productive and appropriate relationship 10 between mentors and mentees, including helping students 11 meet the future ready Iowa skilled workforce last-dollar 12 scholarship program or future ready Iowa skilled workforce 13 grant requirements, as appropriate; identify work-based 14 learning opportunities; and make career-related connections 15 that are advantageous to persons participating in the volunteer 16 mentor program. 17 2. The prospective volunteer mentor shall have successfully 18 passed a background investigation conducted by the division of 19 criminal investigation of the department of public safety and a 20 check of the national sex offender registry. 21 3. The commission shall enter into written agreements with 22 prospective mentors and mentees under the program. Under such 23 an agreement, prospective mentors and mentees agree to abide by 24 the standards, guidelines, and expectations established by the 25 commission pursuant to subsection 1. 26 4. The commission, in collaboration with the department of 27 workforce development and the college student aid commission, 28 and in cooperation with an eligible institution as defined 29 in section 261.130 or 261.131, as appropriate, shall assign 30 a student, who is a recipient of a future ready Iowa skilled 31 workforce last-dollar scholarship under section 261.130 or 32 a future ready Iowa skilled workforce grant under section 33 261.131, who requests the assignment of a mentor, and who 34 enters into an agreement under subsection 3, to a mentor 35 -5- LSB 5471SV (1) 87 kh/rj 5/ 27

S.F. 2327 appropriate to the prospective mentee’s field of study whenever 1 possible. 2 5. The commission shall maintain, and regularly update, 3 a list of the mentor and mentee pairings and the dates of 4 inception of the mentor and mentee pairings. 5 6. Notwithstanding section 8.33, moneys appropriated to the 6 economic development authority for allocation to the commission 7 for purposes of this section that remain unencumbered or 8 unobligated at the close of a fiscal year shall not revert but 9 shall remain available to be used for the purposes designated 10 in this section until the close of the succeeding fiscal year. 11 Sec. 7. Section 84A.1B, Code 2018, is amended by adding the 12 following new subsections: 13 NEW SUBSECTION . 13A. Create, and update as necessary, a 14 list of high-demand jobs statewide for purposes of the future 15 ready Iowa registered apprenticeship development program 16 created in section 15C.1, the summer youth intern pilot 17 program established under section 84A.12, the Iowa employer 18 innovation program established under section 84A.13, the 19 future ready Iowa skilled workforce last-dollar scholarship 20 program established under section 261.130, the future ready 21 Iowa skilled workforce grant program established under section 22 261.131, and postsecondary summer classes for high school 23 students as provided under section 261E.8, subsection 7A. 24 The workforce development board shall have full discretion 25 to select and prioritize high-demand jobs after consulting 26 with business and education stakeholders, as appropriate, and 27 seeking public comment. For purposes of this subsection, 28 “high-demand job” means a job in the state for which the board 29 determines work opportunities are available and qualified 30 applicants are lacking. 31 NEW SUBSECTION . 13B. Compile an annual report, in an 32 aggregate form to protect the confidentiality of each eligible 33 program’s participants, that includes the number of students 34 receiving scholarships under section 261.130, the number of 35 -6- LSB 5471SV (1) 87 kh/rj 6/ 27

S.F. 2327 students receiving grants under section 261.131, the number 1 of scholarship and grant recipients completing a program 2 of study or major annually and in the prescribed timeframe 3 under sections 261.130 and 261.131, the number of eligible 4 institutions participating in the scholarship and grant 5 programs established under sections 261.130 and 261.131, the 6 number of written agreements entered into by the volunteer 7 mentor program under section 15H.9, statistics on employment 8 outcomes for future ready Iowa skilled workforce last-dollar 9 scholarship and future ready Iowa skilled workforce grant 10 program participants by industry, and other data as may be 11 deemed pertinent by the department or the college student aid 12 commission. The department shall submit the initial report by 13 January 15, 2021, and by January 15 annually thereafter, to the 14 governor and the general assembly. 15 Sec. 8. Section 84A.5, subsection 7, Code 2018, is amended 16 by adding the following new paragraph: 17 NEW PARAGRAPH . 0d. The Iowa employer innovation program 18 established under section 84A.13. 19 Sec. 9. Section 84A.6, subsection 4, Code 2018, is amended 20 by striking the subsection. 21 Sec. 10. NEW SECTION . 84A.12 Summer youth intern pilot 22 program. 23 1. A summer youth intern pilot program is established 24 within the department of workforce development to provide 25 youths who are at risk of not graduating from high school, 26 who are from low-income households, who are from communities 27 underrepresented in the Iowa workforce, or who otherwise face 28 barriers to success and upward mobility in the labor market, 29 with internship opportunities that allow these youths to 30 explore and prepare for high-demand careers, to gain work 31 experience, and to develop personal attributes necessary to 32 succeed in the workplace. 33 2. Subject to an appropriation of funds by the general 34 assembly for this purpose, the department of workforce 35 -7- LSB 5471SV (1) 87 kh/rj 7/ 27

S.F. 2327 development shall award grants for summer youth intern 1 pilot projects on a competitive basis as provided in this 2 section. The department shall work with employers, nonprofit 3 organizations, and educational institutions to place youth in 4 internships primarily in high-demand career fields. 5 3. The department of workforce development shall annually 6 issue a request for proposals to the public, specifying the 7 expectations and requirements for summer youth intern pilot 8 project grant qualification, including but not limited to the 9 provision of facilities, programming, staffing, and outcomes. 10 4. The department of workforce development shall give 11 full and fair consideration to each proposal submitted under 12 subsection 3, and shall award grants after considering, at a 13 minimum, the following: 14 a. The bidder’s history and experience in the community. 15 b. The capacity to serve a substantial number of youth. 16 c. The suitability of the available facilities. 17 d. The bidder’s contacts and partnerships in the community 18 that can be leveraged to maximize opportunity for project 19 participants. 20 e. The capacity to provide employability skills, including 21 but not limited to training relating to soft skills, financial 22 literacy, and career development. 23 Sec. 11. NEW SECTION . 84A.13 Iowa employer innovation 24 program —— fund. 25 1. For purposes of this section, “high-demand job” means a 26 job identified by the workforce development board pursuant to 27 section 84A.1B, subsection 13A, as a high-demand job. 28 2. Subject to an appropriation of funds by the general 29 assembly for this purpose, the Iowa employer innovation program 30 is established in the department of workforce development. 31 The department shall administer the program in consultation 32 with the workforce development board. The purpose of the 33 Iowa employer innovation program is to expand opportunities 34 for credit and noncredit education and training leading to 35 -8- LSB 5471SV (1) 87 kh/rj 8/ 27

S.F. 2327 high-demand jobs for the residents of Iowa and to encourage 1 Iowa employers, community leaders, and others to provide 2 leadership and support for regional workforce talent pools 3 throughout the state. 4 3. The department of workforce development shall adopt 5 rules under chapter 17A establishing a program application and 6 award process to match employer moneys and the criteria for 7 the allocation of moneys in the fund established pursuant to 8 subsection 4. An employer, employer consortium, community 9 organization, or other entity seeking matching moneys shall 10 submit an application and a proposal to the department. In 11 awarding matching moneys, the department shall take into 12 account various factors, including but not limited to all of 13 the following: 14 a. The range of high-demand jobs, innovative measures, and 15 geographic fairness and equity included in the proposal. 16 b. Whether the proposal increases the number of eligible 17 students receiving financial assistance under the future ready 18 Iowa skilled workforce last-dollar scholarship or future 19 ready Iowa skilled workforce grant programs established under 20 sections 261.130 and 261.131; or increases the donation of 21 books, transportation, child care, and other wrap-around 22 support to assist eligible students receiving financial 23 assistance under section 261.130 or 261.131. 24 c. Whether the proposal includes performance-based 25 bonuses paid when high school students earn national 26 industry-recognized credentials aligned with high-demand jobs 27 that meet regional workforce needs. 28 d. Whether the proposal expands internships leading to 29 high-demand jobs. 30 e. Whether the proposal offers innovative ways of expanding 31 opportunities for credit and noncredit education and training 32 leading to high-demand jobs. 33 4. An Iowa employer innovation fund is created in the 34 state treasury as a separate fund under the control of the 35 -9- LSB 5471SV (1) 87 kh/rj 9/ 27

S.F. 2327 department of workforce development, in consultation with the 1 workforce development board. The fund shall consist of any 2 moneys appropriated by the general assembly and any other 3 moneys available to and obtained or accepted by the department 4 from the federal government. The assets of the fund shall be 5 used by the department only for purposes of this section. All 6 moneys deposited or paid into the fund are appropriated and 7 made available to the board to be used for purposes of this 8 section. Notwithstanding section 8.33, any balance in the fund 9 on June 30 of each fiscal year shall not revert to the general 10 fund of the state, but shall be available for purposes of this 11 section in subsequent fiscal years. 12 Sec. 12. Section 261.130, Code 2018, is amended by striking 13 the section and inserting in lieu thereof the following: 14 261.130 Future ready Iowa skilled workforce last-dollar 15 scholarship program. 16 1. Definitions. As used in this section, unless the context 17 otherwise requires: 18 a. “Commission” means the college student aid commission. 19 b. “Credential” means a postsecondary certificate, diploma, 20 or degree, conferring no more than an associate degree, awarded 21 by an eligible institution and earned in a program of study 22 that leads to a high-demand job and is authorized for federal 23 student aid under Tit. IV of the federal Higher Education Act 24 of 1965, as amended. 25 c. “Eligible institution” means a community college as 26 defined in section 260C.2 or an accredited private institution 27 as defined in section 261.9, that meets all of the following 28 criteria: 29 (1) Applies to and is approved by the commission to 30 participate in the future ready Iowa skilled workforce 31 last-dollar scholarship program. 32 (2) Requires eligible students to complete and file 33 application forms required by the commission, apply for 34 all available state and federal financial aid, apply to the 35 -10- LSB 5471SV (1) 87 kh/rj 10/ 27

S.F. 2327 eligible institution to participate in the program, attend 1 orientation in person or virtually, register for classes 2 with the assistance of an academic advisor, and participate 3 in academic and career advising sessions offered under the 4 program. 5 (3) Facilitates, in collaboration with the commission on 6 volunteer service created in section 15H.2, the assignment 7 of a volunteer mentor to each eligible student, based on the 8 eligible student’s interest. The volunteer mentor shall have 9 successfully passed a background investigation and a check of 10 the national sex offender registry as required under section 11 15H.9, subsection 2, and both the eligible student and the 12 volunteer mentor shall have entered into a written agreement as 13 provided in section 15H.9, subsection 3. 14 (4) Facilitates connections through campus career centers 15 and services to internships and similar local, state, and 16 federal programs. 17 (5) Markets the eligible institution’s future ready Iowa 18 program of study and optional incentives, which may include 19 but not be limited to credit for military experience, on the 20 eligible institution’s internet site and to other relevant 21 agencies and organizations as recommended by the college 22 student aid commission, the commission on volunteer service, or 23 the department of workforce development. 24 (6) Submits annually information and data regarding the 25 eligible program operated by the eligible institution, the 26 students and volunteer mentors participating in the eligible 27 program, scholarship recipient eligible program completion 28 results, and statistics on employment outcomes for eligible 29 program participants by industry, to the commission in the 30 manner required by the commission. 31 d. “Eligible program” means a program of study or an 32 academic major jointly approved by the commission and the 33 department of workforce development, in consultation with an 34 eligible institution, that leads to a credential aligned with 35 -11- LSB 5471SV (1) 87 kh/rj 11/ 27

S.F. 2327 a high-demand job designated by the workforce development 1 board pursuant to section 84A.1B, subsection 13A. If the 2 department removes a high-demand job from the list created 3 under section 84A.1B, subsection 13A, an eligible student who 4 received a scholarship for a program based on that high-demand 5 job shall continue to receive the scholarship until achieving 6 a postsecondary credential, up to an associate degree, as 7 long as the student continues to meet all other eligibility 8 requirements. 9 e. “Eligible student” means an Iowa resident who meets all 10 of the following requirements: 11 (1) Is either a new graduate of an Iowa high school who 12 enrolls full-time in an eligible program at an eligible 13 institution by the fall semester, or the equivalent, 14 following graduation from high school or completion of private 15 instruction under chapter 299A; or is an adult learner who has 16 received a high school diploma or a high school equivalency 17 diploma, who enrolls in an eligible program in an eligible 18 institution as a full-time or part-time student. 19 (2) Completes and submits application forms required by the 20 commission, including the free application for federal student 21 aid; applies for all available state and federal financial 22 aid; attends orientation in person or virtually; registers 23 for classes with the assistance of an academic advisor; 24 and participates in academic and career advising sessions 25 required under the eligible program. To receive a renewal of 26 a scholarship awarded under this section, an eligible student 27 must annually submit a new application to the commission for 28 reevaluation of eligibility. 29 (3) Is making satisfactory academic progress as defined by 30 the eligible institution. 31 (4) Remains continuously enrolled unless granted a leave of 32 absence by the eligible institution based on criteria adopted 33 by rule by the commission. 34 f. “Full-time” means enrollment in at least twelve semester 35 -12- LSB 5471SV (1) 87 kh/rj 12/ 27

S.F. 2327 hours or the equivalent. 1 g. “Part-time” means enrollment in at least six but less 2 than twelve semester hours or the equivalent. 3 2. Allowable activities. An eligible student may work 4 with an assigned volunteer mentor to help the student meet the 5 requirements of this section or the requirements of an eligible 6 program, identify and participate in work-based learning 7 opportunities with the approval of the eligible institution, 8 and make other career-related connections. 9 3. Scholarship limitations —— requirements. 10 a. For an eligible student who is attending an eligible 11 institution that is a community college during the fall, 12 spring, or summer term of enrollment, and is pursuing a 13 postsecondary credential up to an associate degree, the annual 14 amount of a future ready Iowa skilled workforce last-dollar 15 scholarship, when combined with other state and federal 16 nonrepayable student aid, shall not exceed an amount equivalent 17 to the tuition and any mandatory institution-wide fees charged 18 by the community college for the eligible program. For an 19 eligible student pursuing a postsecondary credential up to 20 an associate degree at an eligible institution that is an 21 accredited private institution during the fall, spring, or 22 summer term of enrollment, the annual amount of a future ready 23 Iowa skilled workforce last-dollar scholarship, when combined 24 with other state and federal nonrepayable student aid, shall 25 not exceed an amount equivalent to the average tuition rate 26 plus the average institution-wide mandatory fees charged during 27 the same term of enrollment by the eligible institutions that 28 are community colleges. 29 b. If an eligible student receives nonrepayable financial 30 aid under any other state or federal program, the full amount 31 of that aid shall be considered part of the student’s available 32 financial resources before determining the amount of the 33 student’s future ready Iowa skilled workforce last-dollar 34 scholarship for the same period during which the student 35 -13- LSB 5471SV (1) 87 kh/rj 13/ 27

S.F. 2327 receives other state or federal financial aid. However, each 1 eligible student enrolled full-time in an eligible program 2 shall receive at least five hundred dollars annually, and the 3 amount received by each eligible part-time student shall be 4 the same amount prorated by the commission based on the number 5 of semester hours, or the equivalent, for which the part-time 6 student is enrolled. 7 c. A full-time eligible student may receive a future 8 ready Iowa skilled workforce last-dollar scholarship for 9 not more than five semesters, or the equivalent, or until 10 the eligible student earns the credential sought, up to an 11 associate degree, under the program, whichever occurs first. 12 A part-time eligible student may receive the scholarship for 13 not more than eight semesters, or the equivalent, on a prorated 14 basis, or until the eligible student earns the credential 15 sought, up to an associate degree, under the eligible program, 16 whichever occurs first. All classes identified by an eligible 17 institution as required for completion of the eligible program 18 by the eligible student shall be considered required under the 19 eligible program for purposes of this section. 20 d. A future ready Iowa skilled workforce last-dollar 21 scholarship shall be awarded on an annual basis, requiring 22 reapplication by an eligible student each year. Scholarship 23 payments shall be allocated equally among the semesters, or 24 the equivalent, and paid upon certification by the eligible 25 institution that the student meets the requirements of 26 subsection 1, paragraph “e” . 27 e. If a scholarship recipient discontinues attendance before 28 the end of any semester, or the equivalent, after receiving 29 scholarship payments, the entire amount of any refund due 30 that recipient, up to the full amount of all of the annual 31 scholarship payments made, shall be paid by the eligible 32 institution to the commission. A scholarship recipient, 33 who is not approved for a leave of absence by the eligible 34 institution, who discontinues attendance before the end of a 35 -14- LSB 5471SV (1) 87 kh/rj 14/ 27

S.F. 2327 semester, or the equivalent, is ineligible to receive future 1 scholarships under this section. 2 4. Commission’s duties and responsibilities. Subject to an 3 appropriation of funds by the general assembly for purposes of 4 this section, the commission shall administer the future ready 5 Iowa skilled workforce last-dollar scholarship program and 6 shall do all of the following: 7 a. Provide application forms for distribution to students by 8 high schools and eligible institutions. 9 b. Adopt rules under chapter 17A, in collaboration with 10 the department of workforce development, for administration of 11 this section, including but not limited to establishing the 12 duties and responsibilities of eligible institutions under the 13 program; defining residence and satisfactory academic progress 14 for purposes of the program; and establishing procedures 15 for scholarship application, processing, and approval. The 16 rules shall provide for determining the priority awarding of 17 scholarships if funds available for purposes of this section 18 are insufficient to pay all eligible students. Priority shall 19 be given to fully awarding each eligible student approved for a 20 scholarship rather than to prorating scholarship awards among 21 all eligible students. 22 c. Approve and award future ready Iowa skilled workforce 23 last-dollar scholarships on an annual basis. 24 d. Transmit to the department of workforce development the 25 compilation of information, data, and statistics submitted in 26 accordance with subsection 1, paragraph “c” , subparagraph (6), 27 for the annual report required under section 84A.1B. 28 5. Fund created. A future ready Iowa skilled workforce 29 last-dollar scholarship fund is created in the state treasury 30 as a separate fund under the control of the commission. All 31 moneys deposited or paid into the fund are appropriated and 32 made available to the commission to be used for scholarships 33 awarded as provided under this section. Notwithstanding 34 section 8.33, any balance in the fund on June 30 of each fiscal 35 -15- LSB 5471SV (1) 87 kh/rj 15/ 27

S.F. 2327 year shall not revert to the general fund of the state, but 1 shall be available for purposes of this section in subsequent 2 fiscal years. 3 Sec. 13. NEW SECTION . 261.131 Future ready Iowa skilled 4 workforce grant program. 5 1. Definitions. As used in this section, unless the context 6 otherwise requires: 7 a. “Commission” means the college student aid commission. 8 b. “Eligible institution” means an institution of higher 9 learning governed by the state board of regents or an 10 accredited private institution as defined in section 261.9, 11 that meets all of the following criteria: 12 (1) Applies to and is approved by the commission to 13 participate in the future ready Iowa skilled workforce grant 14 program. 15 (2) Requires eligible students to complete and file 16 application forms required by the commission, apply for 17 all available state and federal financial aid, apply to the 18 eligible institution to participate in the program, attend 19 orientation in person or virtually, register for classes 20 with the assistance of an academic advisor, and participate 21 in academic and career advising sessions required under the 22 program. 23 (3) Certifies that prior to participating in the program 24 an eligible student has earned at least half of the credits 25 necessary for a bachelor’s degree and is able to complete a 26 bachelor’s degree in an eligible program of study or academic 27 major leading to a designated high-demand job in the prescribed 28 grant time frame. 29 (4) Facilitates the assignment of a volunteer mentor to each 30 eligible student based on the eligible student’s interest. The 31 volunteer mentor shall have successfully passed a background 32 investigation and a check of the national sex offender 33 registry as required under section 15H.9, subsection 2, and 34 both the eligible student and the volunteer mentor shall have 35 -16- LSB 5471SV (1) 87 kh/rj 16/ 27

S.F. 2327 entered into a written agreement as provided in section 15H.9, 1 subsection 3. 2 (5) Facilitates connections through campus career centers 3 and services to internships and similar local, state, and 4 federal programs. 5 (6) Markets the eligible institution’s eligible program and 6 optional incentives, which may include but not be limited to 7 credit for military experience, on the eligible institution’s 8 internet site and to other relevant agencies and organizations 9 as recommended by the college student aid commission, the 10 commission on volunteer service, or the department of workforce 11 development. 12 (7) Submits annually information and data regarding the 13 eligible program operated by the eligible institution, the 14 students and volunteer mentors participating in the eligible 15 program, and statistics on employment outcomes for eligible 16 program participants by industry, to the commission in the 17 manner required by the commission. 18 c. “Eligible program” means a program of study or an 19 academic major jointly approved by the commission and the 20 department of workforce development, in consultation with the 21 eligible institution, that leads to a bachelor’s degree aligned 22 with a high-demand job designated by the workforce development 23 board pursuant to section 84A.1B, subsection 13A. If the 24 department removes a high-demand job from the list created 25 under section 84A.1B, subsection 13A, an eligible student 26 who received a grant for a program based on that high-demand 27 job shall continue to receive the grant until achieving a 28 bachelor’s degree as long as the student continues to meet all 29 other eligibility requirements. 30 d. “Eligible student” means an Iowa resident who meets all 31 of the following requirements: 32 (1) Has earned at least half of the credits necessary for a 33 bachelor’s degree and is able to complete a bachelor’s degree 34 in an eligible program of study or academic major leading to a 35 -17- LSB 5471SV (1) 87 kh/rj 17/ 27

S.F. 2327 designated high-demand job in the prescribed grant time frame. 1 (2) Completes and submits application forms required by the 2 commission, including the free application for federal student 3 aid; applies for all available state and federal financial 4 aid; attends orientation in person or virtually; registers 5 for classes with the assistance of an academic advisor; and 6 participates in academic and career advising sessions required 7 under the eligible program. To receive a renewal of a grant 8 awarded under this section, an eligible student must annually 9 submit a new application to the commission for reevaluation of 10 eligibility. 11 (3) Has not been enrolled in postsecondary education 12 during the twenty-four months preceding the date on which the 13 commission receives the individual’s application to participate 14 in the program. 15 (4) Enrolls in at least six semester hours, or the 16 equivalent, in an eligible program. However, an eligible 17 student may enroll in fewer than six semester hours, or the 18 equivalent, if the eligible student needs fewer than six 19 semester hours of credit, or the equivalent, to achieve a 20 bachelor’s degree under the eligible program. 21 (5) Is making satisfactory academic progress as defined by 22 the eligible institution. 23 (6) Remains continuously enrolled unless granted a leave of 24 absence by the eligible institution based on criteria adopted 25 by rule by the commission. 26 e. “Full-time” means enrollment in at least twelve semester 27 hours or the equivalent. 28 f. “Part-time” means enrollment in at least six but less 29 than twelve semester hours or the equivalent. 30 2. Allowable activities. An eligible student may work 31 with an assigned volunteer mentor to help the student meet the 32 requirements of this section or the requirements of an eligible 33 program, identify and participate in work-based learning 34 opportunities with the approval of the eligible institution, 35 -18- LSB 5471SV (1) 87 kh/rj 18/ 27

S.F. 2327 and make other career-related connections. 1 3. Grant limitations —— requirements. 2 a. A full-time eligible student may receive a future ready 3 Iowa skilled workforce grant annually for not more than four 4 semesters, or the equivalent, or until the eligible student 5 earns a bachelor’s degree under the program, whichever occurs 6 first. A part-time eligible student may receive the grant for 7 not more than eight semesters, or the equivalent, on a prorated 8 basis, or until the eligible student earns a bachelor’s degree 9 under the eligible program, whichever occurs first. 10 b. The amount of a future ready Iowa skilled workforce grant 11 to a full-time eligible student shall be at least one thousand 12 dollars annually. The amount of a future ready Iowa skilled 13 workforce grant to a part-time eligible student shall be equal 14 to the amount that would be awarded to a full-time student 15 except that the commission shall prorate the amount based on 16 the recipient student’s semester hour or equivalent enrollment. 17 c. A future ready Iowa skilled workforce grant shall be 18 awarded on an annual basis, requiring reapplication by an 19 eligible student each year. Payments under the grant shall be 20 allocated equally among the semesters, or the equivalent, and 21 paid upon certification by the eligible institution that the 22 student meets the requirements of subsection 1, paragraph “d” . 23 d. If a grant recipient discontinues attendance before the 24 end of any semester, or the equivalent, after receiving grant 25 payments, the entire amount of any refund due that recipient, 26 up to the full amount of all annual grant payments made, shall 27 be paid by the eligible institution to the commission. 28 4. Commission’s duties and responsibilities. Subject to an 29 appropriation of funds by the general assembly for purposes of 30 this section, the commission shall administer the future ready 31 Iowa skilled workforce grant program and shall do all of the 32 following: 33 a. Provide application forms for distribution to students by 34 eligible institutions. 35 -19- LSB 5471SV (1) 87 kh/rj 19/ 27

S.F. 2327 b. Adopt rules under chapter 17A, in collaboration with 1 the department of workforce development, for administration of 2 this section, including but not limited to establishing the 3 duties and responsibilities of eligible institutions under the 4 program; defining residence and satisfactory academic progress 5 for purposes of the program; and establishing procedures for 6 grant application, processing, and approval. The rules shall 7 provide for determining the priority awarding of grants if 8 funds available for purposes of this section are insufficient 9 to pay all eligible students. Priority shall be given to fully 10 awarding each eligible student approved for a grant rather than 11 to prorating grant awards among all eligible students. 12 c. Approve and award grants on an annual basis. 13 d. Transmit to the department of workforce development the 14 compilation of information, data, and statistics submitted in 15 accordance with subsection 1, paragraph “b” , subparagraph (7), 16 for the annual report required under section 84A.1B. 17 5. Fund created. A future ready Iowa skilled workforce 18 grant fund is created in the state treasury as a separate fund 19 under the control of the commission. All moneys deposited or 20 paid into the fund are appropriated and made available to the 21 commission to be used for grants awarded as provided under this 22 section. Notwithstanding section 8.33, any balance in the fund 23 on June 30 of each fiscal year shall not revert to the general 24 fund of the state, but shall be available for purposes of this 25 section in subsequent fiscal years. 26 Sec. 14. Section 261E.8, Code 2018, is amended by adding the 27 following new subsection: 28 NEW SUBSECTION . 7A. Subject to an appropriation of funds 29 by the general assembly for this purpose, the department shall 30 establish a program to provide additional funds for resident 31 high school pupils enrolled in grades nine through twelve to 32 attend a community college for college-level classes or attend 33 a class taught by a community college-employed instructor 34 through a contractual agreement between a community college and 35 -20- LSB 5471SV (1) 87 kh/rj 20/ 27