H.F. 447 Section 1. Section 84A.1B, Code 2023, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 17. Create, in collaboration with the state 3 board of regents, a list of high-wage and high-demand jobs and 4 corresponding academic majors offered by institutions of higher 5 education governed by the state board of regents for purposes 6 of the Iowa workforce grant and incentive program established 7 under section 261.133. The workforce development board, in 8 collaboration with the state board of regents, shall update the 9 list at least once every two years. In creating a list under 10 this subsection, the following criteria, at a minimum, shall 11 apply: 12 a. An entry-level annual salary of not less than forty 13 thousand dollars. 14 b. Educational attainment of a qualifying credential of 15 at least a bachelor’s degree, or attainment of an initial or 16 intern Iowa teaching license issued under chapter 272 through 17 a pathway to licensure offered by an institution of higher 18 education under the control of the state board of regents or an 19 accredited private institution as defined in section 261.9. 20 c. At least one of any of the following: 21 (1) Projected annual job openings of at least two hundred 22 fifty during the next five years. 23 (2) Projected annual growth in the number of job openings 24 of at least one percent. 25 Sec. 2. NEW SECTION . 261.133 Iowa workforce grant and 26 incentive program. 27 1. Definitions. As used in this section, unless the context 28 otherwise requires: 29 a. “Commission” means the college student aid commission. 30 b. “Eligible institution” means an institution of higher 31 learning governed by the state board of regents. 32 c. “Eligible program” means any of the following: 33 (1) A program of study or an academic major jointly approved 34 by the workforce development board and the state board of 35 -1- LSB 1682HV (2) 90 jda/jh 1/ 6

H.F. 447 regents pursuant to section 84A.1B, subsection 17. If a 1 job is removed from the list created under section 84A.1B, 2 subsection 17, an eligible student who received a grant for 3 a program based on that job shall continue to receive the 4 grant until the eligible program is completed as long as the 5 student continuously enrolls and continues to meet all other 6 eligibility requirements. 7 (2) A teacher preparation program that leads to a bachelor’s 8 degree, or initial or intern teaching license issued under 9 chapter 272. 10 d. “Eligible student” means an Iowa resident who has 11 established financial need and who meets all of the following 12 requirements: 13 (1) Completes and submits application forms required by the 14 commission, including the free application for federal student 15 aid, by the deadline prescribed by the commission. 16 (2) Enrolls in at least three semester hours, or the 17 equivalent, in an eligible program. 18 (3) Is making satisfactory academic progress as defined by 19 the eligible institution. 20 e. “Financial need” means the difference between the 21 student’s financial resources available, including those 22 available from the student’s parents as determined by a 23 completed parents’ confidential statement, and the student’s 24 anticipated expenses while attending an eligible institution. 25 f. “Full-time” means enrollment in at least twelve semester 26 hours or the equivalent. 27 g. “Part-time” means enrollment in at least three semester 28 hours or the equivalent but less than twelve semester hours or 29 the equivalent. 30 2. Student eligibility. An eligible institution shall 31 report promptly to the commission information requested to 32 establish or verify student eligibility. 33 3. Grant limitations —— requirements. 34 a. A full-time eligible student may receive an Iowa 35 -2- LSB 1682HV (2) 90 jda/jh 2/ 6

H.F. 447 workforce grant for not more than four semesters, or the 1 equivalent, or until the eligible student completes the 2 eligible program, whichever occurs first. A part-time 3 eligible student may receive the grant for not more than eight 4 semesters, or the equivalent, on a prorated basis, or until 5 the eligible student completes the eligible program, whichever 6 occurs first. 7 b. The amount of an Iowa workforce grant to a full-time 8 eligible student shall not exceed two thousand dollars per 9 semester, or the equivalent. The amount of an Iowa workforce 10 grant to a part-time eligible student shall be equal to the 11 amount that would be awarded to a full-time student except that 12 the commission shall prorate the amount based on the recipient 13 student’s semester hour or equivalent enrollment. 14 c. An Iowa workforce grant shall be awarded on an annual 15 basis, requiring reapplication by an eligible student each 16 year. Payments under the grant shall be allocated equally 17 among the semesters, or the equivalent, and paid upon 18 certification by the eligible institution that the student 19 meets the requirements of subsection 1, paragraph “d” . 20 d. If a grant recipient discontinues attendance before the 21 end of any semester, or the equivalent, after receiving grant 22 payments, the entire amount of any refund due that recipient, 23 up to the full amount of grant payments made during that 24 semester, or the equivalent, shall be paid by the eligible 25 institution to the commission. 26 4. Annual submission of applications. To receive a renewal 27 of a grant awarded under this section, an eligible student 28 must annually submit a new application to the commission for 29 reevaluation of eligibility. 30 5. Priority for grant awards. In making awards under this 31 section, the commission shall give priority to: 32 a. Applicants who received an award under this section in 33 the prior academic year. 34 b. Applicants with the least financial ability to pay, 35 -3- LSB 1682HV (2) 90 jda/jh 3/ 6

H.F. 447 using a metric that ranks relative financial ability among all 1 applicants. 2 6. Iowa workforce incentive payment. Notwithstanding the 3 grant limitations in subsection 3, an individual who was an 4 eligible student who received an Iowa workforce grant in the 5 academic year in which the eligible program is completed, and 6 who accepts and begins employment in an aligned occupation 7 in this state within six months of completing the eligible 8 program, may apply for one incentive payment of up to two 9 thousand dollars. The incentive payment shall be paid upon 10 completion of twelve consecutive months of full-time employment 11 in the aligned occupation in this state, following completion 12 of the eligible program. 13 7. Commission’s duties and responsibilities. Subject to an 14 appropriation of moneys by the general assembly for purposes 15 of this section, the commission shall administer the Iowa 16 workforce grant and incentive program and shall do all of the 17 following: 18 a. Provide application forms for distribution to students by 19 eligible institutions. 20 b. Adopt rules under chapter 17A for administration of this 21 section, including establishing the duties and responsibilities 22 of eligible institutions under the program, defining residence 23 and satisfactory academic progress for purposes of the program, 24 determining financial need, and establishing procedures for 25 grant and incentive payment application, processing, and 26 approval. The rules shall provide for determining the priority 27 awarding of grants and incentives if moneys available for 28 purposes of this section are insufficient to pay all eligible 29 applicants. 30 c. Approve and award grants and incentive payments on an 31 annual basis. 32 8. Fund created. An Iowa workforce grant and incentive 33 program fund is created in the state treasury under the control 34 of the commission. All moneys deposited or paid into the 35 -4- LSB 1682HV (2) 90 jda/jh 4/ 6

H.F. 447 fund are appropriated to the commission to be used for grants 1 and incentive payments awarded as provided in this section. 2 Notwithstanding section 8.33, moneys in the fund that remain 3 unencumbered or unobligated at the close of a fiscal year shall 4 not revert but shall remain available for expenditure for the 5 purposes designated. Notwithstanding section 12C.7, subsection 6 2, interest or earnings on moneys in the fund shall be credited 7 to the fund. 8 EXPLANATION 9 The inclusion of this explanation does not constitute agreement with 10 the explanation’s substance by the members of the general assembly. 11 This bill relates to workforce development, including 12 establishing the Iowa workforce grant and incentive program 13 and modifying the responsibilities of the Iowa workforce 14 development board and the state board of regents. 15 The bill establishes the Iowa workforce grant and incentive 16 program (WGIP) within the college student aid commission 17 (commission), subject to an appropriation of moneys by the 18 general assembly. The bill provides that a full-time eligible 19 student may receive an annual grant under the WGIP for not more 20 than four semesters or until the eligible student completes 21 the eligible program, whichever occurs first. The bill also 22 provides that a part-time eligible student may receive an 23 annual grant under the WGIP for not more than eight semesters, 24 on a prorated basis, or until the eligible student completes 25 the eligible program, whichever occurs first. The bill 26 establishes that the maximum amount of a grant under the WGIP 27 to a full-time eligible student shall not exceed $2,000 per 28 semester, and the maximum amount of a grant under the WGIP to 29 a part-time eligible student shall be prorated based on the 30 part-time eligible student’s semester hour enrollment. The 31 bill requires eligible students to submit new applications 32 under the WGIP to the commission annually for reevaluation 33 of eligibility. The bill provides that if a grant recipient 34 discontinues attendance before the end of any semester, the 35 -5- LSB 1682HV (2) 90 jda/jh 5/ 6

H.F. 447 eligible institution is required to pay to the commission the 1 entire amount of any refund due to that recipient, up to the 2 full amount of the grant payments made during the semester. 3 When making awards under the WGIP, the bill requires the 4 commission to give priority to applicants who received an 5 award in the prior academic year and applicants with the least 6 financial ability to pay. 7 The bill provides that an individual who was an eligible 8 student who received a grant under the WGIP in the academic 9 year in which the eligible program is completed, and who 10 accepts and begins employment in an aligned occupation in this 11 state within six months of completing the eligible program, 12 may apply to the commission for one incentive payment of up to 13 $2,000. The bill establishes that the commission shall pay the 14 incentive payment upon the successful applicant’s completion of 15 12 consecutive months of employment in this state. 16 The bill establishes an Iowa workforce grant and incentive 17 program fund in the state treasury under the control of the 18 commission. The bill provides that all moneys deposited or 19 paid into the fund are appropriated to the commission to be 20 used for awarding grants and incentive payments under the WGIP. 21 The bill defines “commission”, “eligible institution”, 22 “eligible program”, “eligible student”, “financial need”, 23 “full-time”, and “part-time”. 24 The bill requires the Iowa workforce development board, in 25 collaboration with the state board of regents, to create a list 26 of high-wage and high-demand jobs and corresponding academic 27 majors offered by institutions of higher education governed by 28 the state board of regents for purposes of the WGIP. The bill 29 establishes the criteria for inclusion on the list. The bill 30 requires the Iowa workforce development board, in collaboration 31 with the state board of regents, to update the list at least 32 once every two years. 33 -6- LSB 1682HV (2) 90 jda/jh 6/ 6