Senate File 2260 - Introduced SENATE FILE 2260 BY COMMITTEE ON WORKFORCE (SUCCESSOR TO SSB 3143) A BILL FOR An Act relating to work-based learning, including by repealing 1 provisions related to regional industry sector partnerships 2 and the statewide work-based learning intermediary network, 3 establishing the workforce opportunity fund within the 4 department of workforce development, modifying provisions 5 related to career and technical education, student teacher 6 requirements for students with substitute teaching or 7 para-educator experience, and the future ready Iowa skilled 8 workforce last-dollar scholarship program, and making 9 appropriations. 10 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 11 TLSB 5175SV (1) 90 jda/jh

S.F. 2260 DIVISION I 1 REGIONAL INDUSTRY SECTOR PARTNERSHIPS AND STATEWIDE WORK-BASED 2 LEARNING INTERMEDIARY NETWORK 3 Section 1. Section 84A.5, subsection 5, paragraph f, Code 4 2024, is amended by striking the paragraph. 5 Sec. 2. Section 85.61, subsection 3, paragraph c, Code 2024, 6 is amended to read as follows: 7 c. An eligible postsecondary institution as defined in 8 section 261E.2 , a school district, or an accredited nonpublic 9 school if a student enrolled in the eligible postsecondary 10 institution, school district, or accredited nonpublic school 11 is providing unpaid services under a work-based learning 12 opportunity offered in accordance with section 84A.16 . 13 However, if the student participating in a work-based learning 14 opportunity is participating in open enrollment under section 15 282.18 , “employer” means the receiving district . 16 Sec. 3. Section 85.61, subsection 12, paragraph a, 17 subparagraphs (4) and (5), Code 2024, are amended by striking 18 the subparagraphs. 19 Sec. 4. Section 256.125, subsections 6 and 9, Code 2024, are 20 amended by striking the subsections. 21 Sec. 5. Section 256.133, subsections 2 and 3, Code 2024, are 22 amended by striking the subsections. 23 Sec. 6. Section 256.136, subsection 1, paragraph e, Code 24 2024, is amended by striking the paragraph. 25 Sec. 7. Section 256.136, subsection 4, paragraph d, Code 26 2024, is amended by striking the paragraph. 27 Sec. 8. Section 256.136, subsection 4, paragraph f, Code 28 2024, is amended to read as follows: 29 f. Representatives of business and industry , including 30 representatives of regional industry sector partnerships 31 established pursuant to section 84A.15 . 32 Sec. 9. REPEAL. Sections 84A.15 and 84A.16, Code 2024, are 33 repealed. 34 Sec. 10. STATEWIDE WORK-BASED LEARNING INTERMEDIARY NETWORK 35 -1- LSB 5175SV (1) 90 jda/jh 1/ 12

S.F. 2260 FUND. Any moneys appropriated to the department of workforce 1 development for purposes of the statewide work-based learning 2 intermediary network fund established pursuant to section 3 84A.16 that remain unencumbered or unobligated as of July 1, 4 2024, shall be deposited in the general fund of the state. 5 DIVISION II 6 CAREER AND TECHNICAL EDUCATION AND WORK-BASED LEARNING 7 Sec. 11. Section 256.11, subsection 5, paragraph h, 8 subparagraph (2), Code 2024, is amended to read as follows: 9 (2) Instructional programs provided under subparagraph 10 (1) shall comply with the provisions of subchapter VII, part 11 2 , relating to career and technical education, and shall be 12 articulated with postsecondary programs of study and include 13 field, laboratory, or on-the-job training , or work-based 14 learning, as defined in section 256.125 . Each sequential 15 unit shall contain a portion of a career and technical 16 education program approved by the department. Standards for 17 instructional programs shall include but not be limited to new 18 and emerging technologies; job-seeking, job-adaptability, and 19 other employment, self-employment and entrepreneurial skills 20 that reflect current industry standards and labor-market needs; 21 and reinforcement of basic academic skills. Instructional 22 programs that include work-based learning may be provided when 23 school is not in session, including but not limited to during 24 the summer months. 25 DIVISION III 26 STUDENT TEACHING 27 Sec. 12. Section 256.16, subsection 1, paragraph c, Code 28 2024, is amended to read as follows: 29 c. (1) Require that each student admitted to an approved 30 practitioner preparation program participate in pre-student 31 teaching field experiences that include both observation and 32 participation in teaching activities in a variety of school 33 settings. Pre-student teaching field experiences for students 34 participating in an initial teacher preparation program shall 35 -2- LSB 5175SV (1) 90 jda/jh 2/ 12

S.F. 2260 comprise a total of at least eighty hours in duration, at least 1 ten hours of which shall occur prior to a student’s acceptance 2 in an approved practitioner preparation program. Pre-student 3 teaching field experiences for students participating in a 4 teacher intern preparation program shall comprise a total of at 5 least fifty hours in duration. 6 (2) (a) The student teaching experience shall be a minimum 7 of fourteen weeks in duration during the student’s final year 8 of the practitioner preparation program. The program shall 9 make every reasonable effort to offer the student teaching 10 experience prior to a student’s last semester, or equivalent, 11 in the program, and to expand the student’s student teaching 12 opportunities beyond one semester or the equivalent. 13 (b) Notwithstanding subparagraph division (a), the student 14 teaching experience shall be four weeks in duration during the 15 student’s final year of the practitioner preparation program if 16 all of the following requirements are met: 17 (i) The student bears the primary responsibility for 18 planning, instruction, and assessment within the classroom for 19 a minimum of four weeks during the student teaching experience. 20 (ii) The board of educational examiners has issued a 21 substitute license, substitute authorization, or para-educator 22 certificate to the student, and the student has prior 23 experience working as a substitute teacher or a para-educator, 24 including prior experience under the teacher and para-educator 25 registered apprenticeship grant program. 26 (iii) The student teaching experience takes place in 27 the classroom of a cooperating teacher who is appropriately 28 licensed in the subject area and grade level endorsement for 29 which the student is being prepared. 30 (c) A student may satisfy requirements related to 31 the student teaching experience if all of the following 32 requirements are met: 33 (i) The student teaching experience takes place in the 34 classroom of a cooperating teacher who is appropriately 35 -3- LSB 5175SV (1) 90 jda/jh 3/ 12

S.F. 2260 licensed in the subject area and grade level endorsement for 1 which the student is being prepared, and lasts for at least 2 one-half of each school day. 3 (ii) Under the supervision of the cooperating teacher, and 4 for at least one-half of each school day, the student bears 5 the primary responsibility for planning, instruction, and 6 assessment within the classroom for a minimum of four weeks 7 during the student teaching experience. 8 (iii) The board of educational examiners has issued a 9 para-educator certificate to the student, and the student works 10 as a para-educator for at least one-half of each school day 11 during the fourteen-week student teaching experience. 12 DIVISION IV 13 CHANGES TO DEFINED TERMS 14 Sec. 13. Section 84D.2, subsections 18, 24, and 25, Code 15 2024, are amended by striking the subsections and inserting in 16 lieu thereof the following: 17 18. “Quality pre-apprenticeship program” means a program 18 or set of strategies, registered by and for purposes of the 19 Iowa office of apprenticeship, including basic skills training, 20 academic skills remediation, or introduction to the industry, 21 designed to prepare individuals for entry into a registered 22 apprenticeship program. 23 24. “Work-based learning” means opportunities and 24 experiences that include but are not limited to sustained 25 project-based learning in partnership with an employer, 26 simulated work experiences aligned with industry-recognized 27 credentials, high-quality pre-apprenticeships aligned to an 28 apprenticeship, student learner programs, internships, and 29 apprenticeships. 30 25. “Youth apprenticeship” , for purposes of the Iowa 31 office of apprenticeship, means a program that is designed 32 specifically for an apprentice eighteen years of age or under. 33 Sec. 14. Section 256.125, subsection 8, Code 2024, is 34 amended to read as follows: 35 -4- LSB 5175SV (1) 90 jda/jh 4/ 12

S.F. 2260 8. “Work-based learning” means opportunities and 1 experiences that include but are not limited to tours, 2 job shadowing, rotations, mentoring, entrepreneurship, 3 service learning, sustained project-based learning in 4 partnership with an employer, simulated work experiences 5 aligned with industry-recognized credentials, high-quality 6 pre-apprenticeships aligned to an apprenticeship, student 7 learner programs, internships, and apprenticeships. 8 DIVISION V 9 DEPARTMENT OF WORKFORCE DEVELOPMENT —— WORKFORCE OPPORTUNITY 10 FUND 11 Sec. 15. NEW SECTION . 84A.20 Workforce opportunity fund. 12 1. A workforce opportunity fund is created in the 13 state treasury as a separate fund under the control of 14 the department of workforce development. The fund shall 15 consist of appropriations made to the fund, any other moneys 16 available to and obtained or accepted by the department from 17 the federal government or private sources for placement in 18 the fund, and transfers of interest, earnings, and moneys 19 from other funds as provided by law. Moneys in the fund are 20 appropriated to the department of workforce development for 21 the purposes of training and infrastructure related to the 22 growth and maintenance of the state’s workforce programs. 23 Permitted uses of the moneys in the fund include but are not 24 limited to equipment, instructional materials, stipends, and 25 other training-related costs. The department of workforce 26 development shall only distribute moneys in the fund to 27 workforce programs located within this state. 28 2. Annually, on or before December 31 of each year, the 29 department of workforce development shall submit a report 30 to the general assembly and the legislative services agency 31 that contains a list of all expenditures from the workforce 32 opportunity fund made in the previous fiscal year. The 33 legislative services agency shall provide a copy of the 34 report to the co-chairpersons and ranking members of the joint 35 -5- LSB 5175SV (1) 90 jda/jh 5/ 12

S.F. 2260 appropriations subcommittee on economic development. 1 3. Notwithstanding section 8.33, moneys in the workforce 2 opportunity fund that remain unencumbered or unobligated 3 at the close of the fiscal year shall not revert but shall 4 remain available for expenditure for the purposes designated 5 for subsequent fiscal years. Notwithstanding section 12C.7, 6 subsection 2, interest or earnings on moneys in the fund shall 7 be credited to the fund. 8 Sec. 16. UNEMPLOYMENT COMPENSATION RESERVE FUND —— TRANSFER 9 TO WORKFORCE OPPORTUNITY FUND. Any moneys appropriated to 10 the department of workforce development for purposes of the 11 unemployment compensation reserve fund established pursuant to 12 section 96.9 that remain unencumbered or unobligated as of July 13 1, 2024, but not more than thirty million dollars, shall be 14 deposited in the workforce opportunity fund created in section 15 84A.20, if enacted by this division of this Act. 16 DIVISION VI 17 FUTURE READY IOWA SKILLED WORKFORCE LAST-DOLLAR SCHOLARSHIP 18 PROGRAM 19 Sec. 17. Section 256.228, subsection 1, paragraph f, Code 20 2024, is amended to read as follows: 21 f. “Eligible program” means a any of the following: 22 (1) A program of study or an academic major jointly approved 23 by the commission and the department of workforce development, 24 in consultation with an eligible institution, that leads to a 25 credential aligned with a high-demand job designated by the 26 workforce development board or a community college pursuant to 27 section 84A.1B, subsection 14 . If the board or a community 28 college removes a high-demand job from a list created under 29 section 84A.1B, subsection 14 , an eligible student who received 30 a scholarship for a program based on that high-demand job 31 shall continue to receive the scholarship until achieving 32 a postsecondary credential, up to an associate degree, as 33 long as the student continues to meet all other eligibility 34 requirements. 35 -6- LSB 5175SV (1) 90 jda/jh 6/ 12

S.F. 2260 (2) A program of study or an academic major jointly approved 1 by the commission and the department of workforce development 2 that leads to a credential aligned with at least one of ten 3 priority in-demand fields designated by rule adopted by the 4 workforce development board. If the board discontinues the 5 designation of a previously designated priority in-demand 6 field, an eligible student who received a scholarship for a 7 program based on the designation of that priority in-demand 8 field shall continue to receive the scholarship until achieving 9 a postsecondary credential, up to an associate degree, as 10 long as the student continues to meet all other eligibility 11 requirements. 12 Sec. 18. Section 256.228, subsection 1, paragraph g, Code 13 2024, is amended by adding the following new subparagraph: 14 NEW SUBPARAGRAPH . (5) Has an expected family contribution 15 of less than or equal to twenty thousand dollars, as determined 16 by the free application for federal student aid. 17 Sec. 19. Section 256.228, subsection 4, paragraph b, Code 18 2024, is amended to read as follows: 19 b. Adopt rules under chapter 17A , in collaboration with the 20 department of workforce development, for administration of this 21 section , including but not limited to establishing rules that 22 do all of the following: 23 (1) Establish the duties and responsibilities of eligible 24 institutions under the program ; defining . 25 (2) Define residence and satisfactory academic progress for 26 purposes of the program ; and establishing . 27 (3) Establish procedures for scholarship application, 28 processing, and approval. The rules shall provide for 29 determining 30 (4) Determine the priority awarding of scholarships if 31 funds available for purposes of this section are insufficient 32 to pay all eligible students. Priority shall be given to fully 33 awarding each eligible student approved for a scholarship 34 rather than to prorating scholarship awards among all eligible 35 -7- LSB 5175SV (1) 90 jda/jh 7/ 12

S.F. 2260 students. 1 (5) Determine the annual amount of a future ready 2 Iowa skilled workforce last-dollar scholarship, within 3 the limitations established in subsection 3, based on the 4 type of eligible program in which the eligible student is 5 participating. 6 Sec. 20. Section 256.228, subsection 4, Code 2024, is 7 amended by adding the following new paragraph: 8 NEW PARAGRAPH . e. Annually establish a two-year budget that 9 shows amounts the commission expects to expend on Iowa skilled 10 workforce last-dollar scholarship awards under this section for 11 all eligible students. 12 Sec. 21. Section 256.228, Code 2024, is amended by adding 13 the following new subsection: 14 NEW SUBSECTION . 4A. Scholarship awards —— reductions. The 15 commission may ratably reduce scholarship awards to more 16 closely align with the funds the general assembly has 17 appropriated for purposes of this section. 18 EXPLANATION 19 The inclusion of this explanation does not constitute agreement with 20 the explanation’s substance by the members of the general assembly. 21 This bill relates to work-based learning, including by 22 repealing provisions related to regional industry sector 23 partnerships and the statewide work-based learning intermediary 24 network, establishing the workforce opportunity fund within 25 the department of workforce development, and modifying 26 provisions related to career and technical education, student 27 teacher requirements for students with substitute teaching or 28 para-educator experience, and the future ready Iowa skilled 29 workforce last-dollar scholarship program. 30 DIVISION I —— REGIONAL INDUSTRY SECTOR PARTNERSHIPS AND 31 STATEWIDE WORK-BASED LEARNING INTERMEDIARY NETWORK. Code 32 section 84A.15 authorizes community colleges and the department 33 of workforce development (IWD) to use moneys for the pathways 34 for academic career and employment program to provide staff and 35 -8- LSB 5175SV (1) 90 jda/jh 8/ 12

S.F. 2260 support for the development and implementation of a regional 1 industry sector partnership within each region served by each 2 community college. The bill repeals Code section 84A.15 and 3 makes conforming changes. 4 Code section 84A.16 establishes the statewide work-based 5 learning intermediary network program within IWD for the 6 purpose of preparing students for the workforce by facilitating 7 cooperation and collaboration between businesses and entities 8 within the state system of education and offering relevant, 9 work-based learning activities to students and teachers. The 10 bill repeals Code section 84A.16 and makes conforming changes. 11 DIVISION II —— CAREER AND TECHNICAL EDUCATION AND WORK-BASED 12 LEARNING. Current law requires school districts and accredited 13 nonpublic schools to offer and teach, in grades 9 through 12, 14 a minimum of three sequential units in at least four career 15 and technical education service areas. The bill provides 16 that the instructional programs provided under this provision 17 may include work-based learning, as defined in Code section 18 256.125 (community colleges and post-secondary readiness 19 bureau), as modified by the bill. The bill also provides that 20 instructional programs that include work-based learning may be 21 provided when school is not in session, including during the 22 summer months. 23 DIVISION III —— STUDENT TEACHING. Current law provides that 24 the student teaching experience provided during a practitioner 25 preparation program shall be a minimum of 14 weeks in duration 26 during the student’s final year of the program. The bill 27 provides that the student teaching experience may be reduced 28 to four weeks in duration if the student bears the primary 29 responsibility for planning, instruction, and assessment within 30 the classroom during the student teaching experience; the 31 board of educational examiners (BOEE) has issued a substitute 32 license, substitute authorization, or para-educator certificate 33 to the student, and the student has prior experience working 34 as a substitute teacher or a para-educator; and the student 35 -9- LSB 5175SV (1) 90 jda/jh 9/ 12

S.F. 2260 teaching experience takes place in the classroom of a 1 cooperating teacher who is appropriately licensed in the 2 subject area and grade level endorsement for which the student 3 is being prepared. Additionally, the bill provides that 4 requirements related to the student teacher experience may be 5 satisfied if the student teaching experience takes place in 6 the classroom of a cooperating teacher who is appropriately 7 licensed in the subject area and grade level endorsement for 8 which the student is being prepared, and lasts for at least 9 one-half of each school day; under the supervision of the 10 cooperating teacher, and for at least one-half of each school 11 day, the student bears the primary responsibility for planning, 12 instruction, and assessment within the classroom for a minimum 13 of four weeks during the student teaching experience; and the 14 BOEE has issued a para-educator certificate to the student, and 15 the student works as a para-educator for at least one-half of 16 each school day during the student teaching experience. 17 DIVISION IV —— CHANGES TO DEFINED TERMS. The bill modifies 18 the definition of “work-based learning” for purposes of 19 the Iowa registered apprenticeship Act, and for purposes of 20 the community colleges and post-secondary readiness bureau 21 within the higher education division of the department of 22 education, to mean opportunities and experiences that include 23 but are not limited to sustained project-based learning in 24 partnership with an employer, simulated work experiences 25 aligned with industry-recognized credentials, high-quality 26 pre-apprenticeships aligned to an apprenticeship, student 27 learner programs, internships, and apprenticeships. 28 The bill also modifies the definitions of “quality 29 pre-apprenticeship program” and “youth apprenticeship” for 30 purposes of the Iowa registered apprenticeship Act. 31 DIVISION V —— DEPARTMENT OF WORKFORCE DEVELOPMENT —— 32 WORKFORCE OPPORTUNITY FUND. The bill establishes a workforce 33 opportunity fund in the state treasury as a separate fund under 34 the control of the department of workforce development. The 35 -10- LSB 5175SV (1) 90 jda/jh 10/ 12

S.F. 2260 bill provides that the fund shall consist of appropriations 1 made to the fund, any other moneys available to and obtained 2 or accepted by the department from the federal government or 3 private sources for placement in the fund, and transfers of 4 interest, earnings, and moneys from other funds as provided by 5 law. Additionally, the bill appropriates moneys in the fund to 6 the department for the purposes of training and infrastructure 7 related to the growth and maintenance of the state’s workforce 8 programs. The bill establishes that permitted uses of 9 the moneys in the fund include equipment, instructional 10 materials, stipends, and other training-related costs. The 11 bill requires that, on or before December 31 of each year, the 12 department shall submit a report to the general assembly and 13 the legislative services agency that contains a list of all 14 expenditures from the fund made in the previous fiscal year. 15 The bill provides that the legislative services agency is to 16 provide a copy of the report to the co-chairpersons and ranking 17 members of the joint appropriations subcommittee on economic 18 development. 19 The bill provides that any moneys appropriated to IWD for 20 purposes of the unemployment compensation reserve fund that 21 remain unencumbered or unobligated as of July 1, 2024, but not 22 more than $30 million, shall be deposited in the workforce 23 opportunity fund. 24 DIVISION VI —— FUTURE READY IOWA SKILLED WORKFORCE 25 LAST-DOLLAR SCHOLARSHIP PROGRAM. Current law provides that 26 eligible students may receive a future ready Iowa skilled 27 workforce last-dollar scholarship from the future ready 28 Iowa skilled workforce last-dollar scholarship fund. The 29 scholarship is intended to cover any remaining gap between 30 federal and state grants or scholarships and tuition and 31 certain fees. Under current law, only an “eligible student” 32 participating in an “eligible program”, defined as a program 33 of study or an academic major jointly approved by the college 34 student aid commission and the department of workforce 35 -11- LSB 5175SV (1) 90 jda/jh 11/ 12

S.F. 2260 development, in consultation with an eligible institution, that 1 leads to a credential aligned with a high-demand job designated 2 by the workforce development board or a community college, 3 may receive a future ready Iowa skilled workforce last-dollar 4 scholarship. The bill provides that “eligible program” 5 shall also include a program of study or an academic major 6 jointly approved by the college student aid commission and the 7 department of workforce development that leads to a credential 8 aligned with at least 1 of 10 priority in-demand fields 9 designated by rule adopted by the workforce development board. 10 The bill establishes that, among other additional 11 requirements, an “eligible student” may only receive a future 12 ready Iowa skilled workforce last-dollar scholarship if the 13 student has an expected family contribution of less than or 14 equal to $20,000, as determined by the free application for 15 federal student aid. 16 Current law authorizes the college student aid commission to 17 adopt rules, in collaboration with the department of workforce 18 development, for administration of the future ready Iowa 19 skilled workforce last-dollar scholarship program. The bill 20 establishes that these rules are required to authorize the 21 commission to determine the annual amount of a future ready 22 Iowa skilled workforce last-dollar scholarship based on the 23 type of eligible program in which the eligible student is 24 participating. 25 The bill requires the college student aid commission to 26 determine the annual amount of a future ready Iowa skilled 27 workforce last-dollar scholarship based on the type of eligible 28 program in which the eligible student is participating. 29 The bill authorizes the college student aid commission to 30 ratably reduce scholarship awards to more closely align with 31 the funds the general assembly has appropriated for purposes of 32 the scholarship program. 33 -12- LSB 5175SV (1) 90 jda/jh 12/ 12