HF 2396 (LSB 5266YH (3) 91)

HOUSE FILE 2396

BY  CROKEN

A BILL FOR

An Act modifying provisions related to programs administered by the college student aid commission, including the skilled workforce shortage tuition grant program, Iowa workforce grant and incentive program, vocational-technical tuition grant program, the future ready Iowa skilled workforce last-dollar scholarship program, and the gap tuition assistance program, and making appropriations.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 15H.10, subsections 1 and 4, Code 2026, are amended to read as follows:
   1.  Subject to an appropriation of funds by the general assembly for this purpose, the commission shall establish a volunteer mentor program to support implementation of the future ready Iowa skilled workforce last-dollar scholarship and the future ready Iowa skilled workforce grant programs program created in sections 256.228 and section 256.229. The commission, in collaboration with the department of workforce development and the college student aid commission, shall adopt rules pursuant to chapter 17A to implement and administer the volunteer mentor program, and shall establish standards, guidelines, and expectations for a productive and appropriate relationship between mentors and mentees, including helping students meet the future ready Iowa skilled workforce last-dollar scholarship program or future ready Iowa skilled workforce grant requirements, as appropriate; identify work-based learning opportunities; and make career-related connections that are advantageous to persons participating in the volunteer mentor program.
   4.  The commission, in collaboration with the department of workforce development and the college student aid commission, and in cooperation with an eligible institution as defined in section 256.228 or 256.229, as appropriate, shall assign a student, who is a recipient of a future ready Iowa skilled workforce last-dollar scholarship under section 256.228 or a future ready Iowa skilled workforce grant under section 256.229, who requests the assignment of a mentor, and who enters into an agreement under subsection 3, to a mentor appropriate to the prospective mentee’s field of study whenever possible.
    Sec. 2.  Section 84A.1B, subsection 3, unnumbered paragraph 1, Code 2026, is amended to read as follows:
   Create, and update as necessary, a list of high-demand jobs statewide for purposes of the future ready Iowa registered apprenticeship programs created in chapter 84F, the summer youth intern pilot program established under section 84A.12, the Iowa employer innovation program established under section 84A.13, the future ready Iowa skilled workforce last-dollar scholarship program established under section 256.228, the future ready Iowa skilled workforce grant program established under section 256.229, and postsecondary summer classes for high school students as provided under section 261E.8, subsection 8. In addition to the list created by the workforce development board under this subsection, each community college, in consultation with regional career and technical education planning partnerships, and with the approval of the board of directors of the community college, may identify and maintain a list of not more than five regional high-demand jobs in the community college region, and shall share the lists with the workforce development board. The lists submitted by community colleges under the subsection may be used in that community college region for purposes of programs identified under this subsection. The workforce development board shall have full discretion to select and prioritize statewide high-demand jobs after consulting with business and education stakeholders, as appropriate, and seeking public comment. The workforce development board may add to the list of high-demand jobs as it deems necessary. For purposes of this subsection, “high-demand job” means a job in the state that the board, or a community college in accordance with this subsection, has identified in accordance with this subsection. In creating a list under this subsection, the following criteria, at a minimum, shall apply:
    Sec. 3.  Section 84A.13, subsection 3, paragraph b, Code 2026, is amended to read as follows:
   b.  Whether the proposal increases the number of eligible students receiving financial assistance under the future ready Iowa skilled workforce last-dollar scholarship or future ready Iowa skilled workforce grant programs program established under sections 256.228 and section 256.229; or increases the donation of books, transportation, child care, and other wrap-around support to assist eligible students receiving financial assistance under section 256.228 or section 256.229.
    Sec. 4.  Section 256.7, subsection 34, Code 2026, is amended by striking the subsection.
    Sec. 5.  Section 256.194, subsection 3, Code 2026, is amended by striking the subsection.
    Sec. 6.  Section 256.227, subsection 8, paragraph b, Code 2026, is amended to read as follows:
   b.  Adopt rules for approving career-technical or career option programs in industries identified by the department of workforce development; determining financial need; defining residence for the purposes of this section; processing and approving applications for grants; and determining priority for grants.  The rules adopted by the commission shall not require a student to attain any particular grade point average to be awarded a skilled workforce shortage tuition grant.
    Sec. 7.  Section 256.227, subsection 9, paragraph b, Code 2026, is amended to read as follows:
   b.  Be responsible for the submission of the financial information required for evaluation of the applicant’s need for a grant, including the free application for federal student aid, on forms determined by the commission.
    Sec. 8.  Section 256.227, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  10.  a.  A skilled workforce shortage tuition grant program fund is established in the state treasury. The fund shall be administered by the commission and shall consist of moneys appropriated by the general assembly and other moneys received by the commission for deposit in the fund. The moneys in the fund are appropriated to the commission for the skilled workforce shortage tuition grant program.
   b.  For the fiscal year commencing July 1, 2026, and each succeeding fiscal year, there is appropriated from the general fund of the state to the commission to be credited to the skilled workforce shortage tuition grant program fund the moneys necessary to pay all grants approved for that fiscal year.
    Sec. 9.  Section 256.229, subsection 4, paragraph d, Code 2026, is amended by striking the paragraph.
    Sec. 10.  Section 256.230, subsection 3, paragraphs a and b, Code 2026, are amended to read as follows:
   a.  A full-time eligible student may receive an Iowa workforce grant for not more than four eight semesters, or the equivalent, or until the eligible student completes the eligible program, whichever occurs first. A part-time eligible student may receive the grant for not more than eight sixteen semesters, or the equivalent, on a prorated basis, or until the eligible student completes the eligible program, whichever occurs first.
   b.  The amount of an Iowa workforce grant to a full-time eligible student shall not exceed two thousand dollars per semester, or the equivalent the lesser of a student’s tuition and fees for the eligible program or the amount of the student’s financial need. The amount of an Iowa workforce grant to a part-time eligible student shall be equal to the amount that would be awarded to a full-time student except that the commission shall prorate the amount based on the recipient student’s semester hour or equivalent enrollment.
    Sec. 11.  Section 256.230, subsection 7, paragraph b, Code 2026, is amended to read as follows:
   b.  Adopt rules under chapter 17A for administration of this section, including establishing the duties and responsibilities of eligible institutions under the program, defining residence and satisfactory academic progress for purposes of the program, determining financial need, and establishing procedures for grant and incentive payment application, processing, and approval. The rules shall provide for determining the priority awarding of grants and incentives if moneys available for purposes of this section are insufficient to pay all eligible applicants adopted by the commission shall not require a student to attain any particular grade point average to be awarded an Iowa workforce grant.
    Sec. 12.  Section 256.230, subsection 8, Code 2026, is amended to read as follows:
   8.  Fund created.
   a.  An Iowa workforce grant and incentive program fund is created in the state treasury under the control of the commission. All moneys deposited or paid into the fund are appropriated to the commission to be used for grants and incentive payments awarded as provided in this section. Notwithstanding section 8.33, moneys in the fund that remain unencumbered or unobligated at the close of a fiscal year shall not revert but shall remain available for expenditure for the purposes designated. Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys in the fund shall be credited to the fund and are appropriated to the college student aid commission for purposes of administering any program described in this subchapter VII, part 4.
   b.  For the fiscal year commencing July 1, 2026, and each succeeding fiscal year, there is appropriated from the general fund of the state to the commission to be credited to the Iowa workforce grant and incentive program fund the moneys necessary to pay all grants and incentive payments approved for that fiscal year.
    Sec. 13.  Section 260C.18A, subsection 2, paragraph f, Code 2026, is amended to read as follows:
   f.  Development and implementation of programs for the gap tuition assistance program under chapter 260I.
    Sec. 14.  Section 260I.1, Code 2026, is amended to read as follows:
   260I.1  Title.
   This chapter shall be known and may be cited as the “Gap Tuition Assistance Act”.
    Sec. 15.  Section 260I.2, subsections 1 and 2, Code 2026, are amended to read as follows:
   1.  A gap tuition assistance program is established to provide funding to community colleges for need-based tuition assistance to applicants to enable completion of continuing education certificate training programs for in-demand occupations.
   2.  a.  There is established for the community colleges a gap tuition assistance fund in the state treasury to be administered by the department of education. The funds in the gap tuition assistance fund are appropriated to the department of education for the gap tuition assistance program.
   b.  The aggregate total of grants awarded from the gap tuition assistance fund during a fiscal year shall not be more than two million dollars.
   c.  Except as provided in section 260I.10, subsection 4, moneys in the fund shall be allocated pursuant to the formula established in section 260C.18C. Notwithstanding section 8.33, moneys in the fund at the close of the fiscal year shall not revert to the general fund of the state but shall remain available for expenditure for the purpose designated for subsequent fiscal years. Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys in the fund shall be credited to the fund.
    Sec. 16.  Section 260I.3, subsection 1, Code 2026, is amended to read as follows:
   1.  The state board of education shall adopt rules pursuant to chapter 17A defining eligibility criteria for persons applying to receive tuition assistance under this chapter.
    Sec. 17.  Section 260I.3, subsection 2, paragraph a, unnumbered paragraph 1, Code 2026, is amended to read as follows:
   An applicant for tuition assistance under this chapter must have a demonstrated capacity to achieve the following outcomes:
    Sec. 18.  Section 260I.3, subsection 2, paragraph b, unnumbered paragraph 1, Code 2026, is amended to read as follows:
   The community college receiving the application shall only approve an applicant for tuition assistance under this chapter if the community college determines the applicant has a strong likelihood of achieving the outcomes described in paragraph “a” after considering factors including but not limited to:
    Sec. 19.  Section 260I.4, subsections 1 and 3, Code 2026, are amended to read as follows:
   1.  Only an applicant eligible to work in the United States shall be approved for tuition assistance under this chapter.
   3.  Eligibility for tuition assistance under this chapter shall not be construed to guarantee enrollment in any community college certificate program.
    Sec. 20.  Section 260I.5, unnumbered paragraph 1, Code 2026, is amended to read as follows:
   Costs of a certificate program eligible for coverage by tuition assistance shall include but are not limited to:
    Sec. 21.  Section 260I.5, subsection 1, Code 2026, is amended by striking the subsection.
    Sec. 22.  Section 260I.8, Code 2026, is amended to read as follows:
   260I.8  Program interview.
   An applicant for tuition assistance under this chapter shall meet with a member of the staff for an eligible certificate program offered by the community college receiving the application. The staff member shall discuss the relevant industry, any applicable occupational research, and any applicable training relating to the eligible certificate program. The discussion shall include an evaluation of the applicant’s capabilities, needs, family situation, work history, educational background, attitude and motivation, employment skills, vocational and technical potential, and employment barriers. The discussion shall also include potential start dates, support needs, and other requirements for an eligible certificate program.
    Sec. 23.  Section 260I.9, subsection 1, unnumbered paragraph 1, Code 2026, is amended to read as follows:
   A participant in an eligible certificate program who receives tuition assistance pursuant to this chapter shall do all of the following:
    Sec. 24.  Section 260I.9, subsection 2, Code 2026, is amended to read as follows:
   2.  A community college may terminate tuition assistance for a participant who fails to meet the requirements of this section.
    Sec. 25.  Section 260I.10, subsections 1 and 3, Code 2026, are amended to read as follows:
   1.  The department of education, in coordination with the community colleges, shall establish a steering committee. The steering committee shall determine if the performance measures of the gap tuition assistance program are being met and shall take necessary steps to correct any deficiencies. The steering committee shall meet at least quarterly to evaluate and monitor the performance of the gap tuition assistance program.
   3.  The department of education shall coordinate statewide oversight, evaluation, and reporting efforts for the gap tuition assistance program.
    Sec. 26.  REPEAL.  Sections 256.192 and 256.228, Code 2026, are repealed.
    Sec. 27.  VOCATIONAL-TECHNICAL TUITION GRANTS FUND AND FUTURE READY IOWA SKILLED WORKFORCE LAST-DOLLAR SCHOLARSHIP FUND —— TRANSFER TO SKILLED WORKFORCE SHORTAGE TUITION GRANT FUND.
   1.  Any moneys appropriated to the college student aid commission for deposit in the vocational-technical tuition grants fund established in section 256.192, subsection 8, that remain unencumbered or unobligated as of July 1, 2026, shall be deposited in the skilled workforce shortage tuition grant program fund created in section 256.227, subsection 10, as enacted by this Act.
   2.  Any moneys appropriated to the college student aid commission for deposit in the future ready Iowa skilled workforce last-dollar scholarship fund established in section 256.228, subsection 5, that remain unencumbered or unobligated as of July 1, 2026, shall be deposited in the skilled workforce shortage tuition grant program fund created in section 256.227, subsection 10, as enacted by this Act.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill modifies provisions related to programs administered by the college student aid commission (CSAC), including the skilled workforce shortage tuition grant program, Iowa workforce grant and incentive program, vocational-technical tuition grant program, the future ready Iowa skilled workforce last-dollar scholarship program, and the gap tuition assistance program.
   Under current law, a grant under the skilled workforce shortage tuition grant program may be awarded to any resident of Iowa who establishes financial need and who is admitted and in attendance as a full-time or part-time student in a career-technical or career option program to pursue an associate’s degree or other training at a community college in the state. Currently, the maximum amount of a grant under the program is one-half of the average community college tuition and fee rate. The bill increases the maximum amount of a grant under the program to 100 percent of the average community college tuition and fee rate. The bill establishes a skilled workforce shortage tuition grant program fund in the state treasury and, beginning July 1, 2026, appropriates from the general fund of the state to the fund the moneys necessary to pay all grants approved for that fiscal year. Additionally, the bill prohibits CSAC from adopting rules that require a student to attain any particular grade point average to be awarded a skilled workforce shortage tuition grant. The bill requires students participating in the program to submit the free application for federal student aid to CSAC for evaluation of need for a grant under the program.
   Under current law, a grant under the Iowa workforce grant and incentive program may be awarded to any resident of Iowa who establishes financial need and who is admitted and in attendance as a full-time or part-time student in either a program of study or an academic major jointly approved by the workforce development board and the state board of regents or a teacher preparation program that leads to a bachelor’s degree, initial teaching license, or intern teaching license. Currently, the maximum amount of a grant under the program is $2,000 per semester for full-time students for not more than four semesters. The bill increases the maximum amount of a grant under the program to 100 percent of the student’s tuition and fees for the eligible program and provides that a full-time student may receive grants under the program for not more than eight semesters. Beginning July 1, 2026, the bill appropriates from the general fund of the state to the Iowa workforce grant and incentive program fund the moneys necessary to pay all grants approved for that fiscal year. Also, the bill prohibits CSAC from adopting rules that require a student to attain any particular grade point average to be awarded an Iowa workforce grant.
   Current Code section 256.192 establishes the vocational-technical tuition grants program, which provides grants to Iowa residents who demonstrate financial need and who are enrolled in career or technical education programs at Iowa community colleges. Current Code section 256.228 establishes the future ready Iowa skilled workforce last-dollar scholarship program, which provides grants intended to cover any gap between federal and state grant or scholarship programs and the tuition and fees charged by Iowa community colleges to Iowa residents who demonstrate financial need and who are enrolled in certain specified career or technical education programs at a community college. The bill repeals Code sections 256.192 and 256.228 and transfers any moneys appropriated to CSAC for deposit in the vocational-technical tuition grants fund or the future ready Iowa skilled workforce last-dollar scholarship fund that remain unencumbered or unobligated as of July 1, 2026, to the skilled workforce shortage tuition grant program fund.
   The gap tuition assistance program provides funding to community colleges for need-based tuition assistance to enable applicants to complete continuing education certificate training programs for in-demand occupations. Under current law, the gap tuition assistance program covers, among other things, tuition costs for eligible certificate training programs. The bill strikes this provision, leaving only the following costs to be covered by the gap tuition assistance program: direct training and support services, required books and equipment, certain specified fees, and costs of providing direct staff support services. As a result of this change, the bill changes the name of this program from the gap tuition assistance program to the gap assistance program.
   The bill makes conforming changes.