H.F. 289 Section 1. Section 19B.2, subsection 2, Code 2025, is 1 amended to read as follows: 2 2. It is the policy of this state to permit special 3 appointments by bypassing the usual testing procedures for any 4 applicant for whom the division of vocational rehabilitation 5 services of the department of workforce development education 6 or the department for the blind has certified the applicant’s 7 disability and competence to perform the job. The department 8 of administrative services, in cooperation with the department 9 for the blind and the division of vocational rehabilitation 10 services, shall develop appropriate certification procedures. 11 This subsection should not be interpreted to bar promotional 12 opportunities for persons who are blind or persons with 13 physical or mental disabilities. If this subsection conflicts 14 with any other provisions of this chapter , the provisions of 15 this subsection govern. 16 Sec. 2. Section 48A.19, subsection 1, paragraph b, 17 subparagraph (1), subparagraph division (b), Code 2025, is 18 amended to read as follows: 19 (b) Division of vocational rehabilitation services of the 20 department of workforce development education . 21 Sec. 3. Section 84A.1, subsection 4, Code 2025, is amended 22 by striking the subsection. 23 Sec. 4. Section 84A.1A, subsection 1, paragraph a, 24 subparagraph (6), Code 2025, is amended by striking the 25 subparagraph. 26 Sec. 5. Section 84A.4, subsection 2, paragraph b, 27 subparagraph (4), subparagraph division (a), subparagraph 28 subdivision (iii), Code 2025, is amended to read as follows: 29 (iii) The members shall include at least one appropriate 30 representative of the programs carried out under Tit. I of 31 the federal Rehabilitation Act of 1973, as codified at 29 32 U.S.C. §720 et seq., relating to vocational rehabilitation 33 services, excluding 29 U.S.C. §732 and 741, serving the local 34 workforce development area and nominated by the administrator 35 -1- LSB 2023YH (1) 91 jda/jh 1/ 7

H.F. 289 of the division of vocational rehabilitation services of the 1 department of workforce development education or director of 2 the department for the blind, as appropriate. 3 Sec. 6. Section 84A.6, subsection 3, Code 2025, is amended 4 to read as follows: 5 3. The director of the department of workforce development, 6 in cooperation with the department of health and human services 7 and the vocational rehabilitation services division of the 8 department of workforce development education , shall establish 9 a program to provide job placement and training to persons with 10 disabilities. 11 Sec. 7. Section 84B.1, Code 2025, is amended to read as 12 follows: 13 84B.1 Workforce development system. 14 The departments of workforce development, education, health 15 and human services, and corrections, the economic development 16 authority, the division of Iowa vocational rehabilitation 17 services of the department of workforce development education , 18 and the department for the blind shall collaborate where 19 possible under applicable state and federal law to align 20 workforce development programs, services, and activities in an 21 integrated workforce development system in the state and in 22 each local workforce development area that is data driven and 23 responsive to the needs of workers, job seekers, and employers. 24 The departments, authority, and division shall also jointly 25 establish an integrated management information system for 26 linking workforce development programs within local workforce 27 development systems and in the state. 28 Sec. 8. Section 84B.2, unnumbered paragraph 1, Code 2025, 29 is amended to read as follows: 30 The department of workforce development, in consultation 31 with the departments of education, health and human services, 32 and corrections, the economic development authority, the 33 division of Iowa vocational rehabilitation services of 34 the department of workforce development education , and the 35 -2- LSB 2023YH (1) 91 jda/jh 2/ 7

H.F. 289 department for the blind shall establish guidelines for 1 colocating state and federal employment and training programs 2 in centers providing services at the local level. The 3 centers shall be known as workforce development centers. The 4 guidelines shall provide for local design and operation within 5 the guidelines. The core services available at a center shall 6 include but are not limited to all of the following: 7 Sec. 9. Section 84H.2, Code 2025, is amended to read as 8 follows: 9 84H.2 Custodian of funds. 10 1. The treasurer of state is custodian of moneys received 11 by the state from appropriations made by the Congress of the 12 United States for the vocational rehabilitation of individuals 13 with disabilities, and may receive and provide for the proper 14 custody of the moneys and make disbursement of the moneys upon 15 the requisition of the director of the department of workforce 16 development education . 17 2. The treasurer of state is appointed custodian of moneys 18 paid by the federal government to the state for the purpose of 19 carrying out the agreement relative to making determinations 20 of disability under Tit. II and Tit. XVI of the federal Social 21 Security Act as amended, 42 U.S.C. ch. 7, and may receive 22 the moneys and make disbursements of the moneys upon the 23 requisition of the director of the department of workforce 24 development education . 25 Sec. 10. Section 84H.3, Code 2025, is amended to read as 26 follows: 27 84H.3 Division of vocational rehabilitation services. 28 The division of vocational rehabilitation services is 29 established in the department of workforce development 30 education . The director of the department of workforce 31 development education shall cooperate with the United States 32 secretary of education in carrying out the federal law cited 33 in sections 84H.1 and 84H.2 providing for the vocational 34 rehabilitation of individuals with disabilities. 35 -3- LSB 2023YH (1) 91 jda/jh 3/ 7

H.F. 289 Sec. 11. Section 84H.7, Code 2025, is amended to read as 1 follows: 2 84H.7 Fund. 3 All the moneys received as gifts or donations shall be 4 deposited in the state treasury and shall constitute a 5 permanent fund to be called the special fund for the vocational 6 rehabilitation of individuals with disabilities, to be used 7 by the director of the department of workforce development 8 education in carrying out the provisions of this chapter or for 9 related purposes. 10 Sec. 12. Section 84H.8, Code 2025, is amended to read as 11 follows: 12 84H.8 Report of gifts. 13 A report of all gifts and donations offered and accepted, 14 together with the name of each donor and the amount contributed 15 by each donor, and all disbursements from the special fund for 16 the vocational rehabilitation of individuals with disabilities 17 shall be submitted biennially to the governor by the department 18 of workforce development education . 19 Sec. 13. Section 84H.10, Code 2025, is amended to read as 20 follows: 21 84H.10 Rules. 22 The department of workforce development state board 23 of education shall adopt rules under chapter 17A for the 24 administration of this chapter . 25 Sec. 14. Section 85.70, subsection 1, Code 2025, is amended 26 to read as follows: 27 1. An employee who has sustained an injury resulting 28 in permanent partial or permanent total disability, for 29 which compensation is payable under this chapter other than 30 an injury to the shoulder compensable pursuant to section 31 85.34, subsection 2 , paragraph “n” , and who cannot return 32 to gainful employment because of such disability, shall upon 33 application to and approval by the workers’ compensation 34 commissioner be entitled to a one hundred dollar weekly 35 -4- LSB 2023YH (1) 91 jda/jh 4/ 7

H.F. 289 payment from the employer in addition to any other benefit 1 payments, during each full week in which the employee is 2 actively participating in a vocational rehabilitation program 3 recognized by the vocational rehabilitation services division 4 of the department of workforce development education . The 5 workers’ compensation commissioner’s approval of such 6 application for payment may be given only after a careful 7 evaluation of available facts, and after consultation with the 8 employer or the employer’s representative. Judicial review 9 of the decision of the workers’ compensation commissioner 10 may be obtained in accordance with the terms of the Iowa 11 administrative procedure Act, chapter 17A , and in section 12 10A.322 . Such additional benefit payment shall be paid for a 13 period not to exceed thirteen consecutive weeks except that 14 the workers’ compensation commissioner may extend the period 15 of payment not to exceed an additional thirteen weeks if the 16 circumstances indicate that a continuation of training will in 17 fact accomplish rehabilitation. 18 Sec. 15. Section 147.77, subsection 1, paragraph c, Code 19 2025, is amended to read as follows: 20 c. The economic development authority, with respect to rules 21 relating to the certification of a person with a disability 22 for the purpose of the targeted small business program, that 23 in order to be considered a person with a disability for the 24 purpose of the targeted small business program, the person must 25 qualify and receive certification as having a disability from 26 a licensed medical physician or must have been found eligible 27 for vocational rehabilitation services by the department 28 of workforce development education , division of vocational 29 rehabilitation services, or by the department for the blind. 30 Sec. 16. Section 225C.23, subsection 1, Code 2025, is 31 amended to read as follows: 32 1. The department, the division of special education 33 of the department of education, the division of vocational 34 rehabilitation services of the department of workforce 35 -5- LSB 2023YH (1) 91 jda/jh 5/ 7

H.F. 289 development education , the department for the blind, and all 1 other state agencies which serve persons with brain injuries, 2 shall recognize brain injury as a distinct disability and shall 3 identify those persons with brain injuries among the persons 4 served by the state agency. 5 Sec. 17. Section 256.35A, subsection 2, paragraph b, Code 6 2025, is amended to read as follows: 7 b. In addition, representatives of the department of 8 education, the division of vocational rehabilitation of 9 the department of workforce development education , the 10 department of health and human services, the Iowa developmental 11 disabilities council, the division of insurance of the 12 department of insurance and financial services, and the state 13 board of regents shall serve as ex officio members of the 14 advisory council. Ex officio members shall work together in 15 a collaborative manner to serve as a resource to the advisory 16 council. The council may also form workgroups as necessary 17 to address specific issues within the technical purview of 18 individual members. 19 Sec. 18. CODE EDITOR DIRECTIVE. 20 1. The Code editor is directed to make the following 21 transfers: 22 a. Section 84H.1 to section 256.231. 23 b. Section 84H.2 to section 256.232. 24 c. Section 84H.3 to section 256.233. 25 d. Section 84H.4 to section 256.234. 26 e. Section 84H.5 to section 256.235. 27 f. Section 84H.6 to section 256.236. 28 g. Section 84H.7 to section 256.237. 29 h. Section 84H.8 to section 256.238. 30 i. Section 84H.9 to section 256.239. 31 j. Section 84H.10 to section 256.240. 32 2. The Code editor shall correct internal references in the 33 Code and in any enacted legislation as necessary due to the 34 enactment of this section. 35 -6- LSB 2023YH (1) 91 jda/jh 6/ 7

H.F. 289 3. The Code editor may designate sections 256.231 through 1 256.240, as enacted in this Act, as new subchapter VIII within 2 chapter 256, entitled “Division of Vocational Rehabilitation 3 Services”. 4 EXPLANATION 5 The inclusion of this explanation does not constitute agreement with 6 the explanation’s substance by the members of the general assembly. 7 This bill transfers the division of vocational 8 rehabilitation services from the department of workforce 9 development to the department of education. 10 The division of vocational rehabilitation services 11 is responsible for, among other things, administering 12 legislation enacted pursuant to the federal Rehabilitation 13 Act of 1973 in this state, administering the use of funds 14 provided by the federal government and this state for the 15 vocational rehabilitation of individuals with disabilities, 16 assisting in the development of training agencies for the 17 vocational rehabilitation of individuals with disabilities, 18 helping to secure the rehabilitation of individuals with 19 significant disabilities, providing rehabilitation services to 20 individuals with significant disabilities who are homebound, 21 and administering the entrepreneurs with disabilities 22 program. Current law establishes the division of vocational 23 rehabilitation services within the department of workforce 24 development. The bill transfers the division of vocational 25 rehabilitation services from the department of workforce 26 development to the department of education. 27 The bill makes conforming changes, including changes related 28 to the membership of the Iowa workforce development board and 29 the Iowa autism council. 30 -7- LSB 2023YH (1) 91 jda/jh 7/ 7