House File 722 - Introduced HOUSE FILE 722 BY COMMITTEE ON LABOR AND WORKFORCE (SUCCESSOR TO HSB 68) A BILL FOR An Act relating to workforce training, unemployment insurance, 1 and other functions and programs of the department of 2 workforce development, the workforce development board, and 3 local workforce development boards. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1442HV (2) 91 je/js

H.F. 722 DIVISION I 1 FUNCTIONS OF DEPARTMENT OF WORKFORCE DEVELOPMENT, WORKFORCE 2 DEVELOPMENT BOARD, AND LOCAL WORKFORCE DEVELOPMENT BOARDS 3 Section 1. Section 15H.9, subsection 2, Code 2025, is 4 amended to read as follows: 5 2. The commission may adopt rules pursuant to chapter 17A 6 for approving Iowa national service corps programs and national 7 service positions. Existing programs and service positions, 8 including those established through the AmeriCorps programs in 9 Iowa created pursuant to 42 U.S.C. §12501, Senior Corps and 10 AmeriCorps vista in Iowa created pursuant to 42 U.S.C. §4950 et 11 seq., the Iowa summer youth corps program created pursuant to 12 section 15H.5 , the Iowa green corps program created pursuant to 13 section 15H.6 , the Iowa reading corps program created pursuant 14 to section 15H.7 , and the RefugeeRISE AmeriCorps program 15 created pursuant to section 15H.8 , and the Iowa conservation 16 corps created pursuant to section 84A.7 , are part of the Iowa 17 national service corps programs and national service positions. 18 Sec. 2. Section 84A.1, subsection 1, Code 2025, is amended 19 to read as follows: 20 1. The department of workforce development is created to 21 administer the laws of this state relating to unemployment 22 compensation insurance , and job placement and training , 23 employment safety, labor standards, and workers’ compensation . 24 Sec. 3. Section 84A.1A, subsection 6, Code 2025, is amended 25 by striking the subsection and inserting in lieu thereof the 26 following: 27 6. The workforce development board may establish standing 28 committees of the board in the bylaws of the board. 29 Sec. 4. Section 84A.1A, subsection 7, paragraph a, Code 30 2025, is amended by striking the paragraph and inserting in 31 lieu thereof the following: 32 a. All documents required by current federal workforce rules 33 and regulations. 34 Sec. 5. Section 84A.1B, unnumbered paragraph 1, Code 2025, 35 -1- LSB 1442HV (2) 91 je/js 1/ 6

H.F. 722 is amended to read as follows: 1 The In addition to the duties outlined in current federal 2 workforce rules and regulations, the workforce development 3 board shall do all of the following: 4 Sec. 6. Section 84A.1B, subsections 1, 2, 3, 5, 6, 7, 8, 5 9, 10, 11, 12, and 15, Code 2025, are amended by striking the 6 subsections. 7 Sec. 7. Section 84A.1B, subsection 13, Code 2025, is amended 8 by striking the subsection and inserting in lieu thereof the 9 following: 10 13. Assist the governor in the designation of local 11 workforce development areas or regions as outlined in current 12 federal workforce rules and regulations. 13 Sec. 8. Section 84A.3, Code 2025, is amended by striking the 14 section and inserting in lieu thereof the following: 15 84A.3 Local workforce development plans. 16 1. A local workforce development board shall, in 17 partnership with the chief elected official, develop a local 18 workforce development plan in accordance with current federal 19 workforce laws, rules, and regulations. The local workforce 20 development board shall submit the workforce development plan 21 to the department of workforce development for review and 22 approval in the manner and form determined by the department. 23 2. All local workforce plan modifications shall be 24 submitted to the department of workforce development for 25 review and approval in the manner and form determined by the 26 department. Modifications to the local workforce development 27 plan must be developed in accordance with current federal 28 workforce laws, rules, and regulations. 29 3. The local workforce development plan and modifications 30 shall include the contents required by current federal 31 workforce laws, rules, and regulations, and such other 32 information as the department of workforce development or the 33 state workforce development board may require. 34 Sec. 9. Section 84A.5, subsection 1, paragraph a, Code 2025, 35 -2- LSB 1442HV (2) 91 je/js 2/ 6

H.F. 722 is amended to read as follows: 1 a. The workforce development system shall strive to 2 provide high quality services to its customers including 3 workers, families, and businesses. The department of workforce 4 development shall maintain a common intake, assessment, and 5 customer tracking system and to the extent practical provide 6 one-stop services to customers at workforce development centers 7 and other service access points. The department of workforce 8 development shall administer a statewide standard skills 9 assessment to assess the employability skills of adult workers 10 statewide and shall instruct appropriate department staff in 11 the administration of the assessment. The assessment shall 12 be included in the one-stop services provided to customers at 13 workforce development centers and other service access points 14 throughout the state. 15 Sec. 10. Section 84A.5, subsection 5, paragraphs a, b, and 16 c, Code 2025, are amended by striking the paragraphs. 17 Sec. 11. Section 84A.5, subsection 7, Code 2025, is amended 18 by striking the subsection. 19 Sec. 12. Section 84A.5, subsection 10, Code 2025, is amended 20 to read as follows: 21 10. The department of education, in collaboration with the 22 department of workforce development , is responsible for the 23 development and oversight of industry and sector partnerships 24 in the state. 25 Sec. 13. Section 84A.6, subsection 4, Code 2025, is amended 26 by striking the subsection. 27 Sec. 14. Section 97B.1A, subsection 8, paragraph b, 28 subparagraph (8), Code 2025, is amended by striking the 29 subparagraph. 30 Sec. 15. Section 256.228, subsection 4, paragraph d, Code 31 2025, is amended by striking the paragraph and inserting in 32 lieu thereof the following: 33 d. In collaboration with the department of workforce 34 development and the department of education, compile an annual 35 -3- LSB 1442HV (2) 91 je/js 3/ 6

H.F. 722 report, in an aggregate form to protect the confidentiality 1 of each eligible program’s participants, that includes the 2 number of students receiving scholarships under this section, 3 the number of students receiving grants under section 256.229, 4 the number of scholarship and grant recipients completing 5 a program of study or major annually and in the prescribed 6 time frame under this section or section 256.229, the number 7 of eligible institutions participating in the scholarship 8 and grant programs established under this section or section 9 256.229, the number of written agreements entered into by the 10 volunteer mentor program under section 15H.10, statistics on 11 employment outcomes for future ready Iowa skilled workforce 12 last-dollar scholarship and future ready Iowa skilled workforce 13 grant program participants by industry, and other data as 14 may be deemed pertinent by the commission, the department of 15 workforce development, or the department of education. The 16 commission shall submit the report to the governor and the 17 general assembly annually by January 15. 18 Sec. 16. Section 256.229, subsection 4, paragraph d, Code 19 2025, is amended to read as follows: 20 d. Transmit to the department of workforce development Use 21 the compilation of information, data, and statistics submitted 22 in accordance with subsection 1 , paragraph “c” , subparagraph 23 (6), for to compile the annual report required under section 24 84A.1B 256.228, subsection 4, paragraph “d” . 25 Sec. 17. REPEAL. Sections 84A.7, 84A.8, 84A.9, 84A.10, and 26 84A.11, Code 2025, are repealed. 27 DIVISION II 28 UNEMPLOYMENT INSURANCE —— TAXABLE WAGES 29 Sec. 18. Section 96.1A, subsection 36, unnumbered paragraph 30 1, Code 2025, is amended to read as follows: 31 “Taxable wages” means an amount of wages upon which an 32 employer is required to contribute based upon wages which 33 that have been paid in this state during a calendar year to 34 an individual by an employer or the employer’s predecessor , 35 -4- LSB 1442HV (2) 91 je/js 4/ 6

H.F. 722 in this state or another state which extends a like comity to 1 this state, with respect to employment, upon which the employer 2 is required to contribute, which equals the greater of the 3 following: 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 relates to workforce training, unemployment 8 insurance, adult education, and other functions and programs 9 of the department of workforce development (department), the 10 workforce development board, and local workforce development 11 boards. 12 DIVISION I —— FUNCTIONS OF DEPARTMENT OF WORKFORCE 13 DEVELOPMENT, WORKFORCE DEVELOPMENT BOARD, AND LOCAL WORKFORCE 14 DEVELOPMENT BOARDS. This division strikes department duties 15 relating to administering a statewide employment skills 16 assessment, selection of service providers, establishing a job 17 posting system of education-related job openings, and functions 18 no longer under the department pursuant to 2023 Iowa Acts, 19 Senate File 514. 20 The division repeals Code provisions for the Iowa 21 conservation corps, the workforce investment program, the 22 statewide mentoring program, the new employment opportunity 23 program, and the nursing workforce data clearinghouse. 24 The division generally transfers duties relating to 25 compiling an annual report for submission to the governor and 26 general assembly on various workforce training programs from 27 the department to the college student aid commission. 28 The division strikes requirements for the department to 29 collaborate with specified education-related entities when 30 performing certain duties. 31 The division strikes detailed language relating to duties 32 of the workforce development board concerning standing 33 committees, public availability of information, comprehensive 34 state workforce development plans, recommendations on the use 35 -5- LSB 1442HV (2) 91 je/js 5/ 6

H.F. 722 of federal funds, and various other duties. The division 1 generally provides that such duties shall be carried out as 2 required by federal law. The division similarly modifies 3 duties of local workforce development boards relating to local 4 workforce development plans. 5 DIVISION II —— UNEMPLOYMENT INSURANCE —— TAXABLE WAGES. 6 This division modifies the definition of “taxable wages” 7 for purposes of unemployment insurance taxes on employers 8 by eliminating the wages paid to an employee from another 9 state from the calculation of wages upon which an employer is 10 required to contribute to the unemployment compensation fund 11 when the other state extends a like comity (reciprocity) to 12 Iowa for employment purposes. The division specifies that only 13 wages paid in Iowa can constitute taxable wages. 14 -6- LSB 1442HV (2) 91 je/js 6/ 6