HSB 674 (LSB 6872YC (3) 91)

HOUSE FILE _____ 

BY  (PROPOSED COMMITTEE ON HIGHER EDUCATION BILL BY CHAIRPERSON COLLINS)

A BILL FOR

An Act relating to apprenticeships and other career training and making appropriations.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

DIVISION I
SHORT TITLE

    Section 1.  SHORT TITLE.  This Act shall be known and may be cited as the “Iowa Skilled Workforce Act”.
DIVISION II
IOWA REGISTERED APPRENTICESHIP ACT

    Sec. 2.  Section 84D.2, subsection 5, Code 2026, is amended to read as follows:
   5.  “Apprenticeship sponsor” means an entity operating an apprenticeship program or an entity in whose name an apprenticeship program is being operated, which entity is registered with or approved by the United States department of labor, office of apprenticeship, or the Iowa office of apprenticeship. “Apprenticeship sponsor” includes a lead apprenticeship sponsor, sponsor, or intermediary, and an employer who provides training through a lead apprenticeship sponsor, sponsor, intermediary sponsor, or intermediary.
    Sec. 3.  Section 84D.2, Code 2026, is amended by adding the following new subsections:
   NEW SUBSECTION.  12A.  “Intermediary sponsor” means an entity that provides apprenticeship training to multiple employers and serves as the sponsor of the apprentices.
   NEW SUBSECTION.  16A.  “Partner employer” means an employer who trains the employer’s employees through an intermediary sponsor.
    Sec. 4.  Section 84D.2, subsection 19, paragraph a, subparagraph (2), subparagraph division (c), Code 2026, is amended to read as follows:
   (c)  Related training instruction from a lead apprenticeship sponsor, sponsor, intermediary sponsor, or intermediary.
    Sec. 5.  Section 84D.4, subsection 2, Code 2026, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  c.  An intermediary or intermediary sponsor has the sole discretion for approving partner employers, provided that such partner employers are compliant with the partner employers’ responsibilities outlined in the intermediary’s or intermediary sponsor’s standards.
    Sec. 6.  Section 84D.4, subsection 8, Code 2026, is amended to read as follows:
   8.  a.  The office shall develop a plan providing a procedure for the cancellation or deregistration, or both, of programs and for temporary suspension, cancellation, deregistration, or any of these, of apprenticeship agreements.
   b.  The office shall not cancel, suspend, or deregister an intermediary or intermediary sponsor based on the actions of the intermediary’s or intermediary sponsor’s partner employers. However, the office may require an intermediary or intermediary sponsor to cancel or suspend a partner employer due to the partner employer’s material breach of responsibilities as outlined in the intermediary’s or intermediary sponsor’s standards.
   c.  (1)  The office may only cancel, suspend, or deregister an approved apprenticeship sponsor, intermediary, intermediary sponsor, or lead apprenticeship sponsor due to a material breach of the requirements of this chapter. Prior to any permanent or temporary cancellation, suspension, or deregistration, the office must provide a comprehensive list of the grounds of the alleged material breach in writing to the approved apprenticeship sponsor, intermediary, intermediary sponsor, or lead apprenticeship sponsor and allow at least ninety days to become compliant.
   (2)  A decision by the office to cancel, suspend, or deregister an approved apprenticeship sponsor, intermediary, intermediary sponsor, or lead apprenticeship sponsor must be issued in writing and must state the reasons for the office’s decision. The office shall not issue such a decision before the conclusion of the ninety-day period or later than thirty days after the conclusion of the period. The decision shall be considered final agency action subject to judicial review as provided in section 17A.19. However, notwithstanding section 17A.19, the office shall have the burden to prove that the approved apprenticeship sponsor, intermediary, intermediary sponsor, or lead apprenticeship sponsor materially breached this chapter and that the breach continued past the ninety-day period.
   d.  If an apprenticeship sponsor, intermediary, intermediary sponsor, or lead apprenticeship sponsor is canceled, suspended, or deregistered, the apprenticeship sponsor, intermediary, intermediary sponsor, or lead apprenticeship sponsor shall have the right to reapply for a registration after sixty days. The office shall not use the prior cancellation, suspension, or deregistration as the basis for denying the reapplication.
    Sec. 7.  Section 84D.7, Code 2026, is amended to read as follows:
   84D.7  Requirements for sponsors and employers.
   A sponsor of a quality pre-apprenticeship program, youth apprenticeship program, registered apprenticeship program, or apprenticeship program is responsible for the administration and supervision of on-the-job training and related technical instruction for each apprentice in the quality pre-apprenticeship program, youth apprenticeship program, registered apprenticeship program, or apprenticeship program. When training is provided by a lead apprenticeship sponsor, intermediary sponsor, or intermediary, the employer of the apprentice is responsible for the administration and supervision of on-the-job training, and the lead apprenticeship sponsor, intermediary sponsor, or intermediary is responsible for related technical instruction for each apprenticeship.
DIVISION III
IOWA PLUMBER, MECHANICAL PROFESSIONAL, AND CONTRACTOR LICENSING ACT —— APPRENTICESHIPS

    Sec. 8.  Section 105.18, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  5.  Regulation of apprenticeships.
   a.  A licensed journeyperson or master may employ or supervise licensed apprentices at a ratio not to exceed three apprentices to one licensee.
   b.  The requirements of this section do not apply to apprenticeship classroom training.
DIVISION IV
IOWA APPRENTICESHIP ACT

    Sec. 9.  Section 84E.2, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  8A.  “Intermediary sponsor” means an entity that provides apprenticeship training to multiple employers and serves as the sponsor of the apprentices.
    Sec. 10.  Section 84E.4, subsections 1, 2, 3, and 4, Code 2026, are amended to read as follows:
   1.  a.  An apprenticeship sponsor, intermediary sponsor, or lead apprenticeship sponsor that conducts an apprenticeship program that is registered with the United States department of labor, office of apprenticeship, through Iowa, for apprentices who will be employed at worksites located in this state may apply to the department for financial assistance under this section if the apprenticeship program includes a minimum of one hundred contact hours per apprentice for each training year of the apprenticeship program.
   b.  Financial assistance received by an apprenticeship sponsor, intermediary sponsor, or lead apprenticeship sponsor under this section shall be used only for the cost of conducting and maintaining an apprenticeship program.
   c.  An apprenticeship sponsor whose apprentices receive contact hours from a lead apprenticeship sponsor is not eligible for financial assistance under this chapter.
   2.  The department shall provide financial assistance in the form of training grants to eligible apprenticeship sponsors, intermediary sponsors, or lead apprenticeship sponsors in the following manner:
   a.  By determining the total amount of funding allocated for purposes of training grants for apprenticeship programs pursuant to section 84E.3.
   b.  By determining the total number of apprentices trained during the most recent training year, as calculated on the last day of the training year, in all apprenticeship programs conducted by all applying apprenticeship sponsors, intermediary sponsors, or lead apprenticeship sponsors eligible to apply for financial assistance under subsection 1.
   c.  By determining the total number of apprentices trained during the most recent training year, as calculated on the last day of the training year, in each apprenticeship program conducted by each apprenticeship sponsor, intermediary sponsor, or lead apprenticeship sponsor eligible to apply under subsection 1, and that applied for financial assistance under subsection 1.
   d.  By determining the proportion, stated as a percentage, that each applying apprenticeship sponsor’s, intermediary sponsor’s, or lead apprenticeship sponsor’s total calculated pursuant to paragraph “c” bears to all applying apprenticeship sponsors’, intermediary sponsors’, or lead apprenticeship sponsors’ total calculated pursuant to paragraph “b”.
   e.  By multiplying the percentage calculated in paragraph “d” by the amount determined in paragraph “a”.
   3.  An apprenticeship sponsor, intermediary sponsor, or lead apprenticeship sponsor seeking financial assistance under this section shall provide the following information to the department:
   a.  The federal apprentice registration number of each apprentice in the apprenticeship program.
   b.  The address and a description of the physical location where in-person training is conducted.
   c.  A certification of the apprenticeship sponsor’s or intermediary sponsor’s training standards as most recently approved by the United States department of labor, office of apprenticeship or, in the case of a lead apprenticeship sponsor, a representative sample of participating members’ training standards.
   d.  A certification of the apprenticeship sponsor’s or intermediary sponsor’s compliance review or quality assessment as most recently conducted by the United States department of labor, office of apprenticeship, unless the apprenticeship sponsor has not been subjected to a compliance review or quality assessment. In the case of a lead apprenticeship sponsor, a sampling of compliance reviews or quality assessments from participating members shall be sufficient.
   e.  Any other information the department reasonably determines is necessary.
   4.  The apprenticeship sponsor, intermediary sponsor, or lead apprenticeship sponsor and the department shall enter into an agreement regarding the provision of any financial assistance to the apprenticeship sponsor, intermediary sponsor, or lead apprenticeship sponsor.
    Sec. 11.  Section 84G.3, subsection 2, Code 2026, is amended to read as follows:
   2.  For the fiscal year beginning July 1, 2023 2026, and for each fiscal year thereafter, there is annually appropriated from the workforce development fund account to the apprenticeship training program fund created in section 84E.3 three four million five hundred thousand dollars for the purposes of chapter 84E.
DIVISION V
CAREER TRAINING PHYSICAL EXPANSION PROGRAM —— FUNDING OF CERTAIN DEGREE PROGRAMS AT REGENTS INSTITUTIONS

    Sec. 12.  Section 84A.5, subsection 5, Code 2026, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  m.  The career training physical expansion program under chapter 84J.
    Sec. 13.  NEW SECTION.  84J.1  Definition.
   As used in this chapter, “department” means the department of workforce development.
    Sec. 14.  NEW SECTION.  84J.2  Career training physical expansion program.
   1.  A career training physical expansion program is created that shall be administered by the department. The purpose of the program is to provide financial assistance for the construction of new facilities that will expand the capacity of community colleges and unionized and nonunionized private sector apprenticeship programs to provide education and training for workers in high-demand fields in this state.
   2.  The department shall establish eligibility requirements, award criteria, and application and other necessary procedures for the program. To be eligible for financial assistance, a community college or apprenticeship program must demonstrate to the department that construction of the new facility will directly result in an increase in the number of workers in high-demand fields in this state by expanding the physical capacity of the community college or apprenticeship program to train more students or apprentices in such fields. Projects to increase internet-based education or training shall be ineligible for financial assistance.
    Sec. 15.  NEW SECTION.  84J.3  Career training physical expansion program fund.
   1.  A career training physical expansion program fund is created as a fund in the state treasury under the control of the department.
   2.  The fund shall consist of moneys appropriated for purposes of the career training physical expansion program, and any other moneys lawfully available to the department for purposes of this chapter.
   3.  Moneys in the fund are appropriated to the department for the purposes of this chapter.
   4.  Notwithstanding section 8.33, moneys in the fund at the close of the fiscal year shall not revert but shall remain available for expenditure for the purposes 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.  NEW SECTION.  84J.4  Rules.
   The department of workforce development shall adopt rules pursuant to chapter 17A to administer this chapter.
DIVISION VI
DEPARTMENT-APPROVED TRAINING

    Sec. 17.  Section 96.4, subsection 6, paragraph a, Code 2026, is amended to read as follows:
   a.  An otherwise eligible individual shall not be denied benefits for any week because the individual is in training with the approval of the director, nor shall the individual be denied benefits with respect to any week in which the individual is in training with the approval of the director by reason of the application of the provision in subsection 3 of this section relating to availability for work, and an active search for work or the provision of section 96.5, subsection 3, relating to failure to apply for or a refusal to accept suitable work. However, an employer’s account shall not be charged with benefits so paid.  The director shall not deny approval of training that otherwise qualifies for approval under this paragraph if all of the following apply to the training:
   (1)  The training is a part of an apprenticeship program registered with the United States department of labor, office of apprenticeship or the Iowa office of apprenticeship.
   (2)  Each training session lasts no longer than one week.
   (3)  The training is not located at a worksite.
DIVISION VII
APPRENTICESHIP TRAINING IN SCHOOL DISTRICTS

    Sec. 18.  NEW SECTION.  279.89  Increasing access to apprenticeship training.
   1.  As used in this section, unless the context otherwise requires:
   a.  “Apprenticeship sponsor”, “quality pre-apprenticeship program”, “registered apprenticeship program”, “work-based learning”, and “youth apprenticeship” mean the same as defined in section 84D.2.
   b.  “HVAC” means the same as defined in section 105.2.
   2.  The board of directors of each school district is encouraged to establish or expand quality pre-apprenticeship opportunities and youth apprenticeship programs at secondary schools in partnership with apprenticeship sponsors and the Iowa office of apprenticeship. Activities boards may pursue in furtherance of this goal include but are not limited to all of the following:
   a.  Aligning existing industrial technology, construction, electronics, metalwork, and related coursework with requirements of registered apprenticeship programs.
   b.  Establishing new coursework in subjects such as plumbing, HVAC, and math for skilled trades as well as an introductory course on apprenticeships to prepare students for a wide variety of opportunities in registered apprenticeship programs.
   c.  Construction, improvement, or expansion of skilled trade extension centers to provide additional work-based learning opportunities.
   d.  Partnering with apprenticeship sponsors to ensure curricula for coursework described in paragraphs “a”, “b”, and “c” are industry-aligned so that such coursework can be credited toward completion of an apprenticeship.
   3.  The board of directors of each school district is encouraged to establish a work-based learning coordinator at each secondary school. The work-based learning coordinator shall facilitate implementation of this section and other pre-apprenticeship, apprenticeship, and work-based learning initiatives at the school. A work-based learning coordinator shall have prior experience relevant to implementation of quality pre-apprenticeships, youth apprenticeships, or other work-based learning initiatives.
   4.  The board of directors of each school district is encouraged to pursue funding sources and in-kind contributions through private sector partnerships and from apprenticeship sponsors and nonprofit sources to implement this section.
   5.  It is the intent of the general assembly that school districts implement this section no later than the school year beginning July 1, 2028.
DIVISION VIII
HIGH-DEMAND JOBS AND SCHOLARSHIP ELIGIBILITY

    Sec. 19.  Section 84A.1B, subsection 3, Code 2026, is amended to read as follows:
   3.  Create, and update as necessary every five years, 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 collaborate with community colleges 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:
   a.  An A competitive entry-level hourly wage of not less than fourteen dollars.
   b.  Educational attainment of a qualifying credential up to a bachelor’s degree.
   c.  One or both of the following criteria:
   (1)  Projected annual job openings of at least two hundred fifty or more during the next five years. 
   (2)  Annual job growth of at least one percent.
    Sec. 20.  Section 256.228, subsection 1, paragraph g, subparagraph (5), Code 2026, is amended to read as follows:
   (5)  Has a student aid index of less than or equal to twenty thousand dollars at the time of initial application, as determined by the application forms submitted pursuant to subparagraph (2), including the free application for federal student aid Meets financial need criteria as established by the commission.
    Sec. 21.  Section 256.228, subsection 4, paragraph b, Code 2026, is amended to read as follows:
   b.  Adopt rules under chapter 17A, in collaboration with the department of workforce development, for administration of this section, including but not limited to establishing the duties and responsibilities of eligible institutions under the program; defining residence and satisfactory academic progress for purposes of the program; defining financial need for purposes of the program; and establishing procedures for scholarship application, processing, and approval. The rules shall provide for determining the priority awarding of scholarships if funds available for purposes of this section are insufficient to pay all eligible students. Priority shall be given to fully awarding each eligible student approved for a scholarship rather than to prorating scholarship awards among all eligible students.
    Sec. 22.  Section 256.228, subsection 4, paragraph d, Code 2026, is amended by striking the paragraph and inserting in lieu thereof the following:
   d.  Transmit to the department of workforce development the compilation of information, data, and statistics compiled under subsection 1, paragraph “e”, subparagraph (6).
DIVISION IX
CAREER AND TECHNICAL SECONDARY AUTHORIZATIONS

    Sec. 23.  Section 256.146, subsection 26, Code 2026, is amended to read as follows:
   26.  a.  Adopt rules pursuant to chapter 17A that allow an individual seeking a career and technical secondary authorization to apply, and, if eligible, be issued the secondary authorization prior to accepting an offer of employment with a school.
   b.  The board shall limit qualifications for an applicant for a career and technical secondary authorization to three thousand hours of recent and relevant experience. The board shall limit training requirements for an initial authorization to ethics training.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to apprenticeships and other career training.
   IOWA REGISTERED APPRENTICESHIP ACT. The bill adds intermediary sponsors, as defined in the bill, as a class of entities that may provide apprenticeship training under Code chapter 84D, the Iowa registered apprenticeship Act, and that are subject to registration with the Iowa office of apprenticeship.
   The bill provides that an intermediary, as defined under current law, or intermediary sponsor has the sole discretion for approving partner employers, as defined in the bill, provided that such employers are compliant with their responsibilities outlined in the intermediary’s or intermediary sponsor’s standards.
   The bill prohibits the office from canceling, suspending, or deregistering an intermediary or intermediary sponsor based on the actions of partner employers. The bill authorizes the office to require an intermediary sponsor to cancel or suspend a partner employer due to the partner employer’s material breach of responsibilities as outlined in the intermediary’s or intermediary sponsor’s standards.
   The bill provides procedures and standards the office must follow when canceling, suspending, or deregistering an approved apprenticeship sponsor, intermediary, intermediary sponsor, or lead apprenticeship sponsor. The bill provides that such action may only be carried out by the office due to a material breach of the requirements of Code chapter 84D. The bill also provides standards for judicial review of such action and procedures for reapplication for registration following such action.
   IOWA PLUMBER, MECHANICAL PROFESSIONAL, AND CONTRACTOR LICENSING ACT —— APPRENTICES. The bill provides that a licensed journeyperson or master under Code chapter 105, the Iowa plumber, mechanical professional, and contractor licensing Act, may employ or supervise licensed apprentices at a ratio not to exceed three apprentices to one licensee. The bill provides that certain statutory requirements relating to qualifications and other licensing matters do not apply to apprenticeship classroom training.
   IOWA APPRENTICESHIP ACT. The bill adds intermediary sponsors as a class of entities that may provide apprenticeship training and that are eligible for financial assistance from the department of workforce development under Code chapter 84E, the Iowa apprenticeship Act.
   The bill provides that an apprenticeship sponsor whose apprentices receive contact hours from a lead apprenticeship sponsor is not eligible for such financial assistance.
   CAREER TRAINING PHYSICAL EXPANSION PROGRAM —— FUNDING OF CERTAIN DEGREE PROGRAMS AT REGENTS INSTITUTIONS. The bill creates a career training physical expansion program to be administered by the department of workforce development. The purpose of the program is to provide financial assistance for the construction of new facilities that will expand the capacity of community colleges and unionized and nonunionized private sector apprenticeship programs to provide education and training for workers in high-demand fields in Iowa.
   The bill requires the department to establish eligibility requirements, award criteria, and application and other necessary procedures for the program. The bill specifies that to be eligible for financial assistance, a community college or apprenticeship program must demonstrate to the department that construction of the new facility will directly result in an increase in the number of workers in high-demand fields in this state by expanding the physical capacity of the community college or apprenticeship program to train more students or apprentices in such fields. The bill also specifies that projects to increase internet-based education or training shall be ineligible for financial assistance.
   The bill creates a career training physical expansion program fund under the control of the department. Moneys in the fund are appropriated to the department for the purposes of the program.
   DEPARTMENT-APPROVED TRAINING. Under current law, an individual is eligible for unemployment benefits for a week in which the individual is engaged in department-approved training. The bill prohibits the director of the department of workforce development from denying approval of training that otherwise qualifies for approval if the training is a part of an apprenticeship program registered with the United States department of labor, office of apprenticeship or the Iowa office of apprenticeship; each training session lasts no longer than one week; and the training is not located at a worksite. 
   APPRENTICESHIP TRAINING IN SCHOOL DISTRICTS. The bill encourages school boards to establish or expand quality pre-apprenticeship opportunities and youth apprenticeship programs at secondary schools in partnership with apprenticeship sponsors and the Iowa office of apprenticeship. The bill specifies activities school boards may pursue in furtherance of this goal relating to aligning existing coursework, establishing new coursework, and construction, improvement, or expansion of skilled trade extension centers, as well as partnering with apprenticeship sponsors to ensure curricula are industry-aligned so that coursework can be credited toward completion of an apprenticeship.
   The bill encourages school boards to establish a work-based learning coordinator at each secondary school to facilitate implementation of the bill and other pre-apprenticeship, apprenticeship, and work-based learning at the school.
   The bill encourages school boards to pursue funding sources and in-kind contributions through private sector partnerships and from apprenticeship sponsors and nonprofit sources to implement the bill.
   The bill provides that it is the intent of the general assembly that school districts implement these provisions no later than the school year beginning July 1, 2028.
   HIGH-DEMAND JOBS AND SCHOLARSHIP ELIGIBILITY. The bill makes several changes to the duties of the workforce development board. Under current law, the board is required to create, and update as necessary, a list of high-demand jobs statewide. The bill requires the board to create and update the list at least once every five years. Further, under current law, the board has full discretion to select and prioritize statewide high-demand jobs. The bill requires that the board collaborate with community colleges when selecting and prioritizing such jobs. The bill also modifies one of the minimum criteria that must apply when identifying high-demand jobs by replacing the requirement for an entry-level hourly wage of not less than $14 with the requirement for a competitive entry-level hourly wage.
   The bill amends the definition of “eligible student” by amending the financial qualification requirement. Under current law, a student must have a student aid index of $20,000 or less at the time of initial application. The bill replaces this requirement with the requirement that an applicant meet financial need criteria established by the college student aid commission (commission). The bill adds a requirement that the commission define financial need by rule.
   Under current law, the commission, in collaboration with the departments of workforce development and education, is required to compile an annual report that includes the number of scholarship and grant recipients, program completions, participation by eligible institutions, volunteer mentor agreements, and statistics on employment outcomes for scholarship and grant program participants, and to submit the report to the governor and the general assembly annually by January 15. The bill replaces this requirement. The bill provides that the commission is instead required to transmit to the department of workforce development the compilation of information, data, and statistics compiled under Code section 256.228(1)(e)(6), thereby narrowing the commission’s statutory duty from producing a comprehensive report to transmitting the following data to the department of workforce development annually: data regarding the eligible program operated by the eligible institution, the students and volunteer mentors participating in the eligible program, scholarship recipient eligible program completion results, and statistics on employment outcomes for eligible program participants by industry.
   CAREER AND TECHNICAL SECONDARY AUTHORIZATIONS. The bill requires the board of educational examiners to limit qualifications for an applicant for a career and technical secondary authorization to 3,000 hours of recent and relevant experience and to limit training requirements for an initial authorization to ethics training. Current standards for the authorization are established in 282 IAC 22.3.