Senate File 2169 - Introduced SENATE FILE 2169 BY COMMITTEE ON WORKFORCE (SUCCESSOR TO SSB 3072) A BILL FOR An Act relating to apprenticeships. 1 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 2 TLSB 5291SV (3) 91 je/js
S.F. 2169 DIVISION I 1 IOWA REGISTERED APPRENTICESHIP ACT 2 Section 1. Section 84D.2, subsection 5, Code 2026, is 3 amended to read as follows: 4 5. “Apprenticeship sponsor” means an entity operating 5 an apprenticeship program or an entity in whose name an 6 apprenticeship program is being operated, which entity is 7 registered with or approved by the United States department 8 of labor, office of apprenticeship, or the Iowa office of 9 apprenticeship. “Apprenticeship sponsor” includes a lead 10 apprenticeship sponsor, sponsor, or intermediary sponsor , and 11 an employer who provides training through a lead apprenticeship 12 sponsor, sponsor, or intermediary sponsor . 13 Sec. 2. Section 84D.2, Code 2026, is amended by adding the 14 following new subsections: 15 NEW SUBSECTION . 11A. “Employer partner” means an employer 16 who trains the employer’s employees through an intermediary 17 sponsor. 18 NEW SUBSECTION . 12A. “Intermediary sponsor” means 19 an entity that provides related training instruction to 20 apprentices for multiple employers, serves as the sponsor of 21 the apprentices, and registers the program with the Iowa office 22 of apprenticeship, and may also provide technical assistance to 23 employers and assist with developing occupational standards. 24 Sec. 3. Section 84D.2, subsection 12, Code 2026, is amended 25 by striking the subsection. 26 Sec. 4. Section 84D.2, subsection 19, paragraph a, 27 subparagraph (2), subparagraph division (c), Code 2026, is 28 amended to read as follows: 29 (c) Related training instruction from a lead apprenticeship 30 sponsor, sponsor, or intermediary sponsor . 31 Sec. 5. Section 84D.4, subsection 2, Code 2026, is amended 32 by adding the following new paragraph: 33 NEW PARAGRAPH . c. An intermediary sponsor has the sole 34 discretion for approving employer partners, provided that such 35 -1- LSB 5291SV (3) 91 je/js 1/ 7
S.F. 2169 employer partners are compliant with the employer partners’ 1 responsibilities outlined in the intermediary sponsor’s 2 standards. 3 Sec. 6. Section 84D.4, subsection 8, Code 2026, is amended 4 to read as follows: 5 8. a. The office shall develop a plan providing a procedure 6 for the cancellation or deregistration, or both, of programs 7 and for temporary suspension, cancellation, deregistration, or 8 any of these, of apprenticeship agreements. 9 b. The office shall not cancel, suspend, or deregister an 10 intermediary sponsor based on the actions of the intermediary 11 sponsor’s employer partners. However, the office may require 12 an intermediary sponsor to cancel or suspend an employer 13 partner due to the employer partner’s material breach of 14 responsibilities as outlined in the intermediary sponsor’s 15 standards. Prior to any order to cancel or suspend an employer 16 partner, the office must provide a comprehensive list of the 17 grounds for cancellation or suspension and allow at least sixty 18 days for the employer partner to become compliant. If the 19 office orders cancellation or suspension of an employer partner 20 after the sixty-day period, the order shall be considered final 21 agency action, and the intermediary sponsor may seek judicial 22 review as provided in section 17A.19. 23 c. (1) The office may only cancel, suspend, or deregister 24 an approved apprenticeship sponsor, intermediary sponsor, 25 or lead apprenticeship sponsor due to a material breach of 26 the requirements of this chapter. Prior to any permanent 27 or temporary cancellation, suspension, or deregistration, 28 the office must provide a comprehensive list of the grounds 29 of the alleged material breach in writing to the approved 30 apprenticeship sponsor, intermediary sponsor, or lead 31 apprenticeship sponsor and allow at least ninety days to become 32 compliant. 33 (2) A decision by the office to cancel, suspend, or 34 deregister an approved apprenticeship sponsor, intermediary 35 -2- LSB 5291SV (3) 91 je/js 2/ 7
S.F. 2169 sponsor, or lead apprenticeship sponsor must be issued 1 in writing and must state the reasons for the officers 2 decision. The office shall not issue such a decision before 3 the conclusion of the ninety-day period or later than thirty 4 days after the conclusion of the period. The decision shall 5 be considered final agency action subject judicial review as 6 provided in section 17A.19. However, notwithstanding section 7 17A.19, the office to shall have the burden to prove that the 8 approved apprenticeship sponsor, intermediary sponsor, or lead 9 apprenticeship sponsor materially breached this chapter and 10 that the breach continued past the ninety-day period. 11 d. If an apprenticeship sponsor, intermediary sponsor, 12 or lead apprenticeship sponsor is canceled, suspended, or 13 deregistered, the apprenticeship sponsor, intermediary sponsor, 14 or lead apprenticeship sponsor shall have the right to reapply 15 for a registration after sixty days. 16 Sec. 7. Section 84D.7, Code 2026, is amended to read as 17 follows: 18 84D.7 Requirements for sponsors and employers. 19 A sponsor of a quality pre-apprenticeship program, 20 youth apprenticeship program, registered apprenticeship 21 program, or apprenticeship program is responsible for the 22 administration and supervision of on-the-job training and 23 related technical instruction for each apprentice in the 24 quality pre-apprenticeship program, youth apprenticeship 25 program, registered apprenticeship program, or apprenticeship 26 program. When training is provided by a lead apprenticeship 27 sponsor or intermediary sponsor , the employer of the apprentice 28 is responsible for the administration and supervision of 29 on-the-job training, and the lead apprenticeship sponsor or 30 intermediary sponsor is responsible for related technical 31 instruction for each apprenticeship. 32 DIVISION II 33 IOWA PLUMBER, MECHANICAL PROFESSIONAL, AND CONTRACTOR LICENSING 34 ACT —— APPRENTICESHIPS 35 -3- LSB 5291SV (3) 91 je/js 3/ 7
S.F. 2169 Sec. 8. Section 105.18, Code 2026, is amended by adding the 1 following new subsection: 2 NEW SUBSECTION . 5. Regulation of apprenticeships. 3 a. A licensed journeyperson or master may employ or 4 supervise licensed apprentices at a ratio not to exceed three 5 apprentices to one licensee. 6 b. The requirements of this section do not apply to 7 apprenticeship classroom training. 8 DIVISION III 9 IOWA APPRENTICESHIP ACT 10 Sec. 9. Section 84E.2, Code 2026, is amended by adding the 11 following new subsection: 12 NEW SUBSECTION . 8A. “Intermediary sponsor” means the same 13 as defined in section 84D.2. 14 Sec. 10. Section 84E.4, subsections 1, 2, 3, and 4, Code 15 2026, are amended to read as follows: 16 1. a. An apprenticeship sponsor , intermediary sponsor, or 17 lead apprenticeship sponsor that conducts an apprenticeship 18 program that is registered with the United States department of 19 labor, office of apprenticeship, through Iowa, for apprentices 20 who will be employed at worksites located in this state may 21 apply to the department for financial assistance under this 22 section if the apprenticeship program includes a minimum of one 23 hundred contact hours per apprentice for each training year of 24 the apprenticeship program. 25 b. Financial assistance received by an apprenticeship 26 sponsor , intermediary sponsor, or lead apprenticeship 27 sponsor under this section shall be used only for the cost of 28 conducting and maintaining an apprenticeship program. 29 c. An apprenticeship sponsor whose apprentices receive 30 contact hours from a lead apprenticeship sponsor is not 31 eligible for financial assistance under this chapter. 32 2. The department shall provide financial assistance in the 33 form of training grants to eligible apprenticeship sponsors , 34 intermediary sponsors, or lead apprenticeship sponsors in the 35 -4- LSB 5291SV (3) 91 je/js 4/ 7
S.F. 2169 following manner: 1 a. By determining the total amount of funding allocated 2 for purposes of training grants for apprenticeship programs 3 pursuant to section 84E.3 . 4 b. By determining the total number of apprentices trained 5 during the most recent training year, as calculated on the 6 last day of the training year, in all apprenticeship programs 7 conducted by all applying apprenticeship sponsors , intermediary 8 sponsors, or lead apprenticeship sponsors eligible to apply for 9 financial assistance under subsection 1 . 10 c. By determining the total number of apprentices trained 11 during the most recent training year, as calculated on the 12 last day of the training year, in each apprenticeship program 13 conducted by each apprenticeship sponsor , intermediary 14 sponsor, or lead apprenticeship sponsor eligible to apply under 15 subsection 1 , and that applied for financial assistance under 16 subsection 1 . 17 d. By determining the proportion, stated as a percentage, 18 that each applying apprenticeship sponsor’s , intermediary 19 sponsor’s, or lead apprenticeship sponsor’s total calculated 20 pursuant to paragraph “c” bears to all applying apprenticeship 21 sponsors’ , intermediary sponsors’, or lead apprenticeship 22 sponsors’ total calculated pursuant to paragraph “b” . 23 e. By multiplying the percentage calculated in paragraph “d” 24 by the amount determined in paragraph “a” . 25 3. An apprenticeship sponsor , intermediary sponsor, or 26 lead apprenticeship sponsor seeking financial assistance under 27 this section shall provide the following information to the 28 department: 29 a. The federal apprentice registration number of each 30 apprentice in the apprenticeship program. 31 b. The address and a description of the physical location 32 where in-person training is conducted. 33 c. A certification of the apprenticeship sponsor’s or 34 intermediary sponsor’s training standards as most recently 35 -5- LSB 5291SV (3) 91 je/js 5/ 7
S.F. 2169 approved by the United States department of labor, office 1 of apprenticeship or, in the case of a lead apprenticeship 2 sponsor, a representative sample of participating members’ 3 training standards. 4 d. A certification of the apprenticeship sponsor’s or 5 intermediary sponsor’s compliance review or quality assessment 6 as most recently conducted by the United States department of 7 labor, office of apprenticeship, unless the apprenticeship 8 sponsor has not been subjected to a compliance review or 9 quality assessment. In the case of a lead apprenticeship 10 sponsor, a sampling of compliance reviews or quality 11 assessments from participating members shall be sufficient. 12 e. Any other information the department reasonably 13 determines is necessary. 14 4. The apprenticeship sponsor , intermediary sponsor, or 15 lead apprenticeship sponsor and the department shall enter 16 into an agreement regarding the provision of any financial 17 assistance to the apprenticeship sponsor , intermediary sponsor, 18 or lead apprenticeship sponsor. 19 EXPLANATION 20 The inclusion of this explanation does not constitute agreement with 21 the explanation’s substance by the members of the general assembly. 22 This bill relates to apprenticeships. 23 DIVISION I —— IOWA REGISTERED APPRENTICESHIP ACT. The bill 24 replaces intermediaries with intermediary sponsors, as defined 25 in the bill, as a class of entities that provide apprenticeship 26 training under Code chapter 84D, the Iowa registered 27 apprenticeship Act, and that are subject to registration with 28 the Iowa office of apprenticeship. 29 The bill provides that an intermediary sponsor has the sole 30 discretion for approving employer partners, as defined in the 31 bill, provided that such employer partners are compliant with 32 their responsibilities outlined in the intermediary sponsor’s 33 standards. 34 The bill prohibits the office from canceling, suspending, or 35 -6- LSB 5291SV (3) 91 je/js 6/ 7
S.F. 2169 deregistering an intermediary sponsor based on the actions of 1 employer partners. The bill authorizes the office to require 2 an intermediary sponsor to cancel or suspend an employer 3 partner due to the employer partner’s material breach of 4 responsibilities as outlined in the intermediary sponsor’s 5 standards. The bill provides procedures for such cancellation 6 or suspension including judicial review. 7 The bill provides procedures and standards the office 8 must follow when canceling, suspending, or deregistering an 9 approved apprenticeship sponsor, intermediary sponsor, or lead 10 apprenticeship sponsor. The bill provides that such action can 11 only be carried out by the office due to a material breach of 12 the requirements of Code chapter 84D. The bill also provides 13 standards for judicial review of such action and procedures for 14 reapplication for registration following such action. 15 DIVISION II —— IOWA PLUMBER, MECHANICAL PROFESSIONAL, AND 16 CONTRACTOR LICENSING ACT —— APPRENTICES. The bill provides 17 that a licensed journeyperson or master under Code chapter 18 105, the Iowa plumber, mechanical professional, and contractor 19 licensing Act, may employ or supervise licensed apprentices 20 at a ratio not to exceed three apprentices to one licensee. 21 The bill provides that certain statutory requirements relating 22 to qualifications and other licensing matters do not apply to 23 apprenticeship classroom training. 24 DIVISION III —— IOWA APPRENTICESHIP ACT. The bill adds 25 intermediary sponsors as a class of entities that provide 26 apprenticeship training that are eligible for financial 27 assistance from the department of workforce development under 28 Code chapter 84E, the Iowa apprenticeship Act. 29 The bill provides that an apprenticeship sponsor whose 30 apprentices receive contact hours from a lead apprenticeship 31 sponsor is not eligible for such financial assistance. 32 -7- LSB 5291SV (3) 91 je/js 7/ 7