SF 222 (LSB 1442SV (2) 91)

SENATE FILE 222

BY  COMMITTEE ON WORKFORCE

(SUCCESSOR TO SSB 1068)

A BILL FOR

An Act relating to workforce training, unemployment insurance, adult education, and other functions and programs of the department of workforce development, the workforce development board, and local workforce development boards, and making appropriations.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

DIVISION I
FUNCTIONS OF DEPARTMENT OF WORKFORCE DEVELOPMENT, WORKFORCE DEVELOPMENT BOARD, AND LOCAL WORKFORCE DEVELOPMENT BOARDS

    Section 1.  Section 15H.9, subsection 2, Code 2025, is amended to read as follows:
   2.  The commission may adopt rules pursuant to chapter 17A for approving Iowa national service corps programs and national service positions. Existing programs and service positions, including those established through the AmeriCorps programs in Iowa created pursuant to 42 U.S.C. §12501, Senior Corps and AmeriCorps vista in Iowa created pursuant to 42 U.S.C. §4950 et seq., the Iowa summer youth corps program created pursuant to section 15H.5, the Iowa green corps program created pursuant to section 15H.6, the Iowa reading corps program created pursuant to section 15H.7, and the RefugeeRISE AmeriCorps program created pursuant to section 15H.8, and the Iowa conservation corps created pursuant to section 84A.7, are part of the Iowa national service corps programs and national service positions.
    Sec. 2.  Section 84A.1, subsection 1, Code 2025, is amended to read as follows:
   1.  The department of workforce development is created to administer the laws of this state relating to unemployment compensation insurance, and job placement and training, employment safety, labor standards, and workers’ compensation.
    Sec. 3.  Section 84A.1A, subsection 6, Code 2025, is amended by striking the subsection and inserting in lieu thereof the following:
   6.  The workforce development board may establish standing committees of the board in the bylaws of the board.
    Sec. 4.  Section 84A.1A, subsection 7, paragraph a, Code 2025, is amended by striking the paragraph and inserting in lieu thereof the following:
   a.  All documents required by current federal workforce rules and regulations.
    Sec. 5.  Section 84A.1B, unnumbered paragraph 1, Code 2025, is amended to read as follows:
   The In addition to the duties outlined in current federal workforce rules and regulations, the workforce development board shall do all of the following:
    Sec. 6.  Section 84A.1B, subsections 1, 2, 3, 5, 6, 7, 8, 9, 10, 11, 12, and 15, Code 2025, are amended by striking the subsections.
    Sec. 7.  Section 84A.1B, subsection 13, Code 2025, is amended by striking the subsection and inserting in lieu thereof the following:
   13.  Assist the governor in the designation of local workforce development areas or regions as outlined in current federal workforce rules and regulations.
    Sec. 8.  Section 84A.3, Code 2025, is amended by striking the section and inserting in lieu thereof the following:
   84A.3  Local workforce development plans.
   1.  A local workforce development board shall, in partnership with the chief elected official, develop a local workforce development plan in accordance with current federal workforce laws, rules, and regulations. The local workforce development board shall submit the workforce development plan to the department of workforce development for review and approval in the manner and form determined by the department.
   2.  All local workforce plan modifications shall be submitted to the department of workforce development for review and approval in the manner and form determined by the department. Modifications to the local workforce development plan must be developed in accordance with current federal workforce laws, rules, and regulations.
   3.  The local workforce development plan and modifications shall include the contents required by current federal workforce laws, rules, and regulations, and such other information as the department of workforce development or the state workforce development board may require.
    Sec. 9.  Section 84A.5, subsection 1, paragraph a, Code 2025, is amended to read as follows:
   a.  The workforce development system shall strive to provide high quality services to its customers including workers, families, and businesses. The department of workforce development shall maintain a common intake, assessment, and customer tracking system and to the extent practical provide one-stop services to customers at workforce development centers and other service access points. The department of workforce development shall administer a statewide standard skills assessment to assess the employability skills of adult workers statewide and shall instruct appropriate department staff in the administration of the assessment. The assessment shall be included in the one-stop services provided to customers at workforce development centers and other service access points throughout the state.
    Sec. 10.  Section 84A.5, subsection 5, paragraphs a, b, and c, Code 2025, are amended by striking the paragraphs.
    Sec. 11.  Section 84A.5, subsection 7, Code 2025, is amended by striking the subsection.
    Sec. 12.  Section 84A.5, subsection 10, Code 2025, is amended to read as follows:
   10.  The department of education, in collaboration with the department of workforce development, is responsible for the development and oversight of industry and sector partnerships in the state.
    Sec. 13.  Section 84A.6, subsection 4, Code 2025, is amended by striking the subsection.
    Sec. 14.  Section 97B.1A, subsection 8, paragraph b, subparagraph (8), Code 2025, is amended by striking the subparagraph.
    Sec. 15.  Section 256.228, subsection 4, paragraph d, Code 2025, is amended by striking the paragraph and inserting in lieu thereof the following:
   d.  In collaboration with the department of workforce development and the department of education, compile an annual report, in an aggregate form to protect the confidentiality of each eligible program’s participants, that includes the number of students receiving scholarships under this section, the number of students receiving grants under section 256.229, the number of scholarship and grant recipients completing a program of study or major annually and in the prescribed time frame under this section or section 256.229, the number of eligible institutions participating in the scholarship and grant programs established under this section or section 256.229, the number of written agreements entered into by the volunteer mentor program under section 15H.10, statistics on employment outcomes for future ready Iowa skilled workforce last-dollar scholarship and future ready Iowa skilled workforce grant program participants by industry, and other data as may be deemed pertinent by the commission, the department of workforce development, or the department of education. The commission shall submit the report to the governor and the general assembly annually by January 15.
    Sec. 16.  Section 256.229, subsection 4, paragraph d, Code 2025, is amended to read as follows:
   d.  Transmit to the department of workforce development Use the compilation of information, data, and statistics submitted in accordance with subsection 1, paragraph “c”, subparagraph (6), for to compile the annual report required under section 84A.1B 256.228, subsection 4, paragraph “d”.
    Sec. 17.  REPEAL.  Sections 84A.7, 84A.8, 84A.9, 84A.10, and 84A.11, Code 2025, are repealed.
DIVISION II
UNEMPLOYMENT INSURANCE —— TAXABLE WAGES

    Sec. 18.  Section 96.1A, subsection 36, unnumbered paragraph 1, Code 2025, is amended to read as follows:
   “Taxable wages” means an amount of wages upon which an employer is required to contribute based upon wages which that have been paid in this state during a calendar year to an individual by an employer or the employer’s predecessor, in this state or another state which extends a like comity to this state, with respect to employment, upon which the employer is required to contribute, which equals the greater of the following:
DIVISION III
IOWA STUDENT INTERNSHIP PROGRAM

    Sec. 19.  Section 84A.21, Code 2025, is amended to read as follows:
   84A.21  Iowa student internship program.
   1.  As used in this section, unless the context otherwise requires:
   a.  “Innovative business” means the same as defined in section 15E.52 “Department” means the department of workforce development.
   b.  “Internship” means temporary employment of a student that focuses on providing the student with work experience in the student’s field of study.
   c.  “Iowa student” means a student of an Iowa community college, private college, or institution of higher learning under the control of the state board of regents, or a student who graduated from high school in Iowa but now attends an institution of higher learning outside the state of Iowa.
   2.  a.  The department of workforce development shall establish and administer an internship program with two components for Iowa students. To the extent permitted by this section, the department of workforce development shall administer the two components in as similar a manner as possible.
   b.  The purpose of the first component of the program is to link Iowa students to small and medium-sized Iowa firms through internship opportunities. An Iowa employer may receive financial assistance on a matching basis for a portion of the wages paid to an intern. If providing financial assistance, the department of workforce development shall provide the assistance on a reimbursement basis such that for every two dollars of wages earned by the student, one dollar paid by the employer is matched by one dollar from the department of workforce development. The amount of financial assistance shall not exceed three thousand one hundred dollars for any single internship, or nine thousand three hundred dollars for any single employer. In order to be eligible to receive financial assistance, the employer must have five hundred or fewer employees and must be an innovative business. The department of workforce development shall encourage youth who reside in economically distressed areas, youth adjudicated to have committed a delinquent act, and youth transitioning out of foster care to participate in the first component of the internship program.
   c.  (1)  The purpose of the second component of the program is to assist in placing Iowa students studying in the fields of science, technology, engineering, and mathematics into internships that lead to permanent positions with Iowa employers. The department of workforce development shall collaborate with eligible employers, including but not limited to innovative businesses, to ensure that the interns hired are studying in such fields. An Iowa employer may receive financial assistance on a matching basis for a portion of the wages paid to an intern. If providing financial assistance, the department of workforce development shall provide the assistance on a reimbursement basis such that for every two dollars of wages earned by the student, one dollar paid by the employer is matched by one dollar from the department of workforce development. The amount of financial assistance shall not exceed five thousand dollars per internship. The department of workforce development may adopt rules to administer this component section. In adopting rules to administer this component, the department of workforce development shall adopt rules as similar as possible to those adopted pursuant to paragraph “b”.
   (2)  The requirement to administer this component of the internship program is contingent upon the provision of funding for such purposes by the general assembly.
   3.  a.  An Iowa student internship fund is created in the state treasury under the control of the department of workforce development. The fund shall consist of moneys appropriated to the department of workforce development and any other moneys available to, obtained, or accepted by the department of workforce development for placement in the fund.
   b.  Payments of interest, repayments of moneys loaned pursuant to this section, and recaptures of financial assistance shall be credited to the fund. Moneys in the fund are not subject to section 8.33. Notwithstanding section 12C.7, interest or earnings on moneys in the fund shall be credited to the fund.
   c.  Moneys in the fund are appropriated to the department of workforce development and, with the approval of the Iowa workforce development board, shall be used to increase the availability of skilled workers in innovative businesses, by providing Iowa student internship opportunities. Such moneys shall not be used for the support of retail businesses, health care businesses, or other businesses requiring a professional license.
    Sec. 20.  APPROPRIATION —— IOWA STUDENT INTERNSHIP FUND.  There is appropriated from the general fund of the state to the department of workforce development for the fiscal year beginning July 1, 2025, and ending June 30, 2026, the following amount, or so much thereof as is necessary, to be used for the purposes designated:
   For deposit in the Iowa student internship fund created in section 84A.21:
   ...................................................................... $  1,039,425
DIVISION IV
ADULT EDUCATION AND LITERACY PROGRAMS

    Sec. 21.  Section 84A.5, subsection 5, paragraph n, Code 2025, is amended to read as follows:
   n.  Adult education and literacy programs with community colleges under section 84A.19.
    Sec. 22.  Section 84A.19, Code 2025, is amended to read as follows:
   84A.19  Adult education and literacy programs.
   1.  For purposes of this section, unless the context otherwise requires:
   a.  “Adult education and literacy programs”, “adult education and literacy programs” means adult basic education, adult education leading to a high school equivalency diploma under chapter 259A, English as a second language instruction, and workplace and family literacy instruction.
   b.  “Community colleges” means the same as defined in section 260C.2.
   2.  The department of workforce development and community colleges shall jointly implement adult education and literacy programs to assist adults and youths sixteen years of age and older who are not in school in obtaining the knowledge and skills necessary for further education, work, and community involvement. 
   3.  The department of workforce development, in consultation with community colleges, shall prescribe standards for adult education and literacy programs including but not limited to contextualized and integrated instruction, assessments, instructor qualification and professional development, data collection and reporting, and performance benchmarks.
   4.  The department of workforce development, in consultation with community colleges, shall adopt rules pursuant to chapter 17A to administer this section.
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 workforce training, unemployment insurance, adult education, and other functions and programs of the department of workforce development (department), the workforce development board, and local workforce development boards.
   DIVISION I —— FUNCTIONS OF DEPARTMENT OF WORKFORCE DEVELOPMENT, WORKFORCE DEVELOPMENT BOARD, AND LOCAL WORKFORCE DEVELOPMENT BOARDS. This division strikes department duties relating to administering a statewide employment skills assessment, selection of service providers, establishing a job posting system of education-related job openings, and functions no longer under the department pursuant to 2023 Iowa Acts, Senate File 514.
   The division repeals Code provisions for the Iowa conservation corps, the workforce investment program, the statewide mentoring program, the new employment opportunity program, and the nursing workforce data clearinghouse.
   The division generally transfers duties relating to compiling an annual report for submission to the governor and general assembly on various workforce training programs from the department to the college student aid commission.
   The division strikes requirements for the department to collaborate with specified education-related entities when performing certain duties.
   The division strikes detailed language relating to duties of the workforce development board concerning standing committees, public availability of information, comprehensive state workforce development plans, recommendations on the use of federal funds, and various other duties. The division generally provides that such duties shall be carried out as required by federal law. The division similarly modifies duties of local workforce development boards relating to local workforce development plans.
   DIVISION II —— UNEMPLOYMENT INSURANCE —— TAXABLE WAGES. This division modifies the definition of “taxable wages” for purposes of unemployment insurance taxes on employers by eliminating the wages paid to an employee from another state from the calculation of wages upon which an employer is required to contribute to the unemployment compensation fund when the other state extends a like comity (reciprocity) to Iowa for employment purposes. The division specifies that only wages paid in Iowa can constitute taxable wages.
   DIVISION III —— IOWA STUDENT INTERNSHIP PROGRAM. This division strikes one of two components of the Iowa student internship program administered by the department. The component providing for financial assistance to link Iowa students to small and medium-sized Iowa firms is stricken. The component providing for financial assistance to place Iowa students studying in the fields of science, technology, engineering, and mathematics into internships that lead to permanent positions with Iowa employers is retained.
   The division appropriates $1,039,425 from the general fund to the department for the Iowa student internship fund. Moneys in the fund are used to increase the availability of skilled workers in innovative businesses by providing Iowa student internship opportunities.
   DIVISION IV —— ADULT EDUCATION AND LITERACY PROGRAMS. Under current law, the department and community colleges are required to implement and set standards for certain adult education and literacy programs. This division strikes references to community colleges so that only the department has these duties.