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