Senate File 2313 - Reprinted SENATE FILE 2313 BY COMMITTEE ON APPROPRIATIONS (SUCCESSOR TO SSB 3176) (As Amended and Passed by the Senate April 18, 2016 ) A BILL FOR An Act relating to employment services programs administered 1 by the department of workforce development by providing 2 for conformity with federal law concerning the workforce 3 development board, authorizing the department to carry out 4 certain actions relating to the unemployment insurance 5 program, making an appropriation, and including effective 6 date provisions. 7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 8 SF 2313 (3) 86 je/rj/jh

S.F. 2313 DIVISION I 1 CONFORMITY WITH FEDERAL WORKFORCE INNOVATION AND OPPORTUNITY 2 ACT 3 Section 1. Section 84A.1A, subsection 1, unnumbered 4 paragraph 1, Code 2016, is amended to read as follows: 5 An Iowa workforce development board is created, consisting 6 of nine voting members appointed by the governor and twelve 7 sixteen ex officio, nonvoting members. 8 Sec. 2. Section 84A.1A, subsection 1, paragraph b, Code 9 2016, is amended to read as follows: 10 b. The ex officio, nonvoting members are four legislative 11 members; one president, or the president’s designee, of 12 the university of northern Iowa, the university of Iowa, or 13 Iowa state university of science and technology, designated 14 by the state board of regents on a rotating basis; one 15 representative from the largest statewide public employees’ 16 organization representing state employees; one president, or 17 the president’s designee, of an independent Iowa college, 18 appointed by the Iowa association of independent colleges and 19 universities; one superintendent, or the superintendent’s 20 designee, of a community college, appointed by the Iowa 21 association of community college presidents; one representative 22 of the vocational rehabilitation community appointed by 23 the state rehabilitation council in the division of Iowa 24 vocational rehabilitation services; one representative of 25 the department of education appointed by the state board of 26 education; one representative of the economic development 27 authority appointed by the director; one representative 28 of the department for the blind appointed by the director; 29 one representative of the department on aging appointed 30 by the director; one representative of the department of 31 corrections appointed by the director; one representative of 32 the department of human services appointed by the director; and 33 one representative of the United States department of labor, 34 office of apprenticeship. The legislative members are two 35 -1- SF 2313 (3) 86 je/rj/jh 1/ 15

S.F. 2313 state senators, one appointed by the president of the senate 1 after consultation with the majority leader of the senate, 2 and one appointed by the minority leader of the senate from 3 their respective parties; and two state representatives, one 4 appointed by the speaker of the house of representatives 5 after consultation with the majority leader of the house of 6 representatives, and one appointed by the minority leader of 7 the house of representatives from their respective parties. 8 The legislative members shall serve for terms as provided in 9 section 69.16B . 10 Sec. 3. Section 84A.1A, Code 2016, is amended by adding the 11 following new subsection: 12 NEW SUBSECTION . 6. a. The workforce development board 13 may designate and direct the activities of standing committees 14 of the workforce development board to provide information and 15 to assist the workforce development board in carrying out 16 its duties. Such standing committees shall be chaired by a 17 member of the workforce development board or a designee of 18 the workforce development board, may include other members 19 of the workforce development board, and shall include other 20 individuals appointed by the workforce development board who 21 are not members of the workforce development board and who 22 the workforce development board determines have appropriate 23 experience and expertise. At minimum, the workforce 24 development board shall designate each of the following: 25 (1) A standing committee to provide information and assist 26 with operational and other issues relating to the state 27 workforce development system. 28 (2) A standing committee to provide recommendations 29 regarding policies, procedures, and proven and promising 30 practices regarding workforce development programs, services, 31 and activities. 32 (3) A standing committee to provide information and to 33 assist with issues relating to the provision of services to 34 youth. The standing committee shall include community-based 35 -2- SF 2313 (3) 86 je/rj/jh 2/ 15

S.F. 2313 organizations with a demonstrated record of success in serving 1 eligible youth. 2 (4) A standing committee to provide information and to 3 assist with issues relating to the provision of services to 4 individuals with disabilities, including issues relating to 5 compliance with applicable state and federal nondiscrimination 6 laws regarding the provision of programmatic and physical 7 access to the services, programs, and activities of the state 8 workforce development system, as well as appropriate training 9 for staff on providing supports for or accommodations to, 10 and finding employment opportunities for, individuals with 11 disabilities. 12 b. The workforce development board may designate standing 13 committees in addition to the standing committees specified in 14 paragraph “a” . 15 Sec. 4. Section 84A.1B, subsections 1, 3, 7, and 8, Code 16 2016, are amended to read as follows: 17 1. Develop and coordinate the implementation of a 18 twenty-year four-year comprehensive workforce development 19 plan of specific needs, goals, objectives strategies , and 20 policies for the state. This plan shall be updated annually 21 every two years and revised as necessary. All other state 22 agencies involved in workforce development activities and 23 the regional advisory local workforce development boards for 24 workforce development shall annually submit to the board for 25 its review and potential inclusion in the plan their needs, 26 goals, objectives strategies , and policies. 27 3. Develop a method of evaluation of the attainment of 28 needs and goals and objectives from pursuing the strategies and 29 policies of the five-year and twenty-year plans four-year plan . 30 7. Review grants or contracts awarded by the department 31 of workforce development, with respect to the department’s 32 adherence to the guidelines and procedures and the impact 33 on the five-year strategic four-year plan for workforce 34 development . 35 -3- SF 2313 (3) 86 je/rj/jh 3/ 15

S.F. 2313 8. Make recommendations concerning the use of federal 1 funds received by the department of workforce development with 2 respect to the five-year and twenty-year workforce development 3 plans . 4 Sec. 5. Section 84A.1B, subsection 2, Code 2016, is amended 5 by striking the subsection and inserting in lieu thereof the 6 following: 7 2. Develop and coordinate the implementation of statewide 8 workforce development policies, procedures, and guidance to 9 align the state’s workforce development programs and activities 10 in an integrated and streamlined state workforce development 11 system that is data driven and responsive to the needs of 12 workers, job seekers, and employers. 13 Sec. 6. Section 84A.1B, Code 2016, is amended by adding the 14 following new subsections: 15 NEW SUBSECTION . 10. Develop and coordinate strategies for 16 technological improvements to facilitate access to, and improve 17 the quality of, the state’s workforce development services, 18 including all of the following: 19 a. Enhance digital literacy skills as defined in 20 U.S.C. 20 §9101. 21 b. Accelerate the acquisition of skills and recognized 22 postsecondary credentials by participants. 23 c. Strengthen the professional development of providers and 24 workforce professionals. 25 d. Ensure such technology is accessible to individuals with 26 disabilities and individuals residing in remote areas. 27 NEW SUBSECTION . 11. Develop and coordinate strategies for 28 aligning technology and data systems across state agencies 29 in order to improve the integration and coordination of the 30 delivery of workforce development services. 31 NEW SUBSECTION . 12. Identify and disseminate information 32 on proven and promising practices for meeting the needs 33 of workers, job seekers, and employers, including but not 34 limited to proven and promising practices for the effective 35 -4- SF 2313 (3) 86 je/rj/jh 4/ 15

S.F. 2313 operation of workforce centers and systems; the development of 1 effective local workforce development boards; the development 2 of effective training programs; effective engagement with 3 stakeholders in the state’s workforce development system; 4 effective engagement with employers; and increasing access 5 to workforce services for all Iowans, in particular for 6 individuals with a barrier to employment as defined in the 7 federal Workforce Innovation and Opportunity Act, Pub. L. No. 8 113-128, section 3(24). 9 NEW SUBSECTION . 13. Develop and coordinate the 10 implementation of allocation formulas for the distribution 11 of funds available for employment and training activities in 12 local workforce development areas under the federal Workforce 13 Innovation and Opportunity Act, Pub. L. No. 113-128, sections 14 128(b)(3) and 133(b)(3). 15 NEW SUBSECTION . 14. Provide recommendations to the 16 governor regarding the certification of local workforce 17 development boards. 18 NEW SUBSECTION . 15. Develop and coordinate the analysis 19 of labor market information in order to identify in-demand 20 industries and occupations. 21 NEW SUBSECTION . 16. Make recommendations to the governor 22 regarding the designation of local workforce development areas 23 and regions in the state under the federal Workforce Innovation 24 and Opportunity Act, Pub. L. No. 113-128, section 106. 25 NEW SUBSECTION . 17. Make recommendations to the general 26 assembly and governor regarding workforce development services, 27 programs, and activities. 28 Sec. 7. Section 84A.4, subsections 1 and 3, Code 2016, are 29 amended to read as follows: 30 1. A regional advisory local workforce development board 31 shall be established in each service delivery area as defined 32 in section 84B.2 . The voting members of the each board shall 33 be appointed by the governor, consistent with the requirements 34 of federal law and in consultation with chief elected officials 35 -5- SF 2313 (3) 86 je/rj/jh 5/ 15

S.F. 2313 within the region local workforce development area . Chief 1 elected officials responsible for recommendations for board 2 board’s voting membership shall include , but are not limited 3 to , county elected officials, municipal elected officials, 4 and community college directors. The voting membership of 5 each board shall provide for equal representation of business 6 and labor and shall include a county elected official, a 7 city official, a representative of a school district, and a 8 representative of a community college. A local workforce 9 development board may appoint ex officio, nonvoting members. 10 3. Section 84A.1A, subsections 2, 3, and 5 , apply to the 11 members of a regional advisory local workforce development 12 board except that the board shall meet if a majority of 13 the members of the board file a written request with the 14 chairperson for a meeting. Members of a regional advisory 15 local workforce development board shall be allowed their actual 16 and necessary expenses incurred in the performance of their 17 duties. All expenses shall be paid from appropriations for 18 those purposes and the department of workforce development is 19 subject to the budget requirements of chapter 8 . 20 Sec. 8. Section 84A.4, subsection 2, Code 2016, is amended 21 by striking the subsection and inserting in lieu thereof the 22 following: 23 2. A local workforce development board shall do all of the 24 following: 25 a. Develop and coordinate the implementation of a four-year 26 comprehensive local workforce development plan that identifies 27 needs, goals, strategies, and policies for the local workforce 28 development area. A local workforce development plan shall 29 be updated every two years and revised as necessary. A local 30 workforce development board shall coordinate the convening of 31 local workforce development system stakeholders to assist in 32 the development of the local workforce development plan. 33 b. Develop and coordinate the alignment of the local area’s 34 workforce development programs, services, and activities in an 35 -6- SF 2313 (3) 86 je/rj/jh 6/ 15

S.F. 2313 integrated and streamlined workforce development system that 1 is data driven and responsive to the needs of workers, job 2 seekers, and employers. 3 c. Develop and coordinate policies that increase access 4 to workforce services for all Iowans, in particular for 5 individuals with a barrier to employment as defined in the 6 federal Workforce Innovation and Opportunity Act, Pub. L. No. 7 113-128, section 3(24). 8 d. Develop and coordinate the creation of reports as 9 required by section 84A.1B. 10 e. Develop a budget for the local workforce development 11 board’s activities in the local workforce development area, 12 consistent with the four-year comprehensive local workforce 13 development plan, any modifications to the local workforce 14 development plan, and the local workforce development board’s 15 duties under this section. 16 f. Convene workforce development system stakeholders to 17 identify expertise and resources to leverage support for 18 workforce development programs, services, and activities in the 19 local area. 20 g. Coordinate engagement among employers, employee 21 organizations, and economic development entities in the local 22 workforce development area. The local workforce development 23 board shall lead efforts to promote engagement among a diverse 24 range of employers and with other entities in the region to do 25 all of the following: 26 (1) Promote business representation on the local workforce 27 development board, particularly for representatives with 28 optimal policymaking or hiring authority of employers whose 29 employment opportunities reflect existing and emerging 30 employment opportunities in the region. 31 (2) Develop effective linkages with employers in the 32 region to support employer utilization of the local workforce 33 development system and to support local workforce investment 34 activities. 35 -7- SF 2313 (3) 86 je/rj/jh 7/ 15

S.F. 2313 (3) Ensure that workforce investment activities meet the 1 needs of employers and support economic growth in the region 2 by enhancing communication, coordination, and collaboration 3 among employers, employee organizations, economic development 4 entities, and service providers. 5 (4) Develop and implement proven or promising strategies 6 for meeting the employment and skill needs of workers and 7 employers, such as participating in the establishment of 8 industry and sector partnerships as described under section 9 260H.7B, subsection 2, that provide the skilled workforce 10 needed by employers in the region and that expand employment 11 and career advancement opportunities for workforce development 12 system participants in in-demand industry sectors or 13 occupations. 14 h. Coordinate the performance of workforce research and 15 regional labor market analysis. 16 i. Participate in the development of strategies for using 17 technology to maximize the accessibility and effectiveness of 18 the local workforce development system. 19 j. Participate in the oversight of workforce development 20 programs and activities in the local workforce development 21 area. 22 k. Award grants or contracts as required by and consistent 23 with applicable state and federal law. To the extent permitted 24 by applicable state and federal law, the local workforce 25 development board shall consider awarding grants or contracts 26 to nonprofit organizations. 27 l. Designate a fiscal agent. 28 m. Participate in the development of performance 29 accountability measures for the local workforce development 30 area. 31 n. Participate in the identification and promotion of proven 32 and promising practices for meeting the needs of workers, job 33 seekers, and employers. 34 o. Coordinate activities with education and training 35 -8- SF 2313 (3) 86 je/rj/jh 8/ 15

S.F. 2313 providers in the local workforce development area. 1 p. Participate in the identification of eligible providers 2 of training and career services within the local workforce 3 development area. 4 q. Make recommendations to the state workforce development 5 board regarding workforce development programs, services, and 6 activities. 7 r. Participate in the implementation of state workforce 8 development initiatives. 9 Sec. 9. Section 84A.4, Code 2016, is amended by adding the 10 following new subsection: 11 NEW SUBSECTION . 2A. A local workforce development board may 12 do the following: 13 a. Designate and direct the activities of standing 14 committees of the local workforce development board to provide 15 information and to assist the local workforce development board 16 in carrying out its duties. Such standing committees shall be 17 chaired by a member of the local workforce development board, 18 may include other members of the local workforce development 19 board, and shall include other individuals appointed by the 20 local workforce development board who are not members of the 21 local workforce development board and who the local workforce 22 development board determines have appropriate experience and 23 expertise. 24 b. Engage in regional coordination with one or more other 25 local workforce development areas under the federal Workforce 26 Innovation and Opportunity Act, Pub. L. No. 113-128, section 27 106. 28 Sec. 10. Section 84A.5, unnumbered paragraph 1, Code 2016, 29 is amended to read as follows: 30 The department of workforce development, in consultation 31 with the workforce development board and the regional 32 advisory local workforce development boards, has the primary 33 responsibilities set out in this section . 34 Sec. 11. Section 84A.5, subsection 9, unnumbered paragraph 35 -9- SF 2313 (3) 86 je/rj/jh 9/ 15

S.F. 2313 1, Code 2016, is amended to read as follows: 1 The department of workforce development, in consultation 2 with the applicable regional advisory local workforce 3 development board, shall select service providers, subject to 4 approval by the workforce development board for each service 5 delivery area. A service provider in each service delivery 6 area shall be identified to coordinate the services throughout 7 the service delivery area. The department of workforce 8 development shall select service providers that, to the extent 9 possible, meet or have the ability to meet the following 10 criteria: 11 Sec. 12. Section 84A.6, subsection 1, Code 2016, is amended 12 to read as follows: 13 1. The department of workforce development, in consultation 14 with the workforce development board and the regional 15 advisory local workforce development boards, the department of 16 education, and the economic development authority shall work 17 together to develop policies encouraging coordination between 18 skill development, labor exchange, and economic development 19 activities. 20 Sec. 13. NEW SECTION . 84B.01 Workforce development system. 21 The departments of workforce development, education, 22 human services, and corrections, the economic development 23 authority, department on aging, the division of Iowa vocational 24 rehabilitation services of the department of education, and the 25 department for the blind shall collaborate where possible under 26 applicable state and federal law to align workforce development 27 programs, services, and activities in an integrated workforce 28 development system in the state and in each local workforce 29 development area that is data driven and responsive to the 30 needs of workers, job seekers, and employers. The departments, 31 authority, and division shall also jointly establish an 32 integrated management information system for linking workforce 33 development programs within local workforce development systems 34 and in the state. 35 -10- SF 2313 (3) 86 je/rj/jh 10/ 15

S.F. 2313 Sec. 14. Section 84B.1, unnumbered paragraph 1, Code 2016, 1 is amended to read as follows: 2 The department of workforce development, in consultation 3 with the departments of education, human services, and human 4 rights corrections , the economic development authority, 5 the department on aging, the division of Iowa vocational 6 rehabilitation services of the department of education, and 7 the department for the blind , shall establish guidelines 8 for colocating state and federal employment and training 9 programs in centers providing services at the local level. The 10 centers shall be known as workforce development centers. The 11 departments and the authority shall also jointly establish 12 an integrated management information system for linking the 13 programs within a local center to the same programs within 14 other local centers and to the state. The guidelines shall 15 provide for local design and operation within the guidelines. 16 The core services available at a center shall include but are 17 not limited to all of the following: 18 Sec. 15. Section 84B.2, Code 2016, is amended to read as 19 follows: 20 84B.2 Workforce development centers —— location. 21 A workforce development center, as provided in section 22 84B.1 , shall be located in each service delivery area. Each 23 workforce development center shall also maintain a presence, 24 through satellite offices or electronic means, in each county 25 located within that service delivery area. For purposes of 26 this section , “service delivery area” means the area included 27 within a merged area, as defined in section 260C.2 , realigned 28 to the closest county border as determined by the department 29 of workforce development. However, if the state workforce 30 development board determines that an area of the state would 31 be adversely affected by the designation of the service 32 delivery areas by the department, the department may, after 33 consultation with the applicable regional advisory local 34 workforce development boards and with the approval of the state 35 -11- SF 2313 (3) 86 je/rj/jh 11/ 15

S.F. 2313 workforce development board, make accommodations in determining 1 the service delivery areas, including, but not limited to, the 2 creation of a new service delivery area. In no event shall the 3 department create more than sixteen service delivery areas. 4 Sec. 16. Section 260H.2, subsection 1, Code 2016, is amended 5 to read as follows: 6 1. A pathways for academic career and employment program 7 is established to provide funding to community colleges for 8 the development of projects in coordination with the economic 9 development authority, the department of education, the 10 department of workforce development, regional advisory local 11 workforce development boards established pursuant to section 12 84A.4 , and community partners to implement a simplified, 13 streamlined, and comprehensive process, along with customized 14 support services, to enable eligible participants to acquire 15 effective academic and employment training to secure gainful, 16 quality, in-state employment. 17 Sec. 17. Section 260H.4, subsection 2, paragraph a, Code 18 2016, is amended to read as follows: 19 a. Economic and workforce development requirements in each 20 region served by the community colleges as defined by regional 21 advisory local workforce development boards established 22 pursuant to section 84A.4 . 23 Sec. 18. Section 260H.4, subsection 2, paragraph b, 24 subparagraph (5), Code 2016, is amended to read as follows: 25 (5) Any other industry designated as in-demand by a regional 26 advisory local workforce development board established pursuant 27 to section 84A.4 . 28 Sec. 19. Section 260H.8, Code 2016, is amended to read as 29 follows: 30 260H.8 Rules. 31 The department of education, in consultation with the 32 community colleges, the economic development authority, and the 33 department of workforce development, shall adopt rules pursuant 34 to chapter 17A and this chapter to implement the provisions of 35 -12- SF 2313 (3) 86 je/rj/jh 12/ 15

S.F. 2313 this chapter . Regional advisory Local workforce development 1 boards established pursuant to section 84A.4 shall be consulted 2 in the development and implementation of rules to be adopted 3 pursuant to this chapter . 4 Sec. 20. Section 260I.6, subsection 2, paragraph e, Code 5 2016, is amended to read as follows: 6 e. Any other industry designated as in-demand by a regional 7 advisory local workforce development board established pursuant 8 to section 84A.4 . 9 Sec. 21. EFFECTIVE UPON ENACTMENT. This division of this 10 Act, being deemed of immediate importance, takes effect upon 11 enactment. 12 DIVISION II 13 UNEMPLOYMENT INSURANCE BENEFITS —— AUTHORIZATION TO JOIN 14 CONSORTIUM AND USE CERTAIN FUNDS —— APPROPRIATION 15 Sec. 22. AUTHORIZATION TO JOIN CONSORTIUM. The department 16 of workforce development is hereby authorized to join a 17 consortium with the states of Idaho and Vermont for the purpose 18 of modifying the Idaho unemployment benefit payment software 19 system so that it can be used to pay unemployment insurance 20 benefits by the state of Iowa. 21 Sec. 23. APPROPRIATION —— UNEMPLOYMENT INSURANCE BENEFIT 22 PAYMENT SOFTWARE SYSTEM. 23 1. There is hereby appropriated out of funds made available 24 to the state of Iowa under section 903 of the Social Security 25 Act, as amended, the sum of one million seventy-six thousand 26 dollars, or so much thereof as may be necessary, to be used 27 under the direction of the department of workforce development, 28 for the purpose of modifying the Idaho unemployment insurance 29 benefit payment software system so that it can be used to pay 30 unemployment insurance benefits by the state of Iowa and for 31 the acquisition of programing, software, and equipment required 32 to provide an administrative and payment system for the Iowa 33 unemployment insurance program. 34 2. The funds hereby appropriated shall not be obligated 35 -13- SF 2313 (3) 86 je/rj/jh 13/ 15

S.F. 2313 after the expiration of the two-year period beginning on the 1 date of the enactment of this section. 2 3. The amount obligated pursuant to this section shall 3 not exceed at any time the amount by which the aggregate of 4 the amounts transferred to the account of this state in the 5 unemployment trust fund pursuant to section 903 of the Social 6 Security Act, as amended, exceeds the aggregate of the amounts 7 obligated for administration and paid out for unemployment 8 insurance benefits and required by law to be charged against 9 the amounts transferred to the account of this state in the 10 unemployment trust fund. 11 Sec. 24. AUTHORIZATION OF USE OF FUNDS —— UNEMPLOYMENT 12 INSURANCE BENEFIT PAYMENT SOFTWARE SYSTEM. 13 1. Four million eight hundred twenty-five thousand dollars, 14 or so much thereof as may be necessary, of incentive payment 15 funds credited with respect to the Assistance for Unemployed 16 Workers and Struggling Families Act, Pub. L. No. 111-5, 17 Division B, Tit. II, §2003, as codified in 42 U.S.C. §1103, 18 as a special transfer made under section 903(g) of the Social 19 Security Act, may be used under the direction of the department 20 of workforce development for the purpose of modifying the Idaho 21 unemployment insurance benefit payment system so that it can 22 be used to pay unemployment insurance benefits by the state 23 of Iowa and for the acquisition of programing, software, and 24 equipment required to provide an administrative and payment 25 system for the Iowa unemployment insurance program. 26 2. The funds hereby authorized for use shall not be 27 obligated after the expiration of the two-year period beginning 28 on the date of the enactment of this section. 29 Sec. 25. AUTHORIZATION OF USE OF FUNDS —— UNEMPLOYMENT 30 INSURANCE BENEFIT OVERPAYMENTS. 31 1. Notwithstanding section 96.3, subsection 7, and section 32 96.3, subsection 10, paragraph “d”, the department of workforce 33 development shall not pursue the recovery of any overpayments 34 of unemployment insurance benefits made to individuals caused 35 -14- SF 2313 (3) 86 je/rj/jh 14/ 15

S.F. 2313 by a telephone system malfunction on March 8, 2014. 1 2. The department of workforce development is authorized to 2 make a one-time transfer of five hundred twenty-eight thousand, 3 three hundred seventy-nine dollars and sixty-eight cents, or 4 so much thereof as may be necessary, from moneys transferred 5 to the state on March 13, 2002, pursuant to section 903(d) of 6 the Social Security Act, to be deposited in the unemployment 7 compensation fund for the payment of unemployment insurance 8 benefits. 9 3. The funds hereby authorized for use shall not be 10 obligated after the expiration of the two-year period beginning 11 on the date of the enactment of this section. 12 Sec. 26. EFFECTIVE UPON ENACTMENT. This division of this 13 Act, being deemed of immediate importance, takes effect upon 14 enactment. 15 -15- SF 2313 (3) 86 je/rj/jh 15/ 15