Iowa 2025-2026 Regular Session

Iowa House Bill HSB674

Introduced
2/4/26  

Caption

A bill for an act relating to apprenticeships and other career training and making appropriations.(See HF 2466.)

Summary

House Study Bill 674, titled the Iowa Skilled Workforce Act, makes a broad set of changes to Iowa law aimed at expanding apprenticeships, pre-apprenticeships, and other career training pathways. The bill adds a new category of apprenticeship entity called an intermediary sponsor, defines related terms such as partner employer, and updates the Iowa Registered Apprenticeship Act and Iowa Apprenticeship Act to recognize these entities. It also changes how apprenticeship programs are supervised, how related instruction is delivered, and how the Iowa office of apprenticeship may cancel, suspend, or deregister sponsors, including new notice, cure, burden-of-proof, and reapplication procedures. The bill also creates new funding and infrastructure tools for workforce development. It establishes a career training physical expansion program to provide financial assistance for new facilities that expand community college and private apprenticeship capacity in high-demand fields, while excluding internet-based expansion projects. The bill creates a dedicated fund for that program and directs the Department of Workforce Development to administer it. In addition, it increases the annual appropriation for apprenticeship training grants from $3 million to $4.5 million beginning in fiscal year 2026. Several provisions focus on education and workforce alignment. School districts are encouraged to expand youth apprenticeship and pre-apprenticeship opportunities, align coursework with apprenticeship requirements, create work-based learning coordinator positions, and pursue private and nonprofit funding. The bill also changes the state’s high-demand jobs list process by requiring updates at least every five years, involving community colleges in regional job lists, and revising the wage criterion from a fixed $14 minimum to a more general “competitive” entry-level wage. It further modifies Future Ready Iowa scholarship eligibility by replacing the student aid index threshold with financial-need criteria set by rule, and it narrows reporting duties related to scholarship and grant programs. The bill also affects unemployment training rules and career and technical secondary authorizations. It requires approval of certain short apprenticeship-related training sessions for unemployment benefit purposes if the training is part of a registered apprenticeship, lasts no more than one week, and is not at a worksite. For secondary career and technical authorizations, it directs the Board of Educational Examiners to limit qualifications to 3,000 hours of recent and relevant experience and to limit initial training requirements to ethics training. Overall, the bill would expand state support for apprenticeship systems, training facilities, and career-oriented education while changing administrative standards and eligibility rules across multiple chapters of Iowa law. Because there are no committee transcripts or recorded votes provided, there is no documented floor or committee sentiment in the supplied materials. Based on the bill text itself, the measure appears generally supportive of workforce development, apprenticeships, and employer-school partnerships, with an emphasis on expanding access and reducing administrative barriers. The main points of potential contention are the new regulatory limits on the apprenticeship office’s enforcement authority, the shift in scholarship eligibility and reporting rules, the exclusion of online training facilities from the new expansion program, and the increased state appropriation for apprenticeship grants.

Impact

HSB674 would amend multiple chapters of the Iowa Code governing registered apprenticeships, apprenticeship funding, unemployment training approval, school district career training initiatives, high-demand job designations, scholarship eligibility, and career and technical secondary authorizations. It would create new statutory definitions and procedures for intermediary sponsors and partner employers, establish a new state grant program and fund for physical expansion of career training facilities, increase apprenticeship grant appropriations, and revise administrative standards for workforce and education agencies. The bill would also affect apprentices, apprenticeship sponsors, community colleges, school districts, the Department of Workforce Development, the College Student Aid Commission, and the Board of Educational Examiners.

Sentiment

No committee discussion transcripts or vote history were provided, so there is no direct record of legislative sentiment in the supplied context. From the bill text, the overall tone is pro-apprenticeship and pro-workforce-training, with a clear emphasis on expanding capacity, improving access, and strengthening pathways into high-demand jobs. The bill’s structure suggests broad support for career and technical education and employer partnerships, though it also imposes new limits and conditions that could draw scrutiny from regulators or stakeholders concerned about oversight and program administration.

Contention

The likely areas of contention are the bill’s changes to oversight and eligibility rules. The Iowa office of apprenticeship would face tighter limits on canceling or deregistering sponsors, including a 90-day cure period and a higher burden of proof, which may concern regulators but benefit sponsors and intermediaries. The new intermediary sponsor model and partner employer approval rules could also raise questions about accountability and program quality. In addition, the shift from a student aid index threshold to commission-defined financial need for scholarship eligibility, the reduction in reporting requirements, the exclusion of internet-based expansion projects from funding, and the increased appropriation for apprenticeship grants may all be debated by education, budget, and workforce stakeholders.

Companion Bills

IA HF 2466

Replaced by A bill for an act relating to apprenticeships and other career training and making appropriations.(Formerly HSB 674.)

Similar Bills

No similar bills found.