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.

2025-2026 Regular Session

SSB 1068 reorganizes Iowa's workforce development, streamlines unemployment insurance, and alters taxable wage definitions, impacting employers and job seekers.

Committee report approving bill, renumbered as SF 222.

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Purpose and Intent

SSB 1068 aims to enhance workforce training, streamline unemployment insurance processes, and improve adult education programs. The bill seeks to reorganize the functions of the Department of Workforce Development, the Workforce Development Board, and local workforce development boards. It also includes provisions for appropriations to support these initiatives.

Key Provisions

Division I - Functions of Workforce Development Entities

Reorganization of Duties: The bill removes certain responsibilities from the Department of Workforce Development, including:

Administering a statewide employment skills assessment.
Selecting service providers.
Establishing a job posting system for education-related job openings.

Repeal of Programs: The bill repeals several existing programs, including:

Iowa Conservation Corps
Workforce Investment Program
Statewide Mentoring Program
New Employment Opportunity Program
Nursing Workforce Data Clearinghouse

Transfer of Reporting Duties: Responsibilities for compiling annual reports on workforce training programs will be shifted from the Department of Workforce Development to the College Student Aid Commission.

Modification of Local Board Duties: Local workforce development boards will see changes in their responsibilities regarding local workforce development plans.

Division II - Unemployment Insurance Taxable Wages

Definition Change: The bill modifies the definition of "taxable wages" for unemployment insurance taxes by excluding wages paid to employees from other states from the taxable wage calculation for employers.

Affected Parties

Workforce Development Entities: The bill impacts the Department of Workforce Development, the Workforce Development Board, and local workforce development boards by altering their functions and responsibilities.

Employers: Changes to the definition of taxable wages will directly affect employers' unemployment insurance tax calculations.

Job Seekers and Workers: The reorganization of workforce training programs may influence the availability and structure of job training and educational opportunities.

Procedural Aspects

Subcommittee Actions: The bill was introduced and referred to the Workforce Committee on January 28, 2025. A subcommittee meeting was held on February 3, 2025, with a recommendation for passage on February 4, 2025.

Committee Report: The bill received committee approval on February 5, 2025, and was subsequently renumbered as SF 222.

Conclusion

SSB 1068 represents a significant restructuring of workforce development functions and unemployment insurance provisions in Iowa. By streamlining operations and modifying existing programs, the bill aims to enhance the effectiveness of workforce training and support for job seekers while adjusting the financial responsibilities of employers regarding unemployment insurance.

Bill