Senate Workforce Committee passes SSB 10 68 to calendar; bill updates IWD code, UI wage definition, internships and adult education audit rules

The Senate Workforce Committee voted to pass Senate Study Bill 10 68 and moved the bill to the calendar after a voice vote at its meeting. Senator Pike moved the bill; the committee recorded the ayes and reported no opposition.

SSB 10 68 is “a department bill that comes to us from Iowa Workforce Development,” Senator Pike said in opening remarks. The bill contains four divisions that make related changes to Iowa code and program funding administered by Iowa Workforce Development (IWD).

The measure’s first division is described as cleanup language: it would remove duplicative or outdated provisions in Iowa code chapter 84.8 and replace them with a general statement that IWD will administer workforce programs in compliance with current federal workforce legislation. The bill text as presented refers to federal workforce legislation without naming a specific federal statute.

Division 2 would change the definition of taxable wages for unemployment insurance (UI). Under the proposed change, UI taxes would be paid only on wages to employees in Iowa, rather than wages paid to employees in another state that extends a similar credit to Iowa employers. Senator Pike said IWD data show only about 2% of Iowa employers currently receive that credit, and that implementing the change carries administrative costs.

Division 3 would combine two employer-facing internship programs, referred to in committee as STEM and TIP, and increase the combined award level to the fiscal 2024 funding level. Committee materials presented by Senator Pike said STEM was funded at $633,325 for fiscal 2024 and 2025, while TIP operated in fiscal 2024 with $406,100 from the Skilled Worker and Job Creation Fund via IEDA, creating a combined appropriation of $1,039,425 at that funding level. Senator Pike said TIP received no legislative funding for fiscal 2025, which led some applicants who historically applied for TIP to apply instead to STEM and increased requests for STEM funding.

Division 4 would remove a state-code requirement that IWD consult with community colleges before auditing adult education and literacy program funds. Senator Pike told the committee that current Iowa code requires IWD and community colleges to jointly implement adult education and literacy programs, but that language conflicts with federal law that designates the eligible agency (IWD) to award competitive grants. He said the change is intended to align state code with federal requirements while keeping community colleges as valued partners in adult education.

During committee discussion, Senator Townsend asked whether concerns raised by community colleges about Division 4 had been resolved and whether an amendment might be forthcoming. Senator Pike said the committee had not heard from the community colleges and that he would notify members if further conversation produced changes before the bill went to the floor.

Senator Pike closed by moving the subcommittee bill. A voice vote was taken; the chair declared the ayes to have it and recorded that SSB 10 68 passes and moves to the calendar.

Discussion vs. decision: committee members discussed potential outreach to community colleges on Division 4 and administrative costs tied to the UI definition change, but the committee took formal action only to pass the bill to the calendar. No amendments or recorded roll-call vote totals were reported in the transcript.

Next steps: SSB 10 68 will proceed to the Senate calendar for further consideration.