HCS/SB 68 - This act modifies several provisions relating to workforce development.FAST-TRACK WORKFORCE INCENTIVE GRANT
This act creates the "Fast-Track Workforce Incentive Grant" to provide grants for Missouri citizens to attend an approved Missouri postsecondary institution of their choice.
To be eligible, a student must meet certain criteria set forth in the act, including having an adjusted gross income of less than $80,000 if the taxpayer's filing status is married filing combined, or $40,000 if the taxpayer's filing status is single, head of household, or qualifying widow(er). In addition, such student must be at least 25 years of age. Grant funding may be renewed, but the student must continue to meet the eligibility requirements and must demonstrate a grade-point average of 2.5 on a 4.0 scale.
Eligibility for a grant expires upon the earliest of receipt of the grant for four semesters or the equivalent, receipt of a bachelor degree, or reaching 200% of the time typically required to complete the program of study.
The Coordinating Board for Higher Education must designate eligible programs of study by January 1, 2020, in connection with local education institutions, regional business organizations, and other stakeholders. The eligible programs must be reviewed and updated by the coordinating board annually.
In addition, the Coordinating Board shall be the administrative agency for implementation of the program, shall determine the criteria for eligibility, shall evaluate each applicant's eligibility, and shall select qualified recipients. The Coordinating Board shall also determine eligibility for renewed assistance.
Grants shall be awarded in an amount equal to the actual tuition and general fees charged of an eligible student after all other federal and state aid are applied. If a grant amount is reduced to zero due to the receipt of other aid, the eligible student shall receive an award of up to $500 or the remaining cost of attendance, whichever is less.
If appropriated funds are insufficient to fund the program, students applying for renewed assistance shall be given priority until all funds are expended.
Students may transfer the financial assistance from one approved public, private, or virtual institution to another without losing eligibility for the program.
This act creates in the State Treasury the "Fast-Track Workforce Incentive Grant Fund". The fund shall be used solely by the Coordinating Board for the purposes of this act. (Sections 173.2553 and 173.2554)
These provisions are identical to HB 225 (2019) and to provisions contained in SS/SCS/SB 16 (2019).
MISSOURI WORKFORCE DEVELOPMENT BOARD
This act allows the Department of Economic Development to include on its website the names of the members of the Missouri Workforce Development Board, including the names of the members of any local workforce development board, along with information on how to contact such boards. (Section 620.511)
MISSOURI WORKS TRAINING PROGRAM
This act modifies several provisions relating to the Missouri Works Training Program.
This act renames the program the Missouri One Start Program. Current law allows administrative expenses equal to fifteen percent of total training costs. This act limits such expenses to a reasonable amount determined by the Department of Economic Development. (Section 620.800)
In promulgating rules and regulations governing the Missouri One Start Training Program, this act requires the Department to consider such factors as the potential number of new jobs to be created, the amount of new capital investment in new facilities and equipment, the significance of state benefits to the qualified company's decision to locate or expand in Missouri, the economic need of the affected community, and the importance of the qualified company to the economic development of the state.
This act allows the Department to require a qualified business to repay all benefits if such business fails to maintain the new or retained jobs within five years of approval of benefits or if such business leaves the state within five years of approval of benefits.
This act allows the Department to contract with other entities, including businesses, industries, other state agencies, and political subdivisions of the state for the purpose of implementing a training project under the program. (Section 620.803)
Upon appropriation of funds to the Missouri One Start Job Development Fund, this act allows a local education agency to petition the Department to utilize the Fund to create or improve training facilities, equipment, staff, expertise, programming, and administration. The Department may award moneys from the Fund for reimbursement of training project costs and services as it deems necessary. (Section 620.806)
This act gives the Department the discretion to determine the appropriate amount of funds to allocate to a training project from the Missouri One Start Community College New Jobs and Retained Jobs Training funds.
Any agreement or obligation entered into by the Department that was made under the provisions of the Missouri Works Training Program prior to the effective date of this act shall remain in effect according to the provisions of such agreement or obligation. (Section 620.809)
These provisions are identical to provisions contained in SB 184 (2019), as amended, and SS/HCS/HB 255 (2019), and are substantially similar to HCS/HB 469 (2019).
MISSOURI WORKS BUSINESS INCENTIVES
The Missouri Works program offers companies tax credits and the ability to retain withholding taxes for meeting certain job creation thresholds. This act allows the Department of Economic Development to offer certain companies tax credits in an amount equal to or less than nine percent of new payroll if such company creates ten or more new jobs and the average wage of new payroll equals or exceeds one hundred percent of the county average wage.
This act also allows the Department to award tax credits to qualified manufacturing companies, defined as a qualified company that manufactures motor vehicles and that manufactures a new product or has commenced making a manufacturing capital investment to the project facility. To receive tax credits, the qualified manufacturing company shall make a manufacturing capital investment of at least $500 million not more than three years following the Department's approval of a notice of intent and the execution of an agreement made under the program. Such tax credits shall not be issued prior to January 1, 2023, and may be issued each year for a period of five years. A qualified manufacturing company may qualify for an additional five-year period if such company makes an additional manufacturing capital investment of at least $250 million within five years of the approval of the original notice of intent.
The maximum amount of tax credits that any single qualified manufacturing company may receive shall not exceed $5 million per calendar year, and the total aggregate amount of tax credits received by all qualified manufacturing companies shall not exceed $10 million per calendar year. If at any time during the project period the qualified manufacturing company discontinues manufacturing the new product or the modification or expansion of an existing product, such company shall immediately cease receiving any benefit under the program and shall forfeit all rights to retain or receive any benefit for the remainder of the project period. Qualified manufacturing companies receiving benefits under the program shall not simultaneously receive tax credits under the Business Use Incentives for Large-Scale Development program for the jobs created or retained or capital investments made under the Missouri Works program.
The Department of Economic Development shall require financial guarantee provisions in an agreement with a qualified company for tax credits authorized under this act. (Section 620.2010)
Current law provides that the Department shall issue tax credits to a qualified company after such company has met the job creation and county average wage requirements. This act allows the tax credits authorized under this act to be issued following the qualified company's acceptance of the Department's proposal and the agreement required under current law.
This act requires qualified companies receiving tax credits under the Missouri Works program to submit a detailed plan to make good faith efforts to employ racial minorities, contractors who are racial minorities, and contractors that employ racial minorities, as described in the act. If such qualified company fails to make such good faith efforts, the qualified company shall not receive tax credits or retain withholding tax for the remainder of the project period.
The Missouri Works program currently has a limit of $116 million on the amount of tax credits that may be issued during a fiscal year. For all fiscal years beginning on or after July 1, 2020, this act reduces such limit to $106 million. This act allows for the authorization of an additional $10 million in tax credits provided that such tax credits are authorized for the purpose of the completion of infrastructure projects, as defined in the act, directly connected with the creation or retention of jobs under the Missouri Works program. This act also allows the Department reserve up to 21.5% of such limit for tax credits authorized under this act.
For all fiscal years beginning on or after July 1, 2020, this act establishes a limit of $75 million on the total amount of withholding taxes that may be authorized for retention by qualified companies with more than fifty employees. Withholding retention authorized for qualified companies with less than fifty employees shall not be subject to such limitation. (Section 620.2020)
These provisions are substantially similar to provisions contained in SS/HCS/HB 255 (2019) and SS/SCS/SB 56 (2019).
NEW BUSINESS FACILITY TAX CREDIT
Current law provides a tax credit for the establishment of new business facilities, which include certain requirements for new business facility investments. This act modifies the definition of "new business facility investment" to include property acquired by purchase, lease, or license, including the right to use software and hardware via on-demand network access to a shared pool of configurable computing resources. (Section 135.100)
This provision is identical to SB 355 (2019), HB 560 (2019), and HB 1143 (2019).
JOSHUA NORBERG