Senate Amendment

SS/SCS/HCS/HB 417 - This act creates new provisions of law creating incentives for the purpose of encouraging certain individuals to obtain employment-related skills

INTERN AND APPRENTICE RECRUITMENT ACT (SECTION 135.457)

This act establishes the "Intern and Apprentice Recruitment Act".

For all tax years beginning on or after January 1, 2024, this act authorizes an income tax credit for taxpayers who hire an intern or apprentice, as such terms are defined in the act. The tax credit shall be equal to $1,500 for each intern or apprentice hired at a pay rate equal to or greater than the minimum wage, provided that the number of interns and apprentices employed during the tax year exceeds the average number of interns and apprentices employed by the taxpayer for the previous three years, and further provided that the interns and apprentices work a certain number of hours, as described in the act.

A taxpayer shall not claim a tax credit pursuant to this act that exceeds $9,000 in a tax year, and the total amount of tax credits authorized by the act shall not exceed $1 million per year.

Tax credits authorized by the act shall not be refundable or carried forward, and shall not be transferred, assigned, sold, or otherwise conveyed.

A taxpayer shall apply for the tax credit to the Department of Economic Development and shall include information on participation in a qualified apprenticeship program or a copy of the official transcript of an intern, as applicable.

This act shall sunset on December 31, 2029, unless reauthorized by the General Assembly.

This provision is substantially similar to SB 637 (2023) and HB 1038 (2023).

ADULT HIGH SCHOOLS (SECTIONS 160.2705 THROUGH 160.2725)

This act modifies provisions relating to adult high schools.

Currently, the Department of Elementary and Secondary Education is required to authorize the operation of four adult high schools across the state. This act transfers such authority to the Department of Social Services (DSS). In addition, DSS shall authorize a fifth adult high school to be located in Jackson County or an adjacent county.

The act requires DSS to administer funding to the adult high schools subject to appropriations. For the existing adult high schools, the Department shall maintain authorization for the nonprofit organizations to operate the high school, provided that no more than one organization may be authorized to operate an adult high school in each of the current four locations. An organization may establish satellite campuses for any adult high school it is authorized to operate.

By January 1, 2024, DSS shall select a Missouri-based nonprofit organization to operate the high school, provided the organization meets current law requirements and demonstrates the ability to commit at least $500,000, rather than $2 million, for the necessary infrastructure to establish the school. The act also organizations to limit the administrative fee to no more than 10%.

Finally, each nonprofit organization must submit an annual report to the Department of Social Services in addition to other entities as provided in current law.

These provisions are identical to SB 199 (2023).

HEALTH PROFESSIONAL LOAN REPAYMENT PROGRAM (SECTIONS 191.430 TO 191.831)

The act repeals current law relating to student loans for certain health professional students and establishes the "Health Professional Loan Repayment Program". Under this program, the Department of Health and Senior Services shall provide forgivable loans in order to repay existing loans for eligible educational expenses for health professional students.

The Director of the Department shall have the discretion to select the health professionals who are eligible for the forgivable loans in accordance with the greatest need in the best interest of the public. Individuals receiving loans under this program shall agree to serve at least 2 years in an area of defined need as a condition of receipt of the funds, among other criteria that must be met as delineated in the act. An individual who fails to uphold the loan agreement shall be liable for the amount paid to the individual by the Department under this program. Furthermore, if an individual breaches a written contract executed pursuant to this provision by failing to begin or complete his or her service obligation, the state shall be entitled to recover from such person an amount equal to:

· The total amount of the loan awarded by the Department or, if the Department had already awarded partial forgiveness at the time of the breach, the amount of the loan not yet forgiven;

· The interest on the amount that would be payable if at the time the loan was awarded it was a loan bearing interest at the maximum prevailing rate as determined by the Treasurer of the United States;

· An amount equal to any damages incurred by the Department as a result of the breach; and

· Any legal fees or associated costs incurred by the Department or the state of Missouri in the collection of damages.

The act additionally creates the Health Professional Loan Incentive Fund for the purpose of allowing the Department to provide loans under this provision. The fund will consist of funds appropriated to it by the General Assembly.

These provisions are identical to HB 542 (2023) and substantially similar to SB 555 (2023).

MEDICAL RESIDENCY GRANT PROGRAM (SECTION 191.592)

This act establishes a medical residency grant program to award grants, subject to appropriation, for eligible entities for the purpose of establishing and funding new general primary care and psychiatry medical residency positions in Missouri and continuing the funding of the new positions for the duration of the residency. Funding shall be available for 3 or 4 years for certain residency positions. The Department of Health and Senior Services shall establish criteria for the grants as described in the act and report on the program to the General Assembly.

This provision has an emergency clause.

This provision expires on January 1, 2038.

This provision is identical to the perfected HB 1162 (2023).

NURSING EDUCATION INCENTIVES (SECTIONS 335.200 TO 335.257)

The act modifies the Nursing Education Incentive Program. Under current law, grant awards made under the program are limited to $150,000. This act repeals that limit. Additionally, the State Board of Nursing is required to collect, at the time of any license application or license renewal application, a Nursing Education Incentive Program surcharge from each person licensed or relicensed as a nurse under Missouri law. Such surcharge shall be equal to $1 for practical nurses and $5 for registered professional nurses. Furthermore, the act modifies the definition of "eligible institution of higher education" to include an approved virtual institution that offers a nursing education program.

The act repeals the Nursing Student Loan Program and the Nursing Student Loan Repayment Program.

These provisions are identical to HB 775 (2023).

LARGE ANIMAL VETERINARY MEDICINE LOAN REPAYMENT PROGRAM (SECTIONS 340.341 THROUGH 340.857)

The act modifies provisions relating to the Large Animal Veterinary Medicine Loan Repayment Program.

Under the act, the Missouri Department of Agriculture shall not grant repayment for more than twelve veterinarians each year, instead of six.

The act renames the "Dr. Merril Townley Large Animal Veterinary Student Loan Program" to the "Dr. Merril Townley and Dr. Dan Brown Large Animal Veterinary Student Loan Program".

The act expands the sources of funding for the Program to include any private grant, gift, donation, device, or bequest of moneys, funds, real or personal property, or other assets.

Under the act, a qualified applicant may receive financial assistance under the Program up to thirty thousand dollars for each academic year, instead of twenty thousand dollars, provided that the cumulative total shall not exceed one hundred twenty thousand dollars per qualified applicant, instead of eighty thousand dollars.

The act provides that up to twelve, instead of six, qualified applicants per academic year may be awarded loans under the Program. The Department may increase the number of qualified applicants above twelve that may be awarded such loans per academic year if the amount of any additional moneys received from private contributions or other assets deposited in the Veterinary Student Loan Payment Fund allows the full funding of such increase in the number of applicants.

Finally, under the act, for each year of qualified employment that each individual contracts to serve in an area of defined need, the Department shall forgive up to thirty thousand dollars with accrued interest, instead of twenty thousand dollars, as provided under the act.

These provisions are identical to SB 529 (2023) and HB 403 (2023).

UPSKILL CREDENTIALS (SECTION 620.2500)

This act creates new provisions allowing the Department of Economic Development (DED) to disburse grants to qualifying employers for each employee or prospective employee who obtains upskill credentials, as defined in the act. In order to receive such grants a qualifying employer is required to submit an application to DED, as provided in the act. Applications are evaluated on a competitive basis using the following criteria:

· The pledged average wage increase that employees or prospective employees will realize after obtaining an upskill credential in relation to the cost of obtaining the credential;

· The level of economic distress to the qualifying employer's region and the balance of awards made to the various regions of the state; and

· The contribution made by the qualifying employer toward the cost of obtaining the upskill credential.

At the close of each application period, to be determined by DED, applications will be evaluated and preliminary awards for reimbursement may be made.

In making preliminary awards of reimbursement, one-third of the awards shall be reserved for employers with 1-50 employees and one-third of the awards shall be reserved for employers with 51-200 employees. If any reserved moneys are not awarded by March 1 of the fiscal year, the moneys may thereafter be awarded to any qualifying employer.

Upon being given a preliminary award for reimbursement, each qualifying employer must sponsor a current or prospective employee to obtain an upskill credential within 12 months of the preliminary award. Employees may not commence the process of obtaining the credential until after a preliminary award has been made. Upon obtaining a credential, the employer shall submit proof of the same to DED along with proof that the individual who completed the training is a Missouri resident with a verifiable Missouri address.

The act prohibits qualifying employers from receiving funds under this act for an employee's upskill credential if:

· The qualifying employer is receiving funds under the Missouri One Start Program for the same upskill credential; or

· The employee is receiving a Fast Track Workforce Incentive Grant for the same upskill credential.

The Upskill Credential Fund is established, consisting of moneys appropriated to it by the General Assembly, not exceeding $6 million in any fiscal year, as well as moneys accepted from any other source. Any funds not expended remain in the fund.

The act contains a sunset clause.

These provisions are substantially similar to SB 53 (2023), SB 760 (2022), and HB 2550 (2022).

SCOTT SVAGERA

SA 1 - ADDS PROVISIONS RELATING TO STUDENT-ATHLETE COMPENSATION

SA 2 - STRIKES THE CHANGES TO THE HEALTH PROFESSIONAL LOAN REPAYMENT PROGRAM FROM THE ACT

SA 3 - ADDS PROVISIONS RELATING TO EMPLOYMENT QUALIFICATIONS FOR CERTAIN STATE EMPLOYEES


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