[P E R F E C T E D]




Read 1st time February 15, 2001, and 1,000 copies ordered printed.

Read 2nd time February 19, 2001, and referred to the Committee on Labor and Industrial Relations.

Reported from the Committee March 14, 2001, with recommendation that the bill do pass and be placed on the Consent Calendar.

Taken up April 4, 2001. Read 3rd time and placed upon its final passage; bill passed.

TERRY L. SPIELER, Secretary.



To repeal sections 178.892, 620.470 and 620.474, RSMo 2000, relating to job training, and to enact in lieu thereof three new sections relating to the same subject.

Be it enacted by the General Assembly of the State of Missouri, as follows:

Section A.  Sections 178.892, 620.470 and 620.474, RSMo 2000, are repealed and three new sections enacted in lieu thereof, to be known as sections 178.892, 620.470 and 620.474, to read as follows:

178.892.  As used in sections 178.892 to 178.896, the following terms mean:

(1)  "Agreement", the agreement, between an employer and a junior college district, concerning a project.  An agreement may be for a period not to exceed ten years when the program services associated with a project are not in excess of five hundred thousand dollars.  For a project where associated program costs are greater than five hundred thousand dollars, the agreement may not exceed a period of eight years.  No agreement shall be entered into between an employer and a community college district which involves the training of potential employees with the purpose of replacing or supplanting employees engaged in an authorized work stoppage;

(2)  "Board of trustees", the board of trustees of a junior college district;

(3)  "Certificate", industrial new jobs training certificates issued pursuant to section 178.895;

(4)  "Date of commencement of the project", the date of the agreement;

(5)  "Employee", the person employed in a new job;

(6)  "Employer", the person providing new jobs in conjunction with a project;

(7)  "Industry", a business located within the state of Missouri which enters into an agreement with a community college district and which is engaged in interstate or intrastate commerce for the purpose of manufacturing, processing, or assembling products, conducting research and development, or providing services in interstate commerce, but excluding retail[, health, or professional] services.  "Industry" does not include a business which closes or substantially reduces its operation in one area of the state and relocates substantially the same operation in another area of the state.  This does not prohibit a business from expanding its operations in another area of the state provided that existing operations of a similar nature are not closed or substantially reduced;

(8)  "New job", a job in a new or expanding industry not including jobs of recalled workers, or replacement jobs or other jobs that formerly existed in the industry in the state;

(9)  "New jobs credit from withholding", the credit as provided in section 178.894;

(10)  "New jobs training program" or "program", the project or projects established by a community college district for the creation of jobs by providing education and training of workers for new jobs for new or expanding industry in the state;

(11)  "Program costs", all necessary and incidental costs of providing program services including payment of the principal of, premium, if any, and interest on certificates, including capitalized interest, issued to finance a project, funding and maintenance of a debt service reserve fund to secure such certificates and wages, salaries and benefits of employees participating in on-the-job training;

(12)  "Program services" includes, but is not limited to, the following:

(a)  New jobs training;

(b)  Adult basic education and job-related instruction;

(c)  Vocational and skill-assessment services and testing;

(d)  Training facilities, equipment, materials, and supplies;

(e)  On-the-job training;

(f)  Administrative expenses equal to fifteen percent of the total training costs;

(g)  Subcontracted services with state institutions of higher education, private colleges or universities, or other federal, state, or local agencies;

(h)  Contracted or professional services; and

(i)  Issuance of certificates;

(13)  "Project", a training arrangement which is the subject of an agreement entered into between the community college district and an employer to provide program services;

(14)  "Total training costs", costs of training, including supplies, wages and benefits of instructors, subcontracted services, on-the-job training, training facilities, equipment, skill assessment and all program services excluding issuance of certificates.

620.470.  As used in sections 620.470 to 620.481, unless the context clearly requires otherwise, the following terms mean:

(1)  "Department", the Missouri department of economic development;

(2)  "Fund", the Missouri job development fund as established by section 620.478;

(3)  "Industry", an entity the objective of which is to supply a service or the objective of which is the commercial production and sale of an article of trade or commerce.  The term includes a consortium of such entities organized for the purpose of providing for common training to the member entities' employees, provided that the consortium as a whole meets the requirements for participation in this program;

(4)  "Manufacturing", the making or processing of raw materials into a finished product, especially by means of large-scale machines of industry.

620.474.  1.  The department shall establish a basic industry retraining program, the purpose of which is to provide assistance for industries in Missouri for the retraining and upgrading of employees' skills which are required to support new [capital] investment.  Such program shall be operated with appropriations made by the general assembly from the fund.

2.  Assistance under the basic industry retraining program may be made available for industries in Missouri which make new investments [in manufacturing] without the creation of new employment.

3.  The department shall issue rules and regulations governing the awarding of funds administered through the basic industry retraining fund.  When promulgating these rules and regulations, the department shall consider such factors as the number of jobs in jeopardy of being lost if retraining does not occur, the amount of private sector investment in new facilities and equipment, the ratio of jobs retained versus investment, the cost of normal, ongoing training required for the industry, the economic need of the affected community, and the importance of the industry to the economic development of Missouri.

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